DRILLING CONTRACT

BY AND BETWEEN

GGE CHILE S.p.A.

AND

GEOESTRELLA S.A.

DATED AS OF MARCH 15, 2011

Table of Contents

RECITALS 3
ARTICLE 1 - DEFINITIONS AND EXHIBITS 3
ARTICLE 2 - OBJECT, TERM AND COMMENCEMENT DATE, 6
ARTICLE 3 - PERFORMANCE OF THE CONTRACT 7
ARTICLE 4 - SAFETY 10
ARTICLE 5 - PERSONNEL AND EQUIPMENT TO BE FURNISHED BY CONTRACTOR;
IMPORT AND EXPORT OBLIGATIONS 11
ARTICLE 6 - ITEMS TO BE FURNISHED BY COMPANY 15
ARTICLE 7 - COMPENSATION 16
ARTICLE 8 - REIMBURSEMENTS TO CONTRACTOR 20
ARTICLE 9 - INVOICES, PAYMENTS, FINANCIAL RECORDS AND AUDITS 20
ARTICLE 10 - TAXES 22
ARTICLE 11 - CLAIMS, LIABILITIES AND INDEMNITY 23
ARTICLE 12 - INSURANCE 27
ARTICLE 13 - EARLY TERMINATION AND OTHER REMEDIES 28
ARTICLE 14 - CONFIDENTIALITY 29
ARTICLE 15 - RELATIONSHIP OF PARTIES AND SUBCONTRACTORS 29
ARTICLE 16 - LOCAL LAWS 30
ARTICLE 17 - ASSIGNMENT 30
ARTICLE 18 - FORCE MAJEURE 31
ARTICLE 19 - APPLICABLE LAW AND SETTLEMENT OF DISPUTES 31
ARTICLE 20 - ANTI-CORRUPTION AND ANTI-BRIBERY LAWS AND CONFLICTS OF INTEREST 33

ARTICLE 21 - NOTICES 34

ARTICLE 22 - TITLES 35
ARTICLE 23 - PRIOR AGREEMENTS/MODIFICATION/LANGUAGE 35
ARTICLE 24 - EFFECT OF WAIVER OF PERFORMANCE 35
ARTICLE 25 - SEVERABILITY 35
ARTICLE 26 - COUNTERPARTS 35
 DRILLING CONTRACT

THIS CONTRACT is made and effective as of March 15, 2011 ("Effective Date"), by and between GGE
Chile S.p.A., a sociedad por acciones organized and existing under the laws of Chile, with principal offices at
Carmencita 25, Oficina 52, Las Condes, Santiago, Chile ("COMPANY"), and Geoestrella S.A., a sociedad anonima
organized and existing under the laws of Chile, with principal offices at Lo Campino 432, Quilicura, Santiago,
Chile ("CONTRACTOR") (the "Contract").

RECITALS

Whereas, COMPANY desires and has the legal right to carry out drilling operations in the Contract Area(s);
and

Whereas, CONTRACTOR is a drilling contractor that has appropriate equipment in good working order
and fully trained personnel capable of carrying out Operations in a good and workmanlike manner at the time, in
the manner and in the locations specified in this Contract;

Therefore, COMPANY and CONTRACTOR agree as follows:

ARTICLE 1 — DEFINITIONS AND EXHIBITS

1.1 Definitions. As used in this Contract:

1.1.1 "Affiliate" means any legal entity which controls, is controlled by, or is under common
control with, another legal entity. An entity is deemed to "control" another if it owns directly or indirectly at least
fifty percent (50%) of (i) the shares entitled to vote at a general election of directors of such other entity or (ii) the
voting interest in such other entity if such entity does not have either shares or directors.

1.1.2 "Commencement Date" shall have the meaning stated in Article 2.5.1.

1.1.3 "Contract" shall have the meaning set forth in the recitals, and shall include all schedules,
exhibits, appendices and annexes hereto.

1.1.4 "Contract Area" means COMPANY's area of operations in Tolhuaca as shown in red on
Figure 1 and detailed in Figure 2 of Exhibit A.

1.1.5 "Country" means Chile.

1.1.6 "Currency" or "$" or "Dollars" means United States dollars.

1.1.7 "Demobilization Fee" shall have the meaning stated in Article 7.9.

1.1.8 "Drill String" shall have the meaning stated in Article 5.2.4.

1.1.9 "Drilling Unit" means CONTRACTOR's drilling rig named 1201 and its ancillary equipment
as specified in Exhibit A-1.

1.1.10 "Early Termination Fee" shall have the meaning set forth in Article 7.9.

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 1.1.11 "Effective Date" shall have the meaning stated in the recitals.

1.1.12 "Fixed Portion of the Demobilization Fee" shall mean have the meaning stated in Article
7.9.

1.1.13 "Fixed Portion of the Mobilization Fee" shall mean have the meaning stated in Article
7.2(b).

1.1.14 "Good oilfield and/or geothermal field practices" means the standards and practices expected
of a competent drilling Contractor experienced in performing work similar to the Services.

1.1.15 "Government Official" shall have the meaning stated in Article 20.3 of this Contract.

1.1.16 "Group" means COMPANY and such companies that now or may from time to time hold
any economic interest with COMPANY in the Contract Area, in the geothermal field(s) or prospect(s) with which the Work is
associated and/or in the geothermal fluids produced or to be produced therefrom.

1.1.17 "Indemnitee(s)" means individually and collectively each member of the Group, each Affiliate
of a member of the Group and any director, agent, representative or employee of or lender to any of them, but
does not include contractors or subcontractors of any tier of any of the foregoing.

1.1.18 "Mobilization Fee" shall have the meaning stated in Article 7.2(b).

1.1.19 "Mobilization Notice" shall have the meaning stated in Article 7.2(a).

1.1.20 "Mobilization Notice Date" means the date on which the Mobilization Notice is issued.

1.1.21 "Mobilization Period" shall have the meaning stated in Article 2.5.2

1.1.22 "Party" means COMPANY or CONTRACTOR and "Parties" means both of them.

1.1.23 "Payroll Burden" means 30% of the straight time salary of each of CONTRACTOR's
employees, as mutually agreed between the Parties in writing.

1.1.24 "Point of Origin" means Chile's II Region of Antofagasta, El Loa province.

1.1.25 "Representative(s)" mean the persons designated by COMPANY and CONTRACTOR

respectively to give and accept communications between COMPANY and CONTRACTOR pertaining to Operations
under this Contract. Such Representative(s) may be changed from time to time by written notice to the other
Party. Initially such Representative(s) shall be:

COMPANY REPRESENTATIVE: Rüdiger Trenkle

Country Manager
CONTRACTOR REPRESENTATIVE: Roberto De Angelis
General Manager

1.1.26 "Rig Release" means the Drill String has been laid down, the BOP's have been removed,
the mud pits are clean and the well has been secured.

1.1.27 "Standby Rate with Crew" shall have the meaning stated in Article 7.5.

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 1.1.28 "Standby Rate without Crew" shall have the meaning stated in Article 7.6.

1.1.29 "Standby with Crew" shall have the meaning stated in Article 7.5.

1.1.30 "Standby without Crew" means any period where CONTRACTOR remains on standby after
CONTRACTOR's drilling crews have been demobilized following (not less than 7 days) prior written notice from
COMPANY to do so.

1.1.31 "Services," "Work" or "Operations" means all operations to be performed by CONTRACTOR

pursuant to this Contract.

1.1.32 "Technical Information" means any and all information, data and knowledge which is
either made available to CONTRACTOR by COMPANY relating to the performance of the Services, or developed
by CONTRACTOR as a consequence or arising out of this Contract.

1.1.33 "Termination Date" means the earliest of (i) the last day of the Initial Term, if not
extended pursuant to Article 2.3, (ii) the last day of the Extended Term, if the lnitial Term has been extended
pursuant to Article 2.3, and (iii) the date on which the Contract has been terminated by COMPANY or
CONTRACTOR pursuant to the terms of Article 13.

1.1.34 "Variable Portion of the Demobilization Fee" shall have the meaning stated in Article
7.9.

1.1.35 "Variable Portion of the Mobilization Fee" shall have the meaning stated in Article
7.2(b).

1.2 Exhibits attached to and made part of this Contract are:

Exhibit A - Scope of Work.

Exhibit A-1 - Equipment, Supplies, Materials and Services to be furnished by CONTRACTOR.

Exhibit A-2 - Personnel to be furnished by CONTRACTOR.

Exhibit B•- Independent Contractor Health, Safety and Environment Guidelines.

Exhibit C - Drug, Alcohol and Search Policy.

Exhibit D - Compensation Schedule.

Exhibit E - General Rig Acceptance Inspection.

Exhibit F - Drilling Equipment Qualification Standard.

Exhibit G•- Acceptance, BOP Inspection and Testing.

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 ARTICLE 2 — OBJECT, TERM AND COMMENCEMENT DATE,

2.1 Object of the Contract. CONTRACTOR with CONTRACTOR's Drilling Unit and personnel shall, subject to the terms
and conditions of this Contract, carry out and perform all Operations required to drill, log, test and complete or abandon wells as
specified by COMPANY at any suitable location designated by COMPANY.

2.2 Initial Term. The Initial term of this Contract shall commence on the Commencement Date and extend until : (i)
CONTRACTOR drills six (6) wells or (ii) twelve (12) months from the Commencement Date or such longer period as necessary to
complete Operations on the last well commenced prior to the end of twelve (12) months from the Commencement Date ("Initial
Term").

2.3 Extension of Term. COMPANY may extend the Initial Term for either three (3) wells or six (6) months ("Extended
Term") by giving CONTRACTOR written notice of such extension not less than forty-five (45) days prior to the expiration of the
Initial Term. The Extended Term shall end upon completion of six-month extension or completion of Operations on the last of the
three (3) wells, as applicable.

2.4 [INTENTIONALLY OMITTED]

2.5 Commencement Date.

2.5.1 The commencement date for drilling Operations under this Contract ("Commencement Date") shall be
the date the Drilling Unit is accepted by COMPANY. COMPANY shall notify CONTRACTOR in writing upon its acceptance of the
Drilling Unit and the occurrence of the Commencement Date. Such acceptance shall be conditioned upon:

(i) CONTRACTOR's satisfactory completion of all inspections, certifications and tests,

together with any repairs or replacement of parts or equipment necessary alter such inspections, certifications or tests;

(ii) CONTRACTOR having obtained all of the necessary permits and licenses required by
Chilean or local authorities to conduct the Work;

(iii) the Drilling Unit being available at the Contract Area for performance by CONTRACTOR
exclusively for COMPANY's operations; and

(iv) CONTRACTOR being on location in the Contract Area and ready to spud first
well.

