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Newpark Fluids Systems

Introduction / Business Overview


Michele Bruno – Sr. Area Manager Middle East
Muscat , 2022

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


01 Safety Moment

02
NEWPARK
Newpark Fluid Systems Overview

Presentation 03 Executive Summary

Agenda
04 Appendix

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


HSEQ Evolution
Building a strong culture through intentional behaviors and engagement that drive sustainable performance

NFS consistently ahead of industry benchmark (IADC) for 8 years Total Recordable Incident Rate (TRIR) Journey

HSEQ Programs in Place 1.40

 Keystone Safety Rules (KSR) 1.20


NFS IADC
- Digital training modules featuring Anna 1.00

0.88

0.88
0.88
 HSEQ Facility Audits 0.80

0.61

0.60
 Vehicle/Driver Safety

0.50
0.60

0.46
0.45

0.43
0.40

0.38
- Onboard Telematics 0.40

0.23
 Quality – API/ISO 0.20

2022 Focus 0.00


2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(1Q)
 Line Management Ownership of HSE
- Standardize Safety Notice Boards
- Facility led Safety Action Teams (SAT)
 Recordable Injury After Incident
Reviews
 KSR Updates
- Aligning Newpark Keystone Safety Rules
with industry best practices

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Our History
From the gold mines of Utah, evolving into a global technology leader in the oil and gas industry
Entered O&G industry Expansion into Acquired Alliance
with acquisition of Europe and North Drilling Fluids LLC,
SOLOCO (wellsite Africa with the growing Permian
access roads) acquisition of AVA market share
1968 2002 2012

1932 1997 2011 2013


New Park Mining Began building drilling Acquired Newpark Technology
Company established, fluids capability RHEOCHEM Drilling Center - state-of-the-art
consolidating 3 mining through M&A and Fluids, establishing labs and office facilities
companies organic growth footprint in Asia-Pacific - opened
& India
Adjacent
300 Chemistry
Deepwater expansion of Acquired Cleansorb Ltd
Awarded first multi-year Wells product offering to a leading global provider
contract with KOC in Completed include Completions of specialty reservoir Awarded work with
Kuwait 2017 Fluids and chemistry Tatweer in Bahrain
2013 Stimulation Fluids 2019 2021
2018

2015 2018 2021


Opening of Port Entry into Saudi Arabia Awarded work in
2016
Fourchon DW fluids market with multi-year partnership with ADPE
World
facility and Conroe contract for Drilling for PTTEP Thailand
Record
blending facility Fluids Onshore
Deepwater
well for
Total 4
(Uruguay)
CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc
Newpark Fluids Systems – Who We Are
Leading Global Fluids-Focused Service Provider

• Non-aqueous
Guiding
Drilling • Water-based Strategic
Fluids • Specialty Systems Principles
• Solids Control and Waste Management Customer

Digital Fluids Solutions


focus and
innovation
• Drill-In Fluids
Completion • Engineered Displacements Global
& Reservoir • Breakers footprint
Fluids • Completion Brines
• Filtration
Our
people
• Hydraulic Fracturing
Stimulation • Matrix Acidizing
Fluids • Coil Tubing
Environment
• Sand Control

Safety Integrity Respect Excellence Accountability


CORE VALUES 5

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Newpark Fluids Systems – Who We Are
Our management organization – Industry Leading Experience at Management Level

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Newpark Fluids Solutions – Our People
Serving markets in 23 Countries – Global Expansion Propels Diversity

Citizenship
GLOBAL HC - 1101
800
704 (57%)
United States 700
Algerian 600
Italian
Romanian 500
383 (41%)
Tunisian 400
India
Canada
300
Egyptian 200
Kuwaiti 100
Libyan
Australia 0
EH NAM 14 (2%)
LATAM
German
Hungarian
Congolese
Chilean
Albanian Key HR Stats EH NAM GLOBAL
Brazil
Venezuela Average Age 42 43 42
Oman
United Kingdom Average Tenure 9.3 6.7 8.3
New Zealand
Mexico
Egypt # of Fluids 196 95 291
Bangladesh Engineers
Croatia
Nigeria
Egyptian/Canadian # of LMP/SCE 121 16 137
Saudi Operator
Cyprus
Serbia
0 50 100 150 200 250 300 350 400
7
*From February 2021
CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc
Geographical Presence
Global Reach, Local Knowledge. Global
• Executive team originating from 7 countries
and averaging 25+ years in industry Experience
• Team members in 23 countries
• 4 key laboratories + 10 regional laboratories
• 60 stock points including 27 fluids facilities
• Headquarters and Newpark Technology Center:
Katy Texas

