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

d Carbonates for baby diaper

� Carbonates for toothpaste

� Ball clays for tableware

� Graphite for batteries…

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…

Construction � 34%

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,…

Industrial goods � 23%

Group snapshot

d 2010 Key figures

ROCE

13.0%

Operating margin

12.5%

Sales

€3,347 million15,090 employees

in 47 countries

More than

240 industrial

facilities

7 main research

centers

d 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

Main competitorsMain competitorsMarket positionMarket position

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

Pigments Pigments for Paperfor Paper

(23% of sales(23% of sales(1)(1)))

Vale/CADAM, BASF KaMin, AKW, ThieleOmya, Mineral Technologies

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

Materials Materials & & MonolithicsMonolithics

(28% of sales(28% of sales(1)(1)))

Terreal, MonnierWienerberger, Bouyer-LerouxVesuvius, RHI

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

Minerals for Minerals for Ceramics, Ceramics,

RefractoriesRefractories, , Abrasives Abrasives & Foundry& Foundry

(32% of sales(32% of sales(1)(1)))

AKW, Sibelco, GoonveanAlmatis, Rio TintoSaint-GobainWashington Mills,Nacional de Grafite

Performance & Filtration

Minerals

(17% of sales(17% of sales(1)(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, AKWSibelco, Goonvean, OmyaEagle Picher, CECAGrefco

(1) Group sales FY2010: €3,347 million

62%

29%

3%6%

Strategic acquisitions to enlarge our portfolio of minerals and applications

48%

21%

5%

26%

d About €1.2 bn invested in 69 operations since 2001

d Growing presence in emerging countries

Emerging countries

Japan/Australia

North America

Western Europe

3,347 M€*

2,898 M€

* Sales by sales destination

2001 2010

10

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

Villach (CARRD-Aust.) Refractories & Abrasives

+ High Temperature

St Austell (UK)Paper Pigments,

Performance Minerals and

Ceramics

Bodio(TIMCAL-Switz)

Graphite/Carbon blacks

Lompoc (US)Filtration

Sandersville (US)Paper Pigments,

Performance Minerals

Limoges (France)

Ceramic center

St Quentin Fallavier(France)

Monolithic Refractories

IMERYS for drilling fluids

IMERYS drilling fluids mineral additives

Diatomite

Bentonite Mica

Ball Clay

d Minerals are supplied as

� Powders

� Unmilled granulates/lumps

� Liquid dispersions

Calcium Carbonate

Graphite Perlite

More than 30 production mines or plants

Drilling fluids applications

WeightingAgent

Viscosifier LubricantLost

Circulation Materials

Drill-in Fluids

Bentonite

Diatomite

Graphite

Mica

Carbonates

FiltrateReducers

CompletionFluid

Filtration

SimulatedDrill Solids

Ball Clay

Perlite

Ball Clay

Our product How it works Benefits

d Ball clays are

mineralogically and

morphologically similar to many types of shale

d Hymod Prima consists

primarily of fine particle

size disordered kaolinite,

quartz, mica and some

swelling smectites

d Consistent reproduction of

effects of drill solids on

� Fluid loss

� Rheology

� Stability

d Our Hymod Prima is a

ball clay product that has

been used widely in

ceramic applications for

many years due to its

consistent quality

d It is widely used to

simulate drill cuttings in

laboratory mud

formulations

1µm

Bentonite

d ECCAgel, our bentonite is sourced from South Africa

d It is a non-treated (or natural) sodium bentonite

d API specification13A/ISO 13500 section 11 (OCMA grade)

