BRASERV PETROLEO

Attention: Mr. Joao Pedro Santos Bittencount Date: March 17, 2017 Quote: Q2017025JH

Heli-Transportable 5,700 lb Loads

WORKOVER DRILLING RIG MODEL CIL-550-HT 112’ 250,000# DOUBLE DRUM

ITEMS DESCRIPTION

SECTION 1.0 BOX SUBS

SECTION 2.0 MAST & ACCESSORIES
SECTION 3.0 SUBSTRUCTURE
SECTION 4.0 MUD PUMP
SECTION 5.0 MUD TANKS
SECTION 6.0 GENERATORS & ELECTRICAL
SECTION 7.0 SUPPORT BUILDINGS
SECTION 8.0 WELL CONTROL
SECTION 9.0 INSTRUMENTATION
SECTION 10.0 MISC EQUIPMENT
SECTION 11.0 CAMP & WELL SITE TRAILERS
SECTION 12.0 HAND TOOLS / MEASURING EQUIPMENT
SECTION 13.0 RIG UP & TEST
SECTION 14.0 ALL-TRACK VEHICLE
SECTION 15.0 TRAINING & COMMISSIONING
SECTION 16.0 DOCUMENTATION
SECTION 17.0 TERMS & CONDITIONS

TOTAL PRICE: $9,065,000.00 USD

-1-
 SPECIFICATIONS
SECTION 1 – BOX SUBS

1.1 DRAWWORKS
 CIL 550 double drum rated at 550 hp.
 Main drum barrel 18” X 36” c/w lebus grooving for 1 1/8”.
 42” X 10” water circulating brake rims.
 Sand drum barrel 14” X 39” c/w lebus grooving for 9/16”.
 38” X 8” brake rims sand line capacity of 11,000’.
 Clutch main drum Eaton 28 VC 1000.
 Clutch sand drum Eaton 22 CB 500.
 One crown saver toggle switch c/w emergency button at drillers controls.

1.2 ASSIST BRAKE

 48” Kobelt Disc brake c/w 5028 caliper

1.3 BRAKE COOLING SYSTEM

 Deublin water union hooked up to circulating water system from rigs water tank.

1.4 RIGHT ANGLE

 CIL 550 HP right angle gear box with rotary drive.

1.5 DIESEL ENGINE

 Supply one Detroit Diesel 60 Series rated HP 550 @ 2100 RPM complete with sound
proofing.
 12 volt power
 One pipe ram saver control box located near the engine compartment.

1.6 TRANSMISSION
 Remote mount one Allison 6610 (or equivalent).

1.7 POWER TAKE OFF

 Supply one Chelsea 852 air operated with versa valves.

1.8 AIR COMPRESSOR

 Bendix BA 921 15.7 CFM.

1.9 AIR SYSTEM

 Three 30 gallon reservoirs.

1.10 HYDRAULIC SYSTEM

-2-
 Hydraulic tank 325 gallons c/w dual spin on return filters.
 P 350 hydraulic pumps rated at 2500 PSI.
 Pressure relief valves right on both pumps Nachi.

1.11 FUEL TANK

 One day tank 60 gallon capacity.

1.12 HYDRAULIC COMPONENTS

 Six hydraulic jacks for levelling on pontoons.
 Two Commercial raising rams for mast raising SD83.
 Two Braden winches BG8 c/w line and safety hooks.
 Commercial eight valve bank for rig up operations located at rear of carrier off drillers
side.
 Supply one 50 HP electric driven hydraulic pump to run rig.

1.13 WALKWAYS AND STAIRS

 Walkways running the length of boxes on both sides to back of engine compartment.
 Handrails on both sides running full length of box sub.
 One set of aluminum stairs to upper drillers pad from carrier two sets of aluminum stairs
from carrier to ground.

1.14 DEADLINE ANCHOR

 One welded anchor with a 16 inch barrel with four 1 1/8” clamps attached to anchor.

1.15 MISCELLANOUS
 Fabricate drill line spool carrier with 1500 feet of 1 1/8”wire rope.
 Install 8,000 feet of 9/16” sand line on to drum.
 Supply and install emergency shutdown on floor engine
 Supply and install drill line spooler
 Supply and install protective guard around main drum.
 Provide anti-slip material for work floor and stairs
 Supply and install roof over drillers control panel
 Supply adjustable chair at drillers control panel

1.16 PAINT
 Sandblast, prime and paint to Endura specifications.

SECTION 2 - MAST & ACCESSORIES

-3-
2.1 MAST SPECIFICATIONS API 4F 3rd EDITION
 Capacity 250,000 lbs.
 Height 112 feet
 Number of lines 6
 Drill line Diameter 1 1/8 inch
 Racking board capacity 2 7/8” Tubing 11,000 feet
 Certified plaque engraved with A.P.I monogram, PSL 1, E2/U2.

2.2 CROWN BLOCK

 Fast line sheave 36 inch with 1 1/8 inch groove.
 Cluster two 36 inch sheaves with 1 1/8 inch groove.
 Dead line sheave 36 inch with 1 1/8 inch groove.
 Crown safety platform with handrail and two flag poles.
 Fifteen inch wood bumper block with safety mesh enclosure.
 Four 6 inch winch sheaves with grooving for 9/16 inch winch line.
 Rated fall arrest post and adapter plate for supplied Sala block.

2.3 RACKING BOARD

 Racking board position is established when the top section is raised or lowered.
 Back handrail incorporates a rated safety escape door for Geronimo.
 Rated secondary overhead supplied Sala block safety line raises and lowers with the
board.

2.4 HYDRAULICS
 Two telescopic rams two stages with stabilizer slide and orfices.
 Break out ram rated 20,000 lb line pull with roller boxes and cable.
 Make up ram rated 20,000 lb line pull with roller boxes and cable.
 Two one inch hydraulic stand pipes for kelly spinner.
 One valve bank at drillers controls for winches, make, break and kelly spinner.
 Pressure relief valve and hook ups for power tongs or pipe spinner.

2.5 GUYS
 Internal crown lines to t sill with turnbuckles and clevises.
 Racking board lines to t sill with turnbuckles and clevises.
 Load lines from crown to front of carrier with turnbuckles.
 Load lines from top bottom section to carrier with turnbuckles.

