t3 european presentation

Presentation Outline Introduction and History Product Overview Quality, Operational Capability

& Capacity Process Improvements Engineering & Specific

Products of Interest Elastomer R&D Summary Pressure Control Equipment BOP Control Systems HPT Gate Valves Flow Control Products Wellhead & Production

Systems Wellhead Gate Valve Products

History of T-3 Energy

Gus Halas hired as

CEO

• Cost reductions.• Hired new senior

management.• Facilities

rationalization.• Expanded

geographically.

• Enhanced original equipment product development.

• Expanded geographically.• Increased manufacturing

capacity for Ram BOPs.• Increased Wellhead

Engineering for product development.

• Introduced new products in all product lines.

• Integrated Management Systems.

• Process Improvements and Lean Manufacturing.

Leading provider of aftermarket services of pressure and flow control equipment primarily along the U.S. Gulf Coast.

Capitalized by

2001 20022000 2003 2004 2005 2006 2007

Sold Products Segment

Sold Distribution Segment

First Reserve Sells all T-3 Energy Common Shares in a Series of Block Trades.

2008

Company OverviewWe design, manufacture, repair, and service products used in thedrilling and completion of new oil and gas wells, the workover of

existing wells, and the production and transportation of oil and gas.

Wellhead Products 18% of 12-31-2007

Revenues

Production Phase

Pipeline Products 13% of 12-31-2007

Revenues

Transmission andProcessing Phase

Pressure and Flow Control Products 69% of 12-31-2007

Revenues

Drilling Phase

Crown &

Standpipe Manifold

Choke & Kill Manifold

Blowout

Master Bushing

Remote Control System Panel

Surface Control System Choke & Kill

Manifold

Blowout Preventer Stack

Remote Control System Panel

Surface Control System

Wellhead & Production

Tree Pipeline Valves

Strong Customer BasePressure & Flow ControlPressure & Flow Control WellheadWellhead PipelinePipeline

Drilling Contractors & Rig BuildersDrilling Contractors & Rig Builders

Atwood Oceanics Burgan Drilling Cactus Drilling Company Diamond Offshore Drilling Daldrup & Sohne AG Drilltec Ensign Drilling, Inc. ENSCO Offshore Company Frontier Drilling Grey Wolfe Drilling Company Helmerich & Payne Hercules Drilling (TODCO) IDM Jardboranir KCA Deutag LTI

Max Streicher MB Petroleum Nabors Drilling Noble Drilling Parker Drilling Company Patterson UTI Drilling Precision Drilling Pride International Rowan Companies Saipem SONGA Drilling Transocean Trinidad Drilling Venture Drilling Weatherford Drilling International

Strong Customer Base

E&P OperatorsE&P Operators

AGIP Petroleum Co. Amerada Hess Anadarko Apache Corporation British Petroleum Burlington Resources Chevron Conoco Phillips Devon Energy Dominion Exploration & Production El Paso Oil & Gas Ellora Operating Encana ExxonMobil Houston Exploration Hunt Petroleum KOC Marathon Oil Co.

Murphy Exploration & Production Newfield Exploration Nexen Petroleum Noble Energy O’Benco, Inc. PDO Pemex Peoples Energy Plains Resources Pogo Producing Company Samson Oil & Gas SandRidge Energy Saudi Aramco Shell Offshore St. Mary Land & Exploration Swift Energy Unocal Corporation Will Drill Resources

Strong Customer Base

11"-10K BOP, CLOSING UNITSGERMANYDRILLTEC

11"-10K BOPHOLLANDINTERNATIONAL SNUBBING SERVICES

7"-10K BOPN. SEAITS

BOPs, C/K MANIFOLDSHOLLANDHUISMAN-ITREC

21” & 13” BOPs, VARIOUS SPOOLS, VALVESSAUDI/MEXICO/ANGOLAHERCULES

13"-10K, 20" BOPICELANDHEKLA

13"-10K BOP, 21" BOP, 29.5 DIVERTERKUWAITBURGAN (PISC)

13"-15K BOP ROMANIAGULF SYSTEMS PETROLEUM (GSP)

13"-3K BOPOMANENSIGN

13"-5K BOPGABONENSIGN

13"-10K BOP, 29.5 DIVERTER, 21" BOPQATARENSCO

13"-10K BOP, 11"-10K BOP, 21" DIVERTER, 29.5 DIVERTEREGYPTEDC (MOLLER SUPPLY)

13”-10K BOP, C/K MANIFOLDS, CLOSING UNITSGERMANYDALDRUP & SOHNE AG

21" BOPINDIAABAN

KEY INTERNATIONAL ORDERSKEY INTERNATIONAL ORDERS

11”-5K BOPOMANMB PETROLEUM

13"-10K BOP, 21" BOPPERUPETREX (GAFFNEY KROESE)

13"-10K BOP, 16"-5K BOPME/MEXICONOBLE DRILLING

BOPs, C/K MANIFOLDSICELANDJARDBORANIR

13"-10K BOP MIDDLE EASTMAERSK (MOLLER SUPPLY)

18-10K BOPBRAZILPRIDE INTL.

11" BOP, 13" BOPRUSSIA/AUSTRALIA/MEXICO/OMAN

WEATHERFORD DRILLINGINTERNATIONAL

BOPs, C/K MANIFOLDS, CLOSING UNITSGERMANYMAX STREICHER

BOPs, FC GATE VALVESABERDEEN/HOLLANDWEATHERFORD UK

11"-10K BOP, 13"-10K BOPUS/CANADATRINIDAD

11"-5K BOPMEXICO/COLUMBIASAXON ENERGYSERVICES/SCHLUMBERGER

13"10K BOP, 11"-10K BOPITALYSAIPEM (GAFFNEY KROESE)

13"-15K BOP, 16"-10K BOPAZERBAIJANNOBEL OIL/AZERI DRILLING

16" BOP, 21" BOPMEXICONABORS INT.

