Contract Assuptions

30
Revenue Capital Daily Rental Monthly Rental
(BRL) Revenue Revenue
Dump Iron $3,665,412.25 $19,446.19 $583,385.59
Drilling Jar $8,185,846.75 $20,041.41 $601,242.39
Circ Valve
Turbines $6,953,895.94 $15,569.61 $467,088.40
Hole Openers $758,639.13 $3,229.42 $96,882.66

TOTAL (BRL) $19,563,794.07 $58,286.63 $1,748,599.04

TOTAL (USD) $6,179,145.98 $18,409.60 $552,288.00

Costs (USD) Capital %

Total Tax $4,852,908.14 79% Using temporary admission regime
Tax 1% x 36 months $1,747,046.93 28% amount to be paid - 36 months contract
Year Expenses (tax) $582,348.98
Domestic freight

Payback
0 1 2
2017 2018 2019

Initial investment 6,179,146

Cash flows (6,179,146) 6,627,456 6,958,829
Discounted Cash flows (6,179,146) 6,024,960 5,751,098

Cumulative cash flows (6,179,146) 448,310 7,407,139

Fraction calculations 0.93 0.06
Cumulative Discount cash flows (6,179,146) (154,186) 5,596,912
Fraction calculations n/m 0.03

WACC 10%
Payback period 0.93
Discount Payback period 1.03
 12 37
Contract Rental
Year Rental Revenue Revenue
$7,000,627.03 $21,585,266.68
$7,214,908.68 $22,245,968.43

$5,605,060.81 $17,282,270.83
$1,162,591.92 $3,584,658.42

$20,983,188.44 $64,698,164.36
$6,627,456.00 $20,434,656.00

emporary admission regime

t to be paid - 36 months contract

3 4
2020 2021

7,306,770 7,672,109
5,489,685 5,240,154

14,713,909 22,386,018
1.01 1.92
11,086,597 16,326,750
1.02 2.12
 Assumptions
Contract Lenght in months 36
Dollar x Real rate 3.1661
Using COMODATO importation regime 1% tax month + customs fees (IPI and II)

REGI

Quantity Total Capital Selling Price Daily Rental Cost Redress USD Tool Unit Price Total Capital Total Daily Rental
Item Description required USD ($USD / Tool) ($USD/Tool /day) per tool ($BRL) (BRL) Revenue

1 27 3/4" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 4 $109,130.61 $27,282.65 $112.00 5,814.44 $86,379.61 $345,518.43 $1,418.41
2 25 3/4" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 6 $163,695.92 $27,282.65 $112.00 5,814.44 $86,379.61 $518,277.65 $2,127.62
3 18" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 6 $163,695.92 $27,282.65 $112.00 5,814.44 $86,379.61 $518,277.65 $2,127.62
4 17 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 8 $112,464.21 $14,058.03 $85.00 4,845.37 $44,509.12 $356,072.95 $2,152.95
5 15 7/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 6 $84,348.16 $14,058.03 $85.00 4,845.37 $44,509.12 $267,054.71 $1,614.71
6 14 5/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 6-5/8" REG Pin x Box 2 $28,116.05 $14,058.03 $85.00 4,845.37 $44,509.12 $89,018.24 $538.24
7 12 1/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 6-5/8" REG Pin x Box 10 $98,780.00 $9,878.00 $55.00 3,856.91 $31,274.74 $312,747.36 $1,741.36
8 9 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w NC50 Pin x Box 2 $19,756.00 $9,878.00 $55.00 3,856.91 $31,274.74 $62,549.47 $348.27
9 8 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w NC50 Pin x Box 6 $35,095.96 $5,849.33 $45.00 3,294.85 $18,519.55 $111,117.32 $854.85
$0.00 $0.00
11 27 3/4" Nearbit stabilizer c/w 7-5/8" REG Box x Box 1 $27,282.65 $27,282.65 $112.00 5,814.44 $86,379.61 $86,379.61 $354.60
12 25 3/4" Nearbit stabilizer c/w 7-5/8" REG Box x Box 2 $54,565.31 $27,282.65 $112.00 5,814.44 $86,379.61 $172,759.22 $709.21
13 18-1/8" Nearbit stabilizer c/w 7-5/8" REG Box x Box 2 $54,565.31 $27,282.65 $112.00 5,814.44 $86,379.61 $172,759.22 $709.21
14 17-1/2" Nearbit stabilizer c/w 7-5/8" REG Box x Box 3 $42,174.08 $14,058.03 $85.00 4,845.37 $44,509.12 $133,527.35 $807.36
15 16" Nearbit stabilizer c/w 7-5/8" REG Box x Box 1 $14,058.03 $14,058.03 $85.00 4,845.37 $44,509.12 $44,509.12 $269.12
16 14-3/4" Nearbit stabilizer c/w 6-5/8" REG Box x Box 1 $14,058.03 $14,058.03 $85.00 4,845.37 $44,509.12 $44,509.12 $269.12
17 12-1/4" Nearbit stabilizer c/w 6-5/8" REG Pin x Box 2 $19,756.00 $9,878.00 $55.00 3,856.91 $31,274.74 $62,549.47 $348.27
18 9-1/2" NearBit c/w 4-1/2" REG Box x Nc50 Box 1 $9,878.00 $9,878.00 $55.00 3,856.91 $31,274.74 $31,274.74 $174.14
19 8-1/2" NearBit c/w 4-1/2" REG Box x Nc50 Box 2 $11,698.65 $5,849.33 $45.00 3,294.85 $18,519.55 $37,039.11 $284.95
20 6" Nearbit c/w 3-1/2" REG Box x NC38 Box 0 $0.00 $3,829.13 $32.00 2,810.31 $12,123.42 $0.00 $0.00
$0.00 $0.00 $0.00
21 9-1/2" Steel Float Sub c/w 7-5/8" REG Pin x Box 2 $14,471.49 $7,235.75 $64.00 242.25 $22,909.10 $45,818.20 $405.26
22 8-1/4" Steel Float Sub c/w 6-5/8" REG Pin x Box 8 $57,891.31 $7,236.41 $64.00 242.25 $22,911.21 $183,289.67 $1,621.04
23 6-3/4" Steel Float Sub c/w NC50 Pin x Box 4 $22,224.08 $5,556.02 $45.00 242.25 $17,590.91 $70,363.66 $569.90
24 4-3/4" Steel Float Sub c/w NC38 Pin X Box 0 $0.00 $4,263.93 $35.00 242.25

Quantity Total Capital Selling Price Daily Rental Cost Mantainance/ Drilling
Between
Hours
Tool Unit Price Total Capital Total Daily Rental
Item Description required USD ($USD / Tool) ($USD/Tool /day) Repair Cost maintenance ($BRL) (BRL) Revenue
($USD/Tool)
(Hrs)
1 9-1/2" Jar (Hidromechanic or Hydraulic) 0
2 8-1/4" Jar (Hidromechanic or Hydraulic) 15 $1,920,480.90 128,032.06 306.00 3,100.00 300 $405,362.31 $6,080,434.58 $14,532.40
3 6-3/4" Jar (Hidromechanic or Hydraulic) 6 $664,986.00 110,831.00 290.00 3,100.00 300 $350,902.03 $2,105,412.17 $5,509.01
4 4-3/4" Jar (Hidromechanic or Hydraulic) 0

Quantity Total Capital Selling Price Daily Rental Cost Mantainance/ Drilling
Between
Hours
Tool Unit Price Total Capital Total Daily Rental
Item Description required USD ($USD / Tool) ($USD/Tool /day) Repair Cost maintenance ($BRL) (BRL) Revenue
($USD/Tool)
(Hrs)
1 8" / 8 1/4" Multiple Activation Circulating Valve 10 $714,770.00 71,477.00 650.00 2,200.00 300 $226,303.33 $0.00 $20,579.65
2 6-3/4" / 6-1/2" Multiple Activation Circulating Valve 6 $379,104.00 63,184.00 600.00 2,200.00 300 $200,046.86 $0.00 $11,397.96

Mantainance/ Drilling Hours

Item Description Quantity Total Capital Selling Price Daily Rental Cost Repair Cost Between Operation Daily Tool Unit Price Total Capital Total Daily Rental
required USD ($USD / Tool) ($USD/Tool /day) maintenance Rate ($BRL) (BRL) Revenue
($USD/Tool) (Hrs)
 1 9 1/2" Turbine 10 1,571,057.00 157,105.70 349.20 115.00 300 484.00 $497,412.36 $4,974,123.57 $11,056.02
2 6 3/4" Turbine 6 500,242.54 104,217.20 237.60 115.00 300 420.75 $329,962.06 $1,979,772.38 $4,513.59