2.6 OPERATOR’S CONTROLS

 Air controls to run all drawworks ,engines and pumps
 Engine emergency shut downs located operators panel and sand line panel.

-4-
2.7 STAND PIPE KELLY HOSE
 Fabricate one 5000 psi welded 2” standpipe with a 180 degree goose neck and 602 unions.
 Fabricate one 5000 psi welded 2” stand pipe manifold which includes 2” welded valve; tee
with a 2” outlet and 2” valve all 602 unions.
 Fabricate one 5000 psi welded 2” pup joint to go from stand pipe to ground with 2” tee 2”
going towards sub with 2” valve.
 Supply and install one 50 foot 2” rotary hose with integral pressed on ends, 2” 602 unions
and safety clamps.
 Supply and install one type D 5000 psi pressure gauge

2.8 TONG COUNTER WEIGHTS

 Install dumb bell style counter weight. Weights are adjustable from 300 lbs to 600 lbs.
Supply and install wire rope for tongs.

2.9 ELECTRICAL
 Twenty five incandescent lights vapour proof and two sodium vapour lights at strong
back.
 Conduit used all the way to the crown SOW cord used at every cross over point.

2.10 PAINT
 Sandblast, prime and paint to Endura specifications.

SECTION 3 - SUBSTRUCTURE & ACCESSORIES

3.1 TELESCOPING SUBSTRUCTURE API 4F 3rd EDITION

 Rotary capacity 300,000 lbs.
 Setback capacity 250,000 lbs.
 Certified plaque engraved with A.P.I monogram PSL 1, E2/U2.
 Four hydraulic rams to raise and lower sub structure.
 Two hydraulic rams to raise and lower side floor wings.
 Hydraulic controls six valve bank with flow divider.
 Install two snub posts in between main hole and mouse hole.
 Floor height to be at 16’ with a dimension of 13’ 6” under the rotary beam.
 Install BOP handling system

3.2 ROTARY TABLE

 Supply and install one 17 ½” Hacker with pin type drive.

3.3 CHAIN CASE FOR ROTARY

 Supply and install drop down chain case from rotary

3.4 ELECTRICAL

-5-
 Supply and install three four foot explosion proof fluorescent lights in cellar area.

3.5 T SILL
 Fabricate and supply 40’t sill with all lugs to support the free standing mast.

3.6 PONTOON
 Fabricate and supply pontoon with 4” welded pump line running down the side.

3.7 CATWALK RACKS

 Supply 18” catwalk (two piece)
 Supply v-door to reach 16’ sub height.
 Supply eight 18” X 30’pipe racks.

3.8 PAINT
 Sandblast, prime and paint to Endura specifications.

SECTION 4 - MUD PUMP

4.1 DIESEL ENGINE

 Supply one Detroit Diesel Series 60 engines rated at 350 HP.

4.2 TRANSMISSION
 Remote mounted Allison 6610 Transmission (or equivalent).

4.3 PUMPS
 Supply one 300 HP triplex Heli transportable mud pump.

4.4 MUD PUMP SKID & ACCESSORIES

 Supply one pump skids to be broke down into 5,700 lb loads.
 Supply and install on pump 4” valves, 3” pop valve, 2” bleeder valve and type D mud
Gauge.
 Supply one precharge pump 50 HP 5 X 4 X 11 with suction screens for pump.
 Fabricate all suction lines on skid and from mud tanks.
 Fabricate all high pressure lines on skids. Pressure test chart and x-ray done on all high
pressure lines.
 Supply 5000 psi shock hoses in between pump to pontoon with integral ends.
 Supply one liner wash pump and liner wash tank with plumbing for pump
 Supply Pulsation Dampener and cross for pump
 Supply and install one diesel day tank with hosing for circulating system for pump.
 Supply one 40’ x 4” suction Hose from tank to mud pump

-6-
4.5 ELECTRICAL
 Supply and install stand up posts with sodium vapour lights.
 Supply and install one 110 volt panel with four outlets.
 Supply and install cable tray overhead full length of skid.

4.6 PAINT
 Sandblast, prime and paint to Endura specifications.

SECTION 5 - MUD TANKS

5.1 MUD TANK SPECIFICATIONS

 Supply five tanks with a weight of less than 5,700 lb.
 Cross members 10” @ 33 lb with 1/4” formed plate flooring.
 Walls on tank corrugated 1/4” plate tank perimeter tbg frame.
 Fabricate roof section over mixing hoppers and pumps.
 Fabricate and install removable roof sections and fly carrier.
 All unions for piping on tanks will be hammer style.
 All suction lines will have bridge gate valves and be sumped.
 Suction lines inside tank 6” for pumps, and 4” for mixing.
 One 4” mud roll line with 2” mud guns.
 Two 6” hopper lines with buttery fly valves.
 One discharge manifold for both mixing pumps.
 One 2” water line with manifolds at each end.

5.2 Tank Capacities

 Suction tank 100 bbls
 Settling tank # 2 -100 bbls. (Install Foam Chamber hook up)
 Settling tank # 1 -100 bbls.
 Shaker tank 100 bbls.
 Pill and Trip 50 /50 bbls

5.3 EQUIPMENT
 One Brandt Mini Cobra shale shakers.
 One Submersible pump to transfer fluid to and from tanks.
 One MH – 6 – WVT venturi mixing hoppers.
 Two 5” X 4” X 11” 50 hp 460 volt overhead motor driven by belts.
 Supply 100 barrel Cuttings/Cement holding tank (moves with mud tank skid).

5.4 ELECTRICAL
 Supply and install fluorescent lighting in roof panels
 Supply and install all electrical hard wiring and jumper cords.
 Supply and install plug panel at mixing end of tanks.

-7-
 Supply remote switch for trip tank pump to drillers panel.

5.5 PAINT
 Sandblast, prime and paint to Endura specifications.

SECTION 6 – GENERATORS & ELECTRICAL

6.1 DIESEL ENGINE

 Supply Thee MTU Onsite Energy engines rated at 350 hp complete with sound proofing.