KEY INTERNATIONAL ORDERSKEY INTERNATIONAL ORDERS

Drilling Phase (BOP) Market Share

33%Land & Jack-Up Drilling Rigs

26%Entire Market

T-3 Percentage of New Installed Base Between

2005 and 2007

New and Remanufactured BOP Market


13%Entire Market


2005 and 2007

New Manufactured BOP Market

1%

BOP Elastomers Market Share (Combined New and Remanufactured BOP Market)

Drilling Phase Elastomer Product Market ~ $150MM


16%Entire Market


2005 and 2007

New Manufactured BOP Control Systems

History & Milestones

0

100

200

300

400

500

Tota

l Num

ber

2002 2003 2004 2005 2006 2007

Ram & Annular BOPs

New Manufacture Remanufacture

$0

$40

$80

$120

$160

$200

$240

$280

2004 2005 2006 2007

Afterm arket

OEM Products

T-3’s OEM Product Transition

$105.290% OEMIncrease

$67.4

$103.2

$ in Millions

$31.0

$163.1

79% OEMIncrease

% OEM 46% 57% 65% 76%

$217.4

$166.1

$58.8

58%increase

International Expansion Priorities

2008 and 2009 focus on expanding international footprint throughauthorized repair facilities, agents, distributors, and customer liaisons.

On July 14, 2008, T-3 Energy Services, Inc. Entered Into Middle East Joint Venture Agreement With Aswan International Engineering

Company LLC Located in Dubai, UAE

Gefro

AswanT3 Mexico / Groupo R

Pressure Control Group

Wellhead & Production Systems

Pipeline Valve Specialty

Custom Coating Specialties

Nisku, Alberta

Houston

2

Robstown

Odessa

Perryton

Jennings

HoumaLafayette

Shreveport

Indianapolis

Buffalo

Tyler

Rock Springs

Casper

Conway

Cardenas, Mexico

●

Dallas

OKC

New Orleans

Denver

W. Virginia

Grand Junction

Black text denotes existing

Red text denotes priority

Domestic Footprint and Growth Priorities

Pennsylvania

AtlantaFarmington

Venicia

Long Beach

Growth Trajectory

Financial Management

Continue conservative

financial business model with respect to

capital investment, debt

management, and quality of

earnings.

6A-0202 6A-0041 6A-0564 6A-0386 6A-0253 6A-0756 16A-0087 16A-0026 16A-0131 16A-0171 16C-0032 16D-0018 6D-0462

Growth and Acquisition

Continue to pursue growth

opportunities via acquisition, geographic

expansion, and capacity

improvement.

New Product Introductions

Continue development of new name-branded and

engineered products in all three

product sectors, including

aftermarket services and non-metallic

elastomer products.

Supply Chain and Sourcing

Formalize Sourcing Pipeline

and technical resource team to

support new product

introductions and existing product

margins.

Process Improvement

Continue to focus on

Continuous Process

Improvement and Lean

Manufacturing opportunities

throughout the organization.

Products

Remanufacture / Repair

Low Pressure O.E.M.

High Pressure O.E.M.

Sub Sea OEM

Prod

uct C

ompl

exity

Rated Working Pressure

Drilling Phase Products

1. Blowout Preventers (BOP)

Large pressure valve that when activated, seals the well and prevents fluids and

gases from escaping. Protects the crew & maintains integrity of

the wellbore.

2. BOP Control Systems

Hydraulic control systems that are used to remotely function BOPs. A control system is required for each

BOP stack.

3. Non-Metallic Elastomers &

Rams

Non-metallic sealing devices

used within BOPs and other

pressure-control related equipment.

4. HXE Drilling & Well Servicing

Chokes

Valves used to control fluid flow rate or reduce

system pressure. Usually installed within a manifold

assembly.

5. Choke and Kill Manifolds

Arrangements of piping, valves, and

chokes used to control, distribute and maintain fluid flow from drilling

activity.

1

2

3

4 5

Featured Annular-BOP Products

29 ½” 500 PSI 7012 Annular Diverter BOP

Low pressure annular BOP designed for control shallow

gas environments when drilling for casing

placement. Popular BOP for stack configurations

found in Mexico and South America.

7022L Annular Blow Out Preventer

Designed for surface installations on land & platform

applications. Compact and seal reliably on almost any

shape or size pipe, casing or tool in the wellbore, as well as complete shut off (CSO) of the

open bore. Provides enhanced positive pressure control while stripping drill

pipe.

7082 Annular Blow Out Preventer

Lower profile BOP designed for surface installations on

land & platform applications.Compact and seal reliably

on almost any shape or size pipe, casing or tool in the

wellbore, as well as complete shut off (CSO) of the open bore. Best overall

performing annular.

7072 Sub-Sea Blow Out Preventer

Designed for sub-sea installation with a studded top by flanged bottom with side outlets available. Compact design with a wedge-style head. Compact and seal

reliably on almost any shape or size pipe, casing or tool in

the wellbore, as well as complete shut off (CSO) of the

open bore.

Featured RamFeatured Ram--BOP ProductsBOP Products

6011i Ram ROP

Priced to compete with remanufactured

equipment and has the same well pressure

control performance as "U" ram BOPs, which

ensures product support worldwide. Includes expanded options for

ram blocks and packers, and can be fitted with fixed bore & variable

bore rams.

Sub-Sea Well Isolation BOP

13-5/8” 10,000 PSI Isolation BOP

necessary for surface drilling from floating drilling rigs needing to shear drill pipe. This is a growing

method for conducting

exploration drilling offshore and is

analogous to slim hole drilling on land.

6012 Ram BOP

API 16A Ram type blowout preventer suitable for surface

drilling (land and offshore) and well

intervention. Can be supplied with qualified

ram packers, top seals, and bonnet seal kits for

extreme service conditions, high or low temperature, and harsh chemical environments.

Sub-Sea Shearing BOP

Designed pre-dominantly for

existing floating drilling rigs with 18-3/4”

10,000 psi ram-type BOPs seeking an

upgrade. Fitted with a combination of casing shear bonnets, casing shear rams, tandem shear bonnets, and

Model 6012 shearing sealing rams.

