IMERYS Oilfield Minerals

Functional additives for drilling fluids

Introduction to IMERYS

Leading supplier of industrial minerals

d Essential raw material provided to a wide
range of industrial sectors

Logistic

Logistic

Mining Process: Beneficiate & Transform

Consumer goods

43%

d Hundreds of applications for daily life

Fused aluminum oxide for polishing computer screens Diatomite to filter wine Kaolin for coated papers

Carbonates for baby diaper

Carbonates for toothpaste Ball clays for tableware Graphite for batteries

Construction

34%

d Variety of products for every stage

of construction work
Red clay for roof tiles and bricks in France Kaolin for paint Bodies for floor tiles Fused aluminum oxide for polishing walls Carbonates for window profiles

Industrial goods
d Infinite usages
in industrial equipment
Refractory linings for high temperature industries (steel, aluminum making) Abrasives for polishing turbine blades Refractory minerals for investment casting Minerals for oilfield drilling fluids and cementing Pigments for industrial plastics,

23%

Group snapshot
d
2010 Key figures
Sales

3,347 million
Operating margin

15,090 employees in 47 countries

More than

12.5%
ROCE

240 industrial
facilities

7 main research
centers

13.0%

Listed on NYSE Euronext Paris stock market

Market capitalization: 3.8 billion (February 2011) 56% held by Pargesa/GBL SBF 120, DJ Eurostoxx 600, FTSE4Good index General mining sector

Market leader positions in four business groups

Market position
Minerals for Ceramics, Refractories, Refractories, Abrasives & Foundry
(32% of sales(1))

Main competitors
AKW, Sibelco, Goonvean Almatis, Rio Tinto Saint-Gobain Washington Mills, Nacional de Grafite

World #1 in minerals for refractory applications World #1 in minerals for abrasives World #1 in fused zirconia World #1 in high performance graphite

Performance & Filtration Minerals

(17% of sales(1))

World #1 in diatomite and perlite for filtration World #1 in minerals for breathable polymer films World #1 in mica for engineered plastics and high performance coatings

BASF, Huber, AKW Sibelco, Goonvean, Omya Eagle Picher, CECA Grefco

Pigments for Paper

(23% of sales(1))

World #1 in kaolin for paper World #2 in ground calcium carbonate (GCC) for paper

Vale/CADAM, BASF KaMin, AKW, Thiele Omya, Mineral Technologies

Materials & Monolithics

(28% of sales(1))

French #1 in clay roof tiles, bricks World #1 in alumino-silicate monolithic refractories

Terreal, Monnier Wienerberger, Bouyer-Leroux Vesuvius, RHI

(1)

Group sales FY2010: 3,347 million

Strategic acquisitions to enlarge our portfolio of minerals and applications

d d
About 1.2 bn invested in 69 operations since 2001 Growing presence in emerging countries
3,347 M* 2,898 M
6% 3%

Emerging countries Japan/Australia

26%

29%

5%

North America

21%

62%

Western Europe

48%

2001
* Sales by sales destination

2010

R&D and Innovation

d
Strong Emphasis on the future
7 main research centers (UK, US, France, Austria, Switzerland) 18 regional labs focusing on specific markets 270 engineers and researchers
St Austell (UK) Paper Pigments, Performance Minerals and Ceramics

Sandersville (US)
Paper Pigments, Performance Minerals

St Quentin Fallavier
(France) Monolithic Refractories

Limoges
(France) Ceramic center

Villach (CARRD-Aust.) Refractories & Abrasives + High Temperature

Lompoc (US)
Filtration

Bodio
(TIMCAL-Switz) Graphite/Carbon blacks

10

IMERYS for drilling fluids

IMERYS drilling fluids mineral additives

Ball Clay

Diatomite

Graphite

Perlite

Calcium Carbonate

Minerals are supplied as

Powders Unmilled granulates/lumps Liquid dispersions

Bentonite

Mica

More than 30 production mines or plants

Drilling fluids applications

Weighting Agent Viscosifier Lubricant Lost Circulation Materials Drill-in Fluids Filtrate Reducers Completion Fluid Filtration Simulated Drill Solids

Ball Clay

Bentonite

Carbonates

Diatomite

Graphite

Mica

Perlite

Ball Clay
Our product How it works
Benefits

1 m

Our Hymod Prima is a ball clay product that has been used widely in ceramic applications for many years due to its consistent quality It is widely used to simulate drill cuttings in laboratory mud formulations

Ball clays are mineralogically and morphologically similar to many types of shale Hymod Prima consists primarily of fine particle size disordered kaolinite, quartz, mica and some swelling smectites