6.2 GENERATORS
 Supply three MTU Onsite Energy Model 250RJC6DT3 generators prime power is 200 kw
each (or equivalent).

6.3 ELECTRICAL
 Supply Three 480 Volt panels with pin and sleeve plugs.
 Supply one 120/208 panel with pin and sleeve plugs with 100 amp outlet for lease
accommodation shacks.
 Supply and install starters for mixing pumps, precharge pumps, mud cleaners, hole fill
pump and hydraulic pump.
 Supply spare starters and plug in for 100 hp, 75 hp and 30 hp.
 Supply and install four foot fluorescents inside building.
 Supply and install two sodium vapour lights on roof.
 Supply all extension cords from gen building to outside support buildings.

SECTION 7 – SUPPORT BUILDINGS

7.1 WATER TANKS/FUEL TANK/ OIL STORAGE

 Supply one tank with travel skid, tank to weigh less than 5,700 lbs.
 Water tank will have a capacity of 100 barrels
 Supply and install two 3” X 2” X 8 ½”” space saver mission water pumps.
 Supply and install suction and discharge manifold.
 Fuel tanks will have a capacity of 100 barrels.
 Supply and install two 110 v 1” X 1 ¼” AOT fuel pumps.
 Supply and install suction and discharge manifold.
 Supply and install fuel water solids separator.
 Tank clean out and sight glass on both tanks.
 Supply and install four oil storage tank.

7.2 WATER TRANSFER PUMP

-8-
 Supply duplex water transfer pump 100 HP (or equivalent).
 Supply 100 HP engine with transmission
 Working pressure up to 5000 psi
 3 bpm flow @ 1000 psi
 Install drip containment trays underneath engine and transmission

7.3 ELECTRICAL AIR COMPRESSOR

 Supply two 10’ X 12’ electrical control buildings.
 Building to have tubing perimeter and 11 gauge walls and roof.
 Supply one 30 hp 460v screw type air compressor with 200 gallon tank.
 Air compressor to be mounted in separate enclosure.
 One ladder and safety line for roof access.

7.4 MECHANICAL ELECTRICAL WORK AREA

 Supply two buildings with lockable storage and benches when completed have a weight of
less than 6,000.

7.5 FLY BASKETS

 Supply 8 fly baskets four enclosed four open (size and max weight of basket to be
determined).

7.6 PAINT
 Sandblast, prime and paint to Endura specifications.

SECTION 8 – WELL CONTROL

8.1 BLOW OUT PREVENTER DOUBLE RAM

 Supply one 11” 5000 psi new Townsend double ram preventer with 2 3/8” to 3 ½”variable
rams and CSO.
 Supply one set of concentric pipe rams for string operations of 4 ½” OD
 Supply one set of eccentric pipe rams for string operations of 2 3/8” OD
 Supply on set of eccentric pipe rams for string operations of 3 ½” OD
 Supply on set of eccentric pipe rams for string operation of 2 7/8” OD
 Supply one set of shear rams with booster?

8.2 ANNULAR
 Supply one 11” 5000 psi new Townsend Annular.

8.3 BOP ACCESSORIES

 Supply one 3 1/8” SS flanged 30’ 5000 psi choke hose.
 Supply one 11” 5000 psi x 7 1/16” x 5000 drilling spool

-9-
 Supply one 5000 psi x 9” x 5000 psi A4 Adapter
 Supply 2” x 5000 psi coflexip hose
 Supply one 3 1/8” 5000 psi HCR gate valve (hydraulic).
 Supply and install 3 1/8” 5000 psi manual gate valve
 Supply two 2 1/16” 5000 psi manual gate valve.
 Supply one 2 /16” 5000 psi check valve.
 Supply one DSA 2 1/16” X 3 1/8”.
 Supply all studs and ring gaskets.
 Supply one 11” split flow nipple with 5 ½” flow line to tank.

8.4 CHOKE MANIFOLD, POOR BOY GAS BUSTER AND CHOKE AND KILL LINES
 Oilfield skid 25’ X 8’ using three beams 10” @ 33 lb.
 Supply one single gut 2” X 3” super choke manifold c/w expansion chamber & remote
control floor console. Remote console complete with stroke counter, total strokes,
pressure gauges, choke position indicator
 Supply one 24 “(poor boy) gas buster with hosing to manifold.
 Degasser to fold down over top of manifold for transport.
 Supply 100’ of 3” flare line and 8” vent line with vic couplers
 Supply 100’ of secondary 2” flare line.
 Supply 2” x 5,000 psi Coflexip hose for kill line connection

8.5 ACCUMULATOR
 Supply one OCO four station 120 gallon system with a 180 gallon reservoir.
 Supply one pneumatic remote control with umbilical.
 Supply safety cover over Blind ram actuator handle

8.6 PRESSURE TESTING EQUIPMENT

 Supply 10,000 psi pressure testing unit complete with test charts
 Supply one 7” test plug
 Supply one 9” test plug
 Supply one 11” test plug
 Supply one 2 7/8” x 5000 inside BOP valve
 Supply one stabbing valve with crossover subs to suit all tubulars

SECTION 9 - INSTRUMENTATION

9.1 WEIGHT INDICATOR

 Supply one Martin Decker style hydraulic indicator.

9.2 MUD PRESSURE INDICATOR

- 10 -
 Supply one hydraulic sensor and remote 5000 psi gauge.

9.3 ROTARY TONG TORQUE GAUGE

 One tong torque gauge for hydraulic makeup ram.

SECTION 10 - MISCELLANEOUS EQUIPMENT

10.1 TRAVELING BLOCK

 Supply one TSM 150 ton (4) 36” sheaves.

10.2 ELEVATORS
 Supply elevators for 2 3/8”, 2 7/8”, 3 ½” and 4 ½” OD piping
 Supply elevators for EUE 2 3/8”, 2 7/8” IF types
 Supply elevators for 2 3/8”, 2 7/8” IF types

10.3 AIR SLIPS

 Supply one pneumatic drive for 2 3/8”, 2 7/8”, 3 ½”, and 4 ½” piping.
 Supply pneumatic drive for EUE and NU 2 3/8” and 2 7/8” tubing and 3 ½” and 4 ¾” DC.