Our product How it works

d Bentonite provides

viscosity and gelling characteristic to WBM

d Rheological properties: bentonite suspensions

develop a yield stress

and show strong shear

thinning behavior

d Viscosifier to suspend

weighting agent and

cuttings

d Filtrate reducer to

decrease fluid loss from

a wellbore fluid, forming

a thin tough filter cake

1µm

Benefits

Calcium Carbonate

Our products How it works Benefits

d Carbonates can be used

� As weighting agents for

reservoir drilling fluids

� As bridging agents

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

d Prevent formation damage

d Control seepage and

circulation losses

d Easily removed by acids or

chelants

d Calcium carbonates from Marble, Limestone

and Chalk sources

d Dolomites (Ca/Mg CO3)

d Wide range of particle

size distributions

available worldwide

d Fully Acid soluble

2% HCl5 min

Carbonates, our portfolio

Marblemite

RO-4050

OZ White

XO White

30-50 White

40-200D 110D 110

Microwhite 100DR 80 CImercarb 35

# 10 WhiteFeria 15

DRB 8/25

YBB 4DrikaliteFeria 10DRB 30

Imercarb 10CalwhiteImercarb 10GCarbital 140Imercarb 10L

Imercarb 2GDRB 20Imercarb 2Gamaco

Feria 1Carbital 115Imercarb 2L

Region

Can beused as

Fine

0.520.380.20.2Acid Insolubility (%)

>500Coarse

150

Medium

20

10

<5

Particule Size Distribution (µm)

AsiaAmericasMiddle EastSouthern

Europe/ Africa

NorthernEurope

Mica

Our product How it works Benefits

d Coarser grades are

effective to control losses, pumped as a pilltreatment to plug fractures

d Fine grades pass through

shaker screens, so they

can be used as a pre-treatment to control seepage losses

d Stop lost circulation

d Prevent fluid loss and

formation damage

d Mica consists of high

aspect ratio, flake-shaped particles

d Imerys has a range of

controlled particle size distribution products

1µm

Mica, our portfolio

PLMPLM 2USA

Suzorite15-Z

Suzorite25-Z

Suzorite40-Z

Canada

ND 500ND 300France

CoarseMediumFine

Morvan, France

Spruce Pine, NC

Boucherville, Canada

0

20

40

60

80

100

10 100 1000 10000Microns (µm)

Cu

mu

lati

ve %

Fin

er

than

ND300

ND500

PLM 2

PLM

Suzorite 40-Z

Suzorite 25-Z

Suzorite 15-Z

Graphite

Our product How it works Benefits

d Reduce torque and dragin deviated wells

d Control lost circulation

d Strengthen wellbore by

the ‘stress-cage’ effect

d Imerys offers a large

range of natural flake graphite

d Our range includes a high degree of crystallinity,

which equates to near

theoretical true density,

high thermal and electric

conductivity

d Graphite particles bridge and block fractures

d Particles form a strong

plug, but with sufficient

flexibility to withstand

changes in wellbore

pressure

d Graphite is an efficient

lubricant between

drillstring and wellbore

Graphite, our portfolio

Graphite range

KS5-44

KS5-75TT

C-LUB 310

PP10PP25 PP44

LSG 6 LSG 10 LSG 44

M20020x5050x100

80x150

KS6

KS5-25

KS4KS10

KS15

KS25 KS44KS75

C-LUB 306C-LUB 302

C-LUB 304C-LUB 320

C-LUB 330

0,01

0,1

1

10

1 10 100 1000d50 (µm)

Max a

sh c

onte

nt

(%)

Natural graphite grades

Synthetic graphite grades

Diatomite / Perlite

Our product How it works Benefits

d Diatomite and perlite are

a natural filter aidsthanks to their structure

d Combined with other

materials such as organic

fibers, they can be used

as a pill or "squeeze" treatment.

d Filtration of completion

fluids

� Crystal Clear fluids at low

cost

d Control of losses

� Rapid bridging and shut-

off of large loss zones

d Diatomite is a natural

silica mineral made from

skeletons of single celled

organism called diatoms

d Our diatomite is calcinedto remove impurities

d Perlite is volcanic glasswhich is expanded into

bubbles, then milled to a

powder of extremely low density

Filter mesh

Primary Bed

Secondary Bed

Diatomite Perlite