Consistent reproduction of effects of drill solids on Fluid loss Rheology Stability

Bentonite
Our product How it works Benefits

1 m

d d d

ECCAgel, our bentonite is sourced from South Africa It is a non-treated (or natural) sodium bentonite API specification 13A/ISO 13500 section 11 (OCMA grade)

Bentonite provides viscosity and gelling characteristic to WBM Rheological properties: bentonite suspensions develop a yield stress and show strong shear thinning behavior

Viscosifier to suspend weighting agent and cuttings Filtrate reducer to decrease fluid loss from a wellbore fluid, forming a thin tough filter cake

Calcium Carbonate
Our products How it works Benefits

2% HCl 5 min

Calcium carbonates from Marble, Limestone and Chalk sources Dolomites (Ca/Mg CO3) Wide range of particle size distributions available worldwide Fully Acid soluble

Carbonates can be used

As weighting agents for reservoir drilling fluids As bridging agents

d d d

Prevent formation damage Control seepage and circulation losses Easily removed by acids or chelants

d d

Particle size range enables

Bridging of fractures and formation pores Building a filter cake at the entrance of the fracture to seal it up

Carbonates, our portfolio

Region

Northern Europe

Southern Europe / Africa

Middle East

Americas

Asia

Can be used as

<5 10 Particule Size Distribution ( m) 20 50 150 >500

Imercarb 2L

Carbital 115 DRB 20 Carbital 140 DRB 30 DRB 8/25 DR 80 C

Feria 1 Imercarb 2G Imercarb 10G Feria 10 Feria 15

Gamaco Calwhite Drikalite # 10 White Microwhite 100 RO-40 Marblemite

Imercarb 2 Imercarb 10 YBB 4 Imercarb 35

Fine

Imercarb 10L

Medium

D 110

D 110

40-200 30-50 White XO White OZ White

Coarse

Acid Insolubility (%)

0.2

0.2

0.38

0.5

Mica
Our product How it works Benefits

1 m

Mica consists of high aspect ratio, flakeshaped particles Imerys has a range of controlled particle size distribution products

Coarser grades are effective to control losses, pumped as a pill treatment to plug fractures Fine grades pass through shaker screens, so they can be used as a pretreatment to control seepage losses

d d

Stop lost circulation Prevent fluid loss and formation damage

Mica, our portfolio

100

ND300 ND500

80 Cumulative % Finer than

PLM 2 PLM

60

Suzorite 40-Z Suzorite 25-Z

Morvan, France

40

Suzorite 15-Z

20

0 10 100 Microns ( m) 1000 10000

Fine France Canada ND 300 Suzorite 40-Z PLM 2

Medium ND 500 Suzorite 25-Z

Coarse

Boucherville, Canada

Spruce Pine, NC

Suzorite 15-Z PLM

USA

Graphite
Our product How it works Benefits

d d

Imerys offers a large range of natural flake graphite Our range includes a high degree of crystallinity, which equates to near theoretical true density, high thermal and electric conductivity

d d

Graphite particles bridge and block fractures Particles form a strong plug, but with sufficient flexibility to withstand changes in wellbore pressure Graphite is an efficient lubricant between drillstring and wellbore

d d d

Reduce torque and drag in deviated wells Control lost circulation Strengthen wellbore by the stress-cage effect

Graphite, our portfolio

Graphite range
10

PP10

PP25

PP44

M200

80x150

50x100 20x50

Max ash content (%)

Natural graphite grades

1

LSG 6

LSG 10 C-LUB 304

LSG 44

C-LUB 330 C-LUB 320

C-LUB 302

C-LUB 310 C-LUB 306

Synthetic graphite grades

KS4 KS6 KS75 KS5-75TT KS5-25 KS5-44

0,1

KS10 KS15

KS25 KS44

0,01 1 10

d50 ( m)

100

1000

Diatomite / Perlite
Our product How it works Benefits

Diatomite
Secondary Bed

Perlite

Primary Bed

Filter mesh

d d

Diatomite is a natural silica mineral made from skeletons of single celled organism called diatoms Our diatomite is calcined to remove impurities Perlite is volcanic glass which is expanded into bubbles, then milled to a powder of extremely low density

Diatomite and perlite are a natural filter aids thanks to their structure Combined with other materials such as organic fibers, they can be used as a pill or "squeeze" treatment.

Filtration of completion fluids

Crystal Clear fluids at low cost

Control of losses
Rapid bridging and shutoff of large loss zones