Quantity Total Capital Selling Price ($USD / Daily Rental Cost Mantainance/ LIH Cost /
Item Description Repair Cost Beyond Reapir Cutter Charge Tool Unit Price Total Capital Total Daily Rental
required USD Tool) ($USD/Tool /day) ($USD) Cost ($USD) USD ($BRL) (BRL) Revenue

1 26" x 36" Hole Opener c/w 7-5/8" REG Pin x Box 3 $137,802.27 Not For Sale 160.00 13,082.49 45,934.09 13,082.49 $145,431.92 $436,295.77 $1,519.73
2 28" x 42" Hole Opener c/w 7-5/8" REG Pin x Box 2 $101,810.86 Not For Sale 270.00 16,668.86 50,905.43 16,668.86 $161,171.68 $322,343.36 $1,709.69

$19,563,794.07

REPARO DE CONEXÕES

Pin x Box Preço por

conexão
DS1 L5 Pin ou Box
7-5/8" REG 450.00
6-5/8" REG 450.00
6-5/8" FH 450.00
5-1/2" FH 350.00
5-1/2" IF 350.00
NC50 350.00
4-1/2" REG 350.00
3-1/2" REG 350.00
NC38 350.00
 BHI (unit) BHI (final price with taxes) $BRL

Selling Price Daily Rental Cost Selling Price Daily Rental Cost
($BZL / Tool) ($BZL/Tool /day) Redress per tool ($BZL / Tool) ($BZL/Tool /day) Redress per tool Item Description

$86,379.61 $354.60 $18,409.10 $162,881.68 $395.21 $23,462.40 27 3/4" stb 1 27 3/4" Integral Blade Stabilizer Steel Spi
$86,379.61 $354.60 $18,409.10 $162,863.81 $395.21 $23,462.40 25 3/4" stb 2 25 3/4" Integral Blade Stabilizer Steel Spi
$86,379.61 $354.60 $18,409.10 $162,863.81 $395.21 $23,462.40 18" stb 3 18" Integral Blade Stabilizer Steel Spiral
$44,509.12 $269.12 $15,340.93 $83,927.78 $299.93 $19,552.01 17 3/8" stb 4 17 3/8" Integral Blade Stabilizer Steel Spi
$44,509.12 $269.12 $15,340.93 $83,936.72 $299.93 $19,552.01 15 7/8" stb 5 15 7/8" Integral Blade Stabilizer Steel Spi
$44,509.12 $269.12 $15,340.93 $84,008.22 $299.93 $19,552.01 14 5/8" stb 6 14 5/8" Integral Blade Stabilizer Steel Spi
$31,274.74 $174.14 $12,211.36 $58,975.23 $194.07 $15,563.38 12 1/8" stb 7 12 1/8" Integral Blade Stabilizer Steel Spi
$31,274.74 $174.14 $12,211.36 $59,061.03 $194.07 $15,563.38 9 3/8" stb 8 9 3/8" Integral Blade Stabilizer Steel Spir
$18,519.55 $142.47 $10,431.82 $34,945.64 $158.79 $13,295.36 8 3/8" stb 9 8 3/8" Integral Blade Stabilizer Steel Spir

$86,379.61 $354.60 $18,409.10 $163,042.56 $395.21 $23,462.40 27 3/4" nb stb 11 27 3/4" Nearbit stabilizer c/w 7-5/8" REG
$86,379.61 $354.60 $18,409.10 $162,935.31 $395.21 $23,462.40 25 3/4" nb stb 12 25 3/4" Nearbit stabilizer c/w 7-5/8" REG
$86,379.61 $354.60 $18,409.10 $162,935.31 $395.21 $23,462.40 18-1/8" nb stb 13 18-1/8" Nearbit stabilizer c/w 7-5/8" REG
$44,509.12 $269.12 $15,340.93 $83,972.47 $299.93 $19,552.01 17-1/2" nbstb 14 17-1/2" Nearbit stabilizer c/w 7-5/8" REG
$44,509.12 $269.12 $15,340.93 $84,115.47 $299.93 $19,552.01 16" nb stb 15 16" Nearbit stabilizer c/w 7-5/8" REG Box
$44,509.12 $269.12 $15,340.93 $84,115.47 $299.93 $19,552.01 14-3/4" nb stb 16 14-3/4" Nearbit stabilizer c/w 6-5/8" REG
$31,274.74 $174.14 $12,211.36 $59,061.03 $194.07 $15,563.38 12-1/4" nb stb 17 12-1/4" Nearbit stabilizer c/w 6-5/8" REG
$31,274.74 $174.14 $12,211.36 $59,168.28 $194.07 $15,563.38 9-1/2" nb stb 18 9-1/2" NearBit c/w 4-1/2" REG Box x Nc50
$18,519.55 $142.47 $10,431.82 $35,017.14 $158.79 $13,295.36 8-1/2" nb stb 19 8-1/2" NearBit c/w 4-1/2" REG Box x Nc50
$12,123.42 $101.32 $8,897.72 $0.00 $0.00 $0.00 6" nb stb 20 6" Nearbit c/w 3-1/2" REG Box x NC38 Box

$22,909.10 $202.63 $766.99 $43,291.56 $225.83 $977.53 9-1/2" fs 21 9-1/2" Steel Float Sub c/w 7-5/8" REG Pin
$22,911.21 $202.63 $766.99 $43,215.10 $225.83 $977.53 8-1/4" fs 22 8-1/4" Steel Float Sub c/w 6-5/8" REG Pin
$17,590.91 $142.47 $766.99 $33,213.01 $158.79 $977.53 6-3/4" fs 23 6-3/4" Steel Float Sub c/w NC50 Pin x Box
4-3/4" fs 24 4-3/4" Steel Float Sub c/w NC38 Pin X Box

Mantainance/ Drilling Hours Mantainance/ Drilling Hours

Selling Price Daily Rental Cost Between Selling Price Daily Rental Cost Between
($BZL / Tool) ($BZL/Tool /day) Repair Cost maintenance ($BZL / Tool) ($BZL/Tool /day) Repair Cost maintenance
($BZL/Tool) ($BZL/Tool)
(Hrs) (Hrs)

$405,362.31 $968.83 16,685.35 250.00 $764,133.94 $1,079.76 $21,265.47 250 8-1/4" Jar 350.00
$350,902.03 $918.17 16,685.35 250.00 $661,496.20 $1,023.30 $21,265.47 250 6-3/4" Jar 350.00

Mantainance/ Drilling Hours Mantainance/ Drilling Hours

Selling Price Daily Rental Cost Between Selling Price Daily Rental Cost Between
($BZL / Tool) ($BZL/Tool /day) Repair Cost maintenance ($BZL / Tool) ($BZL/Tool /day) Repair Cost maintenance
($BZL/Tool) ($BZL/Tool)
(Hrs) (Hrs)
$226,303.33 $2,057.97 6,965.42 per run $226,303.33 $2,293.60 $8,877.43 per run 8" / 8 1/4" PBL
$200,046.86 $1,899.66 6,965.42 per run $200,046.86 $2,117.17 $8,877.43 per run 6-3/4" / 6-1/2" PBL

Mantainance/ Drilling Hours Mantainance/ Drilling Hours

Selling Price Daily Rental Cost Repair Cost Between Selling Price Daily Rental Cost Repair Cost Between Operations Fee
($BZL / Tool) ($BZL/Tool /day) maintenance ($BZL / Tool) ($BZL/Tool /day) maintenance ($BZL/circ/hrs)
($BZL/Tool) (Hrs) ($BZL/Tool) (Hrs)
 $497,412.36 $1,105.60 618.97 250 $937,658.10 $1,232.19 $788.88 300 $1,707.85 9 1/2" Turbine
$329,962.06 $752.27 618.97 250 $622,023.76 $838.40 $788.88 300 $1,484.67 6 3/4" Turbine

Selling Price Daily Rental Cost Maintenance LIH Cost / Selling Price LIH Cost /
Daily Rental Cost Maintenance Repair Beyond
Beyond Reapir Reapir
($BZL / Tool) ($BZL/Tool /day) Repair Costs Cost ($BZL) ($BZL / Tool) ($BZL/Tool /day) Costs Cost ($BZL)

$145,431.92 $506.58 $41,420.47 $145,431.92 $274,214.87 $564.58 $52,790.39 $185,352.99 26" x 36" Hole Opener
$161,171.68 $854.85 $52,775.28 $161,171.68 $303,920.52 $952.73 $67,262.09 $205,413.31 28" x 42" Hole Opener
 REDRESS ($BRL) REPARO DE
CONEXÕES

Pin x Box
1/8” 1/8” - 1/4” 1/4” - 1” 1” - 2” DS1 L5

4,815.33 13,959.73 21,018.01 28,154.72 900.00

4,132.19 11,940.70 17,754.22 24,195.07 900.00
3,969.08 11,855.53 17,869.57 23,397.40 700.00
4,118.07 11,777.12 17,806.83 23,240.57 700.00
3,999.64 11,806.19 17,364.26 22,906.64 550.00
3,871.81 11,051.10 17,000.10 22,337.46 550.00
3,744.75 10,374.42 15,836.09 21,297.76 550.00
3,363.59 9,520.64 14,202.54 19,433.36 350.00
2,989.25 8,734.38 12,923.19 17,682.83 350.00