2.5.2 CONTRACTOR shall provide the Drilling Unit and make required personnel available to COMPANY at the
Contract Area by the date that is sixty (60) days from the Mobilization Notice Date. CONTRACTOR shall provide the Drilling Unit in
compliance with all of the required certifications, inspection standards or personnel and equipment requirements specified in this
Contract. The Commencement Date shall not be more than sixty (60) days from the Mobilization Notice Date ("Mobilization
Period"), except the Mobilization Period shall be extended by the number of days (on a day for day basis) on which the Standby
Rate with Crew may be charged pursuant to Article 2.5.5 in the period between the Mobilization Notice Date and the
Commencement Date. Notwithstanding that the Mobilization Period may in fact be less than forty-five (45) days, CONTRACTOR
shall nonetheless be entitled to the Variable Portion of the Mobilization Fee in an amount equal to that which would be paid if the
Mobilization Period were forty-five (45) days in length.
 2.5.3 Except for those provisions of this Contract which specifically refer to the Commencement
Date as being the operative date with respect to the rights and obligations of the Parties, all other provisions of
this Contract shall be in full force and effect as of the Effective Date.

2.5.4 Any delay to the Commencement Date that results from COMPANY's failure to provide
personnel or other resources for the Drilling Unit inspection will be charged at Standby Rate with Crew.

2.5.5 Any delay in the installation, transportation or preparation of the Drilling Unit due to road
access, road conditioning, platform readiness, camp, restrooms, potable water, drilling water, fuel or other third
party services subcontracted by COMPANY or in the name of COMPANY will be charged at Standby Rate with
Crew.

2.6 Delay Compensation. The Parties acknowledge that time is of the essence in the performance of this
Contract, and that as a result CONTRACTOR shall be obligated to pay $15,000 per day as liquidated damages for each
day after the date that is sixty (60) days following the Mobilization Notice Date (which number of days shall be increased
by the number of days on which the Standby Rate with Crew may be charged during the Mobilization Period pursuant to
Articles 2.5.4 and 2.5.5) that the Drilling Rig and required personnel are not fully available to COMPANY at the Contract
Area for reasons other than an occurrence of Force Majeure or due to the fault of COMPANY, which amount in the
aggregate shall not exceed $1,350,000. The liquidated damages referred to in the preceding sentence shall be paid as
compensation and not as a penalty, and the accrual of such liquidated damages shall cease only upon the earliest to
occur of (i) the Commencement Date or (ii) the Termination Date. If the Commencement Date occurs, any accrued
liquidated damages will be paid as a discount on the first monthly invoice issued by CONTRACTOR. If the Contract is
terminated prior to the Commencement Date occurring, the liquidated damages will be paid by CONTRACTOR forty-five
(45) days after the Termination Date.

ARTICLE 3 — PERFORMANCE OF THE CONTRACT

3.1 Designation of Well Location. Location(s) of well(s) to be drilled shall be designated by COMPANY.
COMPANY shall select, mark and provide the drilling location. COMPANY must provide sound locations capable of
properly supporting the Drilling Unit and shall be responsible for a conductor pipe program adequate to prevent
soil and subsoil washout. It is recognized that COMPANY has superior knowledge of the location and access
routes to the location and must advise CONTRACTOR of any subsurface condition or obstruction of which it is
aware that CONTRACTOR may encounter at well locations or on the private road accessing the Contract Area.

3.2 Mobilization and Rig Movements. CONTRACTOR shall direct all Operations related to moving the
Drilling Unit. Such Operations shall include transporting and rigging up the Drilling Unit at the first drilling
location and each drilling location thereafter,

3.3 Work Schedule. CONTRACTOR's drilling Operations shall be conducted twenty-four (24) hours per
day, seven (7) days per week, except during shutdowns or delays for necessary repairs, and during local holidays
whose observance in the Contract Area is obligatory under local law.

3.4 Casing. CONTRACTOR shall run and land and assist in the cementing of casing of the sizes and at
the approximate depths indicated in COMPANY's drilling program in this Contract.

3.5 Mud Program. Where COMPANY's drilling and casing programs specifies, CONTRACTOR shall assist in
the preparation, maintain and use drilling mud with water loss, weight, viscosity and other general characteristics
in accordance with such mud program as COMPANY may designate, subject only to safety
considerations pursuant to Article 4. At all times, CONTRACTOR shall exercise due care and diligente in keeping
the hole and all strings of casing and spaces between casing filled with drilling mud.

3.6 Formation and Sampling. CONTRACTOR shall keep accurate records of all depths where any influx
from, or loss circulation to the formation is encountered and notify COMPANY immediately thereof.

3.7 Well Services Requested by COMPANY. CONTRACTOR shall at any time prior to completion or
abandonment of a well, assist in the performance of any and all tests, measurements and other well services
requested by COMPANY. COMPANY shall provide at its own cost any and all extra equipment and subcontractor
services needed for such tests, measurements and well services. Such tests, measurements and well services
shall include but not be limited to coring, electrical logging, determining deviation from the vertical, directional
surveying, formation tests, production tests, measuring depth of hole, plugging back and sidetracking.

3.8 completion or Suspension of Wells. COMPANY may at any time elect to have a well completed,
recompleted or suspended. Upon written notice of such election, CONTRACTOR shall assist in the performance of
the work of completing the well in accordance with the program provided by COMPANY in a manner and to the
extent desired by COMPANY. Upon completion of the well and promptly upon request by COMPANY, CONTRACTOR
shall remove from the location such equipment, materials and supplies furnished by it and by COMPANY as
COMPANY shall direct, provided that COMPANY shall arrange for the provision of any specialized handling
equipment that CONTRACTOR does not possess but which is necessary for it satisfy the foregoing removal
obligations.

3.9 Abandonment of Wells. COMPANY may at any time elect to have a well abandoned at any depth.
Upon notice of such election, CONTRACTOR shall assist in the abandonment of the hole in accordance with the
program provided by COMPANY, in a manner satisfactory to COMPANY and in compliance with all governmental
rules and regulations applicable to the Contract Area with respect to well abandonment. Upon abandonment of a
well and promptly upon request by COMPANY, CONTRACTOR shall remove from the location such equipment,
materials and supplies furnished by it and by COMPANY as COMPANY shall direct, provided that COMPANY shall
arrange for the provision of any specialized handling equipment that CONTRACTOR does not possess but which is
necessary for it satisfy the foregoing removal obligations.

3.10 Standards of Performance. CONTRACTOR warrants that:

3.10.1 CONTRACTOR has and will utilize in Operations under this Contract the technical
competence, financial capacity, management skills, competent and qualified personnel and equipment necessary
to carry out the duties and responsibilities of a drilling contractor as are specified in this Contract;

3.10.2 CONTRACTOR shall conduct alI Work in a diligent, workmanlike manner, and in
accordance with accepted Good oilfield and/or geothermal field practices and sound engineering principies; and

3.10.3 CONTRACTOR shall use all reasonable efforts to avoid any disturbances in the existing
labor situation which would adversely affect the business of COMPANY, its Affiliates or other contractors in the
Contract Area.

3.11 Loss of Control of the Hole. Subject to Article 3.15, if fire or blowout occurs while CONTRACTOR is
working on a drilling location, CONTRACTOR shall endeavour to control any such fire or blowout. If the hole is
lost or damaged CONTRACTOR shall, at COMPANY's election, dril) a relief well, a new hole on the same location
or redrill such section of the hole as COMPANY may require at COMPANY's cost.

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 3.12 Removal of Wreckage. If the Drilling Unit or any part thereof is lost or damaged beyond repair as a
result of events other than a blowout and removal is required by any applicable regulation, law or governmental
or regulatory authority, or the Drilling Unit is interfering with COMPANY's operations in COMPANY's opinion,
CONTRACTOR shall promptly remove such Drilling Unit from the Contract Area. Such removal shall be at
CONTRACTOR's sole cost to the extent CONTRACTOR's insurance covers the cost of such removal, and any
amounts not covered by CONTRACTOR's insurance shall be shared equally between CONTRACTOR and COMPANY,
except if the negligent actions or misconduct of one Party (but not the other) caused the wreckage, the Party
whose negligent actions or misconduct caused the wreckage shall be solely responsible for any removal costs not
covered by CONTRACTOR's insurance. If the Drilling Unit or any party thereof is lost or damaged beyond repair
as a result of a blowout, COMPANY will be responsible for the cost of removal of the equipment and for amounts
not covered by CONTRACTOR's insurance, as required by any applicable regulation, law or regulatory authority.

3.13 Well Records and Reports.

3.13.1 CONTRACTOR shall maintain an authentic, legible and accurate history and log of wells
drilled on forms and in a manner prescribed by COMPANY (including alI measurements required for fishing
Operations with a record of all downhole equipment). The history and log shall be open at all times to inspection
by COMPANY and furnished to its authorized employees and representatives upon their request.

3.13.2 CONTRACTOR shall maintain continuous recordings of the time, depth, rate of
penetration, weight on bit, hook load, pump pressure, torque, rotary speed, and pump rate. CONTRACTOR shall
provide copies thereof to COMPANY's Representative as requested.

3.13.3 CONTRACTOR shall furnish COMPANY's Representative with a daily written report, in the
standard IADC (International Association of Drilling Contractors) format, showing depths and work performed
during the preceding twenty-four (24) hours and any other information relative to the day's work requested by
COMPANY. All such reports shall be legible and accurate. COMPANY shall return to CONTRACTOR, on a daily
basis, a signed copy of such report with any relevant comments.

3.14 COMPANY's Right to Inspect Work. CONTRACTOR shall at all times permit COMPANY and its
authorized employees and representatives to inspect all equipment and work performed and to witness and
check alI records, measurements and tests made in connection with the work and to have access to the Drilling
Unit and to observe all Operations.

3.15 Takeover of Work by COMPANY.

3.15.1 If any well drilled under this Contract should blowout, catch fire or in any manner get
out of control, then COMPANY may take over complete control and supervision of the work of bringing the well
under control or putting out the fire. COMPANY shall provide written notice to CONTRACTOR of such takeover
contemporaneously with or as soon as practicable after such takeover.

3.15.2 If COMPANY exercises its rights pursuant to Article 3.15.1, then (subject to Article
3.15.3) COMPANY shall be entitled to direct CONTRACTOR as to the use of CONTRACTOR's Drilling Unit and other
equipment, facilities, material, supplies and personnel at the well location and CONTRACTOR shall cooperate with
COMPANY. CONTRACTOR shall continue to adhere to the insurance requirements of Article 12 of this Contract,
subject to insurer's approval which CONTRACTOR shall use its best efforts to obtain.

3.15.3 COMPANY acknowledges that where COMPANY exercises its rights pursuant to Article
3.15.1, the intention is not to deprive CONTRACTOR of control of the Drilling Unit or any of CONTRACTOR's other

9
equipment, but to require CONTRACTOR (recognizing the urgent nature of the situation) to operate the Drilling
Unit in a manner which is consistent with COMPANY's directions and Good oilfield and/or geothermal field
practices. COMPANY agrees to indemnify CONTRACTOR for any losses or damages that are the direct result of
COMPANY's operation of the Drilling Unit and other equipment pursuant to this Article 3.15 prior to returning the
control of such equipment to CONTRACTOR, but only to the extent CONTRACTOR's insurance does not fully
compensate CONTRACTOR for such losses or damages.

