Anton Oilfield Wins Additional Batch Order for Oil-based Drilling Fluid Service

   Anton Oilfield Wins Additional Batch Order for Oil-based Drilling Fluid

Well-Developed Service with Sustainable and Stable Growth Prospects

PR Newswire

HONG KONG, Dec. 16, 2012

HONG KONG, Dec. 16, 2012 /PRNewswire/ --Anton Oilfield Services Group ("Anton
Oilfield" or the "Group", HKEx stock code: 3337), the leading independent
oilfield services provider in China, is pleased to announce that Anton
Oilfield Services (Group) Limited ("Anton Oil"), a wholly-owned subsidiary of
the Group, has, upon winning a tender, signed a contract to provide oil-based
drilling fluid services for five ultra-high pressure and ultra-high
temperature conventional natural gas wells in the Tarim Basin operated by
PetroChina Co. ("PetroChina"). Pursuant to the contract, the average contract
value for each job stands at approximately RMB 9 million.

The successful tender marks the second awarding of such contract following the
Group's announcement made on July 16, 2012 of winning 8-10 jobs of oil-based
drilling fluid service in the same region, and the terms remained broadly
identical. The jobs that have been completed by the Group to date generated
excellent outcome evidenced by the noticeably reduced complexity in downhole
operations, shortened drilling lead time and additional cost savings for the
customer. The Group's oil-based drilling fluid service is therefore highly
regarded by the client and helped lay the foundation for mass-scale
application of such technology in the Tarim Basin.

Effective Technical Solution to Fulfill Clients' Strategic Objectives in Tarim

According to a report released by the news center of PetroChina's parent
company, China National Petroleum Corp. (CNPC), on May 10, 2012, PetroChina
plans to increase oil and gas production at Tarim by approximately 50 percent
to 30 million tons of oil equivalents in the coming three years. The
geological conditions for resource development in the Tarim Basin region are
extremely complicated, and the ultra-high pressure and ultra-high temperature
wells in the block pose as a world challenge in drilling engineering. As a
widely-adopted drilling technology overseas, oil-based drilling fluid service
has distinct advantages particularly in the resistance to high temperature,
ability to counter contamination and effectiveness of shortening the drilling
lead time. CNPC's news center posted another report on its website on July 5,
2012, saying that the particular drilling requirements associated with the
ultra-high pressure and ultra-high temperature wells and the pressing need of
output expansion make Tarim one of the major target regions in China where
oil-based drilling fluid service is applied. Therefore, the competitive
technique fits well with the customer's requirements for strategic development
in this region, and the demand for this service is subsequently expected to
increase vigorously.

Major Player in Market with Robust Momentum

The Group views oil-based drilling fluid service as an effective technical
support to the exploration and development activities taking place in the
Tarim Basin, boding vast market potential. As such, the Group started
promoting oil-based drilling fluid service in the region this year, applying
the technical service to a limited number of wells on a trial basis, and in
the meantime rapidly constructed an oil-based drilling fluid recycling plant
required by the application of such technology. The Group subsequently won a
tender to provide batch order oil-based drilling fluid service to 8-10 wells
in the Tarim Basin. The jobs that have been completed by the Group to date
were highly regarded by the customer, having generated excellent outcome
evidenced by noticeable enhancement in operational performance, so the
customer awarded a second batch order to the Group, proving that the oil-based
drilling fluid service introduced by the Group this year has become a
well-established business segment with stable and sustainable growth outlook.
That also reinforces the Group's market position in this region, reassuring a
long-term development of the Group's oil-based drilling fluid service business
in the Tarim Basin. Owing to the particularly complicated geological
conditions in the Tarim Basin, oil-based drilling fluid service applied in
this region represents the top-notch technical standard of such service
adopted nation-wide. The success experience and service ability of applying
this technology accumulated by the Group in the Tarim Basin provides a
concrete foundation for the proliferation of the Group's such service into an
even broader market in other regions.

About Anton Oilfield Services Group

Anton Oilfield Services Group (HKEx stock code: 3337) is a leading independent
oilfield services provider offering one-stop oil and gas field technical
development services to oil companies. Its services and solutions span across
the drilling technology, well completion, down-hole operation, and oil
production phases in the development cycle. Its fast growth benefits from the
accelerated development of natural gas in China and the Group's increased
presence in the overseas markets. At the same time, Anton Oilfield is
committed to continuously strengthening its R&D capabilities and making
additions to its talent reserves. The Group's strategic objective is to become
a global oilfield services provider with a solid foothold in China.

Anton Oilfield is headquartered in Beijing with sales offices and operations
bases across China's major onshore oil and natural gas basins. The Group also
has an international headquarters in Dubai with an extensive network across
the Middle East, Central Asia, Africa, and Americas.

SOURCE Anton Oilfield Services Group

Contact: Alman Loong, Direct: (852) 2894 6200,,
or Cindy Shi, Direct: (852) 2894 6372,, both of
Hill+Knowlton Strategies
Press spacebar to pause and continue. Press esc to stop.