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2010 Interim Results Announcement2010 Interim Results Announcement

August 30, 2010August 30, 2010

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These materials have been prepared by Anton Oilfield Services Group (the “Company”, together with its subsidiaries, the “Group”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates, advisers or representatives accept no liability whatsoever for any loss howsoever arising from any information presented or contained in these materials.

The information and data presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed.

DisclaimerDisclaimer

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AgendaAgenda

Business Review in 1H2010

Operational and Financial Review

Outlook

Q & A

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Business Review in 1H2010Business Review in 1H2010

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Revenue

RMB (million)

Business Review in 1H2010Business Review in 1H2010

Net profit

RMB (million)

Earnings per share as RMB0.019

The Group's business maintained stable growth in 1H2010 with substantial growth in profit compared to 1H2009

4.3%

87.4%

EBITDA

RMB (million)

37.4%

Total revenue increased by 4.3% to RMB337.5 million

EBITDA increased by 37.4% to RMB150.9 million

Net profit increased by 87.4% to RMB46.1 million

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Industry recoveryIndustry recoveryIndustry recovery

Improvement in business structure

Improvement in Improvement in business business structurestructure

The Group successfully launched self and newly developed technologies to the market. There was a higher proportion of revenue contributed by technical service type products and improvement in business structure, resulted in increase in the overall profitability. The Group was granted unilateral indicative committed workload by PetroChina for the services of multistage sanded fracture for horizontal well in 77 wells out of the 102 wells in its oil and gas fields, marking the successful launch of new technology strategy

IntegratedStrategy

IntegratedIntegratedStrategyStrategy

In 2010, the Group established a development strategy of provision of integrated technical services and the Integrated Project Business Unit in providing such services to customers. The Group successfully won the bid for drilling and related works contract of the Carbon Capture and Storage (“CCS”) model project of Shenhua Group, demonstrating the success of this integrated technical services strategy.

In 1H2010, due to increased investments by oil companies and the successful promotion of new technologies, the Group managed to quickly turn around the downward spiral seen in 2H2009.

Independent Equipment

Service Division

Independent Independent Equipment Equipment

Service DivisionService Division

Achievement in R & D

Achievement in Achievement in R & DR & D

Increased investments in equipment service, R&D of tools and design capability. Established a R&D center in Houston, further enhanced the cooperation with the Anton Design Institute of

China University of Petroleum. Established three major technologies of natural gas exploration technology, horizontal well operation

technology and integrated technology. Developed own-designed well completion and service equipment with characteristics, which can be used in the high-end market. Such technologies were successfully promoted and applied in oil fields.

Business Review in 1H2010Business Review in 1H2010

Breakthrough in overseas market Breakthrough in Breakthrough in overseas marketoverseas market

Achieved breakthrough in overseas market, with revenue increased by 22% Y-o-Y. The proportion of overseas market in total group revenue rose to 14% from 11.9%. In the future, the Middle East market will be one of the major development area for the Group.

In 1H2010, the Group set up a separate equipment service division, which covers coiled tubing services, tubular helium testing services as well as pumping services. Coiled tubing operation services were successfully applied in the southwestern China region and Changqing region, and would be expanded into the Middle East market. Tubular helium testing technology cemented its leading position in China while construction of pumping services has begun.

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Operational and Financial ReviewOperational and Financial Review

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Well CompletionWell Completion

RMB (million)

Business Overview Revenue of integrated well completion increased by

115.7% to RMB39.9 million. The well completion tool researched and developed by our Group is gradually building its brand name in the industry. Large-scale application is expected.

We continued to launch high-end products of screen well completion technical services, and develop in the high- end market with improved profit margin. Despite that the quantity of sand screens used in well completion technology services by means of screens decreased by 38.9%, the revenue dropped slightly by 8.9% to RMB25.7 million. The self-developed flow adjustment and water control screen pipes were successfully applied in the Xinjiang region, laying a solid foundation for the subsequent nationwide marketing.

The gravel packing well completion technology has successfully secured a strong position in Shengli oilfield, Henan oilfield and Jidong oilfield. Its revenue increased from RMB43.0 million in 1H2009 to RMB56.7 million in 1H2010, up by 31.9%. The gravel packing well completion technology is expanding to both domestic and overseas oilfields.

