JANUARY 31, 2007

Industry Highlight: Nitech^TM Nitrogen Removal Plant Processing West Texas' Yates Gas BCCF Engineering, Inc.'s Nitech nitrogen removal process is now processing low-pressure, high-nitrogen natural gas from the Yates formation. A 5 MMcfd nitrogen rejection plant processing Yates gas for Lynx Operating Co. Inc. proved performance and earned BCCK the 2005 Hearst Energy Award for Energy Technology. Nitrogen removal with the conventional Nitech process is profitable for reserves with flow rates as low as 3 MMcfd. (Also, excerpts from "N-removal technology improved to process West Texas Yates gas," Oil and Gas Journal, Jan. 15, 2007, pp. 49-50)

DOE Highlight: Microhole R&D Program Spawning Concrete Results

• Coiled tubing drilling gaining traction in the Lower 48: A Canadian company, Xtreme Coil Drilling Corp., is drilling grassroots wells in the Lower 48 for Anadarko Petroleum Corp.  Also, Shell Technology Ventures B.V. agreed with Extreme Coil to form a jointly owned company, Coil-X, that would use Extreme's coiled tubing drilling technology to drill conventional and unconventional resource exploration wells throughout the United States and Canada.

• Baker Hughes INTEQ's 2-3/8 inch diameter microhole "smart" steering motor and LWD system proved "an overall technical success" in tests by BP America in Alaska's North Slope. Baker Hughes INTEQ will make a decision on commercialization in 2007.

• Western Well Tools is deploying a prototype of its 3-1/4 inch drilling tractor this winter in Alaska's North Slope.

PTTC Highlight: PTTC Continues Informing Industry About Membership Opportunities

Beyond mail and email alerts, PTTC is hosting informational meetings for industry to inform them about membership opportunities as PTTC transitions to industry funding. Informational luncheons have now been held in:

• Midland and Fort Worth, TX

• Oklahoma City and Tulsa, OK

• Columbus, OH

• Pittsburgh, PA

• Lexington, KY

• Charleston, WV

• Denver, CO

Work in the Dallas area—attend our informational luncheon on Thu., Feb. 8 at the Dallas Petroleum Club (11:30 a.m. til 1:00 p.m.). Learn how you can be part of PTTC's future. Please contact Josh Kingcade (ph 405-408-0743, email josh@thegtdgroup.com) and let us know you are coming.

Trivia Question: Who invented the 55-gal metal oil drum?