6031 Ram BOP

Designed for cold weather conditions and

smaller land drilling rigs in which a low

profile BOP is required. Popular in

the Canadian and Rocky Mountain

region. Modeled after a Shaffer-style ram

architecture.

Subsea BOP Product Highlight13-5/8” 10,000 PSI Subsea Isolation BOP

Proprietary Compact Sub-Sea Bonnet will Operate with Hydraulically Actuated Mechanical Lock (“HAML”) Removed.

Can be fitted with tandem shear bonnet designed with fully internal and protected porting.

Sub-Sea BOP Product Developments18-3/4” 15,000 psi Ram BOP

ProprietarySub-Sea Design.

Incorporation of a Proprietary Locking System.

Incorporation of a Patentable

Packers for Fixed and Variable Pipe

Rams and Shearing Sealing

Rams.

Sub-Sea Ram BOP

Drilling Phase BOP Products

6000 Shearing Sealing Rams

Integral bland shearing sealing rams with energized sealing

capabilities much the same as pipe rams.

Employed as blind rams during normal drilling

operations and conform to NACE requirements It

can shear pipe numerous times without affecting operation & sealing.

6012 Ram BOP Wear Plates

Customer-driven design innovation to

extend the service life of a Model 6012 or

competitor ram BOPs. Reduces maintenance and

repair costs to reduce the total cost of

product ownership.

Low Torque Bonnet Seals

For both T-3’s 6012 and 6011i ram BOPs.

Customer-driven design innovation to

enhance bonnet sealing. Increase

ease of operation with standard tooling and reduced safety risk

associated with high bonnet bolt torque.

Model 6012 Casing Shear Rams

Designed to shear large pipe up to 13

3/8” casing, as required for dynamically

positioned sub-sea drilling. Incorporated guides help ensure pipe containment within the shear

interface.

18-3/4” 10K VBR Inverted Ram

For T-3’s 6012 BOPs, seals off

wellbore on bottom of stack thereby

allowing for pressure testing above rams.

Featured Ram-BOP ProductsModel 6000 Shearing Sealing Rams

API 16A Fatigue Tested Ram has a Fold Over Shoulder

that Bends the Lower Section of

Sheared Pipe, Allowing Clearance

for the Ram to Close & Seal.

Shearing and sealing

capabilities up to 6-5/8” - 25.2 lb/ft Grade S-135 drill pipe with Large

Bore Shear Bonnets &

Tandem Boosters

Shearing and sealing capabilities up to 5-1/2” - 24.7 lb/ft Grade S-135

drill pipe with standard bonnets.

Featured Ram-BOP ProductsProprietary Casing Shear Bonnets

18-3/4” 10K Casing Shear Bonnet

1,800,000 lbs of shearing force available with 0 psi wellbore pressure

@ 2,800 psi hydraulic pressure

1,500,000 lbs of shearing force available with 5,000 psi wellbore pressure @ 2,800 psi hydraulic

pressure

Sub-Sea Valve Products

T-3 Sub-Sea DF Gate Valve

hydraulically actuated balanced stem allows

no fluid displacement in the valve body during operation. This allows bi-directional sealing

without the possibility of multi-valve line

"Hydraulic Locking“. Operates up

to 15,000 PSI.

HPTTM Sub-Sea Drilling Valve

HPT™ subsea valves are qualified to API 17D for

10,000 feet of water depth. The valves are

available in various configurations. Ease of maintenance is achieved

through a quick disconnect mechanism

between the actuator and the gate valve.

HPTTM Sub-Sea Production Valve

HPT™ manual subsea gate valves provide a

reliable bubble tight shut off for a variety of subsea production applications.

The HPT™ lip arrangement between the

seat and pocket insert reduces debris from

entering the body cavity.

Sub-Sea Production Valve Actuation

HPT™ Subsea Actuators are qualified to API 17D for 10,000 feet of water

depth as fail-safe close or open design. Unique integral hydrostatic

pressure compensating design avoids sea-water ingress and removes the

need for an external hydrostatic unit.

Proprietary Sealing Products

T3 Wellhead S-Seal (Piston Type)

S-Seal – Piston Type areelastomeric interference seals with anti-extrusion

devices which are used on machined surfaces, such as

tubing hanger necks and unitized wellhead support

packoffs.

T3 Wellhead Metal-to-Metal Seal

T3-MM seals are intended for machined surface

sealing applications. The metal seal is made of a soft

metal such as 316 SS or Incoloy 825 and is crushed

into place.

T3 Wellhead CS-Seal

CS-Seals - Elastomeric interference casing seals

with anti-extrusion devices.

Low Torque Bonnet Seals

For both T-3’s 6012 and 6011i ram BOPs.

Customer driven design innovation to enhance

bonnet sealing. Increase ease of operation with standard tooling and

reduce risk associated with high bonnet bolt

torque. API 16A qualified.

Production Phase Product Solutions

TimeSaverTM Wellhead with DDV System

Weatherford’s Down hole Deployment Valve technology. Used in under-balanced drilling.

It is a valve that is put in the well's casing down hole and used to allow the drilling assembly to go in and out of the hole with

little hydrostatic head.

TimeSaverTM Wellhead System

Standard API dimensions and mandrel casing hangers. 2 and 3 stage adaptability for a

wide variety of casing programs. Pre-assembled

and saves BOP-nippling time while drilling.

Dual Block Wellhead System

Two integrated vertical bores for production of

oil & gas in a single unit. Can operate as a

christmas tree assembly on various wellhead

systems.

Through-Bore Diverter System (TDS)

safely reduces rig time by a minimum of 24 hours

per well and lowers drilling costs by not

requiringfield welding or waiting

for cementing operations.

Production Phase Valve Products

Conventional Wellhead System

A wellhead is that part of an oil well

which terminates at the surface, where petroleum or gashydrocarbons can

be withdrawn.Ensures safe and efficient flow of oil and gas from the

wellbore to separation and

pipeline equipment.

