Surface Casing Drilling

Pinnergy added this service in July 2005, as an extension of the existing services provided by the conductor drilling rigs. The addition of the Schramm T130XD Rotadrill expanded this service to include the drilling and pre-setting of the surface casing, the next sequential step of the drilling process.

Drilling and pre-setting surface casing is a natural progression for the Company, because it capitalizes on management's expertise and existing knowledge of the business, and it provides Pinnergy with a comprehensive package of drilling-related services.

The rig does not need a separate Casing Crew.

Telescoping construction of the rig permits long head travel and working height to allow handling of range III casing, and with 130,000 lb hoist capacity.

By drilling and pre-setting the surface casing for the customer, a job that was previously performed by the larger drilling rigs, Pinnergy will reduce the amount of time it takes the customer to drill a well [with the larger rig] by approximately two or more (2 +) days.

Pinnergy's expansion into this service offering enables the customer to:

• more effectively use the larger, more expensive drilling rigs,
• drill more wells in a shorter period of time
• significantly reduce costs and streamline operations and
• maintain a safer drilling operation