3.16 Warranty Breach. If COMPANY determines that any of the Work, Services or Operations performed
by CONTRACTOR have not been performed in accordance with the standards and warranties set forth in Article
3.10, COMPANY may notify in writing to CONTRACTOR of the nature of the performance defect. Upon receipt of
such notice ("Defect Notice"), CONTRACTOR shall immediately take all action necessary to correct such defect in
accordance with this Contract without charge to COMPANY and shall complete all such remedial action within
thirty (30) days or such other period as is reasonably acceptable to COMPANY taking into account the nature of
the applicable performance defect(s).

ARTICLE 4 — SAFETY

COMPANY and CONTRACTOR shall have the following rights and obligations relative to safety:

4.1 If at any time CONTRACTOR or COMPANY determines that Operations cannot be safely undertaken
or Operations may create a hazardous condition, that Party shall notify the other Party of such determination. As
soon as reasonably possible after such determination is made, CONTRACTOR shall consult with COMPANY prior to
deciding on the subsequent course of action. At all times CONTRACTOR shall make every effort that in its opinion
is required to control or overcome the cause of or minimize the adverse effect of the hazardous condition. In case
of conflict between COMPANY and CONTRACTOR as to the determination of the course of conduct which affords
the greatest safety, COMPANY's opinion as to the appropriate course of conduct shall be determinative. If
COMPANY elects pursuant to this Article 4.1 to have CONTRACTOR take an action that CONTRACTOR, consistent
with Good oilfield and/or geothermal field practices reasonably believes is unsafe, CONTRACTOR shall be entitled
to deliver written notice of its objection to taking such action prior to commencing any work in furtherance
thereof. Upon receipt of such written notice, if COMPANY elects to direct CONTRACTOR to take such action which
CONTRACTOR deems unsafe, COMPANY shall be obligated to indemnify CONTRACTOR for any losses or damages
that are the direct result of COMPANY's direction to perform the action CONTRACTOR deems unsafe, but only to
the extent CONTRACTOR's insurance does not fully compensate CONTRACTOR for such losses or damages

4.2 CONTRACTOR shall, at its expense, take all measures reasonably necessary or proper to provide safe
working conditions, and shall comply with COMPANY's furnished safety requirements, including those found in Exhibit B
and with the applicable safety requirements of Chile. Prior to acceptance of the Drilling Unit, CONTRACTOR shall also
submit for COMPANY's review a copy of CONTRACTOR's plan to address its safety obligations under this Contract.
Without limiting the generality of the foregoing, CONTRACTOR shall maintain in the Drilling Unit, proper barriers,
guardrails and other safety devices to lessen hazards during the performance of Work under this Contract. CONTRACTOR
shall not permit smoking or any open flames nor the carrying of matches or lighters on the Drilling Unit. All engine
exhausts shall be equipped with spark arresters or equivalent safeguards to eliminate fire hazards. As soon as
CONTRACTOR considera it advisable, or earlier if requested by COMPANY, CONTRACTOR shall install blowout prevention
devices (listed in Exhibit A-1) on each well. CONTRACTOR shall operate and pressure-test the blowout prevention devices
at intervals directed by COMPANY, or as required by an agency of the Authority if such intervals are shorter, by methods
specified by COMPANY and to COMPANY's

10 111
satisfaction. Results of such tests shall be recorded on the daily reports referred to in Article 3.13. Pit drills shall be
conducted weekly for each drilling crew and results of these drills shall also be recorded on such daily reports.

4.3 COMPANY shall, at its expense, take all measures reasonably necessary or proper to provide safe working
conditions, and shall comply with COMPANY's furnished safety requirements, including those found in Exhibit B and with
the applicable safety requirements of Chile. Without limiting the generality of the foregoing, COMPANY shall maintain in
COMPANY's camp, access route, storage area and drilling platforms, proper barriers, guardrails and other safety devices
to lessen hazards during the performance of Work under this Contract. COMPANY shall not permit smoking or any open
flames nor the carrying of matches or lighters on the Drilling Unit.

4.4 CONTRACTOR shall give notice to all persons at the drilling location of all safety requirements which
apply to any person at the drilling location. Additionally, CONTRACTOR shall ensure that such persons are fully
informed of and comply with such requirements. CONTRACTOR shall set up and conduct weekly safety drills.

4.5 CONTRACTOR shall, within the capabilities of the equipment and personnel required to be furnished
by CONTRACTOR, adopt such precautions as are within Good oilfield and/or geothermal field practices to prevent
the well from undermining the rig foundations, catching fire or to bring the well under control or to put out the
fire, including all precautions required and instructions given by COMPANY. At such time as CONTRACTOR's
Drilling Unit is engaged in Operations, CONTRACTOR shall provide safe vapor-proofed wiring and lighting and
exhaust spark arresters to enable the Drilling Unit safely to perforate and perform testing operations, pull wet
strings and pulí testing tools at any time.

4.6 COMPANY may, at its option, conduct a health, safety and environmental ("HS&E") systems audit and
inspection ("HS&E Audit") to verify CONTRACTOR's compliance with the requirements of Exhibit B. The HS&E Audit will be
performed at the expense of COMPANY. The HS&E Audit may consist of a comprehensive survey, including record checks,
employee interviews and random physical condition checks to confirm compliance with the requirements of Exhibit B.
CONTRACTOR shall comply with the request for and completion of the HS&E Audit in all respects. A copy of the written
report resulting from the HS&E Audit ("HS&E Audit Report") will be given to CONTRACTOR by COMPANY. All deficiencies
identified in the HS&E Audit Report shall be repaired or performed and all remedial programs or procedures put in place,
at CONTRACTOR's cost, within thirty (30) days of COMPANY's delivery of the HS&E Audit Report or such longer period as
shall be agreed by COMPANY. COMPANY reserves the right to periodically conduct or re-conduct an HS&E Audit or any
portion thereof during the term of the Contract and to update the requirements of Exhibit B, any updates of which shall
be provided to CONTRACTOR. CONTRACTOR shall have thirty (30) days after receipt of any such updates to Exhibit B to
implement any required compliance measures as a result of such updates, provided that any material cost increases
incurred by CONTRACTOR as a result of complying with any such updates to Exhibit B shall be reimbursed by COMPANY.

ARTICLE 5 PERSONNEL AND EQUIPMENT TO BE FURNISHED BY

—

CONTRACTOR; IMPORT AND EXPORT OBLIGATIONS

5.1 CONTRACTOR's Personnel. CONTRACTOR shall furnish at its sole expense during Operations all
personnel for the Drilling Unit as specified in Exhibit A-2 subject to the following:

5.1.1 In connection with the Operations, CONTRACTOR shall furnish competent and qualified personnel in the
numbers for each of the classifications of personnel specified in Table C-1 in Exhibit A-2. The individuals that constitute such
initial personnel shall include (but not be limited to) those individuals specified in Table 3 in Exhibit A-2. Any replacements for
personnel provided by CONTRACTOR shall be suitably qualified personnel satisfactory to COMPANY. Each of CONTRACTOR's
personnel in the following classifications shall be fluent in English: Contractor Representative, Operations Superintendent, Rig
Manager, Toolpusher or their

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equivalent job classifications. All drill crew supervisors, including but not limited to Operations Superintendent, Rig Manager and
Drillers, shall be required to have a valid well control certificate from the certification authority recognized by the International
Association of Drilling Contractors (IADC) or the International Well Control Forum (IWCF). Crew members shall receive well
control training at CONTRACTOR's cost commensurate with the position they hold;

5.1.2 If CONTRACTOR fails to furnish the numbers and/or classifications of the personnel specified in Exhibit
A-2, CONTRACTOR shall at its own cost promptly replace such missing personnel. CONTRACTOR shall credit COMPANY an
amount equal to CONTRACTOR's cost for salary plus Payroll Burden for each person during the time the position is unfilled;

5.1.3 If CONTRACTOR, with COMPANY's consent, reduces the number and/or classifications of personnel
specified in Exhibit A-2, COMPANY shall be credited with any resulting savings;

5.1.4 If COMPANY so requests, CONTRACTOR shall furnish personnel in addition to the

personnel specified in Exhibit A-2, including extra roustabout help. CONTRACTOR shall be reimbursed for the
cost of such personnel as provided in Article 8.3;

5.1.5 If in COMPANY's opinion the performance of any of CONTRACTOR's personnel is

unsatisfactory in any way, COMPANY may so advise CONTRACTOR and CONTRACTOR at CONTRACTOR's sole cost
and expense, shall promptly replace any such identified person or persons with suitably qualified replacement
personnel satisfactory to COMPANY;

5.1.6 CONTRACTOR shall handle all industrial relations matters involving CONTRACTOR's
personnel subject to applicable law, labor contracts, customs, rules and regulations. The settlement of any labor
disturbance affecting CONTRACTOR's personnel will be wholly within the discretion of CONTRACTOR; and

5.1.7 CONTRACTOR shall be solely responsible, at its own expense, for providing all of the
requirements of its personnel, including:

(i) salaries, wages, payroll taxes, insurance (including workers' compensation insurance),
termination payments, social security obligations, rest leave and benefits under applicable law and collective labor contracts;

(ii) off-site medica' attention;

(iii) fulfilment of immigration requirements, including passports, visas, medical examinations,

personal customs duties and personnel work permits;

(iv) transportation (except as otherwise provided in Articles 7.2, 7.9, 8.4 and inside the
concession area during heavy snow conditions); and

(y) life saving and personnel protective gear.

5.1.8 Notwithstanding other remedies provided by applicable law or under this Contract, COMPANY, at its
own discretion and at any time, may request CONTRACTOR provide all relevant documents or information to ensure the proper
fulfilment by CONTRACTOR of the obligations set forth in Article 5.1.7(i). If said documents are not delivered within a reasonable
period of time, or revea! failure of such obligations, COMPANY may withhold, deduct or offset any amount from any invoice or
payment due to CONTRACTOR under this Contract,

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{
and COMPANY shall have the right, but not the obligation, to perform any of CONTRACTOR's unfulfilled obligations to its
employees. CONTRACTOR shall have the same verification rights regarding the fulfilment of labor and social security related
obligations by CONTRACTOR's subcontractors and CONTRACTOR shall promptly report to COMPANY any non-compliance by its
subcontractors with the provisions of this Article 5.1.8. CONTRACTOR agrees to indemnify and hold COMPANY harmless from and
against all claims, demands or causes of action (including all attorney fees) arising from the obligations set forth in this Article
5.1.8.