Western Hemisphere
• Newpark Technology Center, global support
• 37K ft2 laboratory in 106K ft2 facility
• Manufacturing & Distribution Center - Conroe
• Key Warehouse and Plants in all Key US
Basins
• Industry leading Liquid Mud Plant (LMP) in
Port Fourchon GOM

Eastern Hemisphere
• 19 countries on 4 continents
• EH Main office in Rome, Italy
• Key Bases / LMP’s in Algeria, Kuwait,
Romania, Australia, Italy, Saudi Arabia,
Albania
• Selective market entry for targeted
opportunities

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Middle-East Presence Saudi Arabia (Al-Khobar)
Established and experienced with extensive local capabilities • Office
• Liquid Mud Plant
• Warehouse
Wells Drilled: • Full Service Laboratory
• 19 staff
Saudi 23 • 13 Experienced Fluids Engineers
India 70
Kuwait
Oman 85 • Office
Kuwait 768 • Liquid Mud Plant
• Warehouse
Bahrain 64 • Full Service Laboratory
• 1 Mini Liquid Mud Plant
• 1 Mini Liquid Mud Plant under construction
Newpark Avg Rig Count • 107 staff
• 34 Experienced Fluids Engineers

6% 7% Saudi Oman (Muscat)


India •
2% Office
8% Oman
Kuwait • Liquid Mud Plant
Bahrain • Warehouse
• 6 staff
77% • 6 Experienced Fluids Engineers

Bahrain
• Project Tatweer Ongoing

UAE (Abu Dhabi)


• Representative Office under Adnoc
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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Newpark Fluids Systems in The Kingdom
Office Contract
 Newpark Saudi Arabia Limited Entity  Newpark awarded a Mid Form Contract (Till Dec
2023 and/or 10 MM USD) with SA
Vendor Code No. 10067504 Unconventional Resources Drilling Department
Al Subaie Tawer (URDD) on 15th March 2021;
5316 King Fahd Ibn Abdul Aziz Road  NEWPARK SAUDI ARABIA LIMITED ENTITY –
Al Khobar 34433 Newpark has established the local Entity in Saudi
Arabia.
Liquid Mud Plant
 PRODUCTS/Drilling Fluids SYSTEMS: Commodity
 16.000 bbl capacity located in Jafurah
and Special products approved and catalogued
basin.
within Saudi ARAMCO. Ongoing process to
 In operation since May 1st, 2019 after the catalogue the maximum number of Newpark
ARAMCO URDD High Management visit. products/systems to provide our technologies to
Warehouse Saudi Aramco as required.
 Third Party warehouse.  FIELD TRIAL: Done Offshore with Kronos System
Ongoing Offshore. 16 Newpark products approved
in the vendor List of Aramco.

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


World Class Infrastructure
Superior operational efficiencies through design engineering and extensive track record

Facility Capabilities 27 Fluids Facilities


 Located in 23 countries across 6 continents
 Includes Best-in-Class fluids plants
450K Barrel Capacity
 Unmatched operational efficiencies in
mixing and loading
 Supported by dedicated facilities teams Extensive Bulk Plant
 ISO & API certified processes Capacity
 Rapidly executed market entries
 Met project schedule
Newpark Technology Center Rapid Mixing, High-
 Several in remote locations Shear Capability
Katy, TX

Port Fourchon, LA Kuwait Romania Algeria

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Newpark Service Advantage
Independent industry surveys rank Newpark best-in-class amongst our Oilfield service peers

EnergyPoint 2020 and 2021 customer satisfaction survey rated


Kimberlite 2020 + 2021 Drilling Fluids Report rated Newpark Newpark 1st overall in Total Satisfaction amongst 33 Oilfield
top in all categories of this prestigious customer survey, with Services peers, and customers also ranked Newpark 1st in:
the results showing strong year-on-year improvement. • Drilling-related services • Performance & Reliability
• Fluids Services • Service & Professionalism
• Health, Safety & Environmental

NEWPARK HAL BKR SLB

RESPONSIVE TO NEEDS
PRODUCT QUALITY
FIELD PERSONNEL
TECH SUPPORT & SERVICE
AVAILABILITY
OVERALL PERFORMANCE
PRICE COMPETITIVENESS

-15% -5% 5% 15%

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Major Market Attributes
Three unique market landscapes present a variety of opportunities & challenges

NAM Land GOM International


• Market Rig count Q1 2022: 858 • Market Rig count Q1 2022: 16 • Market Rig Count Q1 2022: 823
• Privates & large independent dominate • IOCs • NOCs & IOCs with NOCs growing as IOCs
Customer Mix market reposition as “Energy Companies”
• Relationship driven sales • Regional independents