4,815.33 13,959.73 21,018.01 28,154.72 900.00

4,132.19 11,940.70 17,754.22 24,195.07 900.00
3,969.08 11,855.53 17,869.57 23,397.40 700.00
4,118.07 11,777.12 17,806.83 23,240.57 700.00
3,999.64 11,806.19 17,364.26 22,906.64 550.00
3,871.81 11,051.10 17,000.10 22,337.46 550.00
3,744.75 10,374.42 15,836.09 21,297.76 550.00
3,363.59 9,520.64 14,202.54 19,433.36 350.00
2,989.25 8,734.38 12,923.19 17,682.83 350.00
350.00

450.00
450.00
350.00

70,007.43 202,039.66 303,549.61 405,291.60 980,888.30

309,809.64

350.00
350.00
350.00
350.00

900.00
900.00
 Contingency
Qtd Salary 30% Total 25%
Coordinator 1 6000 1800 7800 1950
Supervisor 1 4000 1200 5200 1300
Technician 2 6000 1800 7800 1950

Technician 1 3000 900 3900 975

Item Description Quantity required

1 27 3/4" Integral Bl 4
2 25 3/4" Integral Bl 6
3 18" Integral Blade S 6
4 17 3/8" Integral Bla 8
5 15 7/8" Integral Bla 6
6 14 5/8" Integral Bla 2
7 12 1/8" Integral Bl 10
8 9 3/8" Integral Bla 2
9 8 3/8" Integral Bla 6

11 27 3/4" Nearbit sta 1

12 25 3/4" Nearbit sta 2
13 18-1/8" Nearbit stab 2
14 17-1/2" Nearbit stab 3
15 16" Nearbit stabiliz 1
16 14-3/4" Nearbit stab 1
17 12-1/4" Nearbit stab 2
18 9-1/2" NearBit c/w 1
19 8-1/2" NearBit c/w 2
20 6" Nearbit c/w 3-1/ 0

21 9-1/2" Steel Float S 2

22 8-1/4" Steel Float S 8
23 6-3/4" Steel Float 4
24 4-3/4" Steel Float 0 79
Item Description Quantity required

1 9-1/2" Jar (Hidrome 0

2 8-1/4" Jar (Hidrome 15
3 6-3/4" Jar (Hidrome 6
4 4-3/4" Jar (Hidrome 0 21

Item Description Quantity required

1 8" / 8 1/4" Multiple 10

2 6-3/4" / 6-1/2" Mult 6 16

Item Description Quantity required

1 9 1/2" Turbine 10
2 6 3/4" Turbine 6 16

Item Description Quantity required

1 26" x 36" Hole Ope 3

2 28" x 42" Hole Ope 2 5
Costs Dolar 3.1
75% Total Costs
5850 15600
3900 10400
5850 15600

2925 7800 15600

Total 41,600.00 14,729,000.00
USD 13,419.35 161,032.26 14,334,000.00
395,000.00
30 447.31 450

Daily Rental
Cost
($USD/Tool
/day)
$110.00 $440.00
$110.00 $660.00
$110.00 $660.00
$82.37 $658.96
$82.37 $494.22
$82.37 $164.74
$53.30 $533.00
$53.30 $106.60
$43.61 $261.66
$0.00
$110.00 $110.00
$110.00 $220.00
$110.00 $220.00
$82.37 $247.11
$82.37 $82.37
$82.37 $82.37
$53.30 $106.60
$53.30 $53.30
$43.61 $87.22
$31.01 $0.00
$0.00
$62.99 $125.98
$62.99 $503.92
$43.61 $174.44
$33.92 $0.00 5992.49 22% 98.22
$1,689.16 $1,732.00 $42.84
Daily Rental
Cost
($USD/Tool
/day)
$0.00
266.50 $3,997.50
247.11 $1,482.66
$0.00 5480.16 20% 89.83

Daily Rental
Cost
($USD/Tool
/day)
650.00 $6,500.00
600.00 $3,600.00 10100 37% 165.55

Daily Rental
Cost
($USD/Tool
/day)
349.20 $3,492.00
237.60 $1,425.60 4917.6 18% 80.61

Daily Rental
Cost
($USD/Tool
/day)
145.36 $436.08
242.27 $484.54 920.62 3% 15.09

27453.71
Item Description

1 27 3/4" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box
2 25 3/4" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box
3 18" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box
4 17 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box
5 15 7/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box
6 14 5/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 6-5/8" REG Pin x Box
7 12 1/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 6-5/8" REG Pin x Box
8 9 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w NC50 Pin x Box
9 8 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w NC50 Pin x Box

11 27 3/4" Nearbit stabilizer c/w 7-5/8" REG Box x Box

12 25 3/4" Nearbit stabilizer c/w 7-5/8" REG Box x Box
13 18-1/8" Nearbit stabilizer c/w 7-5/8" REG Box x Box
14 17-1/2" Nearbit stabilizer c/w 7-5/8" REG Box x Box
15 16" Nearbit stabilizer c/w 7-5/8" REG Box x Box
16 14-3/4" Nearbit stabilizer c/w 6-5/8" REG Box x Box
17 12-1/4" Nearbit stabilizer c/w 6-5/8" REG Pin x Box
18 9-1/2" NearBit c/w 4-1/2" REG Box x Nc50 Box
19 8-1/2" NearBit c/w 4-1/2" REG Box x Nc50 Box
20 6" Nearbit c/w 3-1/2" REG Box x NC38 Box

21 9-1/2" Steel Float Sub c/w 7-5/8" REG Pin x Box

22 8-1/4" Steel Float Sub c/w 6-5/8" REG Pin x Box
23 6-3/4" Steel Float Sub c/w NC50 Pin x Box
24 4-3/4" Steel Float Sub c/w NC38 Pin X Box

1 9-1/2" Jar (Hidromechanic or Hydraulic)

2 8-1/4" Jar (Hidromechanic or Hydraulic)
3 6-3/4" Jar (Hidromechanic or Hydraulic)
4 4-3/4" Jar (Hidromechanic or Hydraulic)

1 8" / 8 1/4" Multiple Activation Circulating Valve (PBL)

2 6-3/4" / 6-1/2" Multiple Activation Circulating Valve (PBL)

1 26" x 36" Hole Opener c/w 7-5/8" REG Pin x Box

2 28" x 42" Hole Opener c/w 7-5/8" REG Pin x Box

1 9 1/2" Turbine
2 6 3/4" Turbine
 Estimated
Unit Price Total Price CIF
NCM QTY Freight Cost
USD (USD) (ocean) (USD)

10% 3.1661
DOLAR (U$)
8431.43.90 27,282.65 4 109,130.61 10,913.06 120,043.67
8431.43.90 27,282.65 6 163,695.92 16,369.59 180,065.51
8431.43.90 27,282.65 6 163,695.92 16,369.59 180,065.51
8431.43.90 14,058.03 8 112,464.21 11,246.42 123,710.63
8431.43.90 14,058.03 6 84,348.16 8,434.82 92,782.98
8431.43.90 14,058.03 2 28,116.05 2,811.61 30,927.66
8431.43.90 9,878.00 10 98,780.00 9,878.00 108,658.00
8431.43.90 9,878.00 2 19,756.00 1,975.60 21,731.60
8431.43.90 5,849.33 6 35,095.96 3,509.60 38,605.56

8431.43.90 27,282.65 1 27,282.65 2,728.27 30,010.92

8431.43.90 27,282.65 2 54,565.31 5,456.53 60,021.84
8431.43.90 27,282.65 2 54,565.31 5,456.53 60,021.84
8431.43.90 14,058.03 3 42,174.08 4,217.41 46,391.49
8431.43.90 14,058.03 1 14,058.03 1,405.80 15,463.83
8431.43.90 14,058.03 1 14,058.03 1,405.80 15,463.83
8431.43.90 9,878.00 2 19,756.00 1,975.60 21,731.60
8431.43.90 9,878.00 1 9,878.00 987.80 10,865.80
8431.43.90 5,849.33 2 11,698.65 1,169.87 12,868.52
8431.43.90 3,829.13 0 - 0.00 0.00

7307.99.00 7,235.75 2 14,471.49 1,447.15 15,918.64

7307.99.00 7,236.41 8 57,891.31 5,789.13 63,680.44
7307.99.00 5,556.02 4 22,224.08 2,222.41 24,446.49
7307.99.00 4,263.93 0 - 0.00 0.00

