HWD Horizontal Well Drillers

Newsletter Date - 08/01/09

News Flash:
Recent studies have shown that 43.16% of all hydrocarbons are at a depth of 3,000lf and less

New Vision In Drilling

THE OIL & GAS INDUSTRY HAS BEEN WAITING.

Special points of interest:

Vertical depths ranging from 500 to 13,000 Laterals can be cut from any required depth. Ranging from as shallow as 500 down to 10,000 vertical. Then as much as 7,000 horizontal. 14,000 combined drill rating going both vertical & horizontal More Pay Zone Contact ROP Is Consistent From Start To Finish Normal hole size is 8 3/4 Pushes & Pulls 330,000 lbs. Top Drive - Best In Class Performance. Producing A Massive 38,000 ft-lbs. Of Torque. Multiple pump configurations. Ranging from 500HP to 3,000 HP triplex mud pumps. Designed to run in either single, double, or triple operation.

Inside this issue:

7,000 Proven Lateral. Longer laterals are in the near future. Less drill collars used. Top Drive allows us to both rotate and circulate while running drill string or casing. Rack and Pinion Power Proven Reduction In AFE, By As Much As 35%

Rack and Pinion is Proving Shallow Horizontal Wells Successful

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New Vision In Drilling

It Has Arrived! The First True Patent Pending Horizontal Drilling Rig The Very First In The World Today --Horizontal Well Drillers, Changing An Industry
Akerman HWD strives to be the leader in providing the most reliable, accurate, and cost effective horizontal drilling service in the oil and gas industry. We will achieve our mission by providing safe, efficient, economic and reliable solutions to our customers. Through new patent pending proven technology. HWD has created the ability to drill oil & gas wells ranging from 500 to 13000 in vertical depth, with a proven horizontal capability of up to 7,122 (longer laterals are in the near future). The rating of the drill rig is 13,000 true vertical depth, or 14,000 combination of both vertical and horizontal. This new method of drilling is accomplished by using a rack and pinion system. This allows us to have 330,000 lbs. of push and pull power at all times during the drilling operation. With the constant force it allows us to maintain a consistent ROP (Rate of Penetration) throughout the lateral drilling process. In conventional drilling methods your ROP is greatly depleted due to the lack of pressure that is exerted to the bit as it is cutting. Our technology not only allows us to run a larger bit that will increase the pay zone, but it also give the client and customer a reduction in AFE (Authority for Expenditure) costs up front.

Benefits Of HWD New Technology

Major Increase In Pay Zone Long Horizontal Laterals At Shallow Depths (500) Laterals Have Been Successfully Drilled Out To 7,122 ROP (Rate of Penetration) Remains Constant (80% at 7000) Pushes And Pulls 330,000lbs. Top Drive - Best In Class Performance - Massive 38,000 ft-lbs Of Torque Wobble Stick TechnologyAllows Curves & Laterals To Be Drilled Faster Range 3 Drill Pipe Capabilities 2 7/8 thru 5 Drill Pipe Strings Drilling Laterals Where Conventional Rigs Couldnt Before Fully Self Contained Drilling System Very Mobile One Day Rig Up One Day Rig Down Low Moving Cost Casing Can Be Run With Or Without Casing Crews No Lay Down Machines Needed While Running Casing, We Can Rotate & Circulate The Hole Tool Joints Are Less Likely To Be Caught In Keyseats Downhole Safety Minimized Roughneck Assistance. 99% Self automated. When tripping pipe or making connection no roughnecks on floor. AFE Saving Reducing Of Most Proposed AFE Enclosed Mud Cleaning System One Rig From Start To Completion

This technology is going to revolutionize the way shallow oil and gas is drilled

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Short Radius, Medium Radius, Long Radius (No Problem)

2 yrs of Continuous Drilling Currently in Pennsylvania we have Rig #4 PA for EOG Resources completed 20 successful wells 14,000TMD using one rig where it has taken 7,000 Lateral three rigs in the past. More new New Record wells are scheduled to be drilled in 2009. We are setting surface pipe, intermediate casing, and cutting the lateral while maintaining a higher ROP and establishing longer laterals. These wells have ranged from 4500 to 8000 TVD, with a horizontal range over 7,000lf, and has increased the pay zone exposure by as much as 108 times compared to conventional vertical drilling. This method is defining the way to drill oil and gas wells with a record breaking Update-Picture Above: HWD completed its 10th well for pace. Nothing in the world can EOG. It was the longest horizontal well drilled to date for compete with this rig. EOG in the state of Pennsylvania. HWD saved EOG as much as 35% on costs and time.