• Dominated by independents or smaller • Big 3: SLB, HAL, BKR • Big 3: SLB, HAL, BKR
publicly traded service companies • Tetra • Regional players beginning to emerge as
Competitive Landscape • HAL provides bundled services to IOCs • Over-capacity in OFS space driving down local content pressure grows
• SLB & BKR don’t participate pricing

• Versatility of the market and contracts • Superior facility • Europe pivoting dependency from Russia
allows cost increases to be passed on • Strong technical capabilities & track • Small market share w/ room to grow
Opportunities during market swings record • Customers value fluids focused approach
• Maintain capital light and agile • Strong position with Shell • Long-term NOC contracts

• In basin infrastructure lags competition • High fixed costs w/ constrained market • Bundled services
• Relationships can be tied to specific • Bundled Services • Long-term NOC contracts lock in pricing
Challenges personnel • Higher plant capacities required for several years with little to no room
• Numerous region-specific competitors • NFS perceived as “Land Player” for pricing adjustments

Source: Baker Hughes Rig Count 13

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


PPI Chemicals and Allied 2011 - 2022 The PPI for Chemicals & Allied Products for organic and inorganic
chemicals is a very broad index with a portion that directly reflects
Huge pressure put by Russia/Ukraine conflict & recent Covid spike in China some of the materials that go into most of our chemical products.

• 2022 started in line with expectations.


WPU06 - Chemicals & Allied Products Oil Crisis + Covid
• Unexpected Covid spike in China mid-quarter put more
370.0 pressure on logistics and material supply
mar-22; 362.0
 Rigorous and constant lock downs, associated to policy
350.0
to reduce emissions, increased port congestures,
shortage of containers and overall shortage of materials.
dez-21; 350.1
• The quick escalation and subsequent war between Russia and
330.0 Ukraine severely impacted several markets and logistics routes.
Below are just some unfolding of events that hit the market for
out-18; 301.0 Fluids` Chemicals in particular:
310.0  Increase in oil price (reaching $130/bbl ) had ripple
Historical 260 – 300 limits
effect in several indexes, such as Platts, impacting groups
ago-14; 284.1 of products for our OBM / SBM packages.
290.0
 Ukraine was one of the largest exporters of Corn –
mar-18; 293.5 severe impact on xantham gum price, production and
dez-19; 285.1 availability, which led to 50% just this year so far.
270.0
 Fertilizers, as 20%+ world supply comes from the region
jan-11; 262.2 mar-16; 261.1
mai-20; 268.7 – Potassium and nitrogen compounds (ammonia,
250.0 amines) became scarce and some of our products and
raw material competes with fertilizers subsidies.
 Increase in Natural Gas impacting energy and
availability, which impacted products such as olefins.
WPU06 - Chemicals & Allied Products
+35% since May 2020
or
+18% through 2021
or
+16% YoY 14

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Cost Inflation
Strategic tenders delivered and projects started while unprecedent challenges seen in Supply Chain

New tenders being delivered Overall impacts on key tenders


considering reviewed costs

• ENI Montenegro +20%


Sourcing events and VE activities
working aligned on sales demands • Tatweer +50%
• ENI KPO +35%
• PTTEP Onshore +35%

2020 2021 2022


Increases/Decreases by segment in 2021
(top revenue products, global basket)*
EH + 18% (50% w/ • Asphalt-based +19%
KCl)
NAM +24% • Commodities +20 - 80%
• Emulsifiers +25%
• Lubricants +35%
• Shale Inhibitor +20%
• WBM Polymers +42%
• Wetting Agent +15%
* Accounts for VE / Ration. Activities also

15
Fluids Applications Overview
Drilling, Reservoir and Stimulation Fluids solutions

Solids Control, Waste


Management, Surface
Equipment

Transport cuttings to
surface

Build a stable wellbore


Drilling Fluids

Prevent flow of oil and


gas while drilling

Lubricate drill bit


Stimulation Fluids

Minimize reservoir damage,


maximize production Reservoir Fluids

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Drilling Fluids Technology & Solutions
Established leading performance pedigree for challenging wells

Innovation Unstable Shales

Corrosion
• Consistently identifying industry needs and
developing solutions Depleted Zones
Lost Circulation &
Faulted Formations
• Custom solutions to address drilling challenges
Salt Formations

• Economic solutions to improve efficiencies and Hard Formations


reduce the customer’s project cost HPHT

• Environmental and social solutions to reduce Tight Shale Formations


impact of drilling
Tight Curves

• Full suite of non-aqueous, water-based and Extended Reach


specialty systems

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Completion & Reservoir Fluids
Refocus 30-years of Expertise and Leading CF/RDF Professionals

