COMPANY PROFILE

A lifetime drilling company

SC Foraj Sonde SA Craiova4A Fratii Buzesti St.

200730 Craiova - ROMANIAtel. +40 251 415 866fax: +40 251 406 482

e-mail: office@craiovadrilling.rowww.craiovadrilling.ro

Member of Bega Grup as a private company, Foraj Sonde Craiova

offers onshore drilling for oil and gas industry, transport services

and maintenance of drilling equipment.

With a share capital of USD 22 million, and a total shareholders

equity of USD 40.5 million, the company is listed at the Bucharest

Stock Exchange - RASDAQ market.

Foraj Sonde Craiova is a member of IADC – International

Association of Drilling Contractors and ACFR – Romanian

Association of Drilling Contractors.

The impressive professional background (more than 50 years) and

the strong experience (approximately 10.000 wells with depths

between 400 and 7.000 metres) within the crude oil field

recommended Foraj Sonde Craiova as one of the most serious

business partners in this field.

Having all the necessary requirements, it fulfills the condition

criteria of the methodology of certification and has technical

competence for activities connected with oil and gas extraction,

executed in oil and gas fields on a contract basis: drilling, re-drilling,

surface drilling, replacing, repairing and dismantling probes,

cementing wells, pumping, plugging and abandoning probes,

production samples for the beginning of probe production and

other related activities; exploitation of mineral resources-ballast,

gravel, sand, natural rock aggregates; drafting and preparing the

technical-economical documentation for oil and groundwater.

Drilling Consultancy - Integrated Projects

Foraj Sonde Craiova manages the day

to day well site operations and

integrated projects through carrying

out drilling, testing and completion

operations. It also provides in-depth

analysis and forward-looking scenarios

helping the clients in preparing their

strategy development, investment

evaluation and commercial decisions

both at local and regional level.

In Romania, it develops integrated

drilling projects and performed several

production probes especially for OMV-

PETROM, ROMGAZ, STERLING

RESOURCES LTD. and PETROFAC, in

accordance with the project execution

prepared by specialized institutes.

OVERVIEW

1952 – Bascov Drilling Company is being set up to perform

activities in the South/ South-East part of the country. Volume of

works: between 1985-2008, over 807 wells drilled (i.e. 1,217,775

drilled meters, of which 232,965 m for geological research).

1953 – Valcea Drilling Company is being set up to perform activities

in the South-East part of the country. Volum of works 5,000 wells

between 600 and 6,000 m.

1958 – The provision of drilling, mud and workover services marks

the beginnings of Foraj Sonde Craiova in the oil industry in Romania.

1960 – Cementing, stimulation, coring and fishing services are

added to Foraj Sonde's growing package of onshore integrated

services. Acidizing services were introduced in 1962, fracturing in

1970, and sand control in 1986.

1964 – Foraj Sonde Craiova drills its first directional well.

1965-1968 – It enters on the international market by providing

geophysical services in Ethiopia and Egypt and drilling services in

India and Jordan. So far, Craiova has provided services in 23

countries.

1967 – Zadareni drilling company is being set up with main

purpose researching and exploiting the hydrocarbon deposits in the

Plannoian Plain. Starting from 2005, the company is also exploiting

the gravels in the Perimeter of Pusta Lata, Arad county. Volume of

work: 2700 shallow and average-depth wells, totalling 3,600,000 m.

HISTORY 1972 – Well testing is added to Foraj

Sonde's integrated service package.

1988 – Foraj Sonde Craiova drills the

deepest onshore well in Europe at that time,

well Danciulesti – 6,047 m (18,443 ft).

1992 – Geoservice is added as Foraj

Sonde's newest integrated service

component.

1997 – It is formed as a separate entity

within the Bega Grup.

2008 – Foraj Sonde Craiova completes the

procedure of merger by absorption of the

other three drilling branches around the

country: Bascov, Valcea and Zadareni

Drilling Companies. The international drilling

division is being set up in Ukraine.

SERVICESIn addition with state-of-the-art western equipment the following core services are provided: Well Testing, Coil Tubing, Nitrogen, Stimulation, Logging, Mud (Drilling Fluid), Coring, Fishing and Directional Drilling. Services are provided on a dayrate, meterage or turnkey basis. It also provides Corrosion Protection and Environmental Services.

Drilling and Technical AssistanceOperations are performed using the company's own fleet of drilling rigs, as well as semisubmersible and jackups. Drilling capacity ranges from 1,000 to 8,000 m (3,281 to 26,247 ft).