8431.43.90 0 - 0.00 0.00

8431.43.90 128,032.06 15 1,920,480.90 192,048.09 2,112,528.99
8431.43.90 110,831.00 6 664,986.00 66,498.60 731,484.60
8431.43.90 0 - 0.00 0.00

8481.80.99 schoeller 10
8481.80.99 schoeller 6

8207.19.00 45,934.09 3 137,802.27 13,780.23 151,582.50

8207.19.00 50,905.43 2 101,810.86 10,181.09 111,991.95

8431.43.90 157,105.70 10 1,571,057.00 157,105.70 1,728,162.70

8431.43.90 104,217.20 6 625,303.17 62,530.32 687,833.49
 II IPI PIS COFINS ICMS
CIF
(14%) (5%) (2,1%) (10,65%) (18%)

14% 5% 2.10% 10.65% 18%

REAIS (R$)
380,070.28 53,209.84 21,664.01 9,553.83 49,469.03 92,514.06
570,105.42 79,814.76 32,496.01 14,330.74 74,203.55 138,771.08
570,105.42 79,814.76 32,496.01 14,330.74 74,203.55 138,771.08
391,680.24 54,835.23 22,325.77 9,845.67 50,980.16 95,340.07
293,760.18 41,126.43 16,744.33 7,384.25 38,235.12 71,505.05
97,920.06 13,708.81 5,581.44 2,461.42 12,745.04 23,835.02
344,022.09 48,163.09 19,609.26 8,647.68 44,777.09 83,739.46
68,804.42 9,632.62 3,921.85 1,729.54 8,955.42 16,747.89
122,229.05 17,112.07 6,967.06 3,072.47 15,909.04 29,752.14

95,017.57 13,302.46 5,416.00 2,388.46 12,367.26 23,128.51

190,035.14 26,604.92 10,832.00 4,776.91 24,734.52 46,257.03
190,035.14 26,604.92 10,832.00 4,776.91 24,734.52 46,257.03
146,880.09 20,563.21 8,372.17 3,692.12 19,117.56 35,752.53
48,960.03 6,854.40 2,790.72 1,230.71 6,372.52 11,917.51
48,960.03 6,854.40 2,790.72 1,230.71 6,372.52 11,917.51
68,804.42 9,632.62 3,921.85 1,729.54 8,955.42 16,747.89
34,402.21 4,816.31 1,960.93 864.77 4,477.71 8,373.95
40,743.02 5,704.02 2,322.35 1,024.16 5,303.01 9,917.38
0.00 0.00 0.00 0.00 0.00 0.00

50,400.01 7,056.00 2,872.80 1,266.91 6,559.94 12,268.02

201,618.63 28,226.61 11,492.26 5,068.09 26,242.20 49,076.60
77,400.03 10,836.00 4,411.80 1,945.60 10,074.20 18,840.17
0.00 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00 0.00

6,688,478.04 936,386.92 381,243.25 168,128.27 870,556.19 1,628,062.68
2,315,953.39 324,233.47 132,009.34 58,216.12 301,438.91 563,733.22
0.00 0.00 0.00 0.00 0.00 0.00

479,925.34 67,189.55 27,355.74 12,063.88 62,465.93 116,820.08

354,577.70 49,640.88 20,210.93 8,913.02 46,150.98 86,308.83

5,471,535.92 766,015.03 311,877.55 137,538.00 712,161.93 1,331,843.12

2,177,749.61 304,884.95 124,131.73 54,742.09 283,450.64 530,092.62
21,520,173.48
 FECP Total Importation
Storage SISCOMEX Broker Local Freight Others
(2%) Costs

2%
REAIS (R$)
10,279.34 0.00 214.50 0.00 0.00 0.00 271,456.44
15,419.01 0.00 214.50 0.00 0.00 0.00 407,077.41
15,419.01 0.00 214.50 0.00 0.00 0.00 407,077.41
10,593.34 0.00 214.50 0.00 0.00 0.00 279,742.04
7,945.01 0.00 214.50 0.00 0.00 0.00 209,860.15
2,648.34 0.00 214.50 0.00 0.00 0.00 70,096.38
9,304.38 0.00 214.50 0.00 0.00 0.00 245,730.20
1,860.88 0.00 214.50 0.00 0.00 0.00 49,317.64
3,305.79 0.00 214.50 0.00 0.00 0.00 87,444.80

2,569.83 0.00 214.50 0.00 0.00 0.00 68,024.99

5,139.67 0.00 214.50 0.00 0.00 0.00 135,835.47
5,139.67 0.00 214.50 0.00 0.00 0.00 135,835.47
3,972.50 0.00 214.50 0.00 0.00 0.00 105,037.33
1,324.17 0.00 214.50 0.00 0.00 0.00 35,155.44
1,324.17 0.00 214.50 0.00 0.00 0.00 35,155.44
1,860.88 0.00 214.50 0.00 0.00 0.00 49,317.64
930.44 0.00 214.50 0.00 0.00 0.00 24,766.07
1,101.93 0.00 214.50 0.00 0.00 0.00 29,291.27
0.00 0.00 214.50 0.00 0.00 0.00 214.50

1,363.11 0.00 214.50 0.00 0.00 0.00 36,183.11

5,452.96 0.00 214.50 0.00 0.00 0.00 144,102.18
2,093.35 0.00 214.50 0.00 0.00 0.00 55,452.00
0.00 0.00 214.50 0.00 0.00 0.00 214.50

0.00 0.00 214.50 0.00 0.00 0.00 214.50

180,895.85 0.00 214.50 0.00 0.00 0.00 4,773,531.12
62,637.02 0.00 214.50 0.00 0.00 0.00 1,653,023.82
0.00 0.00 214.50 0.00 0.00 0.00 214.50

12,980.01 0.00 214.50 0.00 0.00 0.00 342,719.27

9,589.87 0.00 214.50 0.00 0.00 0.00 253,263.34

147,982.57 0.00 214.50 0.00 0.00 0.00 3,905,045.05

58,899.18 0.00 214.50 0.00 0.00 0.00 1,554,392.95
15,364,792.45
4,852,908.14
Total Final Price Unit Final Price
(R$) (R$)

651,526.72 162,881.68 53%

977,182.83 162,863.81
977,182.83 162,863.81
671,422.28 83,927.78
503,620.33 83,936.72
168,016.44 84,008.22
589,752.30 58,975.23
118,122.06 59,061.03
209,673.85 34,945.64

163,042.56 163,042.56
325,870.61 162,935.31
325,870.61 162,935.31
251,917.42 83,972.47
84,115.47 84,115.47
84,115.47 84,115.47
118,122.06 59,061.03
59,168.28 59,168.28
70,034.28 35,017.14
214.50 0.00

86,583.12 43,291.56
345,720.81 43,215.10
132,852.03 33,213.01
214.50 0.00

214.50 0.00
11,462,009.16 764,133.94
3,968,977.21 661,496.20
214.50 0.00

822,644.61 274,214.87
607,841.04 303,920.52

9,376,580.97 937,658.10
3,732,142.56 622,023.76
Tax Scheme

rental and services COFINS 7.60%

rental and services PIS 1.65%
rental and services IPRJ 1.20%
rental and services CSLL 1.00% 11.45%
services INSS 11.00%
services ISS 5.00%
27.45%
Baker - currently drilling tools rental prices

Drilling Jars
NOV Size Qtd Daily Rate (USD)
8" 20 2,134.00
9 1/2" 4 2,900.00
6 3/4" 6 1,745.00

Superior Energy Contract Fees (BRL)

monthly fee 16,000.00
standby 483.00
Operations daily rate 966.00

Baker/Petrobras contract price list USD 533.33

Drilling Jars 3343
Hole Openners 7000
28" x 42"
26" x 36"

Thread connections needs to be DS1 and ACFM certified

 3.1661

BRL
6,756.46
9,181.69
5,524.84
Rental Pricing on PBL Tools

Rental Rate per Monthly

Item No. Description Qty day Rental
1 6-3/4" 1 600.00 8,549.00
2 8-1/4" 1 650.00 9,555.00

Consumables

Price per Unit

Item No. Description Application Used
1 Steel Ball 1 50.00
2 Standard Locking Ball 1 68.00
3 Standard Ball 1 80.00
4 Standard Ballw/ Brass Dart 1 160.00
5 High Temp Torlon Ball 1 200.00
6 High Temp Torlon Ball w/ Brass Dart 1 280.00
7 High Temp Locking Ball 1 120.00
Redress Charge Diff
per each tool Lost in Hole 30 days Monthly
1,100.00 63,184.00 600.00 18,000.00 9,451.00
1,100.00 71,477.00 650.00 19,500.00 9,945.00
Drilling Jar - Spare parts costs

Descrição das Partes do Percussor de Perfuração OD 8"