5.2 CONTRACTOR's Equipment, Services and Supplies.

5.2.1 CONTRACTOR's Responsibility. Except for those items specifically designated as to be

furnished by COMPANY in Articles 3.7, 6.1 and Table 2 of Exhibit A-1 and those items specifically designated as to
be furnished by CONTRACTOR (at COMPANY's expense) in Articles 6.5, 6.6 and Table 2 of Exhibit A-1,
CONTRACTOR shall provide at its sole cost and expense the Drilling Unit and all Services, equipment, machinery,
dril! strings, tools, spare parts, materials and supplies that are customarily provided by drilling contractors and
that may be necessary for the full performance by CONTRACTOR under this Contract, including the items listed in
Exhibit A and those items listed in Exhibit A-1 which are required to be furnished by CONTRACTOR. Replenishment of
items furnished by CONTRACTOR shall be arranged by CONTRACTOR at its sole expense and CONTRACTOR shall
be responsible for maintaining adequate stock levels.

5.2.2 COMPANY's Rights of Inspection and Rejection. Without relieving CONTRACTOR of its
obligations in the following respect, COMPANY shall, before the Commencement Date, have the right but not the
obligation to undertake the inspections and testing set forth in Exhibits E, F & G. COMPANY may also inspect and
reject for cause any other equipment, machinery, drill strings, tools, spare parts, materials and supplies furnished
by CONTRACTOR which are not in accordance with this Contract. CONTRACTOR shall replace at CONTRACTOR's
cost any items so rejected with items acceptable to COMPANY.

5.2.3 CONTRACTOR's Drilling Unit. CONTRACTOR initially shall provide and thereafter shall
maintain the Drilling Unit and all items and equipment furnished pursuant to Article 5.2.1 in proper and safe
operating condition for the entire term of this Contract in accordance with Good oilfield and/or geothermal field
practices. CONTRACTOR shall, at its sole cost and expense, promptly make any necessary replacements or
repairs in order to prevent lost time. CONTRACTOR warrants that the Drilling Unit either is certified under the
laves of Chile for the conduct of drilling Operations or will be so certified before the Commencement Date.
CONTRACTOR shall maintain such certification at its sole expense. If CONTRACTOR breaches this Article 5.2.3,
COMPANY may, at its option and without waiving any other remedy it may have for such breach, declare a Work
stoppage by giving fourteen (14) days prior written notice to CONTRACTOR, in which case if such breach has not been
remedied to COMPANY's satisfaction at the end of such fourteen (14) day period the provisions of Article 7.8.2
shall apply. CONTRACTOR further warrants that the Drilling Unit is physically capable of drilling geothermal wells
under normal circumstances to the following drilling depth(s):

3500 m with 5-inch pipe

5.2.4 CONTRACTOR's Drill String. CONTRACTOR shall supply either a new or used string of drill
pipe, drill collars and subs ("Drill String") in accordance with the requirements of Exhibit A-1. In either case, a
complete inspection of the Drill String, in accordance with Exhibit F, shall have been performed by a competent and
reliable service company at CONTRACTOR's sole expense within six (6) months prior to the spud date of the initial
well. Inspection results shall be made available to COMPANY before drilling Operations commence. In carrying out
the inspection, the classification for the service category as specified in Exhibit F shall be followed and only pipe
which passes this classification will be accepted by COMPANY. With respect to the Drill String:

13
 (i) CONTRACTOR shall cause the Drill String to be fully re-inspected at
COMPANY's sole expense after the string has been in use as specified in Table I of Exhibit F. The results of
inspection shall be made available to COMPANY. The Drill String may be inspected at any other time at
COMPANY's request and COMPANY shall pay for said inspections; and

(ii) Any drill pipe discarded as a result of inspections or re-inspection pursuant to

this Article 5.2.4 shall be promptly replaced by CONTRACTOR at COMPANY's sole cost and expense by an equal
amount of new drill pipe. Any drill collars or subs furnished by CONTRACTOR which do not pass an inspection
pursuant to this Article 5.2.4 shall be promptly replaced by new collars or subs or shall be re-cut to meet
specifications set forth by COMPANY, which shall be at CONTRACTOR's cost and expense if the drill collars or subs
are replaced or re-cut due to normal wear and tear, but which shall be at COMPANY's sole cost and expense if
such replacement or re-cutting is as a result of fishing operations or abnormal wear and tear.

5.2.5 CONTRACTOR's Hoisting Equipment. CONTRACTOR shall provide and maintain all hoisting
equipment so that it meets or exceeds the requirements of API Specifications 8A and 8B and that aII derricks
meet the requirements of API Specification 4E and API Standard 4A. As stated in API Specification 8A:

"Modifications, including welding, can be detrimental and substantially reduce the

rating of the equipment and shall not be done without the approval of the manufacturer."

Further, elevators shall have no repairs or modifications of any kind, including welding,
heat treatment or changes of dimensions. Any replacement parts such as new springs or pins shall be certified as
to load capability and model number by the manufacturer. For alI other equipment, CONTRACTOR shall provide
written documentation of inspections for wear, and defects including dates, types of inspection, extent and
results. Further written documentation of all repairs and modifications shall be provided, including all welding and
heat treatments.

Manufacturer's written approval of such repairs and modifications shall be provided as

required by API Specification 8A.

5.3 Import and Export Obligations.

5.3.1 Imports. CONTRACTOR shall import alI items into the Country and Contract Area which it
is required to furnish for its performance of this Contract ("Items") subject to all provisions which grant COMPANY
or CONTRACTOR an exemption from or reduction of any local customs duties, import and export taxes or other
charges on such Items (collectively and individually referred to as "Exemption"). CONTRACTOR shall not perform or
omit to perform any act which is prejudicial to such Exemption. CONTRACTOR shall be responsible for obtaining
permits and licenses and clearing customs for such Items. All other charges related to routine port clearances
such as pilotage, agent fees, handling charges and port dues shall be for CONTRACTOR's account. All temporary
import bonds shall be administered by and shall be at the sole cost of CONTRACTOR.

5.3.2 Reimbursement. If an Exemption is not available, through no fault of CONTRACTOR, then

COMPANY shall reimburse CONTRACTOR for the actual documented cost of any customs duties or import and
export taxes for the Items which are paid by CONTRACTOR to a duly authorized representative of the
government having jurisdiction over the Contract Area; provided COMPANY has approved such costs in advance
and payment by CONTRACTOR of such costs is substantiated with each invoice.

5.3.3 Re-Export of CONTRACTOR's Equipment and Materials. If the Exemption for the Items
includes the obligation to re-export, CONTRACTOR shall diligently comply with such obligation.

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 5.3.4 Export Licenses. CONTRACTOR shall obtain all required export licenses from the country of
export and/or country of origin of equipment, materials, supplies and technical data exported by CONTRACTOR.

5.3.5 INDEMNIFICATION. If CONTRACTOR's action or failure to diligently act pursuant to

Articles 5.3.1, 5.3.3 or 5.3.4 results in COMPANY not receiving the full benefit of or otherwise prejudices any
available exemption, or results in failure to obtain the required import/export licenses, CONTRACTOR shall
reimburse Company for, defend and indemnify Indemnitees against any damages, losses, costs, taxes, duties,
charges, fines or penalties arising out of such action or failure to act, as well as any income taxes imposed on
Indemnitees as a consequence of such reimbursement and indemnification.

ARTICLE 6 — ITEMS TO BE FURNISHED BY COMPANY

6.1 COMPANY's General Obligation to Furnish Items. Except as provided in Article 6.5, COMPANY at its own
discretion may furnish and replace as necessary, at its expense, the equipment, machinery, tools, supplies,
material and Services so listed in Exhibit A.

6.2 Inventory of Items Furnished by COMPANY. The Representatives of COMPANY and

CONTRACTOR shall jointly take a written inventory of all materials and supplies, including those ordinarily
considered as "consumable" in geothermal drilling operations, as of the Commencement Date, the Termination
Date, after completion or abandonment of each well, and at any other time at either Party's request.

6.3 CONTRACTOR's Obligation to Inspect COMPANY 'tenis. Upon receipt of any equipment, machinery,
tools, supplies and materials furnished by COMPANY pursuant lo Article 6.1, CONTRACTOR shall verify receipt
and visually inspect same with reasonable diligence and shall immediately advise COMPANY of any shortages
and defects observed. If CONTRACTOR fails to so advise COMPANY, it shall be conclusively presumed that such
items were received by CONTRACTOR and were in a good state of repair and operating condition, defects not
apparent by visual inspection excepted. Notwithstanding the foregoing, CONTRACTOR assumes no
responsibility for the performance of the equipment furnished by COMPANY.

6.4 CONTRACTOR's Use of Items Furnished by COMPANY. CONTRACTOR shall properly store, protect
and account for items furnished by COMPANY. COMPANY shall not be entitled to any compensation for normal
wear and tear resulting from CONTRACTOR's use of equipment furnished by COMPANY or for consumption in
Operations of any supplies and materials furnished by COMPANY. All equipment, supplies and materials owned
or furnished by COMPANY and not consumed in Operations shall remain COMPANY's property. Such equipment,
supplies and materials shall be returned to COMPANY by CONTRACTOR at the termination of this Contract at the
well location or other point designated by COMPANY in the same operating condition as when received, subject
to reasonable deterioration due to use. COMPANY shall reimburse CONTRACTOR for CONTRACTOR's actual
documented cost of returning COMPANY property to any point other than at the well site. Within thirty (30) days
after the Termination Date, CONTRACTOR shall furnish to COMPANY a fully detailed, complete reconciliation of
all COMPANY-furnished materials showing the following: total required, total received, total issued, total
shortage, ending inventory and any remarks. The original of the completed reconciliation shall be signed, dated
and submitted to COMPANY. The value of any materials on the ending inventory, but not in the physical inventory
or not received by COMPANY shall be payable by CONTRACTOR to COMPANY or deductible from
CONTRACTOR's final invoices to COMPANY, at COMPANY's option. CONTRACTOR will not be obligated to store
or handle radioactive materials, explosives, or any other hazardous materials that require specialized handling
procedures, permits or non-standard lifting equipment.

6.5 CONTRACTOR's Maintenance of Items Furnished by COMPANY. CONTRACTOR, at its expense, shall
provide the routine maintenance required to keep COMPANY-furnished items in good and safe operating

15
Y
condition, that is, such maintenance as CONTRACTOR can reasonably provide using CONTRACTOR's personnel and equipment
aboard the Drilling Unit. Any materials furnished by CONTRACTOR for such maintenance shall be subject to approval by
COMPANY's Representative and if so approved shall be reimbursed to CONTRACTOR pursuant to Article 8.1. If such items require
repair work beyond the scope of CONTRACTOR's routine maintenance or require replacement, such repair and replacement shall
be for COMPANY's account, subject to prior mutual agreement as to cost. CONTRACTOR shall use its best efforts consistent with
Good oilfield and/or geothermal field practices to effect such repairs or replacement and COMPANY shall reimburse CONTRACTOR
in the manner provided in Article 8.1. CONTRACTOR may refuse to execute such routine maintenance to COMPANY-furnished
items if this activity would reasonably interfere with the Operations or maintenance of the Drilling Unit or if CONTRACTOR's
personnel are not qualified to perform such maintenance.