10.4 RACKING TRAYS

 Supply two metal racking trays with wooden floors

10.5 HYDRAULIC POWER TONGS

 Supply hydraulic power tong with jaws from 2 3/8” – 4 ½”.
 Fitted with torque indicator and continuous torque meter.
 Supply hydraulic backup tong
 Supply adjustable hydraulic raising arm

10.6 EQUIPMENT FOR HANDING 7” CASING

 Supply 7” single casing elevators
 Supply of 7” casing slips
 Supply casing spider for 7” casing slips
 Supply 150 ton 7” casing elevators
 Supply Hydraulic power tong with backup tong for 7” casing

10.7 SAFETY CLAMPS

 Supply one safety clamp to adjustable for 3 ½” to 4 ¾” drill collars.

10.8 TUBING WIPERS

 Supply 100 tubing wipers for each size of pipe 2 3/8”, 2 7/8”, 3 ½”, 4 ½”.

10.9 MANUAL ROTARY TONGS

 Supply one set of manual Type C rotary tongs

- 11 -
 Supply 2 3/8”, 2 7/8”, 3 ½” & 4 ½” jaws
 Supply and install tong torque sensor

10.10 KELLY HOSE / SWAB HOSE

 Supply one 2” x 50’ x 5,000 psi Kelly hose
 Supply one 2” x 50’ x 5000 psi swab hose

10.11 TUBULARS
 Supply 336 joints. 2 7/8” S-135 Drill pipe
 Supply 12 each 4 3/4” Drill Collars recessed for slips & elevators
 Supply 6 pickup subs for each size drill collar 2 3/8”IF, 2 7/8”IF & 3 1/2'”IF.
 Supply 37 Ft. 4 ¼” square Kelly
 Supply lower Kelly Cock Valve with wrench
 Supply Stabbing Valve c/w crossover subs
 Supply swabbing / Logging lubricator.
 Supply Bit subs to suit 4 ½” , 6 1/8” 8 ½” - 8 ¾”
 Supply Crossover subs to suit 5 ½”, 7” & 9 5/8” scrapers.
 Supply two drifts for each size tubing 2 3/8” EUE 4.7 lb/ft., 2 7/8” EUE 6.5lb/ft., 3 ½” EUE
9.3 lb/ft. and 4 ½”EUE 12.75 lb/ft.
 Supply Casing Scrapers 2 each 9 5/8”, 7 5/8” , 7”, 5”
 Supply two sets of internal calibrators for all tubing sizes.

10.12 ELEVATOR LINKS

 Supply 125 ton elevator links

10.13 SLINGS
 Supply Lifting Slings and clevis for heli-portable operations

10.14 TEST PLUGS

 Test Plugs 7” , 9” and 11”

SECTION 11 – RIG SITE TRAILERS, HELI-PORTABLE CAMP

11.1 WELL SITE TRAILER

 Supply Two 20 ft. well site trailers (Companyman & Rig manager).
 Desk & chair, file cabinet
 Supply and install 40” TV” in each unit
 Washroom with toilet, sink and shower
 Air conditioning unit in each trailer

11.2 INFIRMARY TRAILER

- 12 -
 Supply One 20 ft. well site trailer
 Desk & chair, file cabinet
 Washroom with toilet, sink and shower
 Supply two beds
 Air conditioning unit

11.3 GRAY WATER / CENTRIFUGE UNIT

 Complete centrifuge unit to process gray water

11.4 KITCHEN UNIT

 Supply 20 ft. kitchen unit
 Stove, grill, fridge, sinks & prep tables
 Complete with exhaust fan
 Supply air conditioning unit

11.5 FREEZER UNIT

 Supply one 20 ft. walk in freezer unit

11.6 DINER TRAILER

 Supply one 20 ft. Diner
 Steam table and drink coolers
 Tables and chairs to sat 10 people
 Supply air conditioning unit

11.7 WASHROOM / SHOWER TRAILERS

 Supply Two 20 ft. washroom / shower trailers
 Complete with showers, sinks and toilets

11.8 COLD STORAGE & BULK STORAGE

 Supply one 20 ft. cold storage & bulk food storage

11.9 SLEEPER UNITS

 Supply four 20 ft. sleeper trailers
 Air conditioning unit in each unit
 4 lockers, 4 beds, night light & table in each unit

11.10 LAUNDRY TRAILER

 Supply one 20 ft. laundry trailer
 Supply 2 wash machines, 2 each dryers, sink and fold table
 Supply air conditioning unit

11.11 RECREATION ROOM / MEETING ROOM

 Supply one 20 ft. recreation room / meeting room

- 13 -
 Supply tables, chairs, TV and air conditioning unit

11.12 PORTABLE WATER / ICE MAKER UNIT

 Supply portable water / Ice machine unit

11.13 CAMP FUEL STORAGE TANKS

 Supply 100 barrel fuel storage tanks
 Complete with fuel pump and filter system

11.14 INCINORATOR AND GARBAGE CONTENMENT

 Supply and install incinerator on garbage contentment skid
 Fabricate garbage contentment master skid and container

11.15 CAMP GENERATORS

 Supply three 275 kW camp generators
 Self-contained units

11.1 RADIO/CONTROL ROOM

 Supply radio and operation control room

SECTION 12 – HAND TOOLS /MEASURING EQUIPMENT

12.1 HAND TOOLS

 Supply Two each BOP hammer wrenches 1 1/8”, 1 ¼”, 1 7/16”, 1 5/8”, 1 13/16”. 2”,
2 3/16, 2 9 /16”
 Supply impact wrench and sockets for 2”, 2 1/16”, 2 9/16”,
 Supply Hydraulic Torque wrench with sockets for 1 1/8”, 1 ¼”, 1 7/16”, 1 5/8”, 1 13/16”,
2”, 2 3/16”, 2 9/16”, 3
 Supply two of each size pipe wrenches 18”, 24”, 36”, & 48”
 Supply two of each size chain tongs 18’, 24”, 36”, 48”
 Supply two complete sets of hand tools.
 Welding machine Lincoln Severe Duty 400 skid with cutting torch and bottles.

