M-I SWACO (tianjin) Eng. Co. Ltd.

Room 908, Towercrest Plaza

No.3 Maizidian West Road, Chaoyang District,

100016, China
Tel : +86 10 84583396 Fax : +86 10 84583315 www.miswaco.com

Customer Ref : 257067

Project / Rig Name : Not Known
Destination : China

25 August, 2009

Shandong Kerui Petroleum Equipment Co.,Ltd

Science & Technology Building No.233 Naner Road,
Dongying,Shandong
China

Dear Mr. Zhang JiLi,

Re: Proposal for the Provision of Solids Control Equipment

Further to your recent enquiry, we are pleased to provide our proposal for the provision of the
above for your review and consideration.

Please find our proposal, I have quoted our new MD3 shale shaker which is our high performance
shale shaker this unit is able to handle up to 1250GPM, I also have quoted as an option 2x BEM650
shale shakers which have each a capacity of 650GPM; we have currently no MD3 Mud cleaner yet.

We trust the attached meets your immediate requirements; however, should you require
additional information or clarification, please do not hesitate to contact the undersigned directly.

Yours sincerely,

Garry Hoffard
Technical Sales Mgr

Tel :
E-Mail : ghoffard@miswaco.com

Quotation No : QTCH0908012 Rev 00 M-I SWACO Representative : Gary Hoffard

SFDC Ref : ES-QT-0000030031 Page 1 of 5
 M-I SWACO (tianjin) Eng. Co. Ltd.
Room 908, Towercrest Plaza

No.3 Maizidian West Road, Chaoyang District,

100016, China
Tel : +86 10 84583396 Fax : +86 10 84583315 www.miswaco.com

Account Name : Kerui Petroleum Equipment Co. Ltd. Date : 25 August, 2009
Contact : Zhang Jili Destination : China
Customer Ref : 257067 Project/Rig Name : Not Known

1. EQUIPMENT PRICING

Qty UOM Description Part Number Delivery Unit Price Total Price
Lead Time
1 EA Final Assembly MD-3, UL/ Atex 440 - MD3C00000-02AD 3-4 Weeks $130,000.00 $130,000.00
480V, 60Hz, Parallel Less % Discount
EX-WORKS
Weight: 4300.00 lbs.
Dimensions: 0 x 0 x 0 in.
1 EA Final Assembly BEM-650 3-12/ 8T4 Mud BM6S00127-03AB 3-4 Weeks $178,500.00 $178,500.00
Cleaner 440 - 480 60Hz UL Approved Less % Discount
EX-WORKS
Weight: 4300.00 lbs.
Dimensions: 0 x 0 x 0 in.

TOTAL SELLING PRICE OR AS NOTED ON ABOVE LINE ITEMS $308,500.00

Ex-Works, Florence, USA $308,500.00

Quotation No : QTCH0908012 Rev 00 M-I SWACO Representative : Gary Hoffard

SFDC Ref : ES-QT-0000030031 Page 2 of 5
 M-I SWACO (tianjin) Eng. Co. Ltd.
Room 908, Towercrest Plaza

No.3 Maizidian West Road, Chaoyang District,

100016, China
Tel : +86 10 84583396 Fax : +86 10 84583315 www.miswaco.com

Account Name : Kerui Petroleum Equipment Co. Ltd. Date : 25 August, 2009
Contact : Zhang Jili Destination : China
Customer Ref : 257067 Project/Rig Name : Not Known

OPTIONAL ITEMS

Qty UOM Description Part Number Delivery Unit Price Total Price
Lead Time
2 EA Final Assembly BEM-650, Ventilation BM6S00809-02AB 3-4 Weeks $126,650.00 $253,300.00
Hood, CE, ATEX, 440 - 480V 60Hz Less % Discount
CURLEE
EX-WORKS
Weight: 4300.00 lbs.
Dimensions: 0 x 0 x 0 in.

Quotation No : QTCH0908012 Rev 00 M-I SWACO Representative : Gary Hoffard

SFDC Ref : ES-QT-0000030031 Page 3 of 5
 M-I SWACO (tianjin) Eng. Co. Ltd.
Room 908, Towercrest Plaza

No.3 Maizidian West Road, Chaoyang District,

100016, China
Tel : +86 10 84583396 Fax : +86 10 84583315 www.miswaco.com

2. TRANSPORTATION / ANCILLARY CHARGES

3. DELIVERY LEAD TIME

Quoted lead times are valid only after receipt of purchase order, in conjunction of approved drawings (if applicable). The delivery
is based on current inventory and workload levels. The actual date will be confirmed at the time of order.

4. TRANSPORTATION

Unless otherwise detailed within Section 2 above, transportation to your location will be charged to your account at cost +15%.

5. PAYMENT TERMS AND CONDITIONS

Net thirty (30) Days with approved credit.

Fifty percent (50%) of value due at contract signing, remaining balance due prior to shipment.
All miscellaneous and bank handling charges will be charged to the client’s account.
Where applicable, all importation charges and taxes will be to the client’s account. All necessary importation paperwork will be
supplied by M-I SWACO (tianjin) Eng. Co. Ltd..
Prices shown are quoted in U.S. Dollars and are exclusive of all taxes, VAT, importation and exportation charges.

6. VALIDITY

The prices quoted herein will remain firm if purchase order is received within 60 (sixty) days from date shown above.

7. MANUALS & DRAWINGS

Two (2) operating and servicing manuals are shipped along with equipment.
Equipment sales data drawings are available upon request at no extra charge.

8. ADDITIONAL DOCUMENTATION & THIRD PARTY INSPECTIONS

Additional documentation requirements specified by the customer may result in additional charges, to be quoted upon request.
Any third party witness/inspection required by the customer, such as ABS, DNV, etc. is not included in this quotation and will be
to the customer’s account.

9. WARRANTY STATEMENT

All new equipment is covered by M-I SWACO Standard Warranty and its applicable conditions with which a copy may be
supplied on request.
The warranty conditions applicable in the standard equipment excludes unjustified service calls. If and when such calls arise, all
the expenses borne by M-I SWACO shall be calculated and charged to the client’s account.

10. TERMS & CONDITIONS

Quotation No : QTCH0908012 Rev 00 M-I SWACO Representative : Gary Hoffard

SFDC Ref : ES-QT-0000030031 Page 4 of 5
 M-I SWACO (tianjin) Eng. Co. Ltd.
Room 908, Towercrest Plaza

No.3 Maizidian West Road, Chaoyang District,

100016, China
Tel : +86 10 84583396 Fax : +86 10 84583315 www.miswaco.com

This quotation is made pursuant to M-I SWACO (tianjin) Eng. Co. Ltd.’s standard terms of sale, the same being incorporated
herein by reference.

Quotation No : QTCH0908012 Rev 00 M-I SWACO Representative : Gary Hoffard

SFDC Ref : ES-QT-0000030031 Page 5 of 5