6.6 COMPANY's Items. COMPANY may, on giving reasonable notice and subject to CONTRACTOR's acceptance,
instruct CONTRACTOR to furnish any of the items listed in Exhibit A-1 which COMPANY is required to furnish. If items are so
furnished, COMPANY shall reimburse CONTRACTOR pursuant to Article 8.1.

6.7 On-site Medical Treatment and Evacuation. COMPANY shall provide on-site medical treatment facilities in the
Contract Area and emergency evacuation services and make such facilities and services available to CONTRACTOR and its
subcontractors.

6.8 Access To Area Of Operations.

(a) COMPANY shall secure to CONTRACTOR rights of ingress and egress for CONTRACTOR to and from
the site on which the Services are to be performed. Should CONTRACTOR be denied free access to any site for any reason not
within the control of CONTRACTOR, time lost by such denial (including any delays in mobilization or demobilization) shall be paid
for by COMPANY at the Standby Rate With Crew, subject to Article 7.7 of this Contract.

(b) COMPANY shall prepare and maintain drilling locations with, inter-alia, access roads, drainage,
water supply and adequate space so as to enable CONTRACTOR to install and operate properly the Drilling Unit at the drilling
locations. CONTRACTOR shall not be obliged to move onto a site until that site has been accepted by CONTRACTOR'S
Representative (acting reasonably). COMPANY shall prepare a sound location capable of properly supporting the Drilling Unit.

(c) COMPANY shall be responsible for supplying all raw water required to perform the Services at no
charge to CONTRACTOR.

(d) COMPANY agrees at all times to maintain the private roads within the Contract Area and the
location in such a condition as will provide free access and movement to and from the drilling locations to a fully-Ioaded heavy
transport type vehicle (such as heavy trucks and cranes). In addition, COMPANY shall use its reasonable efforts to work with the
local authorities to ensure that the public roads from Curacautín to the Drill Site are in a condition to permit free access and
movement for fully-loaded heavy transport type vehicles on such public roads.

ARTICLE 7 — COMPENSATION

7.1 Basis of Compensation. COMPANY shall pay CONTRACTOR the fees and applicable daily rates as specified in
Exhibit D set forth below as full compensation for Services rendered and the Drilling Unit, equipment, materials, machinery, Drill
Strings, tools, spare parts and supplies and personnel, if any, furnished by CONTRACTOR in conformance with this Contract. All
daily rates shall be prorated on the basis of a twenty-four (24) hour

16
calendar day to the nearest half ( 1/2) hour. No other payments shall be due by COMPANY to CONTRACTOR
other than those specifically provided for in this Contract.

7.2 Retainer and Mobilization Fees.

(a) Between the Effective Date and the date on which COMPANY issues to CONTRACTOR a
written mobilization notice to mobilize the Drilling Unit and crew in preparation for the Commencement Date
("Mobilization Notice"), COMPANY shall pay CONTRACTOR a monthly retainer fee ("Retainer Fee") in advance (pro-
rated for any partial month) in the amount set forth in Article 8.2 of Exhibit D.

(b) CONTRACTOR's mobilization fee for the Drilling Unit and crew and for performing all
Work and Services necessary to otherwise prepare for commencement of actual drilling Operations at the first
location is specified in Article 8.2 of Exhibit D ("Mobilization Fee") and shall be comprised of a fixed component
("Fixed Portion of the Mobilization Fee") and a variable component ("Variable Portion of the Mobilization Fee"), in each case
as identified in Article 8.2 of Exhibit D. Mobilization shall be considered complete on the Commencement Date.
Any portion of the Mobilization Fee that is paid by COMPANY shall be promptly refunded in full by CONTRACTOR if
the Contract is terminated by COMPANY pursuant to Article 13.1.1.

7.3 Daily Operating Rate. Subject to being superseded by any other rate or fee provided for in this Contract,
COMPANY shall pay CONTRACTOR the amount specified in Article 8.1 of Exhibit D per twenty-four (24) hour day ("Daily
Operating Rate") beginning on the Commencement Date and continuing during the term of this Contract, including time
spent drilling, reaming, coring, drill stem testing, picking up drill pipe, tripping, circulating and conditioning mud, running
and cementing casing, waiting for cement, logging, performing routine maintenance, waiting for orders except as
provided in Articles 7.5 and 7.6, nippling up, running tubing and testing and completing the well and swabbing, fishing,
hole conditioning, surveying and other services requested by
COMPANY.

7.4 Moving Rate. While the Drilling Unit is in the process of being moved between well locations, COM PANY shall
pay CONTRACTOR the amount specified in Article 8.3 of Exhibit D per twenty-four (24) hour day ("Move Rate"). The
Drilling Unit shall be considered to be in the process of being moved upon delivery by COMPANY to CONTRACTOR of
written notice of Rig Release until: (a) the Drilling Unit is ready to spud the next well at the next location, (b) workover
Operations on the next well have begun, (c) the Drilling Unit is placed on stand-by waiting for COMPANY's equipment,
materials or subcontractors, or (d) the Contract terminates or expires.

7.5 Standby Rate with Crew. "Standby with Crew" means that time when: (a) shutdown for local holidays in
accordance with Article 3.3 occurs or, at COMPANY's request, the drilling Operations are shut down, and (b)
CONTRACTOR's crews are not released. The Standby Rate with Crews specified in Article 8.1 of Exhibit D ("Standby Rate
with Crew") shall always apply during times when CONTRACTOR is waiting for: COMPANY orders, items furnished by
COMPANY, services or production tests, provided that during such waiting periods CONTRACTOR's Drill String is not in
use. For the first twenty-four (24) consecutive hours of Standby with Crews, the Daily Operating Rate as specified in
Article 7.3 shall apply. After the first twenty-four (24) hours of Standby with Crews, COMPANY shall pay CONTRACTOR
the Standby Rate with Crew per twenty-four (24) hour day until: (a) Operations are recommenced, (b) such rate is
superseded by the Standby Rate without Crew as provided below, or
(c)the Contract terminates or expires.

7.6 Standby Rate without Crew. During extended standby periods, COMPANY shall pay CONTRACTOR
the rate specified as the "Standby Rate without Crew" in Article 8.1 of Exhibit D per twenty-four (24) hour day
("Standby Rate without Crew"). The rate in Exhibit D assumes CONTRACTOR does not maintain a full crew and
may release or reassign some personnel. COMPANY will reimburse CONTRACTOR all direct costs,

17
including airfare pursuant to Article 8.4 for returning released personnel to their place of origin during such
periods and again upon returning the personnel to the Contract Area immediately prior to the recommencement
of Operations. CONTRACTOR shall recommence Operations after COMPANY gives ten (10) days' prior written
notice to CONTRACTOR.

7.7 Force Majeure Rate. If any event of Force Majeure causes the suspension of Operations, then
CONTRACTOR shall be entitled to receive the Standby Rate with Crew for a maximum period of thirty (30) days
per event. If such suspension continues, CONTRACTOR shall thereafter be compensated by COMPANY at the
Force Majeure Rate during the time Operations are suspended after the initial thirty (30) day period.
Nevertheless, COMPANY shall have the right to terminate this Contract, effective any time after such thirty (30)
day period by giving CONTRACTOR at least ten (10) days' prior written notice of termination. COMPANY shall not
be obligated to pay CONTRACTOR any further compensation pursuant to this Article 7.7 after the effective date of
such termination except the Demobilization Fee, any applicable Early Termination Fee and for unpaid amounts
relating to Work completed prior to such termination.

7.8 Rates for Mechanical Failure, Equipment Damage, Slowdown and Reinstatement. If mechanical
problems affect Operations, the following shall apply:

7.8.1 If Work stops due to a mechanical failure or damage to equipment not attributable to the
negligence of CONTRACTOR, then payments will be due CONTRACTOR from COMPANY at the "Rig Repair Rate"
specified in Article 8.1 of Exhibit D ("Rig Repair Rate") until either the recommencement of drilling Operations or
the Contract is terminated or expires, up to a maximum period of 36 hours at the Repair Rate in any one month.
No payment or compensation will be due CONTRACTOR after the expiration of this 36-hour period until either the
recommencement of drilling Operations or the Contract is terminated or expires. Should the Work stoppage
continue for a period of twenty-one (21) days, then COMPANY may at any time thereafter, subject to Article
7.8.3, terminate this Contract. Should COMPANY terminate this Contract pursuant to this Article 7.8.1, then
CONTRACTOR shall be entitled only to payment of the Demobilization Fee and unpaid amounts relating to Work
completed prior to such termination.

7.8.2 If Work stops due to mechanical failure or damage to CONTRACTOR's equipment

attributable to the sole or contributory negligence of CONTRACTOR, or at COMPANY's direction pursuant to the
terms of Article 5.2.3, then there shall be no further payments or other compensation due CONTRACTOR from
COMPANY until recommencement of drilling Operations or the Contract is terminated or expires. Should the Work
stoppage continue for a period of fourteen (14) days, then COMPANY may at any time thereafter, subject to
Article 7.8.3, terminate this Contract. Should COMPANY terminate this Contract pursuant to this Article 7.8.2,
then CONTRACTOR shall be entitled only to payment of the Fixed Portion of the Demobilization Fee and unpaid
amounts relating to Work completed prior to such termination.

7.8.3 If COMPANY has terminated this Contract as provided in this Article 7.8 and CONTRACTOR
is able to restore the Drilling Unit to a workable condition before CONTRACTOR moves the Drilling Unit out of the
Contract Area, then upon acceptance by COMPANY's Representative drilling shall be recommenced and this
Contract will be reinstated. For the purposes of this Article 7.8.3, the portion of the Initial Term of this Contract,
or of any extension thereof, which is incomplete at the time of termination shall also recommence at
reinstatement and CONTRACTOR shall not be entitled to any compensation for the period between such
termination and reinstatement.

7.8.4 In the event CONTRACTOR's inspection, maintenance or failure to provide the necessary
equipment or properly skilled personnel caused by reasons other than down-hole conditions of the well results in

18
Operations being materially slowed down or carried out less efficiently, but does not result in a Work stoppage, COMPANY shall
be entitled to a reduction in the rates of payment in a direct relation to the percentage that Operations, in COMPANY's reasonable
opinion, have been slowed down or carried out less efficiently. Indicative examples of such a slow down or efficiency reduction
include but are not limited to the absence of key personnel at the drill site or use of a drilling head with one mud pump if another
is under repair and needed for Operations. Any determination by COMPANY of such a material slow down in Operations shall be
notified to CONTRACTOR in writing not more than twelve (12) hours after the COMPANY's determination, such notification shall
indicate the causes of such slow down and percentage that the Operations have been slowed down, and CONTRACTOR shall be
given the opportunity to promptly remedy the slow down before a reduction in the rates is applied, but such remediation period
shall in no event exceed ten (10) days prior to implementation of the rate reduction.

