Hard Rock Directional Drilling Company Overview

Directional Drilling Fleet 2

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Agenda

Company Overview 1

Safety issues are the most important responsibility of our company and our resulting safety track record proves successful implementation

Operated by a seasoned management team and drilling professionals fully trained in the complex HDD process

Adhere to a strict training program

Internal development and promotion program ensures Hard Rock is above and beyond the competition

Comprehensive, new drilling and support fleet

Provide a true Turn-Key Service:

• Field Operations are supported by: In-house Maintenance, Fabrication Department, Extensive Support Equipment, Internal Survey, Pre- and Post-Profile, and Potholling Capabilities;

• Hard Rock’s Turn-Key Service results in:

– Reduced downtime, delays, and/or calls on the customer’s equipment

– High reliability and on-time delivery

– Negates the need to rely on 3rd party contractors or our customers for any back-up services

Leading provider of Horizontal Directional Drilling (HDD) and field services

Headquartered in San Antonio, TX with additional operating locations in Pearsall, Edinburg, San Angelo, and Monahans

Operates a comprehensive, new drilling and support fleet

11 years in business and over 100 years of combined experience

Over 50+ MSA’s with “Blue Chip” & broad customer base

Provide a comprehensive range of services including:

• Engineering & Bore design

• Total turn-key HDD installation

• Utility infrastructure installation

• Field services

Since inception in 2003, Hard Rock has successfully installed over 2 million ft. of pipe, with sizes ranging from 2”–42”

In 2014, Hard Rock successfully performed over 440 thousand boring feet for its customers

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About Us

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Company Profile

Key Differentiators

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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Company History

Founded in July 2003 1 drilling rig Mainly served Utility &

Telecommunication industries

First full-year of operation 1 drilling rig 3 employees

2 drilling rigs 7 employees

3 drilling rigs 9 employees

4 drilling rigs 15 employees

5 drilling rigs 25 employees Customer base expanded

to Oil & Gas industry Added in-house tool

fabrication Acquired Pearsall

property to capitalize on Eagle Ford play

96,496 feet of production

7 drilling rigs 50 employees Majority of revenue

from oil & gas 273,867 feet of

production

11 drilling rigs 73 employees Opened Pearsall

office / maintenance facility

Acquired Valley Boring

435,969 feet of production

Acquired San Antonio Facilty

Added yard in Edinburg

Opening West Texas yard

85 employees 16 drilling rigs

20 drilling rigs 135 employees New yard in

Monahans, TX

CEO

Corporate Operations

Business Development

Safety Financial Field Operations

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Seasoned Management Team and Deep Infrastructure (I)

• Corporate and field operations development staff

• Fully staffed corporate infrastructure department

• Dedicated staff members assigned to ensure internal safety procedures are followed

• CFO • Controller • Fully staffed

internal accounting department

• Annual audits by outside CPA firm

• Next slide details our Field structure

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Seasoned Management Team and Deep Infrastructure (II)

Drilling Operations are supported by both Superintendents and Crew Leaders

Field Operations General

Superintendent

Superintendent

Crew Leader

Crew

Crew Leader

Crew

Superintendent

Crew Leader

Crew

Crew Leader

Crew

Crew Leader

Crew

Superintendent

Crew Leader

Crew

Crew Leader

Crew

Crew Leader

Crew

Superintendent

Crew Leader

Crew

Crew Leader

Crew

Crew Leader

Crew

Superintendent

Crew Leader

Crew

Crew Leader

Crew

Crew Leader

Crew

Superintendent

Crew Leader

Subcontractors

Hard Rock is a member in good standing with and compliant with the standards of:

• IS Networld

• Veriforce

• SafeLand

• NCCER

• PEC Premier

• Houston Area Safety Council

• NCMS

• PHMSA

Hard Rock allocates extensive resources and has an assigned staff that is dedicated to insure that the company remains an industry leader in safety

Fully compliant with all necessary safety requirements

Hard Rock is insured by AFHIC, Winchester Fire Insurance Company, and Texas Mutual Insurance with coverage that includes commercial general liability, any auto, hired auto, non-owner auto, and umbrella liability (Noth River Insurance)

Safety policy:

• Projects are subject to regular safety audits

• Daily crews are required to follow the job safety analysis (JSA) procedure which Hard Rock has expanded to total job analysis and is reviewed each day with the crews on-site