+32.8%

Well completionRevenue increased by 32.8% in 1H2010

Well completion EBITDA increased by 40.3% in 1H2010

RMB (million)

+40.3%

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DownDown--hole Operationhole Operation

Business OverviewDown-hole Operation (Production Enhancement Service) Revenue grew by 123.0% to RMB80.5 million. The marketing efforts on the multistage fracture production enhancement

technology for horizontal well paid off. In April 2010, the Group was granted unilateral indicative committed workload by PetroChina for the services of multistage sanded fracture for horizontal well in 77 wells out of the 102 wells in its oil and gas fields.

The chemical EOR (enhanced oil recovery) operation reported steady growth and established a leading position in the Jilin area.

Gas lift operation entered Africa market. It will provide gas lift and production enhancement services in block oil and gas fields in Africa.

Equipment Service Revenue reached RMB16.6 million in 1H2010, increased from RMB2.5

million in 1H2009. The coiled tubing business officially commenced operations in 2010 and

generated revenue of RMB4.8 million in 1H2010, successfully applied in the southwestern China region and the Changqing region, and would continue to expand into the Middle East market. In addition, the production enhancement operation combining coiled tubing and hydro jet tools developed by the Group has been successfully applied in the Daqing region, laying the foundation for promotion in the entire country.

Tubular helium testing technology was further promoted nationwide and a leading position in China was built up with revenue growing from RMB2.5 million in 1H2009 to RMB11.8 million in 1H2010. The Group has cemented a leading position of its tubular helium testing technology in China which has a huge developing potential.

Down-hole operationRevenue increased by 151.6% in 1H2010

Down-hole operation EBITDA increased by 326.1% in 1H2010

+326.1%

RMB (million)

RMB (million)

+151.6%

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Drilling TechnologyDrilling Technology

Business Overview

RMB (million) As oil companies had postponed the implementation of some of

its projects, the Group recorded Y-o-Y decrease in revenue from the drilling technology division. With the resumption of relevant projects of oil companies, revenue from this division will gradually increase in 2H2010. In 1H2010, the drilling technology for high temperature and high pressure directional wells was successfully applied in the Daqing region, the Jilin region and the Jidong region, and was further introduced to northeastern China in which Sinopec is located, laid a solid foundation for the development of the second half of this year.

Established a development strategy of provision of integrated technical services and the Integrated Project Business Unit, which is engaged in the integrated technical services of drilling, well completion and down-hole operation and oil and gas field general contracting services for the total package service markets of highly difficult wells, including the Carbon Capture and Storage (“CCS”) model project and oil and gas field development including general contracting for coal bed gas exploration.

In August 2010, the Group successfully won the bid for drilling and related works contract of the CCS model project of Shenhua Group for providing integrated technical services and the control and management of complicated events in the course of operations, demonstrating the success of the integrated technical services strategy and has huge development potential.

Drilling technologyRevenue decreased by 70.2% in 1H2010

Drilling technologyEBITDA decreased by 61.6% in 1H2010

-61.6%

RMB (million)

-70.2%

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Business overview

Tubular ServicesTubular Services

RMB (million) The Group proactively improved its business structure by

increasing the proportion of high value-added technological services and reducing the proportion of tube production in sales. The profit margin was lifted despite the drop in revenue.

Completed the R&D of modular repair technology, which enables the Group to carry out mobile rapid testing and repair.

Promoted the one-stop service for oilfield tube in Tarim Basin Oil Field. It set up a service centre covering comprehensive services for oilfields, including testing, maintenance and management of tubes, and also established headquarters for tube services in the Xinjiang, Korla region and successfully established long-term partnerships with local oilfields.

Tubular servicesRevenue decreased by 26.4% in 1H 2010

Tubular servicesEBITDA decreased by 4.3% in 1H2010

-4.3%

RMB (million)

-26.4%

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Revenue Breakdown in1H2010

Breakdown of Business Clusters Breakdown of Business Clusters

Revenue Breakdown in 1H2009

EBITDA in 1H2010 EBITDA in 1H2009

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EBITDA margin by clustersEBITDA margin by clusters

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(RMB thousands)

(Unaudited) 1H2010 1H2009

Revenue 337,477 323,739Other (loss)/income, net (70) 1,970Operating costs (276,964) (299,231)

Material costs (139,203) (162,879)Staff costs (58,816) (65,473)Depreciation and amortisation (25,363) (16,278)Sales tax and surcharges (3,330) (5,815)Others (50,252) (48,786)

Operating profit 60,443 26,478Interest income 1,637 2,917Finance costs, net (1,466) (755)Share of (loss)/profit of a jointly controlled entity (1,879) 60Profit before income tax 58,735 28,700Income tax expense (12,628) (4,129)Profit for the period 46,107 24,571Profit attributable to equity holders of the Company 40,339 21,471

Income StatementIncome Statement

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Sales revenue in 1H2010: RMB337.5 millionSales revenue in 1H2009: RMB323.7 million

Cost AnalysisCost Analysis

Material Costs:Reduced proportion mainly due to increase in proportion of technical services to total revenue.