T-3 Proprietary Production and Well

Servicing Chokes

A production choke is a hydraulic or manually

operated control valve.

T-3 Proprietary D5 / D10 Gate Valve and “FC” Style Valves

Valves installed on top of the well to

direct product flow. Largest consumable

on a wellhead

Transmission and Processing PhaseComplete line of recently introduced TComplete line of recently introduced T--3 name3 name--branded gate valves, ball valves, control branded gate valves, ball valves, control

valves, check valves, & pipeline valves used in gathering systemvalves, check valves, & pipeline valves used in gathering systems & pipelines.s & pipelines.

T-3 CFT Trunnion Mounted Ball Valves

Designed with a take-apart three-piece forged body design and trims available to meet the demanding requirements of the

pipeline and process industries. Available in sizes

from 2" through 36" and classes 150 through 1500.

T-3 T1-EX Expanding Gate Valve

A complete block and bleed valve that protects sealing surfaces. The operating clearances allow smooth operation without gate sticking or

debris buildup in the body cavity. Design reduces pressure drop and allows for the smooth

passing of pipeline pigs.

T-3 EW Globe Style Control Valves

Designed for both general and high performance applications in most process control industries

including gas & oil transportation, petrochemical refining, &

production and power generation.

Aftermarket Services

Elastomers and Replacement Parts

T-3 Energy manufactures and stocks replacement parts, including name-

brand elastomer products. Available upon request for

both field service or customer preventative maintenance needs.

24/7 Field Service and Technical Support

T-3 Energy provides field service personnel in a

myriad of locations and is available 7 days a week, 24 hours a day. Field service crews are trained to service both T-3 Energy products and competitor products.

Equipment Repair and Remanufacture

T-3 Energy’s history starts as a responsive and technically

prolific organization capable of servicing all competitor

products. Combined with T-3 Energy’s engineering

capabilities, customers are provided the same level of

confidence as if purchasing a newly manufactured product.

Quality, Operational Capability & Capacity

Quotations Purchasing Inventory Engineering Change Customer reports Financials Order Entry Shipping & Receiving Material Management Material trace Invoicing Payroll

Process Control and MRP

Bar-Coded “Process Control Routers” ensure products are manufactured to the latest engineering specifications.

HR, Quality, Environmental, & Safety

T3-E4465 Behavior-Based Safety Best Management Practice ProgramT3-E4468 Confined Space Entry ProgramT3-E4469 Determination of Confined Space Entry Decision TreeT3-E44611 Electrical Safety ProgramT3-E4473 Emergency Preparedness and Response PlanT3-E44612 Fall Protection ProgramT3-E44622 First Aid ProgramT3-E44624 Good Housekeeping ProgramT3-E44638 Lock Out / Tag Out ProgramT3-E44650 Process Safety Management Awareness ProgramT3-E44683 Return To Work Program (Transitional Duty Program)T3-E44653 Scaffolding User Awareness ProgramT3-E44655 Short-Service Employee PolicyT3-E44657 Stop Work Authority PolicyT3-E4428 QUEST Incentive Program

T3-E44680 Powered Industrial Trucks Safety ProgramT3-E44681F Practical Forklift Examination ChecklistT3-6304F Daily Forklift Inspection LogT3-E44610 Driver Safety and Pre-Hire Screening BMPs

Hazardous CommunicationT3-E44625 Hazardous Communication ProgramT3-E4466 Bloodborne Pathogens Awareness ProgramT3-E4467 Compress Gas Cylinder HandlingT3-E44654 Scheme for the Identification of Piping SystemsT3-E44635 Hydrogen Sulfide Awareness Training ProgramT3-E44636 Job Safety Analysis Program

NORM T3-E44669 Used Equipment Screening Procedure (NORM)

Revision B

Environmental, Health and SafetyManagement System Interface

General Health and Safety Programs

Issued By: Michael Rai Anderson, P.E. - Director T3.E0001 April 1, 2005

Powered Industrial Trucks / Drivers Safety

ISO / Management

System Components

EH & S Management

System

Environ-mental

Protection

Health and Safety

NORM

General Programs

Industrial Hygiene /

PPEReporting

KitsPlant Safety Equipment

Forklift & Drivers Safety

Hazards Commun-

cation

Click on the Topic you Wish to Narrow

Your Search.

T3.E4464 Air Permit by Rule / Air Permit Exemption Requirements Decision TreeT3.E44643 Paint Booth, Sand Blast Booth, Oven Stack Opacity ProcedureT3.E446??F Air Emissions Tracking & Recordkeeping System

T3.E44639 MSDS Management ProgramT3.E44628 Chemical & Raw Material Management Requirements MatrixT3.E44613 EPCRA Inventory Reporting Decision TreeT3.E44614 EPCRA Tier II Reporting Decision TreeT3.E44615F EPCRA Tier II Chemical Inventory WorksheetT3.E44616 EPCRA Spill Reporting Decision TreeT3.E44612 EPCRA General Requirements Speadsheet

T3.E4513 General Environmental Compliance ScheduleT3.E4514F Environmental Annual Regulatory Reporting ChecklistT3.E4415F Environmental/Regulatory Inspection ChecklistT3.E44619F Reportable Spill Event FormT3.E44620F Non-Reportable Spill Report FormT3.E44657F SPCC Audit FormT3.E44658F Monthly SPCC Audit Form (For facilities with SPCC Plans)T3.E44661F Secondary Containment Stormwater Drainage Release FormT3.E44665F Storm Water Discharge Overall Compliance ChecklistT3.E44666F No Exposure Certification (NEC) Facility Inspection FormT3.E44667F Industrial Benchmark Samping Exceedance ReportT3.E44631F Hazardous Waste Storage Inspection FormT3.E4516F Site Inspection Corrective Action SpreadsheetT3.E4517F 30-Day QUEST Deficiency Notification Report

T3.E44661F Secondary Containment Stormwater Release FormT3.E44657 SPCC Requirements Decision Tree

Chemical and Raw Material Management

Spill Prevention and Control

Inspection Checklists and Reporting Kits

Revision B

Environmental, Health and SafetyManagement System Interface

Air Quality

Issued By: Michael Rai Anderson, P.E. - Director T3.E0010 April 1, 2005Health and

Safety

EH & S Management

System

ISO / Management

System Components

Environ-mental

Protection

Air Quality

Spill Prevention&

Control

Storm Water

Chemical and Raw Material

Click on the Topic you Wish to Narrow Your

Search.

