SYNTHETIC DRILLING BASE OIL ORDERS SECURED IN AUSTRALIA AND OMAN

DIALOG achieved its first breakthrough for the supply of synthetic drilling base oil in Australia since its establishment in 2006 with the receipt of 2 initial orders to supply synthetic drilling base oil to 2 oil majors worth more than USD3 million (approximately RM10 million) in November and December 2008.  DIALOG will supply Shell Saraline 185V synthetic drilling base oil to both customers with one customer on contract until December 2010 whilst the other customer for its 12 exploration wells.

In December 2008, DIALOG also secured its first order for the supply of synthetic drilling base oil to a new customer in Oman with an initial order of about USD1.7 million (approximately RM6 million).  DIALOG will supply Shell Saraline 185V synthetic drilling base oil for a long term drilling campaign by its customer for 7 onshore rigs.

Shell Saraline 185V is a synthetic paraffin produced from natural gas by Shell MDS (Malaysia) Sdn Bhd’s (“Shell MDS”) plant in Bintulu, Sarawak using Shell’s proprietary Gas-to-Liquids (GTL) technology. The plant is the first commercial plant of its kind in the world.  Shell Saraline 185V is virtually free of sulphur and aromatics, non-toxic and readily biodegradable. Its unique physical and environmentally-friendly properties makes it ideal for the formulation of synthetic-based drilling muds for usage in oil and gas drilling activities.