Varel is a drilling equipment manufacturer with headquarters in France and manufacturing facilities in Mexico and the US. They have over 50 contracts in Southeast Asia. The document discusses Varel's history and acquisitions, their manufacturing and design capabilities for roller cone and PDC bits, and their product lines. It also outlines their optimized design process for PDC bits of 1 week from design to fabrication.

1. VAREL EUROPE S.A.S 1

2. 2 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 1.1 Varel Historical 1999 Varel Acquisition by ARCAPITA 2007 2000 1947-1998 2004 2008 Downhole Products

3. 3 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 1.2 Varel Europe Profile

5. 1 Geologist

6. Representative offices:

7. Indonesia

8. Thailand/Myanmar

9. Australia

11. Pau, France

12. Varel Europe Provide for East hemisphere:

13. PDC Manufacturing

14. Geosciences Analysis Support

15. PDC Drill Bit Design Engineers Team

16. Research and Development Team EMEA: Europe / Middle East and Africa APAC: Asia Pacific and American Coalition PDC: Polycrystalline Diamond Compact

17. 6 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 1.3 Varel Europe Sales Performance Steady Growth >25% each year

18. 7 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 2.1 Roller cone bits manufacturing capability 2008 Actual Manufacturing Capacity: 5,200 bits/month Actual Work Load: 2009 Planned Manufacturing Capacity: 6,100 bits/month Anticipated Work Load: Roller Cone Manufacturing 2 Sites : 1. Matamoros (Mexico) + 2. Carrolton (Texas, USA) 100% 50%

19. 8 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 2.2 PDC bits manufacturing capability 2008 Actual Manufacturing Capacity: 310 bits/month Actual Work Load: 2009 Planned Manufacturing Capacity: 350 bits/month Anticipated Work Load: PDC Manufacturing 2 Sites : 1. Ibos (France) + 2. Houston (Texas, USA) 50% 90% PDC: Polycrystalline Diamond Compact

20. 9 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 3. Varel Design Process Step 2: SPOT (Varel’s design software) Step 3: Pro-Engineer CAD Step 1: GeoScience Initial Analysis Step 2A: Existing Bit Step 4: Computational Fluid Dynamics Step 6: Bit Run & GeoScience Post Run Analysis Step 5: Pro-Engineer CAM & Manufacturing

22. 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 4.1 Roller Cones Drill Bits ChallengerTMMilled Tooth Drill Bit: For Rock destruction at minimum cost - Impact-resistant tooth ChallengerTM Tungsten Carbide Insert (TCI) - Improve Tooth Durability

23. 1. Varel Historical & Performance 2. Manufacturing Capability 3. Design Capability 4. Products 4.2 Fixed Cutters Drill Bits Though-DrillTM: For Hard and/or abrasive formation applications - Improve ROP* and Durability Navigator: For Directional wells applications. - Improve Steerability and Directional Behavior VB Series (Oval Cutters): For Directional wells applications with better ROP and Drill bit life. Hole Opening Bits ROP: Rate of penetration