Varel International Announces Launch of Compass Series Roller Cone Bits

CARROLLTON, Texas--(Business Wire)--
Varel International announces the commercial launch of Compass Series roller
cone drill bits for slimhole applications. The tungsten carbide insert bits are
available in sizes ranging from 3-3/4" to 7-3/8".

Compass Series bits are targeted for applications such as reduced size casing
programs, horizontal drilling, re-entries, multi-laterals and coiled tubing
drilling which all require steerability, reliability and maximized rates of
penetration. This series has been system engineered to perform well at low
weight on bit, run longer hours and to withstand high RPMs typical of motor
applications.

Through the incorporation of an advanced cutting structure design and the
inclusion of the highly successful High Energy technology suite, drill bit
designers optimized the series for slimhole applications. Benefits of the design
include enhanced steerability, a lower cost per foot average and reduced bit
trips due to improved rates of penetration (ROP) and distance drilled.

Field tests have shown an above average ROP improvement in multiple
applications. The responsiveness and durability of the bits have minimized costs
associated with additional drill bit runs and tripping in areas where they have
been tested.

In one slimhole application for a major operator in Western Canada, a 158.8mm
Compass bit was challenged to increase meters drilled while maintaining an
acceptable ROP. This application requires the bit to pass through increasingly
hard formations including the abrasive, sharp sands of the Cadomin/Nikanassin
formations. Varel supplied the operator with the Compass CM44DMRS bit which
successfully drilled 180 meters to a total depth of 1985m. This performance
netted a 19.4 percent improvement in meters drilled when compared to the closest
competitor offset. Using this same competitor offset, a 31 percent improvement
in ROP was realized.

Features of the line include:

Advanced Cutting Structure and Gage Design - Cutting structures are designed for
speed and steering responsiveness with advanced shirttail protection for longer
life in directional applications.

Patent Pending Heat Shield - The heat shield ring is deployed between the seal
and inner bearing and acts as a thermal insulator to the seal from heat
generated in the bearing.

Patent Pending Conical Seal Gland- The newly designed seal gland is constructed
to resist cuttings packing into the seal area. Its unique geometry provides
significant benefits during high angle drilling.

Improved Bearing Grease- Compass bits have incorporated a high temperature, high
lubricity bearing grease assisting in the reduced generation of internal bearing
heat allowing bearings to last longer.

High Capacity Reservoir- A new reservoir provides a 13 percent volume increase
over previous designs and is configured to be "self-draining."

Advanced Bearing Metallurgy- The inclusion of advanced bearing metallurgy
increases the durability and reliability of the products: silver plated bushings
in 5-5/8" to 7-3/8" sizes and high cobalt hardfacing in 3-3/4" to 5-1/2" sizes.

About Varel International

Founded in 1947, Varel International is the world`s largest independent supplier
in the global oil & gas drill bit market. Headquartered in Carrollton, Texas,
Varel services oil & gas, mining, and industrial markets with its comprehensive
suite of roller cone and fixed cutter drill bits. The company employs more than
1,000 people and has manufacturing facilities in Carrollton, Texas; Houston,
Texas; Matamoros, Mexico and Tarbes, France, as well as sales offices throughout
the world. Varel`s proprietary design capabilities, efficient manufacturing, and
global sales force uniquely positions the company to provide high-quality drill
bits that deliver excellent performance and value to its customer base. For more
information, visit www.varelintl.com.

Varel International
Brandi Williamson, +1-281-670-2413
Marketing Specialist
bwilliamson@varelintl.com

Copyright Business Wire 2009