Reporting Kits

Waste Disposal

Wastewater

• API 6A – Wellhead & Christmas Trees• API 6D – Gate Valves• API 16A – Blow-Out Preventers• API 16C – Choke and Kill Manifolds• API 16D – Control Systems• API 17D – Subsea Valves (EEC)• NBBI “VR” – Pressure Relief Valves• QMI ISO 9001:2000 – QMS

QUEST Performance

Average Total Cost of Quality as a Percentage of Revenue

1.77%

0.67%

2.44%

1.97%

0.23%

2.20%2.33%1.99%

0.34%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Rew ork as a % of TotalRevenue

Warranty as a % of TotalRevenue

Total COQ as a % of TotalRevenue

2005 Company Averages2006 Company Averages2007 Company Averages (Orig 5)

6A-02026A-0041

6A-0564 6A-0386

6A-02536A-0756

6A-029016A-0087

16A-002616A-0131

16A-017116A-0057

16C-003216C-0005

16D-00186D-0462

17D-0033

T3 Energy Average Annual Safety Performance

6.55.9

5.45.8

4.3

2.1

0.00.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2002 2003 2004 2005 2006 2007

TRIR

Industrial Average TRIRAnnual T3 Energy TRIR2007 Company Goal

Nisku, Alberta

Houston

2Jennings

HoumaLafayette

Rock Springs

Cardenas, Mexico

Current PCG Locations

Recent Acquisitions / Joint VenturesPressure Control Group

Equipment Type T3 MainT3 VentureT3 CypressT3 JenningsT3 Creekmont T3 NiskuT3 Rockies TotalCNC HBM 9 1 4 0 2 0 0 16CNC Vertical Mill 3 3 0 1 1 1 0 9CNC Horizontal Machining Center 1 0 0 1 3 0 0 5CNC Lathe 4 4 1 2 7 0 0 18CNC VTL 2 1 2 0 0 0 0 5Manual HBM 3 1 2 0 0 1 1 8Manual VTL 3 3 3 0 0 1 2 12Manual Engine Lathe 9 9 1 4 6 2 5 36

Current Major Equipment

BOP Capacity Expansion2005 2006 2007 2008

Projected

New BOP Unit Capacity

156 396 396 444

Repair BOP Unit Capacity

252 252 252 396

Total BOP Unit Capacity

408 648 648 840

2005

Initiate Facilities Rationalization and Lean Manufacturing

2006 2007 2008

Phase II – New BOP Manufacturing Capacity Initiative

Phase I - New BOP Manufacturing

Capacity Initiative

Phase I – BOP Re-Manufacturing Capacity Initiative

Phase II – BOP Re-Manufacturing Capacity Initiative

Capacity Addition– Rock Springs Re-manufacture Expansion

Item Budgeted CostCNC HBM (4" bar) Used 200,000$ Heat treat oven 100,000$ Sub-Arc welder and manipulator 90,000$ Manual HBM (5" bar) 80,000$ 64" Manual VTL 75,000$ Blast Room 68,640$ Tooling & Fixtures 75,000$ PMI Machine 44,000$ Computers and Office Furniture 35,000$ Air Compressor 30,000$ Radial Arm Drill Press (8') 30,000$ Test, Paint, & Wash Booths 71,645$ Misc. 19,000$ Total Phase I 918,285$

Capacity Addition – Cypress Re-manufacture Expansion

Item Budgeted Cost

CNC HBM (5" bar) 460,000$ CNC HBM (6" bar) 1,850,000$ CNC VTL (84") 550,000$ Equipment Moves (Total) 445,000$ Computers & Wiring 70,000$ Inspection Equipment 70,000$ Air Compressor 35,000$ Build 70' x 170' building for expansion 1,786,096$ Sub-Arc welder and manipulator 90,000$ Sand Blast Room 220,000$ Total Phase I 5,576,096$

Daewoo Daewoo6" G&L HBM

OMVTL

BullardVTL KIA

SMG&LHBM

Lucas Union

CincinnattiBickford

KingVTL

KingVTL(sml)

54"BullardVTL

54"BullardVTL

Assembly

T.D.Q.

Inspection

Shipping & Receiving

P

W

BT

Maint.

Weld Shop Offices

Staging

Machine Shop

Inventory / Warehouse

ORR O O O O

Offices

Covered Shed

Plant Layout of Cypress Expansion

Cypress Expansion

Geographic Expansion

Capacity Expansion

Acquisition / Partnership

Process Improvements

Lean Manufacturing – Focused FacilitiesPCG Work Performed June 2003:

Region BOP ServiceBOP New

Manufacturing

Choke Manufacturing

& Service

Manifold Manufacturing

& Service

Accessory Manufacturing

& RepairRubber Goods & Control Systems

Drilling Equipment

Service

T3 Venture Gulf Coast X X X X XT3 O&M Gulf Coast X X XT3 Main Gulf Coast X X XT3 Jennings Gulf Coast X X X XT3 Cypress Gulf Coast X X X

1 6 2 2 2 6 0 2 20

PCG Work Performed Currently:

Region BOP ServiceBOP New

Manufacturing

Choke Manufacturing

& Service

Manifold Manufacturing

& Service

Accessory Manufacturing

& RepairRubber Goods & Control Systems

Drilling Equipment

Service

T3 Venture Gulf Coast X X XT3 Main Gulf Coast X XT3 Jennings Gulf Coast X XT3 Cypress Gulf Coast X XT3 Cardenas Mexico XT3 Nisku Canada X X

3 4 1 2 1 2 1 1 12

Geographic presence has increased by a factor of three (1 to 3), while reducing the work discipline distribution by almost half (20 to 12).