Here are a few of the major execution skills in this domain of expertise:- drilling wells for geological research exploitation and injection, drilling wells for petroleum and gas using a Rotary system, controlled drilling and horizontal drilling, removing casing for drilling programs optimizations-oil string repairs for any kind of well, depth or construction program;- elaborating of the mud system technologies for drilling;- mud laboratory tests performed with dispersed, inhibitive, oil base and polimer systems designed for drilling and completion operations;- regular inspections of the equipment and machinery, such as pumps, rotary tables, compressors, diesel engines;- maintenance jobs, regular inspections of the SCR devices, control panels and other electrical facility motors (vibrating screens, BOP controls, pump compressors);- capital repairs of the wells, production tests and wells pipe taking out;- working for surface constructions-mounting: drilling rigs mounting; hutments and pipes for water and gas feeding; roads and dykes laying out; - electrical working and boilers installation including low average and high tension networks;- equipments and tools maintenance and repair, exchange pieces reconditioning;- drilling mud preparing, reutilisation and reconditioning;- service, research and projecting in transports.

Integrated Drilling & Well Services• onshore drilling for oil and gas industry;

• transport services and maintenance of drilling equipment;

• important probes repairs work;

• solving damages and complications;

• preparation of drilling fluids;

• computer monitoring of the drilling parameters;

• drilling equipment assembly activities;

• construction LEA 0,4/ 20 kV and transformers 6/ 0,4 kV, 6/ 0,66 kV si 20/ 0,66 kV;

• access roads and platforms for drilling equipment;

• embankment movement works (leveling);

• foundations of prefabricated and monolithic pillars for drilling facilities;

• natural access roads, paved and flagged, agricultural circuit restoration.

SERVICESMud ServicesDrilling Fluid Services are provided with modern instruments according to API standards and are of Baroid manufacture. mud decanters are of Drexel, Derrick and Alpha-Laval manufacture. Chemicals are obtained from AVA, M-I and Baroid. Mini mud labs accompany the drilling and workover rigs and two fully equipped central mud laboratories are available for more detailed analysis. A Special Drilling Fluids Station is also available for preparing, maintaining and regenerating working fluids required for drilling, workover and other operations.Mud services provided onshore through the activities:- energo-mechanical repairs and general overhauls;- mud services, production tests and wells overhauls;- elaborating prescriptions and technologies for mud conditioning and for bringing into production of oil/ gas wells;- preparing and using inhibitive muds, dispersate muds, oil base muds, completion fluids, packer frluids;- insuring rheological parameters of completion fluid (wells with depths between 400-8,000 meters).

Workover & Well Completion ServicesServices are provided using an own fleet of 26 self propelled and truck-mounted workover rigs. Workover servicing capacity ranges from 1,830 to 6,500 m (6,000 to 21,325 ft). All the workover rigs are self-propelled carrier back-in type units with self-erecting and extended API portable guided masts.

Well Testing ServicesComprehensive services are provided with a full array of wireline units, separators, indirect heaters, surge tanks and various auxiliary equipment. The wireline units drum capacities are up to 12,580 m (41,273 ft) and engine power up to 95 kW. DST services are available with conventional (mechanical) or hydraulic test tools with electronic or mechanical pressure and temperature gauges. The equipment is capable of operating in extreme well conditions with pressure up to 1,100 bar (15,600 psi), temperatures up to 235°C (455°F) and with high contents of CO2 and H2S.

Well Logging ServicesServices are performed with fully computerized mobile and skid units, providing any type of wireline logging and perforating service including: open hole, cased hole, production logging, explosive services as well as s of logging and related data. Units are equipped to work in all climatic conditions and are rated up to 7,000 m (22,966 ft) and temperatures of over 200°C (392°F). The reliability of all equipment is guaranteed by a fully equipped laboratory and a test well.

Special Well Services (Core, Fishing, Directional Drilling)The special services division provides fishing, well control, coring, power swivel services, firefighting services and directional drilling. Most of the fishing tools and power swivels are of Bowen manufacture. Conventional coring is performed by type 250 P core barrels while special heavy duty and marine core barrels are used in more difficult well conditions. Firefighting services are provided using ecologically safe extinguishing substances and utilizing equipment that is otherwise employed in the provision of drilling and well services.

GeoservicesServices are performed with 10 units in collaboration with ATLAS-Gip and PETROS partners. The newest component of the integrated services package provides: Hydrogeological works Geophysical works Geology and Civil works Mounting - construction The exploitation of useful rock.