7.9 Demobilization Fee and Early Termination Fee. As full compensation for demobilizing the Drilling Unit a nd
CONTRACTOR's expatriate and national personnel on completion or abandonment of the last well to be drilled, COMPANY shall
pay CONTRACTOR the demobilization fee specified in Article 8.2 of Exhibit D (the "Demobilization Fee"), which shall be comprised
of a fixed component ("Fixed Portion of the Demobilization Fee") and a variable component ("Variable Portion of the
Demobilization Fee"), in each case as identified in Article 8.2 of Exhibit D. In addition, as set forth herein under certain
circumstances in which COMPANY terminates this Contract pursuant to the provisions of Article 13, an early termination fee may
be payable as specified in Article 8.2 of Exhibit D ("Early Termination Fee"). The foregoing is subject to the following:

7.9.1 If by thirty (30) days after the Drilling Unit is released from the last well location, CONTRACTOR has not
started the transit of the Drilling Unit back to the Point of Origin and the Drilling Unit is moved to a location nearer to the last well
location than the Point of Origin, the Demobilization Fee shall be reduced to an amount equal to the Variable Portion of the
Demobilization Fee multiplied by the road mileage distance to the closer point divided by the road mileage distance to Point of
Origin plus the Fixed Portion of the Demobilization Fee. The Demobilization Fee shall be paid following receipt by COMPANY of
the applicable invoices therefore pursuant to Article 9.2.1. Demobilization shall be considered complete when the CONTRACTOR's
equipment, materials and personnel have been removed from the Contract Area.

7.9.2 Notwithstanding the other provisions of this Article 7.9, (a) no Demobilization Fee or Early Termination
Fee shall be payable by COMPANY if the Contract is terminated pursuant to Article 13.1.1, 13.1.6 or 13.1.8, (b) no Variable
Portion of the Demobilization Fee or any Early Termination Fee shall be payable by COMPANY to CONTRACTOR if the Contract is
terminated pursuant to Article 13.1.2, 13.1.5 (as a result of Article 7.8.2), 13.1.7 or 13.1.9 and (c) no Early Termination Fee shall
be payable by COMPANY if the Contract is terminated pursuant to Articles 13.1.3 (except if the actual or constructive total loss of
the Drilling Rig is a direct result of COMPANY's actions following a take-over pursuant to Article 3.15 or COMPANY's direction over
CONTRACTOR's objection pursuant to the final sentence of Article 4.1) or 13.1.5 (as a result of Article 7.8.1). In event of a
termination by CONTRACTOR pursuant to Article 13.2 or COMPANY pursuant to Article 13.1.4 or 13.1.10, COMPANY shall pay
CONTRACTOR the Demobilization Fee and any applicable Early Termination Fee.

7.10 Lost or Damaged Hole Due to CONTRACTOR Negligence. If all or part of the hole is lost or damaged due to
CONTRACTOR's negligence and COMPANY elects that CONTRACTOR redrill a portion of the hole or drill a new hole at a location to
be designated by COMPANY, then COMPANY shall be obligated to pay CONTRACTOR only 50% of the Daily Operating Rate from
the time of loss or damage until: (a) the new hole has reached the depth at which the original hole was abandoned or, as the
case may be, (b) the section has been re-drilled to the reasonable satisfaction of COMPANY.

19
 7.11 Delay in Demobilization Due to Road Conditions. COMPANY has the responsibility to maintain the private
access road (from the public road to the dril' site) in adequate condition for CONTRACTOR's use until the complete removal of the
Drilling Unit from the Contract Area. If upon release of the Drilling Unit from the last well location the conditions of the private
access road do not permit the safe removal of the Drilling Unit to the public road, the Standby Rate with Crew will apply every
day the demobilization cannot be completed due to such inadequate road conditions.

ARTICLE 8 — REIMBURSEMENTS TO CONTRACTOR

8.1 CONTRACTOR'S Services. If COMPANY elects to have CONTRACTOR furnish certain additional materials and
Services and CONTRACTOR agrees to furnish such materials and perform or arrange for the performance of such Services as
COMPANY may direct, COMPANY shall reimburse CONTRACTOR for the actual cost including actual documented freight costs and
any other documented costs incurred in furnishing such Items. In addition, CONTRACTOR shall be entitled to charge COMPANY
fifteen percent (15%) of the seller's net invoice price and other documented costs for Services (or twelve percent (12%) of the
seller's net invoice price and other documented costs for Services if the total amount for such Services is in excess of $100,000
in the applicable month) and ten percent (10%) for the documented costs for materials. CONTRACTOR will not be responsible for
the quality, delays in delivery or any liability whatsoever related to tools, equipment and services provided by third party
vendors or service providers under this Article.

8.2 Purchases. Any item whose estimated cost is Ten Thousand Dollars ($10,000) or more and is available from more
than one supplier shall be competitively bid by CONTRACTOR, and CONTRACTOR shall notify COMPANY of the actual cost of
such service, purchase price and all bids and shall secure approval of COMPANY's Representative prior to making any
commitments. Invoices for services under this Article shall require the written approval of COMPANY's Representative and shall be
handled in accordance with Article 8. COMPANY shall receive the full benefit of any and all trade or cash discounts or rebates
realized by CONTRACTOR as to Items furnished in accordance with Articles 6.5, 6.6 and 8.

8.3 Additional Personnel Furnished. For additional personnel furnished by CONTRACTOR pursuant to Article 5.1.4,
COMPANY shall reimburse CONTRACTOR an amount equal to CONTRACTOR's cost for salary plus Payroll Burden for each
additional person unless a lump sum or applicable daily rate is included in Exhibit D of this Contract.

8.4 CONTRACTOR's Personnel Air Transportation. At any time COMPANY is required to reimburse CONTRACTOR
for personnel air transportation, COMPANY shall reimburse CONTRACTOR the cost thereof up to but not to exceed the
cost of economy air fare by the most expedient route.

8.5 Meals and Lodging. Meals and lodging for CONTRACTOR personnel specified in Exhibit D will be provided by
COMPANY.

ARTICLE 9 — INVOICES, PAYMENTS, FINANCIAL RECORDS AND AUDITS

9.1 CONTRACTOR's Invoices. CONTRACTOR shall submit invoices in duplicate to COMPANY at the following address:

GGE Chile S.p.A.

Carmencita 25, Oficina 52, Las Condes
Santiago, 7550157

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 Chile
Attention: Enzo Contreras, Country CFO

Invoices shall set forth (a) the title and number of the Contract under which compensation is
payable, (b) the amount in the Currency and (c) wiring instructions for payment. Each invoice shall be
accompanied by a copy of details to support CONTRACTOR's charges, such as hours worked, expense accounts
(including appropriate support vouchers), third party's invoices and specific details on all other reimbursable
costs incu rred.

9.2 Submitting Invoices. Invoices shall be submitted as follows:

9.2.1 CONTRACTOR may submit an invoice for payment for (i) the Fixed Portion of the
Mobilization Fee promptly after issuance of the Mobilization Notice and (ii) fifty percent (50%) of the Fixed
Portion of the Demobilization Fee and 50% of any applicable Early Termination Fee after demobilization has
commenced and the remainder of the Demobilization Fee and any applicable Early Termination Fee upon
completion of demobilization.

9.2.2 CONTRACTOR shall submit invoices for payment of rates pursuant to Article 7.3 through
7.9 monthly or at such other times as specified herein, and of reimbursable costs pursuant to Article 8 as soon
as reasonably possible following each calendar month in which the Services were rendered; provided, that with
respect to reimbursable costs invoices, CONTRACTOR shall use its best efforts to provide all such invoices within
thirty (30) calendar days following the calendar month in which the corresponding services were rendered but in
any event CONTRACTOR shall be obligated to provide such invoices within sixty (60) calendar days thereof.

9.2.3 CONTRACTOR shall provide COMPANY a discount of $50,000 on Invoices submitted for a
period of time equal to each full month between November 1, 2010 and the Mobilization Notice Date. Any pro-
rated portion of the final month of such time period shall be reflected by a proportionate adjustment to the
$50,000 discount to be issued on the final invoice in respect of such time period.

9.2.4 The invoice submitted by CONTRACTOR for the Fixed Portion of the Mobilization Fee shall
calculate such Fixed Portion of the Mobilization Fee as net of any excess Retainer Fee pre-paid by COMPANY for
the month in which the Mobilization Notice is issued.

9.3 Payment of CONTRACTOR's Invoice. COMPANY's payment procedure shall be as follows:

9.3.1 COMPANY shall pay CONTRACTOR each undisputed invoice within thirty (30) days of
COMPANY's receipt of the invoice. However, should COMPANY give CONTRACTOR notice of CONTRACTOR's failure
to comply with the terms of this Contract regarding COMPANY's environmental and safety requirements and
applicable safety laws and regulations and CONTRACTOR continues to be in non-compliance, COMPANY may
withhold payment up to fifty percent (50%) of the outstanding invoices until such time that CONTRACTOR is in
compliance.

9.3.2 If, within thirty (30) days, CONTRACTOR has not received payment of an undisputed
invoice, CONTRACTOR will so notify COMPANY in writing. An interest rate of one and one-half percent (1.5%) per
month shall be applied to any undisputed and unpaid amounts owing by COMPANY hereunder commencing
thirty-one (31) days following COMPANY's receipt of the applicable invoice.

9.3.3 If COMPANY disputes an invoice, COMPANY shall notify in writing to CONTRACTOR of such
dispute within twenty (20) calendar days after receiving the invoice. If invoices are not disputed within such
twenty (20) day period they are deemed undisputed and shall be paid in full. COMPANY shall pay the undisputed
portion and payment of the disputed portion of the invoice shall be withheld until resolution of the dispute. The
interest rate specified in Article 9.3.2 shall apply to any disputed amounts COMPANY is ultimately found to be
responsible for paying.

9.3.4 Each payment by COMPANY shall be made by wire transfer to an account in

CONTRACTOR's name at a reputable, internationally recognized bank. All payments shall be subject to all
applicable banking and currency laws. CONTRACTOR shall provide to COMPANY in writing prior to COMPANY's
payment of the first invoice the account information to which COMPANY shall make payments.

9.3.5 COMPANY shall make all payments in the Currency, including those expenses which are
paid in other currencies and which shall be converted and invoiced in the Currency. CONTRACTOR shall convert
any amounts in currencies other than Dollars into Dollars using the conversion rate published by the Central
Bank of Chile on the day immediately prior to such conversion (or the most recent prior day such rate was
published). If no such conversion rate is available from the Central Bank of Chile, CONTRACTOR shall use such
other market-based, documented conversion rate as is reasonably satisfactory to COMPANY.