Lean Manufacturing – Facilities

Operational Square Feet

Annual Cost

Annual Cost Per Square

Foot

2003 870,812 $2,177,472 $2.5

2007 491,869 $1,078,116 $2.2

Reduction (Total) 378,943 $1,099,356 $0.3

Reduction (%) 43.5% 50.5% 12.3%

Lean Manufacturing – Logistics

Embedded line haul logistics network has reduced freight expense from approximately $0.06/lb to $0.02/lb.

*When comparing the average costs incurred in 2004.

Houston

Jennings

HoumaLafayette

Cypress

New Technology

Magnetic Fixture Plate w/ Risers

Magnetic Fixture in Operation

Operational Improvement Examples

Old Run Current RunSize Model Item Operation Time (Hrs) Time (Hrs) % Change13 10k Double 6012 Body Finish 75 45 -40%11 5k Double 6011i Body Rough 72 36 -50%

Engineering & Specific Products of Interest

Engineering Product Disciplines

2004

Drilling Phase (Pressure Control

Group) Engineering

2005 2006 2007

Production Phase Product Engineering

Transmission Phase Product Engineering

Drilling Phase (Flow Control Group)

Engineering

2 Engineering Team Members


I.P. Status Drilling and Production Phase Products

Patented

Model 6000 Shearing Sealing Ram (7,207,382) Threaded Union Safety Device (6,557,577) Oil Field Choke (5,241,980) Multiple Sleeve Valve Assembly (6,283,152) Well Production and Multi-Purpose Intervention Access HUB (7,219,740 B2) Valve Seal Assemblies and Methods (6,664,572 B2 and 7,004,452 B2) Hydraulic Failsafe Valve Actuator (6,487,960 B1) Hydraulic Double-Acting Valve Actuator (6,659,419) Subsea Hydraulic Actuator with Built-in Pressure Compensator (6,783,107 B2)

Patent-Pending

DDV Wellhead System Subsea Dual Bore Well Jumper Subsea Jumper Deployment “Method and Apparatus” Subsea Light Weight Stab Plate “Connector and Method” Subsea High-Integrity Pressure Protection System “Device, Method, and Apparatus” Machined Bore “Method” D5 and D10 Production Gate Valves

Prospective Patents

18 3/4” 15,000 BOP Sealing Architecture T3 Tubing Hanger Metal Seal T3 Two-Stage Through Diverter System Frac Isolation System

2004

Drilling Phase (Pressure Control

Group) Engineering

2005 2006 2007

Production Phase Product Engineering

Transmission Phase Product Engineering

Drilling Phase (Flow Control Group)

Engineering



24

4440

38

52

60

16

30 28

20

0

10

20

30

40

50

60

Year

s

API Engineering Experience

API 16A - Packing Unit & Ram Packers

API 16A - Ram & Annular BOPs

API 16A - Drill Through Equipment

API 6A - Production Chokes

API 6A - Gate Valves

API 6A - Wellhead & Christmas TreeEquipment

API 6D - Pipeline Valves

API 16C - Choke & Kill Systems

API 16D - Well Control Equipment ControlSystems

API 17D - Subsea Wellhead & ChristmasTree Equipment

Engineering Product Disciplines

Saudi Aramco BOP Elastomer Research & Development

Currently co-developing a high temperature, chemical-resistant elastomer with Freudenberg NOK’s (“FNOK”) industrial seals division, Simrit. Incorporate modern elastomeric base gums. Two candidate cure systems have been targeted for

their chemical resistance, heat resistance, and general working resilience.

Initial test results of the physical properties show that both candidate compounds are comparable to severe-service elastomers currently used in high-performance blowout preventer products today.

Aramco Qualification – Partner

Molded Product Design The ram packers for use in the 7-1/16”

test fixture and the 13-5/8”-10M BOP have been designed and the components have been sourced. This new packer includes non-extrusion

devices to ensure performance under severe-service conditions.

Aramco Qualification – Seal Design

Analytical screening to be performed at a third-party lab, Southwest Research Institute Temperature and chemical exposure using ASTM samples. SWI has configured their test fixtures and have completed a H2S and

pressure safety verification of the fixtures. After modification of the test protocol, up to three simultaneous

immersions may now be performed. The original estimated duration of immersion testing was five months, it is now two months.

Products will be subjected to physical testing: High temperature testing to 300oF. H2S / CO2 / CH4 testing.

Aramco Qualification – Lab

Mock Ram Cavity The 7-1/16” test fixture

has been designed per SWI requirements and has been quoted.

A new secondary containment vessel has been incorporated for additional safety measures.

Aramco Qualification – Test Fixture

Q1

Base Gum Comparative

Analytical Testing

Q2 Q3 Q4

Prototype Elastomer Production

BOP Ram Cavity Test

Fixture Completion

Full Scale Temperature and Chemical

Exposure Testing

Third-Party Report Review and Release

Aramco Qualification – 2008 Schedule

Aramco Technical Review

Commences

Pressure Control Equipment

T3 Manifold

BLOWOUT PREVENTER STACK 13-5/8" 5000 psi

BOP Principle Views 13-5/8" 5000 psi

BLOWOUT PREVENTER STACK 13-5/8" 15,000 psi

BOP Principle Views 13-5/8" 15,000 psi

BLOWOUT PREVENTER STACK 21-1/4" 2000 psi

BOP Principle Views 21-1/4" 2000 psi

BLOWOUT PREVENTER STACK 7-1/16” 15,000 psi

BOP Principle Views 7-1/16” 15,000 psi

ANNULAR BLOWOUT PREVENTER/DIVERTER 29-1/2" 500 psi

BOP Principle Views BOP/Diverter 29-1/2" 500 psi

Energized Sealing Capabilities, Much the Same as Pipe Rams

Conforms to NACE MR-01-75 Requirements for Integral Blade Shearing Sealing Rams

Ram has a Fold Over Shoulder that Bends the Lower Section of Sheared Pipe, Allowing Clearance for the Ram to Close & Seal

