GENERON® IGS Awarded a Contract for A Nitrogen Production Unit (NPU) to Support Underbalanced Drilling Applications

Houston, Texas May 23, 2005 – GENERON® IGS, an affiliate of Innovative Gas Systems, has been awarded a contract to supply an NPU 3000HP (Nitrogen Production Unit – High Pressure) to support Halliburton’s Global Underbalanced Applications (UBA) operations. The system was designed to produce 3000 SCFM with a Nitrogen purity of a minimum of 95%. This NPU 3000HP will add to Halliburton’s Global UBA Nitrogen Generation fleet. Two (2) NPU 2000’s were previously delivered to Halliburton for their Villahermosa operations in Mexico. As with the NPU 2000’s, this unit will carry certifications for CE/PED Module G, ATEX, DNV – Offshore and 2.7-1.

Halliburton’s Global UBA operations is dedicated to helping operators realize the benefits of underbalanced drilling and selected GENERON® IGS as the supplier of this custom designed system due to being the recognized leader in the industry for packaged on-site Nitrogen Generators. During its history, GENERON® IGS has supplied thousands of Nitrogen units worldwide for various applications in the Oil and Gas, Marine and Industrial Markets.

The GENERON® IGS NPUs are stand-alone systems that can be skid mounted or containerize and use GENERON® IGS membrane technology to provide an uninterrupted supply of gaseous nitrogen to purities from 95 – 99.5%. The GENERON IGS NPUs create efficiencies by overcoming the inconvenience and expense of pipeline or truck delivery of liquid gas, gas cylinders or liquid Dewar tanks. With the GENERON® IGS units, offshore as well as onshore facilities can eliminate their dependence on outside suppliers of Liquid Nitrogen. Nitrogen is generated on site, requiring only a supply of compressed air. With flow and purity adjustable at the push of a button, a GENERON® IGS NPU allows operators full control of their own Nitrogen supply.

Underbalanced Drilling refers to the practice of intentionally drilling a well while the hydrostatic head of the drilling medium is less than the formation pore pressure. The well is literally producing during drilling operations. Well control is maintained through the use of specialized pressure control equipment. Wells drilled underbalanced exhibit less formation damage, have increased rates of penetration, and improved reservoir performance. Problems related to fluid loss are decreased dramatically.

For information on GENERON® IGS systems, please contact us through our website; igs-global.com or directly @ GENERON® IGS, 11985 FM 529, Houston Texas 77471; Phone: 713-937-5200; Fax: 713-937-5250.