• Supervisors are evaluated based on their safety records and the safety records of the employees they supervise

• Require employees to actively participate in internal training and service programs relevant to their employment and complete any training programs required by law or relevant to the specific project

• Adhere to a strict drug policy where employees are subject to pre-employment and random drug screens

Internal

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Impeccable Safety Record

External

Hard Rock has a strong safety record over its 11 year history that is superior to the industry average

Engineering & Bore Design

• Atlas Bore Planner

• Autocad

• DCE Datalog

• GPS surveying equipment

• Gyro locating system

• Tensor tool

• 2 Paratrack downhole wireline guidance systems

• Access to bore profiles via website

Extensive Support Equipment

• Dedicated Fleet Manager

• Track hoes

• Trailers/haul trucks

• Mud/water trucks

• Vacuum trucks

• Field Servicing trucks

• Hydro excavation – also have air capabilities

• Wireline

Dedicated Fabrication Department

• Can customize tools required for any job

• Can build cooling/heating & trash trailers

• CAD Machine

Pearsall Yard

• On-site mechanics & service trucks

• Storage

• Admin support/ in addition to San Antonio

• Employee housing facilities

Valley Boring Acquisition & Yard

• Additional drilling rigs

• 1 dry machine – American Auger 48”/52”

• 2 additional Super Vac trucks

• Storage

West Texas Yards (San Angelo & Monahans)

• Support equipment

• Storage

• Employee housing facilities

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True Turn-Key Operations

Hard Rock’s field operations are supported by:

True Turn-Key service negates the need to rely on 3rd party contractors or the customer for any back-up services

Potholing Services

Hard Rock offers safe, precise, cost-effective, and environmentally friendly hydro and air excavation services to its clients with its fleet of 6 vacuum trucks

Hard Rock’s vac services are used for visual inspection to verify existing infrastructure without damaging the product

Vacuum Trucks

– 2 Peterbilt w/Vermeer Vactron Units

– 2 Kenworth w/Vactor HXX PD Units

– 2 Kenworth w/Vactor HXX Units

Advantages of Vac Services

– Reduces risk of injury to personnel

– Reduces risk of damage to underground infrastructure

– Reduces delays, costly repairs, liability, and service interruption due to damage of underground infrastructure

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Utilities damaged by a backhoe

Utilities excavated by hydro vac

Additional Field Services

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Site Construction – Drill site – Pads – Entrances – Right of way work – Soil excavation – Site remediation

Utility, Admin, and Civil – Directional boring utility lines (fiber & gas) – Roads – Paving – Parking lots

Miscellaneous – Surveying – Maintenance – Drainage

In addition to its vac services, Hard Rock has an array of equipment (e.g., backhoes, excavators, maintainers, dozers, etc.) that allows the Company to offer a number of additional field services including:

Hard Rock Facts

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250 Total pieces of equipment

Key Operating Assets

– 1 Vermeer 40 x 40

– 4 Vermeer 36 x 50 drills

– 3 Vermeer 36 x 50 DR (rock drills)

– 5 Vermeer 60 x 90 drills

– 2 Vermeer 100 x 120 drills

– 1 Vermeer 100 x 140 drill

– 1 Universal 250 x 400 drill

– 1 Vermeer 330 x 500 drill

– 1 Vermeer 500 x 500 drill

– 1 American Augers 440T

– 1 American Auger 48/54”

– 6 High-Volume Super Vac Trucks

Comprehensive, New Drilling and Support Fleet

Drilling Fleet

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Drilling Rig Number of Rigs Thrust/Pullback Torque

Vermeer 40 x 40 1 40,000 lbs (178 kN) 4,000 ft-lb (5,423 Nm)

Vermeer 36 x 50 4 36,000 lbs (160 kN) 4,995 ft-lb (6,772 Nm)

Vermeer 36 x 50 DR 3 38,000 lbs (169 kN) 6,000 ft-lb (8,135 Nm)

Vermeer 60 x 90 5 60,000 lbs (267 kN) 9,000 ft-lb (12,202 Nm)

Vermeer 100 x 120 2 100,000 lbs (445 kN) 12,000 ft-lb (16,270 Nm)

Vermeer 100 x 140 1 100,000 lbs (445 kN) 14,000 ft-lb (18,982 Nm)

Universal 250 x 400 1 250,000 lbs (1,112 kN) 40,000 ft-lb (54,237 Nm)