Our rigs have the smallest footprint in the industry. increased the pay zone exposure by as much as 108 times compared to conventional vertical drilling.

HWD Can Drill 13,000 TVD. -Depths Ranging As Shallow As 500 Down To 13,000 TVD -Laterals to 7,000 At Most Depths

Enclosed Mud System

Pipe Loading System

800 HP Triplex Mud Pumps Are Configured For Single, Double, Or Triple Operation. (pictured above).
We Have A Variety Of Pump Configurations That Can Be Tailored To Fit Each Clients Needs.

Horizontal Well Drillers

HWD
2915 State Hwy. 74 South Purcell, Oklahoma 73080
Phone: 405-527-1232 Fax: 405-527-0192 steve.akerman@hwdrillers.com

Increasing Recovery Rates and Extending Production Life

Horizontal wells generally increase productivity to at least 4 to high as 25 times that of vertical wells. For wells which would have otherwise been considered marginal or uneconomic, horizontal drilling often enables successful reservoir development. The oil or natural gas in some types of reservoirs can be most thoroughly recovered by horizontal drilling. The following reservoir types are excellent examples of conditions that benefit from this technology:

Thin reservoirs: In cases where hydrocarbon deposits are wider than they are thick, vertical wellbores are only able to extract oil and gas from a small area surrounding the wellbore. However, horizontal wells use lengthy lateral arms to extend into these long, flat reservoirs and drain a significantly larger area. Reservoirs with natural vertical fractures: Fracturing within the formation causes little "pipelines" through which the hydrocarbons can flow. Encountering the fractures at an angle perpendicular to the wellbore improves productivity. Locating isolated and bypassed oil and gas reservoirs: Horizontal wells can be used to search for overlooked reserves within a field. In an existing field, vertical wells are often re-entered and drilled horizontally to reach those isolated and bypassed reserves. According to a study by the U.S. Department of Energy, "Since 1990, the vast majority of reserve additions in the United States-89 percent of oil reserve additions and 92 percent of gas reserve additions-have come from finding new reserves in old fields"(Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology, 1999). Accessing reserves in environmentally sensitive areas: In some areas, drilling is restricted for environmental reasons or because a rig cannot be set up on the proposed pad site. This often occurs when the targeted formation is under a building, below a shallow lake, or in a protected wildlife habitat. In cases where a vertical well cannot be used, horizontal drilling can access the targeted reservoir while leaving the surface habitat undisturbed.

Parent Company AKERMAN CONSTRUCTION CO., INC.

WWW.AKERMANCO.COM

Reduced Capital and Operating Costs

In addition to draining the same amount as three to as high as 25 vertical wellbores. A horizontal well costs significantly less than drilling several vertical wells in the same area. The operating costs associated with infrastructure, wellhead equipment and maintenance are also significantly reduced. Horizontal Well Drillers (HWD) technology defies the traditional horizontal well drilling method by bringing a new revolutionary method to the oil and gas industry. Completed new documented world record by HWD 13 to 1 Ratio, 400tvd/5,220hd with a 8 3/4 inch hole, which the world record was currently 7 to 1 tvd/hd.

In Pennsylvania EOG Re-

sources embraced our new technology. 20 successful gas wells have been completed from 2008 thru 2009, with wells scheduled thru 2010. 7000 New Record Laterals

Rig 5 Drilling Rig In New York. Safety First This drill rig was designed with safety being a top priority. The drill rig is totally automated. Drillers, derrick hands, and floor hands arent needed on floor when making connections or tripping pipe. TMD 13,465

Page 6 HWD Rigs Are Supplied With Various Sizes Of Triplex Mud Pump Configurations Depending On Each Clients Needs. Our Pumps Are Equipped To Run In Single, Double, Or Triple Operation. Total Mud Pump Horsepower Can Range From 500 to 3000.