Reservoir Drill-In Fluids Engineered Displacements Completion Fluids

 Reservoir-friendly solutions  Wellbore cleanup chemistry  Clear brine fluids


 Filter cake breakers  Displacement modelling  Filtration equipment
 Bridging additives  Mechanical tools  Additives
 Aqueous & non-aqueous

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Stimulation Fluids Our goal is to create value with
Creating Value with Advanced Stimulation Systems advance stimulation systems to
drive down $/BOE
Full Range of
Stimulation Fluids Technology
Hydraulic Fracturing • Global R&D center in Katy,
• Slickwater Texas
• High Viscosity Friction • With support labs in Canada
Reducers and Abu Dhabi
• Crosslinked Gels
Matrix Acidizing Manufacturing &
• Standard Acid
• Delayed Wormhole Acid Distribution
• End to end control
Coil Tubing
• 85 stocking points and logistics
in 22 different countries
Sand Control
globally

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Newpark Breakers – Cleansorb
Uniform cleanup with ORCA™ Filter Cake Breakers

Converts to organic acid


ORCA ACID Relatively slow rate of reaction
PRECURSORS Reduced corrosion rate
Used to remove both water and non-aqueous filter cakes

Consumes specifically approved starches, xanthans and


celluloses.
ENZYMES Continues to breakdown components until denatured
Only used in water based Filtercake applications

ORCA Improve wettability of non-aqueous filter cakes


SURFACTANTS/ Aid in filter cake dispersion
DISPERSANTS Utilized in conjunction with acid precursor

CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Intro to Cleansorb products

Filter cake treatment products


ORCA™ for OBM to treat oil-based drill-in fluid filter cakes
ORCA™ for WBM to treat water-based drill-in fluid filter cakes

Products for deep penetrating acid treatment


DEEPA™ – for deep matrix acidizing and acidizing of natural fractures in
carbonate formations

ORCA™ and DEEPA™ formulations are based on organic acid precursors that
generate organic acid at a predictable rate in-situ

21 © Copyright Cleansorb 2019 www.cleansorb.com


Why effective drilling damage
removal is needed

DRILLING DAMAGE REMOVAL


OPERATIONAL DRIVERS
Removing drilling damage
across all the producing zone
allows all the wellbore to produce
optimising production rates
and reservoir drainage;
Effective damage removal can
delay operational issues e.g.
gas/water coning;
Delay risk of sand screen failure from production “hot spots” along wellbore;
Avoid blocking screens/liners with residual drilling mud cake
ORCA™ treatment cost is a small part of well drilling/completion costs
Thus massive R.O.I. - production increases of 10’s of % and operational issues avoided
or deferred
22 © Copyright Cleansorb 2019 www.cleansorb.com
Solids Control Equipment & Systems
Providing niche technology solutions, supporting customers to achieve targeted ESG goals

Capability

 QHSE management system operative and


functional (safety first)

 Dedicated operation & engineering staff


(200 engineers)

 Dedicated software for KPIs operation and


equipment maintenance (GMAO)

 Equipment manufacture and


standardization; in house project
management and development (3
specialized engineers)

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Solids Control Equipment Smart Automation
Leading the industry in developing Artificial Intelligence and Remote Monitoring for Solids Control Equipment

Capability

 ‘Smart’ system with Process Automation,


Remote Control and Monitoring

 Real-time system condition monitoring to


pro-actively predict maintenance intervals

 Process management algorithm makes


adjustments on the fly to achieve mud
condition performance targets

 Customer can access real-time data, while


several sites can be monitored remotely by
a solids control specialist

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Target Customer Base is Evolving
Energy Transition is Driving Customer Groups to Refocus O&G Participation

IOCs NOCs Independents/Privates


Under stakeholder pressure to focus Increasing E&P activity to Drilling growth driven by pressure to
on Renewables, while reducing capitalize on state O&G assets increase financial performance
traditional O&G E&P before future demand decline

FUTURE ‘GOLD TIER’ CUSTOMERS

Our Newpark Service Advantage aligns us


with our customer’s growth ambitions
- Fluids Focus, deep domain expertise
- Agility and commitment
- Proven global experience
- Local Content and knowledge transfer

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


NFS Strategy on ESG
Aligning with our customers while harnessing our strengths

Resource Management Health and Safety


Reducing our environmental impact through efficient Aspiring to a zero-harm workplace by driving
facilities management, recycling consumables and values, attitudes, and competencies that prioritize
minimizing water and energy usage health and safety in every activity of our business