Vermeer 500 x 500 1 500,000 lbs (2,224 kN) 50,000 ft-lb (67,791 Nm)

American Augers 440T 1 440,000 lbs (1,957 kN) 60,000 ft-lb (81,349 Nm)

American Auger 48/54 1 900,000 lbs (4,003 kN) 136,551 ft-lb (185,138 Nm)

Hard Rock operates an extensive drilling fleet that is capable of handling any pipe size and distance required

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Drill Rod Specs

Size Lgth. Wght. Bend Radius Ft. of Rod to

Bend 90 degrees

Max. Angle in

degrees/Rod

Max. % Slope

%/Rod Torque Rating

D 36 x 50 2.625" (6.7 cm) X.40" (1 cm) wall thickness with 3.1" (7.9 cm) upset

15' (4.6 )

165 lb/stem (74.8 kg)

145' (44 m) 228'

(69.4m) 5.9 10.3

5,000 ft-lb (6779.1 Nm)

D 36 x 50 DR 2.625" (6.7 cm) OD x .281" (.7cm) wall thickness with 3.31" (8.4 cm) upset

10' (3 m)

86 lb/stem (39.0k)

169' (52m) 265'

(80.8 m) 3.4 5.9

6,000 ft-lb (16779.09 Nm)

D60 x 90 3.5" (8.9 cm) OD X .449" (1.14 cm) wall thickness with 3.625" (9.2 cm) upset

15' (4.6 )

250 lb/stem (113.4 kg)

197.4' (60.2 m) 310'

(94.5m) 4.3 7.5

10,000 ft-lb (13,558.2 Nm)

D100 x 200 3.5" (8.9 cm) OD x .476" (1.2 cm) wall thickness with 4.375" (11.1 cm) upset

20' (6.1 cm)

374 lb/stem (169.6 kg)

197.4' (60 m) 310'

(94.5m) 5.8 10.2

15,000 ft-lb (20,337.3 Nm)

D250 5” .362 wall thickness

20’ 550 lb/stem 500’

4.2 38,044

D440 x 500 5.5” .415 wall thickness

31’ 858 lbs../stem 458 3.6 12.5°

73,20

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Work Space Work Space Requirements

Machine Size

Minimum Work Space

Requirements

36 x 50 50’ x 50’

60 x 90 100’ x 100’

100 x 120 150’ x 120’

250, 440, 500 150’ x 150’

Agenda Agenda

Summary 1

2014 Notable Projects

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With over 100 years of combined experience, the Hard Rock team has successfully completed hundreds of HDD projects of all pipe sizes for national, state and local firms

TexStar – 8” – Pettus • Location: Pettus, TX • 32,000’ of 8” pipe • LF Range: 100’-3,000’

Dow – 12” – Gulfstream • Location: Texas City, TX • 33,000’ of 12” pipe • LF Range: 100’-3,300’ • 4 Core of Engineer Drills

Oneok – 16” – Sterling • Location: Crockett, TX • 22,000’ of 16” pipe • LF Range: 100’-2,400’

Magellan – 20” – Bridge Tex • Location: Houston, TX • 10,000+’ of 20” pipe • LF Range: 1,450’-4,200’

Magellan – 24” – Bridge Tex • Location: Houston, TX • 7,400’ of 24” pipe • LF Range: 1,400’-2,500’

Atmos – 30” – Groesbeck • Location: Groesbeck, TX • 5,500’ of 30” pipe • LF Range: 800’-1,400’

Phillips Sweeney Midstream – 2-10”, 12”, 2-16”, 18”, 20” – Sweeney • Location: Sweeney, TX • 51,000’ HDD – 50,000’ Road Bores •Linear foot range 100’-5,000’

Broad & Blue Chip Customer Base

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Why Hard Rock?

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Provides superior service to its customers and ensures that each job is completed efficiently while adhering to the strictest safety protocols

Proven success with over 2+ million feet of pipe installed

A broad operator with the sophistication and capabilities to serve the most demanding customers and provides a “one-stop shop” for both customers’ small and larger projects

Considerable experience in field services via its turn-key approach for its HDD operations

Has the MSA’s, insurance coverage, safety record, working capital, infrastructure, and employee training to support the large projects demanded by the industry

Operates a sizable fleet of equipment and has multiple locations that allows it to respond quickly to breakdowns/interruptions, thereby reducing delays and cost overruns