12.2 MEASURING EQUIPMENT

 Drilling fluid complete test kit
 Supply electronic salinity meter with direct ppm reading
 Supply pressure gauges (0 – 15 kgf/cm2), (0 -100 KP/cm2), (0 -210 kgf /cm2), (0 -350
kgf/cm2) & (0 – 750 kgf/cm2)
 Supply depth indicator (Metres)
 Rig setup to handle Pason Monitoring system

- 14 -
SECTION 13 – SAFETY EQUIPMENT

13.1 SAFETY EQUIPMENT TRAILER

 Supply Goggles, half face piece mask with filter, plastic apron, and plastic gloves (2 each).
 Supply one Roll Gliss Derrickman descending system
 Supply four fall arresters with four parachute type safety belts
 Air conditioning unit
 Supply two intrinsically Muli-gas detector (H2S and fuel).
 Supply long stretcher with straps and head protector.
 Supply one windsock.
 Supply Strobe light featuring 5.3 J and 25/ minute flashing frequency equipped with
photoelectric cell.
 Supply twelve P-09 extinguishers, Class ABC fire, Extinguishing agent: monoammonium
phosphate based dry chemical, pressurized as per NR spec 23 (fit for 9kg) extinguishing
capacity.
 Supply six CO2 fire extinguishers pressurized as per NR spec 23 (fit for 6kg) extinguishing
Capacity.
 Supply four 2 ½” x 15m fire hoses, type 4 or 5, featuring Storz quick couplings.
 Supply two 1 ½” adjustable nozzles with storz coupling.
 Supply four 2 ½” x 1 ½” fire hose wrenches
 Supply one proportioned for 1 ½” foam mechanical line, with pick up tube.
 Supply four 25 litre drum of packed foam agent SINTEX- AFFF/ARC (3 to 6%).
 Supply one 1 ½” x 15 m fire hose, Type 4 or 5 featuring Storz quick couplings.
 Supply one fitting with one 2 ½” inlet and two 1 ½” outlets.
 Supply foam nozzle type R, featuring 1 ½”, Storz connection
 Supply one self- contained Scott air pack
 Supply two flash lights (compliance certified in “classified areas”)
 Supply 12 half face piece masks with filter for organic vapors and acid gases, for
concentrations up to 1000 ppm
 Firefighting tank complete with hook up manifold and 50 bbl. Tank
 Supply 6 x 5 centrifuge pump with 50 HP electric drive (250 gallons per minute).
 Supply mud pit foam chamber (install injection lines under mud tank roofs)
 Supply two VHF Walkie talkies (in the navy frequency).
 Supply explosion proof inter-com systems on rig floor and mud tanks.
 Supply and install inter-com systems in companyman’s and rig manager’s trailers.
 Supply camera monitoring system in mast, work floor, mud tanks, mud pump and BOP’s.

- 15 -
SECTION 14 – ALL –TRACK VEHICLE

14.1 All-TRACK VEHICLE

 Supply two All-Track Vehicle model AT80HD or eqvalient
 Supply and install Dozer blade on each All-Track Vehicle
 Install knuckle boom with 14,500 lbs lift capacity on each All- Track Vehicle
 Joystick operated controls
 Auxiliary hydraulic stabilizers
 Ground compression less than 2 psi.

SECTION 15 – RIG UP, TEST, RIG DOWN

15.1 RIG UP AND TEST AT MANUFACTURER’S FACILITIES

 Rig up complete package for testing.
 Function and test components to customer specifications (Cost determined based on
Customers required testing procedures/requirements).
 Rig out package and prepare for shipping at customer’s cost.

SECTION 16 – TRAINING AND COMMISSIONING

16.1 TRAINING AND COMMISSIONING

 Training can be done on rig up in yard.
 Training or commissioning of the rig on its first location can be done at an additional cost.
Travel, expenses and a day rate will be charged.

SECTION 17 – DOCUMENTATION

17.1 OPERATION AND SERVICE CD’s

 Rigs major components listed.
 Rigs major components parts and service.
 Electrical, hydraulic and air schematics.
 Mast operating and recommended practices.

17.2 Two Certification Binders

 Mast certification.
 Sub structure certification.
 BOP’S and components certification.
 Kelly hose and kicker hoses certifications.
 Four inch piping x-rays and pressure test charts.

- 16 -
 CARE INDUSTRIES LTD.
(hereinafter referred to as “CARE”)

GENERAL TERMS AND CONDITIONS FOR ALL CONTRACTS

1.0. DEFINITIONS AND INTERPRETATION:

1.1. Whenever used herein, the following words and phrases shall have the respective
meanings as follows:

1.1.1. “Customer” means a Person that enters into an agreement with CARE whereby
CARE agrees to provide Goods or Services to that Person;

1.1.2. “ex works” means that CARE fulfills its obligations to deliver when CARE has
made the Goods available at CARE’s premises (i.e., works, factory, place of
business) to the Customer. In particular, CARE is not responsible for loading the
Goods on the mode of transportation provided by the Customer or for clearing
the Goods for export, unless otherwise specifically agreed. The Customer bears
all costs and risks involved in taking the Goods from CARE’s premises to the
Customer’s desired destination;

1.1.3. “General Terms” means and includes the general terms and conditions set forth
in this document;

1.1.4. “Goods” means the machinery, equipment, products and other personal
property from time to time sold, manufactured or assembled by CARE for a
Customer;

1.1.5. “Person” includes any individual, partnership, firm, company, corporation,

incorporated or unincorporated association, co-tenancy, joint venture,
syndicate, fiduciary, estate, trust, government, governmental or quasi-
governmental agency, board, commission or authority, organization or any
other form of entity howsoever designated or constituted, or any group,
combination or aggregation of any of them;

1.1.6. “Products” means material(s), machinery, equipment and fixtures forming part
of or incorporated into the Goods;

1.1.7. “Services” means the services or labour provided by CARE from time to time to
its Customer for the repair or assembly of personal property belonging to the
Customer;

- 17 -
 1.1.8. “Value Added Taxes” means such amount of money as shall be levied upon the
Contract Price by the Federal or any Provincial or Territorial Government and is
computed as a percentage of the Contract Price and includes Goods and Services
Tax, Sales Tax, Harmonized Sales Tax, and any similar tax, the payment or
collection of which, by the legislation imposing such tax, is an obligation of CARE.

1.2. Number and Gender: Words importing the singular number only shall include the plural
and vice versa, words importing any gender shall include all genders, and “person” and
words importing persons shall include natural persons, firms, partnerships,
corporations, regulatory bodies and entities, legal or otherwise.