Shear Ram can Shear Pipe Numerous Times Without Effecting Operation & Sealing

Shear Ram is a Single-piece Body

Model 6000 Shearing Sealing Rams™Capabilities

Shear ram can be used as a blind ram during normal drilling operations

Shearing and sealing capabilities up to 5-1/2” - 24.7 lb/ft Grade S-135 drill pipe with standard bonnets

Shearing and sealing capabilities up to 6-5/8” - 25.2 lb/ft Grade S-135 drill pipe with Large Bore Shear Bonnets & Tandem Boosters

Qualified to API 16A fatigue test

Model 6000 Shearing Sealing Rams Capabilities

Pipe Shearing Sequence

BOP Control Systems

API 16D Blowout Preventer Control System

The Thunder Horse Control Unit was made to the client’s specifications using a non-glare finish on the stainless steel construction to ensure safe conditions when in use on the offshore platform

during daylight hours.

Thunder Horse is the World’s largest floating platform, designed to process 250,000 barrels of oil per day and 200 million cubic feet per day of natural gas and is the largest producer in the Gulf of Mexico.

API 16-D Spec MFGTemperature ClassificationClose annular, all rams & open (1) sideHCR’s for volumeTwice the pilot volumeAll Diverter modes1.5 Volume DesignClosing ratioReservoir twice usable volumeResponse time, 30 sec for BOP<18 ¾”Pump Systems capacity/closing ratioTop Load BottlesNo hydraulic in Electrical PanelsAlarmsElectrical back up powerComponents test pressure of 1.5 w.p. & 3:1 burstTraceability & ConformanceA spec to follow when one isn’t available25% Volume shut downRemote 2-hand operation

Accumulator Racks, Tri-Plex Pumps, P.L.C. Controls & Air Pumps

BOP Accumulator PLC Control System

TYPICAL BOP REMOTE WITH12” TOUCHSCREEN

TYPICAL REMOTE PANEL WITH 5”TOUCH SCREEN & PUSH-BUTTONS

T3 NISKU PRESSURE CONTROL PRODUCTS

Configurable Screens

USING THE CONFIGURATION OPTION VIRTUALLY ANY LAYOUT IS CREATABLE


T3 MANUFACTURES A NUMBER OF BOP CONTROL SYSTEMS

– LAND DRILLING RIG BOP ACCUMULATOR CONTROLS

– OFFSHORE RIG BOP ACCUMULATOR CONTROLS

STAND ALONE OR A PART OF THE ENTIRE SYSTEM

IF A 12” TOUCHSCREEN IS UTILIZED NO PUSH BUTTONS ARE NECESSARY


INCORPORATES A “PUSH & HOLD TO OPERATE” FUNCTION AS PER API-16D SPECIFICATION COMPLIANCY

INCORPORATES A “CLOSE BLIND RAMS” POP-UP WARNING SCREEN TO PREVENT ACCIDENTAL OPERATION

THE 12” SCREEN CAN DOUBLE AS ANOTHER DISPLAY CONTROL STATION DISPLAYING VARIOUS SPEEDS, PRESSURES AND VIDEO FEEDS

FULLY CONFIGURABLE STACK ALLOWS FOR AN ACCURATE GRAPHICAL REPRESENTATION OF THE BOP

T3 NISKU PRESSURE CONTROL PRODUCTS

15,000 psi Test Unit

High Pressure Test & Glycol Units

HPT Gate Valves

• Bi-directional valve with downstream sealing.

• Elastomer free therefore no explosive decompression.

• Replaceable pocket Inserts therefore reduced risk of washout.

• Reduced body cavity contamination via seal design and assembly.

• Inventory savings though commonality of parts.

HPT Manual Gate Valve –Key Features

Inconel metal seal

Wave spring retainer ring

Wave spring retainer ring

Spring energized PEEK

face Seals

Built in lip

HPT Manual Gate Valve Seal Assembly

• Good for –75F to 450F. • API 6FA/FC Fire Tested.• API 6AV1 Slurry Tested.• Operates in pressures up to

20,000psi.• Operates in sour

applications.• Also good for methane,

methanol, paraffin solvents, completion fluids, and acids containing <13.5% HCl.

• All seals meet NORSOK M-710 Revision 2 compliance.

HPT Manual Gate Valve –Operating Conditions

HPT Manual Gate Valve with Ball Screw

HPT Gate Valve Size

Number of Turns Torque at 15K

7-15K 19.0 175 ft-lbs7-10K 16.0 145 ft-lbs4-15K 20.5 110 ft-lbs

5-1/8”- 5K Tree with HPT Valves Titon Flow Control - North Sea Production

HPT Manual Gate Valve Production Applications

7.25-10K AND 5.25-10K HPT Valves Independence Hub Project Partners – Helix, Anadarko, Devon, Dominion and Statoil Hydro


7” 15K TRMO Manual and Hydraulic Failsafe – 15K Production TreeOrange, Texas


5”15K Subsea Tieback Boarding Valves SHELL E&P – Llano / Habanero to Auger Tension Leg Platform


EEC Model 3”10K Subsea PLETWalters Oil & Gas


HPT Ball Screw Gate Valve HPT Ball Screw Gate Valve –– 77””15K Frac Tree15K Frac TreeBronco / CuddBronco / Cudd

HPT Manual Gate Valve Frac Applications

HPT Gate Valves and HXE Chokes – 7”15K Frac Tree w/ 4”15K Wing Valves –2”15K Flowback Manifold w/ HXE Flowback Chokes