Staff Costs:In 1H2010, expenditure on wages decreased compared to 1H2009, due to the significant reduction of option amortization

Depreciation and Amortization:Increase in depreciation was due to the purchase of service equipment in 2H2009.

Other Operating Costs:Other operating costs remained stable with proportion nearly the same as 1H2009.

Proportion of costs to sales revenue

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As at 30 June 2010(Unaudited)

As at 31 December 2009(Audited)

Property, plant and equipment 377,273 334,240Land use rights 25,769 26,051Intangible assets 334,432 312,087Investment in a jointly controlled entity 48,789 50,668Other long-term assets 1,619 639Inventories 258,860 211,613Trade and notes receivables 543,888 429,985Cash and cash equivalents 124,536 272,959Other current assets 170,913 153,238Total assets 1,886,079 1,791,480Equity attributable to the equity holders of the Company

1,535,567 1,511,365

Non-controlling interests 33,044 34,714Non-current liabilities 14,682 2,479Current liabilities 302,786 242,922Total liabilities 317,468 245,401Total equity and liabilities 1,886,079 1,791,480

Balance SheetBalance Sheet

(RMB thousands)

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Trade Receivables Turnover DaysTrade Receivables Turnover Days

Trade Payables Turnover DaysTrade Payables Turnover Days

Working Capital ManagementWorking Capital Management

Inventory Turnover DaysInventory Turnover Days

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Capital Expenditure in 1H2010Capital Expenditure in 1H2010

Capital ExpenditureCapital Expenditure

CAPEX in 1H2010 was approximately RMB76.2 million, CAPEX in 1H2010 was approximately RMB76.2 million, primarily for the investments in fixed assets, intangible assetsprimarily for the investments in fixed assets, intangible assets and equity investments.and equity investments.

Details of investment Amount (RMB million)

investments in fixed assets 52.0

investments in intangible assets 15.7

investments in equity 8.5

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OutlookOutlook

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To become a leading global oilfield technology services provider, with a strong foothold in China

OutlookOutlook

Our goalOur goalOur goal

A one-stop oilfield technological service system covering oil exploration, oilfield development as well as oilfield maintenance

An asset-light technological service company which is distinguished from oilfield equipment suppliers and engineering contractors

By starting in China, the Group will build up international competitiveness with global marketing network and on-site service base. Establish partnerships with major oil companies in the world.

Leading R&D capabilities by building up strong design and service capabilities; self-developed tools, ancillary equipment and chemical materials

Leveraging China’s competitive advantages in talent, raw material costs and

as an emerging market, the Group will develop its business and achieve strategic goals.

Leveraging China’s competitive advantages in talent, raw material costs and

as an emerging market, the Group will develop its business and achieve strategic goals.

Product System Product Product SystemSystem

MarketMarketMarket

Ancillary Technology

Ancillary Ancillary TechnologyTechnology

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An one-stop service enterprise with drilling, well completionand down-hole operation as core business.

帮助别人成功，自己就能成功

Product & Technology System & DirectionsProduct & Technology System & Directions

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New Market Trends & OpportunitiesNew Market Trends & OpportunitiesNew Market Trend Content Opportunities and Measures

Demand stimulated by extensive application of natural gas

Exploration of conventional natural gas

Exploration of unconventional natural gas

Construction of underground gas storage facilities

Provide opportunities to Anton’s technology in exploration of natural gas

Large-scale horizontal well exploration

Oilfields will adopt large-scale exploration of horizontal wells

Provide opportunities to Anton’s technology in horizontal well

Demand for total package service and integrated technical services of oil and gas fields

“New 36 Guidelines on Non-State-owned Economy”

Provide opportunities to Anton’s integrated services

Chinese oil companies’ overseas investments increase demand for services

Major oil companies in PRC (PetroChina, Sinopec, CNOOC, CITIC, Zhenhua Oil, Sinochem) invested heavily in overseas oil and gas fields, reflecting that overseas business strategy has become an important development strategy of them.

Provide opportunities to Anton’s different technologies to enter the overseas market

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ConclusionConclusion12 09 56 -

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With the full recovery of the oil market,

Anton is now on its way back to the track of

high speed growth like it had before 2009.