Valor Unitário (US$) Valor Unitário (US$)
SEAL BARREL 15,593.22
SPLINE MANDREL 26,006.87
WASHPIPE 13,746.06
SEAL HOUSING 13,734.11
PIN SUB 4,130.44
VALVE SEAL RING 650.13
VALVE DOWN 1,734.53
VALVE UP 1,734.53
PISTON 1,638.93
BOTTON SUB 3,841.10
SEAL KIT JAR, STANDARD TEMP 339.00
LOWER PUP JOINT STEEL 8" 6.5/8"REG PIN X BOX 6,013.35
UPPER PUP JOINT STEEL 8" 6.5/8"REG PIN X BOX 6,013.35
CLAMPS 4,743.75

99,919.37
Integral Blade Stabilizers - redress repair costs 59,951.62

Descrição dos Equipamentos Desgaste até

1/8”

Non-Magnetic Stabilizer Spiral/Near Bit Integral String RANGE OD (in): 5,7/8 TO 6,7/8" 4,549.35
Non-Magnetic Stabilizer Spiral/Near Bit Integral String RANGE OD (in): 7" TO 7,7/8" 4,634.70
Non-Magnetic Stabilizer Spiral/Near Bit Integral String RANGE OD (in): 8" TO 8,7/8" 4,813.62
Non-Magnetic Stabilizer Spiral/Near Bit Integral String RANGE OD (in): 9" TO 9,7/8" 4,813.62
Non-Magnetic Stabilizer Spiral/Near Bit Integral String RANGE OD (in): 10" TO 12,1/4" 4,875.44
Non-Magnetic Stabilizer Spiral/Near Bit Integral String RANGE OD (in): 12 3/8" TO 14,3/4" 4,875.44

Non-Magnetic Stabilizer Spiral/Near Bit Integral String RANGE OD (in): 14 7/8" TO 17,1/2" 4,983.45

Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 5,7/8 TO 6,7/8" 3,849.30
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 7" TO 7,7/8" 3,849.30
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 8" TO 8,7/8" 4,389.37
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 9" TO 9,7/8" 4,389.37
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 10" TO 12,1/4" 4,875.44
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 12 3/8" TO 14,3/4" 5,037.47
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 14 7/8" TO 17,1/2" 5,199.49
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 17 5/8" TO 20" 5,361.51
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 20 1/8" TO 26" 5,469.52
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 26 1/8" TO 28" 6,440.68
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 28 1/8" TO 30" 6,521.70
Stabilizer Steel Spiral/Near Bit Integral String RANGE OD (in): 30 1/8" TO 36" 7,682.86
 OD 6 1/2" OD 4 3/4"
Valor Unitário (US$)
12,473.85 9,978.50
20,741.70 16,542.48
10,980.90 8,771.98
10,980.90 8,779.61
3,285.56 2,613.49
519.39 414.94
1,385.69 1,107.00
1,385.69 1,107.00
1,307.25 1,042.70
3,050.25 2,422.23
320.93 303.83
4,810.68 3,848.54
4,810.68 3,848.54
3,795.00 3,036.00

79,848.47
47,909.08

Desgaste acima de 1/8” até Desgaste acima de 1/4” até 1” Desgaste

1/4” acima de 1”
até 2”
Average
12,998.14 19,497.21 25,996.28
19,497.21
13,241.99 19,862.99 26,483.98
19,862.99
13,753.19 20,629.79 27,506.38
20,629.79
13,753.19 20,629.79 27,506.38
20,629.79
13,929.83 20,894.75 27,859.66
20,894.75
13,929.83 20,894.75 27,859.66
20,894.75
14,238.44 21,357.66 28,476.88
21,357.66
10,997.99 16,496.99 21,995.98 7.00
16,496.99
10,997.99 16,496.99 21,995.98 8.00
16,496.99
12,541.06 18,811.58 25,082.12 9.00
18,811.59
12,541.06 18,811.58 25,082.12 10.00
18,811.59
13,929.83 20,894.75 27,859.66 12.00
20,894.75
14,392.76 21,589.13 28,785.52 14.00
21,589.14
14,855.68 22,283.52 29,711.36 18.00
22,283.52
15,318.60 22,977.91 30,637.20 20.00
22,977.90
15,627.21 23,440.82 31,254.42 26.00
23,440.82
18,401.95 27,602.92 36,803.90 28.00
27,602.92
18,633.42 27,950.13 37,266.84 30.00
27,950.13
21,951.03 32,926.54 43,902.06 36.00
32,926.54
 Price Analysis - different providers

Item Description Quantity

required

1 27 3/4" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 4
2 25 3/4" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 6
3 18" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 6
4 17 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 8
5 15 7/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 7-5/8" REG Pin x Box 6
6 14 5/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 6-5/8" REG Pin x Box 2
7 12 1/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w 6-5/8" REG Pin x Box 10
8 9 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w NC50 Pin x Box 2
9 8 3/8" Integral Blade Stabilizer Steel Spiral OD (in) c/w NC50 Pin x Box 6

11 27 3/4" Nearbit stabilizer c/w 7-5/8" REG Box x Box 1

12 25 3/4" Nearbit stabilizer c/w 7-5/8" REG Box x Box 2
13 18-1/8" Nearbit stabilizer c/w 7-5/8" REG Box x Box 2
14 17-1/2" Nearbit stabilizer c/w 7-5/8" REG Box x Box 3
15 16" Nearbit stabilizer c/w 7-5/8" REG Box x Box 1
16 14-3/4" Nearbit stabilizer c/w 6-5/8" REG Box x Box 1
17 12-1/4" Nearbit stabilizer c/w 6-5/8" REG Pin x Box 2
18 9-1/2" NearBit c/w 4-1/2" REG Box x Nc50 Box 1
19 8-1/2" NearBit c/w 4-1/2" REG Box x Nc50 Box 2
20 6" Nearbit c/w 3-1/2" REG Box x NC38 Box 0

21 9-1/2" Steel Float Sub c/w 7-5/8" REG Pin x Box 2

22 8-1/4" Steel Float Sub c/w 6-5/8" REG Pin x Box 8
23 6-3/4" Steel Float Sub c/w NC50 Pin x Box 4
24 4-3/4" Steel Float Sub c/w NC38 Pin X Box 0

Quantity
Item Description required

1 9-1/2" Jar (Hidromechanic or Hydraulic) 0

2 8-1/4" Jar (Hidromechanic or Hydraulic) 15
3 6-3/4" Jar (Hidromechanic or Hydraulic) 6
4 4-3/4" Jar (Hidromechanic or Hydraulic) 0

Item Description Quantity

required

1 8" / 8 1/4" Multiple Activation Circulating Valve 10

2 6-3/4" / 6-1/2" Multiple Activation Circulating Valve 6
Item Description Quantity
required

1 9 1/2" Turbine 10
2 6 3/4" Turbine 6

Item Description Quantity

required

1 26" x 36" Hole Opener c/w 7-5/8" REG Pin x Box 3

2 28" x 42" Hole Opener c/w 7-5/8" REG Pin x Box 2
 REGI INTEGRA

Total Capital Selling Price Daily Rental Cost Redress USD Selling Price
USD ($USD / Tool) ($USD/Tool /day) per tool ($USD / Tool)

$163,695.92 $40,923.98 $110.00 5,814.44

$245,543.88 $40,923.98 $110.00 5,814.44
$245,543.88 $40,923.98 $110.00 5,814.44
$168,696.32 $21,087.04 $82.37 4,845.37
$126,522.24 $21,087.04 $82.37 4,845.37
$42,174.08 $21,087.04 $82.37 4,845.37
$148,170.00 $14,817.00 $53.30 3,856.91
$29,634.00 $14,817.00 $53.30 3,856.91
$52,643.94 $8,773.99 $43.61 3,294.85

$40,923.98 $40,923.98 $110.00 5,814.44

$81,847.96 $40,923.98 $110.00 5,814.44
$81,847.96 $40,923.98 $110.00 5,814.44
$63,261.12 $21,087.04 $82.37 4,845.37
$21,087.04 $21,087.04 $82.37 4,845.37
$21,087.04 $21,087.04 $82.37 4,845.37
$29,634.00 $14,817.00 $53.30 3,856.91
$14,817.00 $14,817.00 $53.30 3,856.91
$17,547.98 $8,773.99 $43.61 3,294.85
$0.00 $5,743.70 $31.01 2,810.31

$21,707.24 $10,853.62 $62.99 242.25

$86,836.96 $10,854.62 $62.99 242.25
$33,336.12 $8,334.03 $43.61 242.25
$0.00 $6,395.89 $33.92 242.25

Total Capital Selling Price Daily Rental Cost Mantainance/ Selling Price
USD ($USD / Tool) Repair Cost
($USD/Tool /day) ($USD/Tool) ($USD / Tool)

$0.00 174,242.33
$1,920,480.90 128,032.06 1,950.00 8,250.00 36,000.00
$664,986.00 110,831.00 1,650.00 8,250.00 34,000.00
$0.00 95,529.33