9.4 Records. CONTRACTOR and its subcontractors and vendors of any tier shall maintain true and
correct records in connection with the Work and all transactions related thereto and shall retain all such records
for at least twenty-four (24) months after termination of this Contract.

9.5 Non-payment Claim Audits. COMPANY, within its sole discretion, shall have the right but not the
obligation to make an audit of all records of CONTRACTOR and its subcontractors and vendors of any tier in
connection with any direct claims to COMPANY or its Affiliates from subcontractors and vendors for non-payment
by CONTRACTOR.

9.6 Audits. COMPANY may from time to time and at any time after the Effective Date until twenty-four
(24) months after the Termination Date make an audit of all records of CONTRACTOR and its subcontractors and
vendors of any tier in connection with payments made on a cost reimbursement basis. Such audit may also cover
CONTRACTOR's procedures and controls with respect to such reimbursable costs. Upon completion of this audit,
COMPANY shall pay CONTRACTOR any compensation due hereunder as shown by the audit. Any amount by which
the total payment by COMPANY to CONTRACTOR exceeds the amount due CONTRACTOR as shown by the audit
shall be returned to COMPANY. CONTRACTOR shall assist COMPANY in making the aboye audits. Items of
compensation such as fixed percentages or fixed lump sums shall not be subject to audit under this Article 9.6.

9.7 Subcontractor Records and Audit. CONTRACTOR shall require that all subcontractors and vendors
incorporate in their agreements for services in connection with Operations that are anticipated to equal or exceed
an aggregate value of $50,000 per month, the provisions in Articles 9.4 through 9.6 or substantially similar
provisions.

ARTICLE 10 — TAXES

10.1 Payment. CONTRACTOR shall pay (and CONTRACTOR's compensation provided for hereunder
includes an allowance for) any and all liabilities or claims for taxes which any taxing authority (including any
political subdivision thereof) claiming jurisdiction over this Contract or the Contract Area may assess or levy
against CONTRACTOR on account of or resulting from CONTRACTOR's Operations pursuant to this Contract,
including but not limited to:

22
 10.1.1 Income. All Income, excess profit or other taxes, charges and imposts assessed or levied
on account of CONTRACTOR's earnings;

10.1.2 Personnel. All taxes assessed or levied against or on account of salaries or other
benefits paid to CONTRACTOR's employees;

10.1.3 Property. MI taxes assessed or levied against or on account of any property or

equipment (including materials and consumable supplies) of CONTRACTOR except customs duties and imports
and re-export taxes; and

10.1.4 Services. All taxes assessed or levied against or on account of the value of the Services
performed by CONTRACTOR under this Contract.

10.2 Repprts and Withholding. CONTRACTOR shall make all reports and take all action necessary for
such payments. COMPANY, in the event that it is so required by law, may withhold and pay to the aboye tax
authorities any tax levied or assessed on account of CONTRACTOR's Operations under this Contract.

10.3 INDEMNITY FOR TAXES. CONTRACTOR SHALL DEFEND AND INDEMNIFY INDEMNITEES AGAINST
ANY AND ALL LIABILITIES OR CLAIMS FOR TAXES, INCLUDING INTEREST AND PENALTY, WHICH ANY TAXING
AUTHORITY MAY ASSESS OR LEVY AGAINST COMPANY IN CONNECTION WITH CONTRACTOR'S OPERATIONS
UNDER THIS CONTRACT OR IN RELATION TO THE WORK OF ANY OF ITS SUBCONTRACTORS.

10.4 Exceptions. Notwithstanding the aboye, COMPANY shall bear VAT and any other tax as a
consequence of this Contract to the extent that it is required to do so by applicable law.

ARTICLE 11 — CLAIMS, LIABILITIES AND INDEMNITY

11.1 CONTRACTORS's and its Subcontractors' Property.

11.1.1 Between CONTRACTOR and Indemnitees.

(i) Except as provided in article 11.1.1(ii), CONTRACTOR shall release, defend

and indemnify Indemnitees against all damage to or loss of any property owned or furnished by CONTRACTOR
and its subcontractors, including removal of wreckage. COMPANY shall release, defend and indemnify
CONTRACTOR against all damage to or loss of any property owned or furnished by COMPANY.

(ii) COMPANY shall reimburse CONTRACTOR for damage to or loss of downhole

equipment while in the hole caused by a reason other than CONTRACTOR's negligence or the normal wear and
tear. COMPANY shall pay CONTRACTOR the lesser of its repair costs or the replacement cost of the damaged or
lost equipment, plus reasonable documented freight and handling costs incurred by CONTRACTOR for transport of
the replacement equipment to the Contract Area, less any amounts recoverable from CONTRACTOR's insurance.
In any event all replacement equipment provided by CONTRACTOR shall be new and previously unused, except
as otherwise approved by COMPANY.

11.1.2 Mutual release, defense and indemnity among COMPANY's contractors and their
subcontractors.

(i) CONTRACTOR shall release, defend and indemnify COMPANY's other

contractors and their subcontractors against all damage to or loss of property of CONTRACTOR and its

23
subcontractors. COMPANY shall use reasonable efforts to ensure that reciprocal, substantially similar provisions
are included in its other contracts and subcontracts for the benefit of CONTRACTOR and its subcontractors with
respect to damage to or loss of property of COMPANY and its subcontractors.

(ii) CONTRACTOR shall include a provision similar to Article 11.1.2(i) in its

subcontracts to the effect that CONTRACTOR's subcontractors grant such release, defense and indemnity to
COMPANY's other contractors and their subcontractors.

11.2 Indemnitees' and CONTRACTOR's property.

Except as provided in Article 11.6, CONTRACTOR shall defend and indemnify Indemnitees
against all damage to or loss of all property owned by Indemnitees (including removal of wreckage) arising out of
or in connection with CONTRACTOR's operations. At COMPANY's option, CONTRACTOR shall repair or replace such
damaged or lost property. COMPANY shall defend and indemnify CONTRACTOR against all damage to or loss of
all property owned by CONTRACTOR and its subcontractors arising out of COMPANY's actions.

11.3 CONTRACTOR's and its subcontractors' employees.

11.3.1 Between CONTRACTOR and Indemnitees and COMPANY and CONTRACTOR.

CONTRACTOR shall defend and indemnify Indemnitees against all claims and liabilities
for injury to or death of employees of CONTRACTOR and its subcontractors. COMPANY shall defend and indemnify
CONTRACTOR against all claims and liabilities for injury to or death of employees of COMPANY and its other
contractors.

11.3.2 Mutual defense and indemnity among COMPANY's contractors and their
subcontractors.

(i) CONTRACTOR shall defend and indemnify COMPANY's other contractors and
their subcontractors against all claims and liabilities for injury to or death of employees of CONTRACTOR and its
subcontractors. COMPANY shall use reasonable efforts to ensure that reciprocal, substantially similar provisions
are included in its other contracts and subcontracts for the benefit of CONTRACTOR and its subcontractors with
respect to injury to or death of employees of COMPANY and its subcontractors.

(ii) CONTRACTOR shall include a provision similar to Article 11.3.2(i) in its

subcontracts to the effect that CONTRACTOR's subcontractors grant such defense and indemnity to COMPANY's
other contractors and their subcontractors.

11.4 Indemnitees' and CONTRACTOR's employees.

CONTRACTOR shall defend and indemnify Indemnitees against all claims and liabilities for
injury to or death of employees of Indemnitees arising out of or in connection with CONTRACTOR's operations.
COMPANY shall defend and indemnify CONTRACTOR against all claims and liabilities for injury to or death of
employees of CONTRACTOR arising out of or in connection with COMPANY's actions.

11.5 Third party propertyand personal injury/death.

CONTRACTOR shall defend and indemnify Indemnitees against all claims and liabilities for loss
or damage to third parties' property and injury to or death of third parties arising out of or in connection with

24
CONTRACTOR's operations. COMPANY shall defend and indemnify CONTRACTOR against all claims and liabilities
for loss or damage to third parties' property and injury to or death of third parties arising out of or in connection
with COMPANY's actions. As used herein, "third parties" shall mean any person or entity other than Indemnitees,
COMPANY, CONTRACTOR, CONTRACTOR's subcontractors and any other contractor of COMPANY and its
subcontractors

11.6 Underground damage, loss of or damage to the hole and the cost of well control, and loss of
geothermal fluids or steam from blowout or fire resulting from a blowout.

COMPANY shall release, defend and indemnify CONTRACTOR against all claims and liabilities for:

(i) damage to any productive formation;

(ii) loss or damage to the hole, including the cost of well control; and

(iii) loss of geothermal fluids or steam caused by or resulting from a blowout or

from a fire resulting from a blowout.

11.7 Pollution damage.

11.7.1 CONTRACTOR shall defend and indemnify Indemnitees against all claims and liabilities
for property loss or damage arising from pollution or contamination that originates aboye the surface of the land from
any property in the control of CONTRACTOR and as a result of CONTRACTOR's operations. CONTRACTOR will
assume the cost of control and cleanup associated therewith, unless it is associated with a blowout or resulting
from the activities of COMPANY or its subcontractors.

11.7.2 COMPANY shall defend and indemnify CONTRACTOR against all claims and liabilities for
property loss or damage arising from pollution or contamination that originates below the surface of the land.

11.8 [INTENTIONALLY OMITTED]

11.9 [INTENTIONALLY OMITTED]

11.10 Scope of release, defense and indemnity provisions.

The release, defense and indemnity obligations set out in this Contract shall apply regardless
of the active, passive, contributory or concurrent negligence of any party indemnified and regardless of whether
liability of any kind is imposed or sought to be imposed on party indemnified except where the death, injury,
damage or loss in relation to which a claim is made is the result of the sole negligence of the Indemnitee making
the claim or the willful misconduct of the Indemnitee making the claim but only to the extent that it is not
contributed to by any act of, or by any omission to perform a duty imposed by law or contract on, CONTRACTOR
or any of its subcontractors or their Affiliates.

11.11 Claims for infringement.

CONTRACTOR shall defend and indemnify Indemnitees against all claims, demands. losses, costs,
liabilities and expenses arising out of every kind and character in favor of, or made by, any patentee, licensee or claimant
of any right or priority of tool, equipment, method or the use of or construction thereof, which may result from or arise
out of or in connection with the furníshing or use of any such tool, equipment or method by

25
CONTRACTOR in connection with the work. CONTRACTOR's indemnity shall not apply to services, tools or
equipment which COMPANY is required to furnish or that which COMPANY specified that CONTRACTOR or any of
its subcontractor shall furnish on COMPANY's behalf.