Bronco / Cudd

HPT Manual Gate Valve Flowback Applications

3”15K HPT Surface Test Tree PackageTETRA

HPT Manual Gate Valve Well Testing

Flow Control Products

Trim Options Positive Needle & Seat Plug & Cage External Sleeve Disk trim Gate and Seat

Actuation Options Manual Pneumatic Hydraulic Electric

Orifice Sizes2/64” – 5”

Pressure RatingANSI 150 – API 20K psi

Temperature Ratings-75 degrees F – 650 degrees F

Materials 4130, 410, 718, Duplex & 625 Clad

Flow Control Products

Needle & Seat Trim Higher capacity

Low to medium pressure drops

Moderate erosion

External Sleeve Trim Lower capacity

Medium to high pressure drops

Severe erosion service

Lower noise

Better controllability

Positive Trim High capacity

Low to medium pressure drops

Moderate erosion

Positive Cage Trim Lower capacity

Medium to high pressure drops

Severe erosion service

Lower noise

Flow Control ProductsChoke Trim Options

Flow Control ProductsProduction Applications

HXE Drilling/Well Servicing Choke

Actuator Outlet

Body

Inlet

HXE Drilling/Well Servicing Choke

Metallic Spring EnergizedFluorocarbon Lip Seal

PEEK Bushing

Reversible Tungsten CarbidePlug and Seat

Wellhead & Production Systems

Operating since 1979, Wellhead and Production Systems has developed a comprehensive value proposition for our customers:

Products and Technology: Full Service Engineering Service Research and Development (TS, TDS, FIS, DDV, Gate Valve and Seal Technology) Standardized Production Control and MRP Platform (Visual Manufacturing)

Service: Distributed Geographic Foot Print Extensive Manufacturing Capacity (Domestic and International) Continued Growth through Acquisition of Targeted Technologies (EEC) Expanded Customer Support Team

Quality and Competency: Internationally Recognized API Certifications Internal Training Programs for Employee Development Integrated QA/QC, HSE, and Employee Development Programs Top Quality Personnel to Manage Organizational Growth and Development Expanded Supply Chain and International Sourcing Department

Wellhead and Production Systems

TimeSaverTM Wellhead with DDV System

Weatherford’s Downhole Deployment Valve technology. Used in under-balanced drilling.

It is a valve that is put in the well's casing downhole and used to allow the drilling assembly to go in and out of the hole with

little hydrostatic head.

TimeSaverTM Wellhead System

Standard API dimensions and mandrel casing hangers. 2 and 3 stage adaptability for a

wide variety of casing programs. Pre-assembled

and saves BOP-nippling time while drilling.

Dual Block Wellhead System

Two integrated vertical bores for production of

oil & gas in a single unit. Can operate as a

Christmas tree assembly on various wellhead

systems.

Through-Bore Diverter System (TDS)

safely reduces rig time by a minimum of 24 hours

per well and lowers drilling costs by not

requiringfield welding or waiting

for cementing operations.

Demand is a function of drilling & completion activity, particulDemand is a function of drilling & completion activity, particularly arly activity in activity in ““resource playsresource plays””, such as the Barnett Shale, such as the Barnett Shale

Wellhead Production Phase Products

T3-22 / T3-29 SOW Casing Head

T3-22 / T3-29 Sliplock Casing Head

T3-29 Casing Hanger T3-22 Casing Hanger T3-MH Mandrel Hanger

Conventional Surface Wellhead Equipment

T3-22-L / T3-29-L Casing Spool

TC-1A-ENTC-1WBO2 Coupling

TCM Single Bowl Tubing Head

Conventional Surface Wellhead EquipmentT3-TC-60 Dual

Bowl Tubing Head

T3–DC Tubing Hanger

T3-TC–60 Tubing Hanger

CS-Seals - Elastomeric interference casing seals

with anti-extrusion devices.

Product Innovations - Seals

T3 CS-Seal T3 Metal-to-Metal Seal

T3 S-Seal (Piston Type)

S-Seal – Piston Type are elastomeric interference seals with anti-extrusion

devices which are used on machined surfaces, such

as tubing hanger necks and unitized wellhead support

packoffs.

T3-MM seals are intended for machined surface sealing

applications. The metal seal is made of a soft metal such

as 316 SS or Incoloy 825 and is crushed into place.

Product Innovations – Telescoping Frac Isolation Systems

3,000 PSI Tubing Head 5,000 PSI Tubing Head 10,000/15,000 PSI Tubing Head

Product Innovations – T3 Coil Tubing Head Adapter

High Pressure S-Seals

Product Innovations

Thru Diverter System I

Thru Diverter System II

Product Innovations – T3 TimeSaverTM

Wellhead Gate Valve Products

• Bi-directional valve with downstream sealing.

• Elastomer freetherefore no explosive decompression.

• Replaceable pocket Insertstherefore reduced risk of washout.

• Reduced body cavity contamination via seal design and assembly.

• Inventory savingsthough commonality of parts.

HPT Manual Gate ValveDrilling and ProductionDrilling and Production

• Good for –75F to 450F. • API 6FA/FC Fire

Tested.• API 6AV1 Slurry

Tested.• Operates in pressures

up to 20,000psi.• Operates in sour

applications.• Also good for methane,

methanol, paraffin solvents, completion fluids, and acids containing <13.5% HCl.

• All seals meet NORSOKM-710 Revision 2 compliance.

The T3-D5 and T3-D10 Gate Valves meet API 6A PR1 and PR2 Performance Test Requirements for Temperature Classes P through U

(-20° to 250°F) and material classes AA, BB, DD, and EE.

T3 Diamond Series D5 Gate Valve

T3 Diamond Series D10 Gate Valve

Conventional Surface Wellhead Equipment

T3’s Diamond Series valves are designed to be durable and easy to operate.

D5 Seat AssemblyWave Spring

Energized Seats

FluorocarbonFace Seals

Elastomer Retainer Ring

D10 Seat Assembly

Fluorocarbon Face Seals

Metal to Metal Sealing

Spring EnergizedPEEK Face Seal

Thank you!

t3 european presentation

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