1.3. Derivatives: All derivatives of any of the definitions set forth in Section 1.1 hereof shall
have the meanings appropriate to the derivation of such definition.

1.4. Headings: The headings of all Articles and Sections hereof and the table of contents, if
any, are inserted for convenience of reference only and shall not affect the construction
or interpretation of this document.

1.5. Applicable Law: This Agreement shall be construed and enforced in accordance with
and the rights of the parties shall be governed by the laws of the Province of Alberta;
each of the parties hereby irrevocably attorns to the jurisdiction of the courts of the
Province of Alberta.

1.6. Business Day: In any case where time limited by this Agreement expires on a Saturday,
Sunday, legal holiday, or a day on which chartered banks in the City of Red Deer are not
open for business, the time shall be extended to and shall include the next day on which
the said banks are open for business.

2.0. APPLICABILITY OF GENERAL TERMS AND CONTRACTS:

2.1. These General Terms shall, without more or further reference, apply to all contracts
which CARE shall enter into whether the contract arises by way of:

2.1.1. a Customer acceptance of an offer by CARE;

2.1.2. CARE’s acceptance of an offer of a Customer;

2.1.3. a Customer’s acceptance of CARE’s response to a request for proposal;

2.1.4. CARE’s response to a request for proposal;

2.1.5. Customer’s issue of a Purchase Order.

- 18 -
2.2. These General Terms shall be deemed to be contained and made a part of all contracts
which CARE shall enter into for the supply of Goods and/or Services to the absolute
exclusion of any terms or conditions that conflict with the provisions herein and
notwithstanding any conflicting provision of any purchase order, request for proposal
or any other document between CARE and a Customer.

2.3. Upon a contract being formed between CARE and a Customer for the supply of Goods
or Services by CARE, the contract may not be terminated by Customer without the
consent in writing of CARE, which consent shall be solely within the discretion of CARE.

3.0. CARE’S PRICES:

3.1. All prices quoted or agreed upon by CARE are:

3.1.1. unless otherwise provided to the contrary, are in lawful money of Canada;

3.1.2. all prices for Goods are “ex works” the place of manufacture;

3.1.3. all labour rates shall be subject to change upon notice to Customer;

3.1.4. no amount shall be included in the prices for sales tax, GST, or other Value Added
Taxes;

3.1.5. Customer shall pay sales tax, GST, or Value Added Taxes as required by law.

3.2. In addition to the pricing that CARE has provided to Customer, Customer agrees to pay
to CARE any and all costs that CARE may incur as a result of:

3.2.1. changes to the Goods and Services that the Customer may request following the
provision of the pricing by CARE;

3.2.2. costs arising from delays in delivery of the Goods or Services as may be requested
by Customer;

3.2.3. costs arising from delays in CARE’s delivery of the Goods or Services arising from
Customer’s delay or failure to provide specifications, information, drawings or
materials;

3.2.4. amendments to the laws, codes, rules or regulations which are applicable to the
Goods or Services following the date of CARES quotation of pricing.

- 19 -
4.0. PAYMENT TO CARE:

4.1. All payments to CARE shall be in lawful money of Canada unless otherwise agreed upon
in writing by CARE.

4.2. All payments payable to CARE shall be due and payable within ten (10) days of the date
of invoice and shall be paid without set-off, back charge, retention or withholding of
any kind.

4.3. All payments due to CARE, if not paid when due, shall bear interest at the rate of 1½%
per month and shall be compounded monthly.

4.4. At the discretion of CARE, all amounts payable to CARE may be made or secured by an
irrevocable letter of credit in a form and with a bank acceptable to CARE.

4.5. In its sole discretion, CARE may request reasonable assurances that Customer will accept
and pay for Goods or Services including, but not limited to, requiring payments on
account or in advance. In the event that Customer fails to comply with the payment
assurances of CARE, CARE, in its discretion, may stop work on the Goods or Services,
terminate the agreement with the Customer for the Goods or Services, and bring legal
action to recover the damages suffered by CARE, or exercise any other remedy available
at law or in equity for breach of contract.

5.0. ACCEPTANCE OF GOODS AND SERVICES:

5.1. Prior to leaving CARE’s possession, all Goods shall be inspected by Customer for
acceptance.

5.2. In those instances that CARE provides Services, upon completion of the Services,
Customer shall review the same for acceptance purposes.

5.3. Upon inspection of the Goods or Services, Customer shall forthwith provide to CARE a
written list of deficiencies in the Goods or Services and thereafter permit CARE a
reasonable opportunity to correct the deficiencies. If the Customer fails to provide to
CARE a written list of deficiencies, the Customer shall be deemed to have accepted the
Goods or Services, as the case may be.

5.4. In the event of multiple shipments of Goods under the contract with Customer, each
individual shipment shall be inspected by the Customer prior to leaving CARE’s
possession.

5.5. Customer expressly waives any right to reject Goods or Services that substantially
conform to the specification provided by Customer to CARE or specifications that were
agreed upon by Customer and CARE.

- 20 -
5.6. CARE shall bear the risk of loss of the Goods until CARE delivers the Goods to the carrier
(including carriers owned or controlled by CARE) or notification in writing to Customer
that the Goods are available for shipment to Customer, whichever occurs first.
Thereafter, Customer shall bear the entire risk of loss of the Goods

6.0. DELIVERY, SHIPMENT AND DELAYS:

6.1. Pricing provided by CARE to Customer shall not include the cost of packing and crating
customarily required for the Goods for transportation in Canada.

6.2. In the event that the Customer requires the Goods to be exported from Canada, the
Customer shall be responsible for arranging for and obtaining all export documentation,
export packaging, and the import authorizations into the country of destination.

6.3. CARE shall have no liability for any failure to deliver the Goods or performance of
Services to Customer if such failure arises from causes beyond the reasonable control of
CARE including, but not limited to, delays of suppliers, carriers, government actions,
shortages of materials, labour difficulties, fires, floods, acts of God and civil
disobedience.

7.0. WARRANTY:

7.1. To the extent that Products may be warranted by the manufacturer of same, and to the
extent that such warranties are assignable by CARE to Customer, CARE shall, upon
delivery of Goods to Customer, assign those warranties to Customer.