Minimize Waste in Operations Employee Engagement


Reduce freshwater usage • Nurturing a culture that strengthens employee
Re-use produced water • commitment and enhances wellbeing. Developing
Recycle drilling fluids • local talent in our overseas locations

Technical Innovation Enhance Social Value


Continuous R&E to enable replacement of non- Bringing benefits to society and economies through
aqueous fluids, and reduce the environmental ethical sourcing, enhancing local content and
impact of our products building workplace diversity

Corporate Governance Ethical Business Practice


Maintaining an environment of high ethical Commitment to our core values ensuring people act
standards and robust governance practices with integrity and the highest ethical standards

Legal and Regulatory Environment


Ensuring compliance with laws and regulations wherever we operate

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Environment
Newpark Fluids has always been a pioneer of environmental stewardship: Green Chemistry is in our DNA

UN SD Goal Our Areas of Focus & KPI’s Our Focus Our Goal for 2026

Water and Energy usage at Gallons/KW per 1 M Monitor Water and Energy usage at each Continuously improve efficiency our
our Facilities revenue Facility to establish a baseline Water and Energy consumption

Development of NT with ESG Demonstrable ESG Incorporate ESG criteria in all products & All R&D projects under development
in mind benefits in all NT systems developed to include ESG parameters

Help Operators to save fresh BBl/m3 water reused Monitor production water reusage with Stim Increase the portfolio development
Water on fracking products of resources saving solutions

Recycling of Drilling & Bbl of fluids recycled Streamline recycling on all NFS
Build a baseline for fluids reused at LMPs
Completion fluids at our LMP’s facilities

Create an integrated platform to


Collect case Histories from Environmental Gains Identify and collect ESG gains on existing
collect ESG parameters from
our Operations from Operations /spot projects for highlights
operations

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Geothermal
The world’s most experienced geothermal drilling fluids provider

Supported over
343 geothermal wells

 Iceland
 Hungary
 Australia & New Zealand
NFS Geothermal  Italy
Fluids Experience  El Salvador
 Chile

NFS Fluids product line for Fluids density achieved 12.5-13.4 Mud stability after significant NFS water-base fluids systems
geothermal application with high ppg (1.50-1.60 kg/lt) using influx of H2, He, CO2 and H2S. lead the industry, these systems
thermal stability for optimized micronized ilmenite with no provide the lowest
rheological properties and fluid sagging issues with BHST up environmental impact
loss control to 600 °C

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


TerraTherm™ - Global Geothermal Experience
Most experienced fluids company in geothermal market

Supported over
315+ geothermal wells

 Iceland
 Hungary
 Australia & New Zealand
 Italy
 Salvador
 Chile
 Azores
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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Executive Summary
Key Customer Takeaway Bullet Points

 Mature HSEQ culture with a pioneering position in ESG

 Truly a global player with operations in 23 countries

 Broad portfolio that we continue to expand organically & inorganically as we evolve from drilling fluids
company to a Fluids Solution Provider

 Fluids occupies unique space within larger O&G market with regionally specific competitive landscape

 Navigating the worst downturn in industry history while still executing on defined strategy (with some course
adjustments due to COVID) & positioning for future success

 Near term focus: Q1 & Q2 results meet & surpass pre Covid Revenue level, challenges from managing new
headwinds & supply chain crunch

 Longer term outlook & plans: evolving market & competitive landscape provide opportunities for growth that
build upon our core competencies

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


Newpark’s Other Capabilities
Established and Experienced Oil & Gas Services
DURA-BASE® is a mat system, which provides a safe, cost-effective surface
for year-round, all-weather performance. Engineered of high-performance
thermoplastic, DURA-BASE® provides a tough, field proven and protective
surface that can be used for any application that requires access in special
environments, stabilization for heavy equipment or simple ground protection.

 Solid Ground support in all soils


 Provide safe work platform for rig personnel
 Reduce well site construction cost
 Reduce well site reclamation cost
 Reduce transportation cost
 Reduce liner and liner disposal cost
 Material (primary): High Density Polyethylene
 100% welded and 100% recyclable
 Expected life in excess of 15 years All plants are API
LARGE MAT SMALL MAT Monogram
 Overall Dimensions: 2.44m x  Overall Dimensions: 2.44m x
4.27m x 10.8cm 2.29m x 10.8cm
(API 13A – 0025, 0059, 0060,
 Surface Dimensions: 2.13mx  Surface Dimensions: 2.13m x 0061)
3.96m 1.98m
 Weight: 450 kg  Weight: 250 kg

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc


What do you think?

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CONFIDENTIAL. Copyright 2020, Newpark Resources, Inc

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