Mantainance/
Total Capital Selling Price Daily Rental Cost Repair Cost Selling Price
USD ($USD / Tool) ($USD/Tool /day) ($USD/Tool) ($USD / Tool)

$714,770.00 71,477.00 650.00 2,200.00 23,000.00

$379,104.00 63,184.00 600.00 2,200.00 19,300.00
 Mantainance/
Total Capital Selling Price Daily Rental Cost Repair Cost Selling Price
USD ($USD / Tool) ($USD/Tool /day) ($USD/Tool) ($USD / Tool)

160,000.00
112,000.00

Total Capital Selling Price Daily Rental Cost Mantainance/

Repair Cost Selling Price
USD ($USD / Tool) ($USD/Tool /day) ($USD / Tool)
($USD)
$137,802.27 45,934.09 145.36
$101,810.86 50,905.43 242.27
 Petro-King

Selling Price
($USD / Tool)

Selling Price
($USD / Tool)

Selling Price
($USD / Tool)
 Selling Price
($USD / Tool)

157,105.70
83,373.76

Selling Price
($USD / Tool)
 1.0559 30

Availability Availability
30 days 30 days Daily Rate
Tool Size (BRL) (USD) (USD)
9-1/2" 69,866.48 66,167.71 2,205.59
6-3/4" 152,273.13 144,211.70 4,807.06
4-3/4" 10,748.69 10,179.65 339.32
19300
23000
Petro-king Turbines Proposal
FOB HK Price.
1 USD = 6.879 RMB
Amounts in USD

Item Commodity Descriptions

1 9 1/2" TurboiDrill Equipment, One Piece of Tools

2 9 1/2" TurboiDrill Spare Parts (for one redress,details as per Annex I)
3 6 3/4" TurboiDrill Equipment one piece of Tools
4 6 3/4" TurboiDrill Spare Parts (for one redress,details as per Annex I)
Sub Total Price(Ex-works, China):
Grand Total Price(FOB Hong Kong):

Item Descriptions
1 Operating & Maintenance Training
Remark：
1. Location: Huizhou China.
2. Training duration: 3 weeks.
3. Training compensation covers training tuition, lunch, local transportation and accommodation.
4. If Petro-King engineers are required to do on the job training and maintenance services will be charged extra 700 USD/
mob/demob fee 3000USD/person for international traveling (1000USD/person for domestic traveling).

3. Annex I Cost Breakdown (Spare Parts)

245 TURBODRILL COMPONENT PRICE

Item Description

1 245 ROTOR BLADE

2 3D
245 STATOR BLADE
3 3D
245 PDC ROTOR
4 245 PDC STATOR
5 245 PDC STATOR SPACER
6 245 PDC SPRING
7 245 PDC CARRIER
8 245 PDC CARRIER SPACER
9 245 PDC LOWER ROTOR SPACER
10 245 PDC ROTOR SPACER
11 245 PDC STACK UPPER ROTOR
SPACER
12 245 STATOR O-RING SPACER
13 245 UPPER STATOR ADJUSTING SPACER
14 245 PDC CARRIER COMPRESSION SPACER
15 245 COMPRESSION SPACER
16 DC19000530_O-RING 190 X 5.3_245
17 O-RING
DE20400450_O-RING 204 X 4.5_245
18 O-RING
245 UPPER RADIAL BEARING ROTOR (HNBR)
19 245 UPPER RADIAL BEARING STATOR (HNBR)
 20 245 MANDREL
21 245 FLOW CHOKE STATOR
22 245 LOWER STATOR ADJUSTING SPACER
23 245 DBH 0.8 DEG
24 245 LOWER RADIAL BEARING STATOR (HNBR)
25 245 OLBS ADJUSTING SPACER (0 DEG)
26 245 OLBS_309.6 MM_12.3-16 IN
27 245 LOWER ROTOR ADJUSTING SPACER
28 245 FLOW CHOKE ROTOR
29 245 LOWER RADIAL BEARING ROTOR (HNBR)
30 245 LOWER SHAFT
31 245 FLEX SHAFT
32 245 UPPER SHAFT
33 245 SHAFT
CROSSOVER
34 245 ROTOR NUT
35 245 ROTOR CATCH
36 245 TOP SUB
37 245 UPPER HOUSING
38 245 ILS_308.0 MM_12.1-8 IN
Total Price (RMB):

172 TURBODRILL COMPONENT PRICE

Item Description

1 172 ROTOR BLADE

2 3D
172 STATOR BLADE
3 3D
172 RADIAL BEARING STATOR (HNBR)
4 172 UPPER RADIAL BEARING BEARING ROTOR HF6000
5 172 PDC ROTOR
6 172 PDC LOWER ROTOR SPACER
7 172 PDC ROTOR SPACER
8 172 PDC CARRIER
9 172 PDC CARRIER SPACER
10 172 PDC SPRING
11 172 PDC STATOR SPACER
12 172 PDC STATOR
13 172 PDC STACK LOWER ROTOR SPACER
14 172 PDC STACK UPPER ROTOR SPACER
15 172 PDC CARRIER COMPRESSION SPACER
16 172 ROTOR COMPRESSION SPACER
17 DC13200530_O-RING 132 X 5.3_172
18 O-RING
DE14200430_O-RING 142 X 4.3_172
19 O-RING
172 STATOR O-RING SPACER
20 172 UPPER STATOR ADJUSTING SPACER
21 172 MANDREL
22 172 OLBS ALIGNMENT SPACER (0 DEG)
23 172 LOWER STATOR ADJUSTING SPACER
24 172 LOWER RADIAL BEARING STATOR (HNBR)
25 172 LOWER RADIAL BEARING BEARING ROTOR HF6000
26 172 FLOW CHOKE STATOR HNBR
27 172 ROTOR STAND-OFF
28 SPACER 1.1 MM
172 ROTOR STAND-OFF
29 SPACER 1.2 MM
172 LOWER SHAFT (PIN)
 30 172 LOWER ROTOR ADJUSTING SPACER
31 172 FLOW CHOKE ROTOR
32 172 FLEX SHAFT
33 172 DBH 0.8 DEG
34 172 SHAFT CROSSOVER
35 172 UPPER SHAFT
36 172 ROTOR NUT
37 172 ROTOR CATCH
38 172 UPPER HOUSING
39 172 TOP SUB
40 172 OFFSET LBS (214.3MM &8-7/16 IN)
41 172 ILS_212.7 MM_8.3-8 IN
Total Price (RMB):
 1 USD = 6.879

% fleet
operation 350
Qty Unit Price Amount
(EA) USD USD Total Overhaul
30% @350 hrs
10 157,105.70 1,571,057.00
10 42,691.54 426,915.41 3 1050
6 83,373.76 500,242.54
6 20,069.34 120,416.01 2 630
2,618,630.96
2,618,630.96

Qty Qty Daily Rate Total Price

(persons) (Days) USD USD
8 21 500.80 84,134.32

fee mob/demob
ommodation. total
rvices will be charged extra 700 USD/day/person plus
omestic traveling).

RECOMMENDED
SPARE SUB
Quantity Unit Net Price Total Net Price RECOMMENDED SPARE PARTS TOTAL
USD USD REPLACEMENT FOR THE FIRST USD
OVERHAUL
97 195.44 18,958.08 30 5,863.32
97 159.08 15,431.16 30 4,772.53
11 2,598.74 28,586.15 3 7,796.22
11 2,573.95 28,313.45 3 7,721.85
11 32.42 356.62 EVERY OVERHAUL 11 356.62
11 13.63 149.93 EVERY OVERHAUL 11 149.93
11 592.59 6,518.45 4 2,370.34
11 31.40 345.37 EVERY OVERHAUL 11 345.37
1 87.37 87.37 1 87.37
9 59.51 535.60 2 119.02
1 40.01 40.01 1 40.01
- - -
1 92.69 92.69 1 92.69
1 64.57 64.57 EVERY OVERHAUL 1 64.57
1 113.96 113.96 1 113.96
1 69.64 69.64 1 69.64
1 3.67 3.67 EVERY OVERHAUL 1 3.67
1 3.30 3.30 EVERY OVERHAUL 1 3.30
5 648.47 3,242.33 5 3,242.33
5 793.25 3,966.24 EVERY TWO OVERH 5 3,966.24
 1 3,939.31 3,939.31 -
2 378.59 757.18 EVERY TWO OVERH 2 757.18
1 55.71 55.71 EVERY OVERHAUL 1 55.71
1 2,849.25 2,849.25 -
3 915.56 2,746.69 EVERY OVERHAUL 3 2,746.69
1 53.03 53.03 1 53.03
1 5,387.33 5,387.33 -
1 51.91 51.91 EVERY OVERHAUL 1 51.91
2 189.93 379.87 EVERY TWO OVERH 2 379.87
3 489.38 1,468.15 3 1,468.15
1 3,863.55 3,863.55 -
1 6,884.47 6,884.47 -
1 1,991.29 1,991.29 -
1 1,280.27 1,280.27 -
- - -
1 454.54 454.54 -
1 649.34 649.34 -
1 1,398.24 1,398.24 -
1 10,389.38 10,389.38 -
1 5,627.58 5,627.58 -
157,105.70 42,691.54