7.2. To the extent that a manufacturer of a Product authorizes CARE to perform the
manufacturer’s warranty obligations, CARE agrees to perform the said warranty
obligations.

7.3. CARE warrants Goods manufactured by it and Services performed by it pursuant to

CARE’s Warranty Policy (a copy of which is attached hereto as Schedule “A”) as may be
amended by CARE from time to time.

7.4. Except as set forth in CARE’s Warranty Policy, CARE makes no warranty, express or
implied, with respect to the Goods or Services including, without limiting the generality
of the foregoing, any warranty as to merchantability or fitness for a particular purpose.

8.0. LIMITATION OF LIABILITY AND INDEMNITY:

8.1. Notwithstanding any provision herein to the contrary, the provisions of these General
Terms constitute the Customer’s rights and any relevant third party’s sole remedy with
respect to any defect or breach of warranty.

- 21 -
8.2. Except as otherwise expressly provided herein, CARE makes no representation,
warranty, or condition of any kind by statute, usage, custom of the trade or otherwise
with respect to the Goods or Services.

8.3. Customer disclaims any and all implied warranties or conditions relating thereto,
including, but not limited to, any and all implied warranties or conditions of non-
infringement, merchantability or fitness for any intended or particular purpose.

8.4. Except as specifically herein agreed to by CARE, CARE shall not be liable, or in any way
responsible for damage of any type that may be suffered by Customer, including,
without limitation, consequential, direct, incidental or otherwise, as a result of a failure
of any kind of the Goods, whether resulting from the negligence of CARE (and those for
whom it is at law responsible), or for any other reason whatsoever.

8.5. Without limiting the generality of the foregoing statements, CARE will not be liable or
in any way responsible for injury to persons or property, loss of use of the Goods, lost
goodwill, lost profits, work stoppage, impairment of, or damage to, other property or
Goods.

8.6. Except as stated in the Warranty Policy, CARE shall not be liable or in any way
responsible for any damages or for breach of any warranty, express or implied, whether
of merchantability or fitness for any purpose or otherwise, or for any other obligation
or liability on account of the Goods which may be manufactured, sold, or delivered to
the Customer.

8.7. Notwithstanding any provision herein to the contrary, regardless of the form or cause
of action, whether in contract, tort or otherwise, or the number of claims, and whether
in respect of a breach or default in the nature of a breach of warranty, condition or
fundamental term or a fundamental breach, or otherwise:

8.7.1. CARE shall not have any liability to the Customer for any economic,
consequential, indirect, incidental, aggravated, exemplary, punitive or special
damages (including, but not limited to, any lost revenues or profits) arising out
of the sale of Goods or provision of Services; and

8.7.2. CARE’s liability, if any, for any claim arising herein or in any way related to the
Goods or Services shall not exceed actual, direct, probable damages and shall
not exceed the value of the work and materials required to repair the Goods that
is the subject of such claim, whether or not such damages are foreseeable and
whether or not CARE has been advised of the possibility of such damages.

8.8. Indemnity (Including For Negligence): Customer hereby assumes and agrees to
indemnify, defend, protect, save, keep, and hold harmless CARE, its agents, employees,

- 22 -
 subcontractors, and invitees from and against any and all losses, damages, injuries,
claims, causes of action, liabilities, demands and expense (including attorney’s fees and
other legal expense) of whatsoever kind and nature, for injury to, or illness or death of
any person and for all damage to, loss or destruction of property (collectively “Losses”),
relating to, connected with in any way, arising out of, or on account of the Goods or
Services purchased hereunder, including, without limitation, any such losses caused or
occasioned by any negligent act or omission of CARE, its officers, agents, employees,
subcontractors, invitees or licensees. The foregoing indemnity is a material part of
CARE’s contract with Customer.

9.0. GENERAL:

9.1. These General Terms constitute the entire agreement between CARE and the Customer
and shall supersede all discussions, arrangements, negotiations, representations and
warranties, if any, relating to CARE’s supply of Goods and/or Services.

9.2. The contract between CARE and the Customer shall enure to the benefit of and be
binding upon the successors and permitted assigns of the parties.

9.3. The contract between CARE and the Customer may only be assigned by the Customer
with the written consent of CARE, which consent may be arbitrarily withheld.

- 23 -
 SCHEDULE “A”

CARE INDUSTRIES LTD.

(hereinafter referred to as “CARE”)

CARE WARRANTIES

10.0. Warranty Against Patent Infringement:

10.1. CARE warrants that in the manufacture of the Goods including the processes or designs
employed therewith, CARE shall not infringe on valid claims of any Canadian letter
patent, patent application, or trade secret which is not the property of CARE.

10.2. In the event of any alleged breach of the above warranty, CARE shall, at its own
expense:

10.2.1. defend any legal action brought against Customer and fully indemnify Customer
against any liability cost, recovery or other expense in or resulting from such
legal action; or

10.2.2. modify the Goods so as to avoid the claim of infringement without degradation
of the Goods; or

10.2.3. obtain a licence for the intellectual property which is the subject of the claim of
infringement.

10.3. In the event that the claim of infringement should occur prior to CARE’s delivery of the
Goods to Customer, Customer agrees that CARE may elect (or may be prevented) from
delivering the Goods or any part or component thereof to the Customer and in such
event, CARE shall, in its sole discretion:

10.3.1. modify the Goods so as to avoid the infringement claim but any such
modification shall be effected so as not to effect the proper operation of the
Goods;

10.3.2. promptly rescind the contract with the Customer and refund all money to the
Customer that had been received by CARE and thereby be released from all other
or further liability to the Customer.

11.0. Warranty Against Defects:

11.1. Subject to the limitations and exclusions set forth below, CARE will repair or replace any
defective or malfunctioning part of the Goods for a period of twelve (12) months from

- 19 -
 the date of delivery of the Goods to the Customer. The Goods shall be deemed to be
delivered on the date the Customer inspects and accepts the Goods.

12.0. Limitations And Exclusions:

12.1. The foregoing warranty in Section 11.1 of CARE is granted to the exclusion of all other
warranties, express or implied, including, without limitation, any implied warranty of
merchantability or fitness for a particular purpose.

