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        Mud Cooling International Inc.____________________________________________________________________________________________________________

Performance of Mud Cooling International Inc. Cooling System

Case Study CFO – 2K-02

Mud Cooling International Inc.115 Heritage CoveDe Winton, AlbertaCanada. T0L 0X0

Telephone: (403) 969-6376(403) 860-6318

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The Mud Cooling International Inc. Cooling System can be used in any Application where drilling safety or efficiency is enhanced by cooling the drilling fluid, such as:

• Maintaining circulating temperatures below formation temperature to prevent thermal hole sloughing and to maximize hole stability while drilling long-reach horizontal heavy oil and/or SAGD

• Lowering the circulation temperature in deep, high temperature foothills wells to lower mud costs and reduce potential operational problems with bits, motors and down hole tools

• Lowering the circulation temperature in deep, high temperature geothermal drilling

Mud Cooling International Inc.

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PLATE MUD COOLER

GLYCOL SIDE

MUD SIDE

STRAINER

MUD PUMP

TO MUD PITS FROM MUD PITS

PLATE MUDE COOLERReturn glycol

( 0º a 5º C)

MANUAL BY PASS VALVE

AUTOMATIC 3-WAY VALVE

EXPANSION TANK

RADIATOR BY PASS VALVE

COLD GLYCOL ( -5º C a 0º C)

RETURN COLD GLYCOL

EXPANSION TAND

RADIATOR ISOLATION VALVE

ORIFACE PLATE

Mud Cooling International Inc.

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Case Study – CFO Forest Mount Coty 2K-02

In 2003, Canadian Forest Oil (CFO) drilled the second deepest on land well in the NWT, approximately 4,500 meters. The well, 2K2, is located in the SW corner of the NWT near the community of Fort Liard in an area know for hot temperatures. During the well planning phase CFO approached Impact Drilling about the drilling fluid cooler’s ability to reduce high temperatures.

CDN Forest et al Mount Coty 2K-02

Mud Cooling International Inc.

Drilling Fluid Cooler Project Start-up

• Depth 3,000 Meters

• Bottom Hole Temperature 135 Degrees Celsius

• Shaker Temperature 70 Degrees Celsius

Case Study – CFO Forest Mount Coty 2K-02

Mud Cooling International Inc.

Drilling Fluid Cooler Results - TD

• Drilling Depth approximately 4,500 Meters

• Bottom Hole Temperature 190 Degrees Celsius• • Bottoms up after Trip Temperature 125 Degrees Celsius

• Shaker Temperature 60.9 Degrees Celsius

• Cooler Temperature Out 42.3 Degrees Celsius

Case Study – CFO Forest Mount Coty 2K-02

Mud Cooling International Inc.

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Drilling Fluid Cooling System Performance

0.0

50.0

100.0

150.0

200.0

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33

Drilling Days

Tem

pera

ture

De

gree

s Ce

lsiu

s

Series1 Series2 Series3 Series4

Series 1 = Bottom Hole TemperaturesSeries 2 = Shaker TemperatureSeries 3 = Cooler Temperature OutSeries 4 = Ambient Air Temperature

Mud Cooling International Inc.

Drilling Fluid Cooler Results

• Bottom Hole Temperature increased 29% from 135 to 190 degrees over the approximate 1,500 Meters the Impact Drilling Fluid Cooler was active in the Drilling Program

Case Study – CFO Forest Mount Coty 2K-02

Mud Cooling International Inc.

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Drilling Fluid Cooler Results

• During the entire Drilling Program, Cooler Temperatures Out are consistently 22 Degrees Celsius above the Ambient Air Temperature

• Increases in Bottom Hole Temperatures failed to increase the temperature of Cooled Drilling Fluid

Case Study – CFO Forest Mount Coty 2K-02

Mud Cooling International Inc.

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Drilling Fluid Cooler Results

• During the entire Drilling Program, Shaker Temperatures are consistently within 20 Degrees Celsius of Cooled Drilling Fluid

• Increases in Bottom Hole Temperatures failed to substantially increase the Temperature of the Drilling Fluid demonstrating the effectiveness of the Drilling Fluid Cooler system

Case Study – CFO Forest Mount Coty 2K-02

Mud Cooling International Inc.

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Drilling Fluid Cooler Results

• Safety – Reduction of Shaker Temperatures creates a Safer Environment for Floor Hands and Mud Engineers who are working with 60 Degree Drilling Fluid

• Drilling Fluid Life – Reduced Temperatures increase the life and overall cost of expensive Oil Based Drilling Fluid

• Directional Tools – Reduced Temperatures increase the life and accuracy of Directional Drilling Equipment

Case Study – CFO Forest Mount Coty 2K-02

Mud Cooling International Inc.