RECOMMENDED
SPARE SUB
Quantity Unit Net Price Total Net Price RECOMMENDED SPARE PARTS TOTAL
USD USD REPLACEMENT FOR THE FIRST USD
OVERHAUL
106 59.27 6,282.18 30 1,777.98
106 67.84 7,191.02 30 2,035.19
5 227.05 1,135.24 EVERY TWO OVERH 5 1,135.24
5 424.37 2,121.84 5 2,121.84
13 1,104.01 14,352.16 3 3,312.04
1 49.89 49.89 1 49.89
11 29.87 328.61 11 328.61
13 360.09 4,681.19 5 1,800.46
13 17.01 221.11 EVERY OVERHAUL 13 221.11
13 7.09 92.13 EVERY OVERHAUL 13 92.13
13 17.88 232.45 EVERY OVERHAUL 13 232.45
13 1,194.51 15,528.57 3 3,583.52
1 29.98 29.98 1 29.98
1 31.66 31.66 1 31.66
2 71.43 142.87 2 142.87
1 50.37 50.37 1 50.37
1 2.36 2.36 EVERY OVERHAUL 1 2.36
1 2.33 2.33 EVERY OVERHAUL 1 2.33
1 47.01 47.01 1 47.01
1 42.94 42.94 EVERY OVERHAUL 1 42.94
1 2,921.38 2,921.38 -
1 39.98 39.98 1 39.98
1 39.58 39.58 EVERY OVERHAUL 1 39.58
3 133.36 400.09 EVERY OVERHAUL 3 400.09
3 627.33 1,881.98 3 1,881.98
2 159.62 319.23 EVERY TWO OVERH 2 319.23
1 8.94 8.94 1 8.94
1 8.94 8.94 1 8.94
1 2,764.94 2,764.94 -
1 31.90 31.90 EVERY OVERHAUL 1 31.90
2 149.37 298.74 EVERY TWO OVERH 2 298.74
1 4,240.89 4,240.89 -
1 2,834.71 2,834.71 -
1 1,223.29 1,223.29 -
1 1,453.70 1,453.70 -
1 191.89 191.89 -
1 492.02 492.02 -
1 5,404.78 5,404.78 -
1 906.14 906.14 -
1 3,020.93 3,020.93 -
1 2,323.81 2,323.81 -
83,373.76 20,069.34
 Year Costs per
Monthly Costs Costs Drilling Hrs

128,074.62 1,536,895.47

36,124.80 433,497.65
1,970,393.12

training OJT days

30
84,134.32 700
21,000.00
3,000.00
84,134.32 24,000.00 108,134.32
Petro-king Turbines Proposal
FOB HK Price.
1 USD = 6.879 RMB
Amounts in RMB

Item

1
2
3
4
Sub Total Price(Ex-works, China):
Grand Total Price(FOB Hong Kong):

Item
1

3. Annex I Cost Breakdown (Spare Part

245 TURBODRILL COMPONENT PRICE

Item

1
2
3
4
5
6
7
8
9
10
11

12
13
14
15
16
17
18
19
 20
21
22
23
24
25
26
27
28
29
30
31
32
33

34
35
36
37
38
Total Price (RMB):

172 TURBODRILL COMPONENT PRICE

Item

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
 30
31
32
33
34
35
36
37
38
39
40
41
Total Price (RMB):
Petro-king Turbines Proposal
FOB HK Price.
1 USD = 6.879 RMB
Amounts in RMB

Commodity Descriptions Qty.(EA) Unit Price(RMB)

9 1/2" TurboiDrill Equipment, One Piece of Tools 10 1,080,730.11

9 1/2" TurboiDrill Spare Parts (for one redress,details as per Annex I) 10 293,675.11
6 3/4" TurboiDrill Equipment one piece of Tools 6 573,528.07
6 3/4" TurboiDrill Spare Parts (for one redress,details as per Annex I) 6 138,056.96
Sub Total Price(Ex-works, China):
Grand Total Price(FOB Hong Kong):

Descriptions Qty. Qty.(Days)

(persons)
Operating & Maintenance Training 8 21

3. Annex I Cost Breakdown (Spare Parts)

245 TURBODRILL COMPONENT PRICE

Description Quantity Unit Net

Price(RMB)

245 ROTOR BLADE 97 1,344.46

3D
245 STATOR BLADE 97 1,094.34
3D
245 PDC ROTOR 11 17,876.74
245 PDC STATOR 11 17,706.20
245 PDC STATOR SPACER 11 223.02
245 PDC SPRING 11 93.76
245 PDC CARRIER 11 4,076.40
245 PDC CARRIER SPACER 11 215.98
245 PDC LOWER ROTOR SPACER 1 601.05
245 PDC ROTOR SPACER 9 409.38
245 PDC STACK UPPER ROTOR 1 275.21
SPACER
245 STATOR O-RING SPACER 1 637.61
245 UPPER STATOR ADJUSTING SPACER 1 444.2
245 PDC CARRIER COMPRESSION SPACER 1 783.94
245 COMPRESSION SPACER 1 479.03
DC19000530_O-RING 190 X 5.3_245 1 25.28
O-RING
DE20400450_O-RING 204 X 4.5_245 1 22.67
O-RING
245 UPPER RADIAL BEARING ROTOR (HNBR) 5 4,460.80
245 UPPER RADIAL BEARING STATOR (HNBR) 5 5,456.75
 245 MANDREL 1 27,098.51
245 FLOW CHOKE STATOR 2 2,604.33
245 LOWER STATOR ADJUSTING SPACER 1 383.24
245 DBH 0.8 DEG 1 19,600.00
245 LOWER RADIAL BEARING STATOR (HNBR) 3 6,298.17
245 OLBS ADJUSTING SPACER (0 DEG) 1 364.82
245 OLBS_309.6 MM_12.3-16 IN 1 37,059.45
245 LOWER ROTOR ADJUSTING SPACER 1 357.1
245 FLOW CHOKE ROTOR 2 1,306.56
245 LOWER RADIAL BEARING ROTOR (HNBR) 3 3,366.46
245 LOWER SHAFT 1 26,577.34
245 FLEX SHAFT 1 47,358.30
245 UPPER SHAFT 1 13,698.10
245 SHAFT 1 8,807.00
CROSSOVER
245 ROTOR NUT 1 3,126.76
245 ROTOR CATCH 1 4,466.78
245 TOP SUB 1 9,618.51
245 UPPER HOUSING 1 71,468.57
245 ILS_308.0 MM_12.1-8 IN 1 38,712.10
Total Price (RMB):

172 TURBODRILL COMPONENT PRICE

Description Quantity Unit Net Price

172 ROTOR BLADE 106 407.69

3D
172 STATOR BLADE 106 466.67
3D
172 RADIAL BEARING STATOR (HNBR) 5 1,561.86
172 UPPER RADIAL BEARING BEARING ROTOR HF6000 5 2,919.23
172 PDC ROTOR 13 7,594.50
172 PDC LOWER ROTOR SPACER 1 343.2
172 PDC ROTOR SPACER 11 205.5
172 PDC CARRIER 13 2,477.07
172 PDC CARRIER SPACER 13 117
172 PDC SPRING 13 48.75
172 PDC STATOR SPACER 13 123
172 PDC STATOR 13 8,217.00
172 PDC STACK LOWER ROTOR SPACER 1 206.25
172 PDC STACK UPPER ROTOR SPACER 1 217.8
172 PDC CARRIER COMPRESSION SPACER 2 491.4
172 ROTOR COMPRESSION SPACER 1 346.5
DC13200530_O-RING 132 X 5.3_172 1 16.26
O-RING
DE14200430_O-RING 142 X 4.3_172 1 16.01
O-RING
172 STATOR O-RING SPACER 1 323.4
172 UPPER STATOR ADJUSTING SPACER 1 295.35
172 MANDREL 1 20,096.16
172 OLBS ALIGNMENT SPACER (0 DEG) 1 275
172 LOWER STATOR ADJUSTING SPACER 1 272.25
172 LOWER RADIAL BEARING STATOR (HNBR) 3 917.4
172 LOWER RADIAL BEARING BEARING ROTOR HF6000 3 4,315.38
172 FLOW CHOKE STATOR HNBR 2 1,098.00
172 ROTOR STAND-OFF 1 61.5
SPACER 1.1 MM
172 ROTOR STAND-OFF 1 61.5
SPACER 1.2 MM
172 LOWER SHAFT (PIN) 1 19,020.00
 172 LOWER ROTOR ADJUSTING SPACER 1 219.45
172 FLOW CHOKE ROTOR 2 1,027.50
172 FLEX SHAFT 1 29,173.08
172 DBH 0.8 DEG 1 19,500.00
172 SHAFT CROSSOVER 1 8,415.00
172 UPPER SHAFT 1 10,000.01
172 ROTOR NUT 1 1,320.00
172 ROTOR CATCH 1 3,384.62
172 UPPER HOUSING 1 37,179.48
172 TOP SUB 1 6,233.34
172 OFFSET LBS (214.3MM &8-7/16 IN) 1 20,781.00
172 ILS_212.7 MM_8.3-8 IN 1 15,985.50
Total Price (RMB):
Amount(RMB)