12.2. CARE’s liability under the warranty in Section 11.1 shall be limited to the costs of repair
or replacement by CARE of any defective part or workmanship.

12.3. CARE shall not have any liability for incidental or consequential damages including,
without limitation, loss of use, lost profits, loss of opportunity as a result of the failure
of the Goods, a component thereof or a breach of the foregoing warranty.

12.4. In no event shall CARE’s liability to any Person exceed the purchase price paid to CARE
for the Goods or Services.

13.0. Products And Consumables:

13.1. Certain Goods may include components or items (“Products”) manufactured by Third
Persons. CARE’s warranty in Section 11.1 does not include or cover any failure of a
Product. To the extent that such Products are warranted by the manufacturer of the
Product (“Product Warranties”), and to the extent that such Product Warranties are
assignable to Customer, CARE hereby assigns to Customer the Product Warranties. To
the extent that a manufacturer may authorize CARE to perform that manufacturer’s
obligations under the respective Product Warranty, CARE agrees to perform the
obligations of that manufacture under the Product Warranty.

13.2. Certain Goods may include components such as elastomers, coatings, anodes and the
like (herein called “Consumables”) whose useful “life” in actual operations and use is
neither predictable or consistent but the degradation of which is caused by the use and
operation of the Goods. CARE does not warrant any Consumable or make any
representations as to the useful life of any Consumable.

- 20 -
14.0. General:

14.1. CARE has not authorized any person to hold out or create any warranty, written or oral,
express or implied, or any other liability on behalf of CARE with respect to the Goods.

14.2. CARE reserves the right to make changes in design and changes or improvements upon
its Goods without any obligation upon itself to install the same upon the Goods
therefore manufactured by CARE.

- 21 -
 CUSTOMER’S RESPONSIBILITY

1. CARE provides the original Customer with a copy of the relevant operator manuals
containing vital information relating to the proper use and maintenance of the relevant
Goods. Additional copies of operator manuals are available from CARE at an additional
cost. Any repairs, arising from failure to maintain the Goods in accordance with the
operator manuals or from operation of the Goods in a manner not recommended by the
operator manual or from the use of fuels, lubricants or coolants not meeting the
specifications set forth in the operator manuals shall be for the account of the Customer.

2. Many factors affect the performance and reliability of the Goods. Specific output
ratings and operating parameters have been established by CARE. Operations outside
of the recommended limits can adversely affect the service life of the Goods. Customer
shall be responsible for all repairs arising from operation of the Goods above its ratings
or as a result of misuse, accident or foreign object damage.

3. All Goods will require repairs and adjustments over time. Such repairs should be
performed only by qualified mechanics and with proper equipment and parts.
Moreover, certain items installed on Goods, such as belts and filters, are designed to
wear out over a period of time and must be periodically replaced. Customer should
retain a record of all maintenance or repairs performed on Goods. Customer shall be
responsible for any filters, belts, hoses or other normal maintenance items. Customer
shall be responsible for any repairs arising from alternations to power Products, repairs
performed by a person other than authorized representatives of CARE or use of
maintenance items or parts not meeting the specifications set forth in the operator
manuals of CARE.

4. Many Goods are located in remote areas or installed so that they are not easily serviced.
Some Goods are freely movable from place to place. Since CARE has no control over the
place at which Goods are from time to time located or the manner of installation,
warranty repairs are available only at the address of the CARE’s facility that made,
manufactured, distributed, and/or sold the relevant Goods. Customer is responsible for
any costs of shipping Goods to the authorized repair location, or shipping repair parts
from Red Deer, Alberta and for all travel expense of CARE’s field servicemen when
repairs are performed at other locations.

- 22 -
 IN THE EVENT OF A FAILURE

1. Unless there is a threat to life or property, Customer shall immediately cease using the
Goods that exhibit any fuel or oil leak, vibration, unusual noise, high temperature, low
oil pressure, black or white smoke, excessive fuel or oil consumption, or any other
abnormal condition.

2. Do not disassemble or otherwise attempt to repair the Goods. Contact CARE for the
name and address of the nearest facility authorized to repair Goods. Have available all
serial numbers, model numbers, date of purchase and other information that will assist
CARE to identify the Goods.

3. CARE will troubleshoot the problem and direct the Customer to the nearest authorized
repair facility, dispatch a field service representative to the location of the Goods or
provide Customer with replacement parts to be installed by Customer. Customer will be
asked for a purchase order or other commitment to pay any expenses that are not
covered by the CARE Warranty.

4. Failures covered by the CARE Warranty will be repaired by CARE during normal business
hours using new or remanufactured parts, at the option of CARE. Any repairs or charges
not covered by the applicable warranty must be paid by the Customer at the time
services are rendered unless other arrangements are made in advance.

5. CARE will invoice Customer for all warranty replacement parts that are shipped for
Customer installation. Customer shall be entitled to a full credit against the cost of such
part, other than transportation charges, upon the return of the failed part and
determination by CARE that such failure was covered by warranty. Such invoices shall
be payable in full unless the failed part is returned and a determination is made by CARE
that it is covered by CARE’s Warranty.

- 23 -
SECTION 15.0 - TERMS OF PAYMENT AND ACCEPTANCE

1. The above price is quoted in United States dollars.

2. All products are F.O.B. CARE Industries.

3. Payment terms are as follows:

(a) 50% Deposit required at time of order.

(b) 25% Progress payment when rig is 50% complete.
(c) 25% Final payment due when rig is complete and before shipping.

Acceptance:

Petrobras agrees to the technical specifications and requirements as stated above for
this quotation and agrees to purchase _____________CARE CIL 550-HT 112’ – 250,000
Heli-RIG PACKAGE at the above quoted price.

Name: Title: ______________________________

Signature: Date: ______________________________

CARE INDUSTRIES LTD. agrees to the technical specifications and requirements as

stated above for this quotation and to deliver _____________ CARE CIL 550-HT 112’ -
250,000 RIG PACKAGE for consideration of the above quoted price.

Name: Title:_________________________

Signature: Date: _________________________

Thank you for the opportunity to provide the above quote, should you have any
questions please feel free to call.

Sincerely,

DAVID LEONARD, President

CARE INDUSTRIES LTD.

- 24 -