LAND-BASED DRILLING RIG FLEETTYPE* m tf lbs type/ HPfeet

HH 102

MR 8000

MR 8000

F 400 EC

F 400 EC

F 400 EC

F 320 EC

F 320 EC

F 200 EC

F 200 EC

F 200 2DH

F 125 EC

F 125 EC

F 125 2DH

F 100

F 100

F 100

T 50

T 50

T 50

2,000

3,200

3,200

7,000

7,000

7,000

6,000

6,000

4,000

4,000

4,000

2,800

2,800

2,800

2,300

2,300

2,300

1,200

1,200

1,200

100

200

200

400

400

400

320

320

200

200

200

125

125

125

100

100

100

50

50

50

220,500

440,000

440,000

880,000

880,000

880,000

705,000

705,000

440,000

440,000

440,000

278,000

278,000

278,000

220,500

220,500

220,500

110,000

110,000

110,000

Drillmec/ 600 HP

Drillmec/ 1,080HP

Drillmec/ 1,080HP

TF44/ 3,000 HP

TF44/ 3,000 HP

TF44/ 3,000 HP

TF38/ 2,300 HP

TF38/ 2,300 HP

TF25/ 1,600 HP

TF25/ 1,600 HP

TF25/ 1,600 HP

TF20/ 1,250 HP

TF20/ 1,250 HP

TF20/ 1,250 HP

TF15/ 415 HP

TF15/ 415 HP

TF15/ 415 HP

TF10/ 300HP

TF10/ 300HP

TF10/ 300HP

Triplex/ 1,000 HP

Triplex/ 1,000 HP

Triplex/ 1,000 HP

Triplex/ CF 1300

Triplex/ CF 1300

Triplex/ CF 1300

Triplex/ CF 1000

Triplex/ CF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

Triplex/ JF 1000

6,600

10,500

10,500

23,000

23,000

23,000

19,700

19,700

13,200

13,200

13,200

9,200

9,200

9,200

7,550

7,550

7,550

4,000

4,000

4,000

DRILLING DEPTH HOOK LOAD DRAWWORKSMUD PUMPS

* Drilling Rigs manufactured by Drillmec Italia, Upetrom and UPET Romania.

CERTIFICATESFive major challenges are being faced by Foraj Sonde

Craiova in the daily activities: People, Environment,

Quality, Health & Safety. They represent a permanent

preoccupation, not only among the Innovation and

Research specialists, but within the entire company, at all

levels.

The awards, acknowledgements and certificates that the

company and its people have gained come as recognition

of the teamed permanent effort.

ANRM (National Agency for Mineral Resources)

certified that Foraj Sonde Craiova meets the condition for:- activities connected with oil and gas extraction, executed

in oil fields and gas fields on a contract basis: drilling, re-

drilling, surface drilling, replacing, repairing and

dismantling probes, cementing wells, pumping, plugging

and abandoning probes, production samples for the

beggining of probe production and other related activities.

-exploitation of mineral resources-ballast, gravel, sand,

natural rock aggregates.

- drafting and preparing the technical-economical

documentation for oil and groundwater.

ANRE (Romanian Energy Regulatory Authority) certified

for the execution of electrical networks of 0.4-20 kV

1999 - The quality assurance system in

accordance with SR EN ISO 9002:1995 certified by

the Romanian Society for Quality Assurance.

2001 - The Integrated Quality Management

System - Environment, in compliance with

requirements of SR EN ISO 9001:2001,

respectively SR EN ISO 14001:1997

2002 - The Integrated Quality Management

System certified by the Romanian Company for

Quality Assurance - IQNET in terms of SR EN ISO

14001:2002

2005 - The Integrated Quality Management

System re-certified by the Romanian Company for

Quality Assurance - IQNET in terms of SR EN ISO

14001:2005

2006 - The Safety and Health at work

Management System in accordance with the

requirements of OHSAS 18001:1999, in order to

prevent the risks, raising awareness and training

the employees.

2008 and 2011 - Re-certification of the Integrated

Management System in terms of SR EN ISO

9001:2008, SR EN ISO 14001:2005 and SR OHSAS

18001:2008.

HSEQFor accomplish the HSEQ objectives, Foraj Sonde Craiova acts to:

- continuous improvement of the quality of the products and

processes that lead to their achievements to meet the customers

and stakeholders satisfaction;

- compliance with legal and regulatory requirements;

- environmental pollution prevention and continuous

improvement of raw materials management, waste management

and hazardous products;

- improving working conditions and continuous increase of

security level;

- continuous training of employees in work safety and health

hazards to limit work accidents and continuing professional

development;

- hazard identification, risk assessment and control in order to

establish measures for controlling them.

REQUIREMENT OF OUR CUSTOMERS IS QUALITY.

PREVENTION IS BETTER THAN CORRECTION.

ENVIRONMENTAL PROTECTION IS THE RESPONSIBILITY OF ALL.

HEALTH AND HUMAN SECURITY IS THE MOST IMPORTANT.

- HSE Management System in place with continuous review

- Rig Audits to checking application of HSE Management System

- Safety KPI’s: Lagging and Leading indicators

- Introduction of PTW system and JSA – for a better control over the daily activities

A permanent Safety Officer at every well with a great importance in the daily meetings and operations.