10,807,301.10
2,936,751.10
3,441,168.42
828,341.76
18,013,562.38
18,159,362.38

Daily Rate(RMB) Total Price(RMB)

3,445.00 578,760.00

RECOMMENDED
Total Net RECOMMENDED SPARE PARTS FOR THE SPARE SUB TOTAL
Price(RMB) REPLACEMENT FIRST OVERHAUL (RMB)

130,412.62 30 40,333.80
106,150.98 30 32,830.20
196,644.14 3 53,630.22
194,768.20 3 53,118.60
2,453.22 EVERY OVERHAUL 11 2,453.22
1,031.36 EVERY OVERHAUL 11 1,031.36
44,840.40 4 16,305.60
2,375.78 EVERY OVERHAUL 11 2,375.78
601.05 1 601.05
3,684.42 2 818.76
275.21 1 275.21

637.61 1 637.61
444.2 EVERY OVERHAUL 1 444.2
783.94 1 783.94
479.03 1 479.03
25.28 EVERY OVERHAUL 1 25.28
22.67 EVERY OVERHAUL 1 22.67
22,304.00 5 22,304.00
27,283.75 EVERY TWO OVERHAUL 5 27,283.75
 27,098.51 0
5,208.66 EVERY TWO OVERHAUL 2 5,208.66
383.24 EVERY OVERHAUL 1 383.24
19,600.00 0
18,894.51 EVERY OVERHAUL 3 18,894.51
364.82 1 364.82
37,059.45 0
357.1 EVERY OVERHAUL 1 357.1
2,613.12 EVERY TWO OVERHAUL 2 2,613.12
10,099.38 3 10,099.38
26,577.34 0
47,358.30 0
13,698.10 0
8,807.00 0

3,126.76 0
4,466.78 0
9,618.51 0
71,468.57 0
38,712.10 0
1,080,730.11 293,675.11

RECOMMENDED
Total Net Price RECOMMENDED SPARE PARTS FOR THE SPARE SUB TOTAL
REPLACEMENT FIRST OVERHAUL

43,215.14 30 12,230.70
49,467.02 30 14,000.10
7,809.30 EVERY TWO OVERHAULS 5 7,809.30
14,596.15 5 14,596.15
98,728.50 3 22,783.50
343.2 1 343.2
2,260.50 11 2,260.50
32,201.91 5 12,385.35
1,521.00 EVERY OVERHAUL 13 1,521.00
633.75 EVERY OVERHAUL 13 633.75
1,599.00 EVERY OVERHAUL 13 1,599.00
106,821.00 3 24,651.00
206.25 1 206.25
217.8 1 217.8
982.8 2 982.8
346.5 1 346.5
16.26 EVERY OVERHAUL 1 16.26
16.01 EVERY OVERHAUL 1 16.01
323.4 1 323.4
295.35 EVERY OVERHAUL 1 295.35
20,096.16 0
275 1 275
272.25 EVERY OVERHAUL 1 272.25
2,752.20 EVERY OVERHAUL 3 2,752.20
12,946.14 3 12,946.14
2,196.00 EVERY TWO OVERHAULS 2 2,196.00
61.5 1 61.5
61.5 1 61.5
19,020.00 0
 219.45 EVERY OVERHAUL 1 219.45
2,055.00 EVERY TWO OVERHAULS 2 2,055.00
29,173.08 0
19,500.00 0
8,415.00 0
10,000.01 0
1,320.00 0
3,384.62 0
37,179.48 0
6,233.34 0
20,781.00 0
15,985.50 0
573,528.07 138,056.96

20,069.34
Contract Assuptions
30
Equipment Capital Daily Rental Monthly Rental
(USD) Revenue Revenue
Turbines 9.5 $1,571,057.00 $3,316.81 $99,504.19
Turbines 6.75 $500,242.54 $1,354.08 $40,622.33
TOTAL (USD) $2,071,299.54 $4,670.88 $140,126.52

Payback
0 1 2
2017 2018 2019

Initial investment 2,071,300

Cash flows (2,071,300) 1,681,518 1,765,594
Discounted Cash flows (2,071,300) 1,528,653 1,459,169

Cumulative cash flows (2,071,300) (389,781) 1,375,813

Fraction calculations n/m 0.22
Cumulative Discount cash flows (2,071,300) (542,647) 916,522
Fraction calculations n/m 0.37

WACC 10%
Payback period 1.22
Discount Payback period 1.37
 12 37
Contract Rental Equipment Capital
Year Rental Revenue Revenue (USD) # tools
$1,194,050.29 $3,681,655.06 Turbines 9.5 $1,571,057.00 10
$487,467.95 $1,503,026.19 Turbines 6.75 $500,242.54 6
$1,681,518.24 $5,184,681.25 TOTAL (USD) $2,071,299.54

3 4
2020 2021

1,853,874 1,946,568
1,392,843 1,329,532

3,229,687 5,176,254
0.74 1.66
2,309,365 3,638,897
0.66 1.74
3 years contract depreciation Proposed Rental

Monthly Daily Markup Unit Daily Rate Total Daily

$42,461.00 $1,415.37 $1,698.44 20% $388.00 $3,880.00
$13,520.07 $450.67 $766.14 70% $264.00 $1,584.00
$55,981.07 $1,866.04 $2,464.58 76% Profit
 Monthly Year
$116,400.00 $1,396,800.00
$47,520.00 $570,240.00
CEDAR/ALS Turbines - Prices

Selling Price Daily Rental Cost

Item Turbine Qtd (USD/tool) (USD/Tool/Day)
1 9-1/2" 6 n/a 388.00
2 6-3/4" 2 n/a 264.00
32%
68%

factor 4

Daily Rental Cost

(USD/Tool/Day)
1ea 9-1/2" 1,552.00
1ea 6-3/4" 1,056.00

stb days
Scenario ALS prices 15
15 days 1ea 9-1/2" 5,820.00
250 circ hours 1ea 6-3/4" 3,960.00

stb days
Scenario bid prices 30
15 days 1ea 9-1/2" 46,560.00
250 circ hours 1ea 6-3/4" 31,680.00

Oper fleet
Size # tools monthly stb 30%
9-1/2" 10 465,600.00 3
6-3/4" 6 190,080.00 2

Size
9-1/2"
6-3/4"
 Average Drilling
Turbine Repair Cost Hrs Between Turbine Operating Rate Engineer Daily Rate
(USD/Tool/Pumping Hr) Maintenance (USD/pumping/Hrs) (USD/Eng/Day)
110.00 300 440.00 1,320.00
110.00 300 385.00 1,320.00
33,000.00 13%

1.2 1.2

Turbine Operating Rate Engineer Daily Rate

(USD/pumping/Hrs) (USD/Eng/Day)
528.00 1,584.00
462.00 1,584.00

circ hrs Engineer days

250 15 total
110,000.00 19,800.00 135,620.00
96,250.00 19,800.00 120,010.00

49%
circ hrs Engineer days 42%
250 15 total
132,000.00 23,760.00 202,320.00
115,500.00 23,760.00 170,940.00

total monthly revenue 373,260.00

total contract
Oper 250 hrs monthly revenue year revenue
396,000.00 861,600.00 10,339,200.00
207,900.00 397,980.00 4,775,760.00
1,259,580.00 15,114,960.00

total montly maintenance costs

oper hrs monthly year maint costs
750 82,500.00 990,000.00
450 49,500.00 594,000.00
1,584,000.00
# rigs 12
# wells rig yrs 3
total wells 3 yrs 36

Baker Contract
total wells - 3 yrs 12
well yrs 4

Costs per well 12

Ave mtrs well 700
Ave Circ hrs well 233
Ave days oper 9.7
Cost Turbine Daily - 9.5 3,772.22 45,266.67
Cost Turbine Daily - 6.75 2,566.67 30,800.00
Cost Turbine Circ Hrs - 9.5 102,666.67 1,232,000.00
Cost Turbine Circ Hrs - 6.7 89,833.33 1,078,000.00

Total 198,838.89 2,386,066.67

daily rental 20,452.00