Baiterek Service L.L.P.

Baiterek Service L.L.P.

Brian Herman
President
Para Service Inc.

Re: Enercats in Kazakhstan

Mr. Herman,

This letter is to inform you, that all 40 “Enercat” tools that have been installed in Kazakhstan earlier in 2004, are operating continuously and none of the wells with “Enercats” have been stopped due to the paraffin and/or scale depositions.  The wells before Enercat intallation have been experiencing heavy deposition problems, which required hot oiling and chemical treatments two-three times a month.

Today the wells’ productions are stabilized and in some wells the daily production has increased.

The success of Enercats in the problematic wells have left no doubts that the tools work, and therefore, as you know, we just complete of acquisition for additional 40 Enercats.   Moreover, I would like to inform you that soon we will place an order for additional 90 Enercat tools.

Continues operation of the wells with Enercats for more than a year allows us to concluded that Enercat is a solution for well with wax and scale depositions.

Regards,

Nurlybek Duzbayev
Director
Baiterek Service L.L.P.
Almaty, Kazakhstan



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