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HIGH PERFORMANCE TOP DRIVE & PIPE HANDLER

HIGH PERFORMANCE TOP DRIVE

BEST IN CLASS PERFORMANCE - PRODUCING A MASSIVE 38,000 FT-LBS. OF TORQUE TORQUE RATING IS THE HIGHEST IN ITS CLASS RACK & PINION DESIGN ALLOWS 330,000LBS. OF PUSH & PULL WOBBLE STICK TECHNOLOGY ALLOWS ONE TO DRILL THROUGH CURVES & LATERALS FASTER

PIPE HANDLER

ALL AUTOMATIC - NO ROUGHNECK ASSISTANCE CAN LIFT VARIOUS SIZE DRILL PIPE, COLLARS, AND CASING FROM 2 7/8 UP TO 18 CASING UP TO 10 DRILL COLLARS ADJUSTABLE HYDRAULIC PIPE RACKS - TILT TOWARD OR AWAY FROM THE PIPE HANDLER WHEN GOING INTO AND OUT OF HOLE - FOR EASY HANDLING

Page 8 Rig # 3 Weatherford, TX - Drilling For Central Basin Oil

Page 9 Rig # 4 Penfield, PA

Drilling For EOG Resources in PA for 2 years

Page 10 Rig # 5 Horseheads, NY

Well #1 TMD 13,465

- Drilling For Anschutz Exploration

Page 11 Rig # 7

HWD - THE ALL NEW - OVERSIZE SINGLE - HWD 750

FIRST FULLY AUTOMATIED RIG IN ITS CLASS

DERRICK

FREE STANDING 80ft. CLEAR WORKING HEIGHT 500,000lb. HOOK LOAD TELESCOPING OVERSIZE SINGLE

SUB BASE HYDRAULIC SCOPING TEE STYLE SUBSTRUCTURE THAT IS 40ft. LONG BY 8ft. WIDE AND HAS A RIG FLOOR HEIGHT OF 12 6 BOP TROLLEY SYSTEM CONTROL ROOM STAND ROTARY TABLE BEAM CAPACITY OF 500,000 lbs.

TOP DRIVE 250 TON TOP HEAD DRIVE POWERED BY A C15 CAT WITH TWIN SAUER DAN FOSS HYDROSTATIC PUMPS CUSTOM BUILT 4 SHEAVE BLOCK AND LINK ASSEMBLY (8 LINES, 1 1/8 DRILL CABLE) CUSTOM BUILT TOP HEAD DRIVE ROLLER TRACK ASSEMBLY

DRILLING DEPTH 15,000 DRILLING DEPT CAPACITY

Page 12 Rig # 7

HWD - THE ALL NEW - OVERSIZE SINGLE - HWD 750

FIRST FULLY AUTOMATIED RIG IN ITS CLASS

CARRIER

6 AXLE CARRIER POWER BY 2 6O SERIES 14.0 L 625 HP ENGINES ALLISON AUTOMATIC TRANSMISSION 1000 HP COMPOUND BOX 1000 HP RIGHT ANGLE BOX COOPER STYLE BRAKE BLOCK LINKAGE 42X12 WATER CIRCULATING BRAKE 1 1/8 LEBUS 3 PLATE 24 CLUTCH 48 TWIN DISK ASSIST BRAKE TWIN 72 GPM HYDRAULIC PUMPS 2 - 16,000 PD HYDRAULIC WINCHS TOTAL AUTOMATED CONTROL ROOM ALL AIR OVER HYDRAULIC CONTROLS THAT ARE USER FRIENDLY DAPTEC TECHNOLOGY CROWN-A-MATIC AND FLOOR-AMATIC WITH A BUILT IN AUTOMATIC DRILLER

CONTROL ROOM

PIPE HANDLING MACHINE

HYDRAULIC CONTROL SELF-LEVELING ALL AUTOMATIC - NO ROUGHNECK ASSISTANCE CAN LIFT VARIOUS SIZE DRILL PIPE, COLLARS, AND CASING FROM 2 7/8 UP TO 18

2915 STATE HWY 74 SOUTH PURCELL, OK 73080 405.527.1232