11.12 Liens.

CONTRACTOR shall promptly pay when due all obligations for labor and material. CONTRACTOR
hereby waives its right to assert any liens and attachments whether statutory, constitutional, civil or common law or
otherwise, on the facility or the site and shall also discharge at once, or bond or otherwise secure against all liens and
attachments which are filed by its subcontractors and vendors of any tier on account of labor performed for contractor or
materials, equipment and supplies furnished for CONTRACTOR in connection with the work, and shall defend and
indemnify Indemnitees and the owners of the premises on which the work is performed against all loss, damage, injury,
liability and claims thereof resulting directly or indirectly from such liens and attachments.

11.13 Defense of claims, costs and attorneys' fees in connection with any claims or litigation.

11.13.1 CONTRACTOR shall, at Its sole cost and expense, defend any and all claims which may be brought
against COMPANY or against Indemnitees for acts or omissions for which CONTRACTOR indemnifies Indemnitees, including any
claims brought against CONTRACTOR and any Indemnitee jointly and any and all suits and legal proceedings originating out of
such claims. CONTRACTOR shall accept and initiate such defense within thirty (30) days of written request by an Indemnitee.

11.13.2 COMPANY shall, at its sole cost and expense, defend any and all claims which may be brought
against CONTRACTOR for acts or omissions for which COMPANY indemnifies CONTRACTOR, and any and all suits and legal
proceedings originating out of such claims, including any claims brought against CONTRACTOR and any Indemnitee jointly and
any and all suits and legal proceedings originating out of such claims COMPANY shall accept and initiate such defense within
thirty (30) days of written request by CONTRACTOR.

11.13.3 CONTRACTOR shall promptly pay: (a) to any Indemnitee all costs and reasonable attorneys' fees
incurred by such Indemnitee resulting directly from any and all loss, injury, liability and claims for which CONTRACTOR is
obligated to indemnify such Indemnitee, and (b) exclusive of costs and attorneys' fees incurred in connection with arbitration
under Article 19, Indemnitees' costs and reasonable attorneys' fees incurred in enforcing the provisions of Articles 5.3.5, 10.3, 11
and 16, or in any legal action in which COMPANY or any Indemnitee prevails, in whole or in part, brought against CONTRACTOR
based on the breach of this Contract or to enforce an arbitration award.

11.13.4 COMPANY shall promptly pay: (a) to CONTRACTOR all costs and reasonable attorneys' fees incurred
by CONTRACTOR resulting directly from any and all loss, Injury, liability and claims for which COMPANY is obligated to lndemnify
CONTRACTOR, and (b) exclusive of costs and attorneys' fees incurred in connection with arbitration under Article 19,
CONTRACTOR's costs and reasonable attorneys' fees incurred in enforcing the provisions of Article 11, or in any legal action in
which CONTRACTOR prevails, in whole or in part, brought against COMPANY based on the breach of this Contract or to enforce
an arbitration award.

11.13.5 Any Party shall at all times have the right to participate, at its cost, in the defense of any such suits
or legal proceedings if it is a party in interest, or is made a party defendant.

11.14 Duration of Indemnities. All indemnity obligations in this Contract, including but not limited to the obligations
contained in Article 11 and its subsections, shall survive the Termination Date, regardless of the cause or reason for termination.

26
 ARTICLE 12 — INSURANCE

12.1 It is understood and agreed by the Parties that neither the minimum policy limits of insurance required of
CONTRACTOR under this Article 12 nor the actual amounts of insurance maintained by CONTRACTOR under its insurance
program shall in any way limit or reduce CONTRACTOR's liability and indemnity obligations under Article 11 of this Contract.

12.2 CONTRACTOR shall maintain the following insurance and all such other insurance as required by the applicable
law:

12.2.1 Worker's Compensation and Employer's Liability Insurance as prescribed by applicable laws of the
Country of Operations and the countries of residence of CONTRACTOR's expatriate employees, if applicable. CONTRACTOR may
maintain employer's liability insurance under Article 12.2.2.

12.2.2 Comprehensive or Commercial General Liability (Bodily Injury and Property Damage) Insurance,
including the following supplemental coverage(s): Contractual Liability, Completed Operations, Sudden and Accidental Pollution
and a Cross Liability endorsement. The policy territory coverage shall include the Contract area. The policy limits for such
insurance shall be the aggregate Iimits of CONTRACTOR's applicable primary, excess and umbrella policies, but such aggregate
policy limits shall not be less than three million Dollars ($3,000,000) per occurrence and seven million Dollars ($7,000,000) per
year.

12.2.3 Automobile Bodily Injury and Property Damage Liability Insurance extending to owned, non-owned
and hired automobiles used in the performance of this Contract. The policy limits for such insurance shall be the aggregate limits
of Contractor's applicable primary, excess and umbrella policies but not less than those required by applicable law nor less than
one million Dollars ($1,000,000) per occurrence and five million Dollars ($5,000,000) per year.

12.2.4 If performance of this Contract requires CONTRACTOR to furnish aircraft (including helicopters),
CONTRACTOR shall maintain or require owners of such aircraft to maintain Aircraft Liability Bodily Injury (including liability to
passengers) and Property Damage Insurance with an overall combined single limit per occurrence equal to the aggregate Iimits
of the applicable primary, excess and umbrella policies but not less than ten million Dollars ($10,000,000) combined single limit
per occurrence.

12.3 Policy Endorsements.

12.3.1 The Insurance required of CONTRACTOR under this Article 12 shall include a requirement that the
insurers provide COMPANY with thirty (30) days written notice prior to the effective date of any cancellation or material change
of the Insurance.

12.3.2 The insurance specified in Article 12.2.1 shall contain waivers of subrogation rights against the
Indemnitees.

12.3.3 The insurance specified in Articles 12.2.2 through 12.2.4 shall:

(a) name the Indemnitees as additional insureds with respect to Operations performed under this
Contract, without regard to the limits of liability assumed by CONTRACTOR under this Contract; and

(b) provide that the insurance is primary coverage with respect to all insureds and shall not be
considered contributory insurance with any insurance policies of the Indemnitees.

27
 12.4 Evidence of Insurance. Before commencing Work, CONTRACTOR shall provide COMPANY with
certificates or other documentary evidence satisfactory to COMPANY of the insurance and endorsements set forth
in Articles 12.2 and 12.3. Acceptance of any such certificate shall not constitute a waiver, release or modification
of any of the insurance coverages and endorsements required under Article 12, if the certificate is inconsistent
with those coverages and endorsements. Upon request of COMPANY, CONTRACTOR shall provide copies of
insurance policies required pursuant to this Contract.

12.5 Insurance Required from Subcontractors. Without in any way limiting CONTRACTOR's liability
pursuant to Article 11, CONTRACTOR shall obtain from its subcontractors, the insurance coverage and
endorsements set forth in Articles 12.2 and 12.3 (or other such coverage and policy limits as are approved by
COMPANY), and both COMPANY and CONTRACTOR shall be named additional insureds thereon.

ARTICLE 13 — EARLY TERMINATION AND OTHER REMEDIES

13.1 Early Termination by COMPANY. This Contract may be terminated by COMPANY at any time,
without penalty to COMPANY but subject to Article 7.9.2, upon the occurrence of any of the following:

13.1.1 CONTRACTOR failing to make the Drilling Unit and required personnel available to
COMPANY within seventy-five (75) days of the Mobilization Notice Date or such longer Mobilization Period in
accordance with the terms of Article 2.5.2;

13.1.2 Operations being suspended as a result of CONTRACTOR's sole or contributory

negligence for a period of more than fifteen (15) consecutive days;

13.1.3 Drilling Unit being an actual or constructive total loss;

13.1.4 A Force Majeure occurrence pursuant to the terms of Articles 7.7 and 18;

13.1.5 A Work stoppage pursuant to the terms of Article 7.8.1 or 7.8.2;

13.1.6 CONTRACTOR or its creditors seeking relief under any insolvency law or CONTRACTOR
becoming insolvent or making an assignment for the benefit of creditors or filing a voluntary petition of
bankruptcy or if receivership proceedings should be instituted against CONTRACTOR;

13.1.7 CONTRACTOR breaching any of its obligations under either Article 4.2 or the provisions
of Exhibit B, which breach remains uncured for a period of fifteen (15) days or such longer period as COMPANY
agrees is reasonably necessary to cure such breach;

13.1.8 CONTRACTOR breaching any applicable anti-bribery or anti-corruption law;

13.1.9 CONTRACTOR breaching of any provision of the Contract that remains uncured for a
period of thirty (30) days following delivery of written notice of such breach to CONTRACTOR; or

13.1.10 COMPANY giving CONTRACTOR thirty (30) days' prior written notice of its intention to
terminate for any reason.

13.2 Early Termination by CONTRACTOR. This Contract may be terminated by CONTRACTOR at any
time, without penalty to CONTRACTOR, upon (i) COMPANY's failure to pay any undisputed amount due under the
Contract for a period of thirty (30) days beyond the date when payment was due, (ii) COMPANY or its creditors

28
seeking relief under any insolvency law or COMPANY becoming insolvent or making an assignment for the benefit
of creditors or filing a voluntary petition of bankruptcy or if receivership proceedings should be instituted against
COMPANY or (iii) COMPANY breaching any applicable anti-bribery or anti-corruption law.

13.3 Remedies. Any termination of this Contract pursuant to Article 13.1 or Article 13.2 shall in no way
prejudice any other rights and remedies either Party may have against the other Party at law or in equity as a
result of such other Party's breach of or default under this Contract.

ARTICLE 14 — CONFIDENTIALITY

14.1 CONTRACTOR agrees that Technical Information will be used only for performance of the Services
for COMPANY and shall not be disclosed to any third party without COMPANY's express written consent, except
that nothing shall In any way restrict or impair CONTRACTOR's right to use, disclose or otherwise deal with any
Technical Information which at the time of the disclosure is (i) available generally to the public through no act or
omission of CONTRACTOR; or (ii) independently made available to CONTRACTOR by a third party through no
breach of this Contract, provided, however, that Technical Information shall not be deemed to be generally
available to the public or in CONTRACTOR's possession merely because it may be derived from information that
has been disclosed to the public or from a combination of disclosures generally available to the public or in
CONTRACTOR's possession.

14.2 COMPANY agrees that any technical or other information provided by CONTRACTOR and identified
as proprietary by CONTRACTOR will be used only in connection with the Services and shall not be disclosed to
any third party without CONTRACTOR's express written consent, except that nothing shall in any way restrict or
impair COMPANY's right to use, disclose or otherwise deal with any such proprietary information which at the
time of the disclosure is (i) available generally to the public through no act or omission of COMPANY; or (ii)
independently made available to COMPANY by a third party through no breach of this Contract; provided,
however, that such proprietary information shall not be deemed to be generally available to the public or in
COMPANY's possession merely because it may be derived from information that has been disclosed to the public
or from a combination of disclosures generally available to the public or in COMPANY's possession.

14.3 Article 14 shall remain in force and effect and binding on CONTRACTOR and COMPANY
notwithstanding the termination of this Contract in all other respects. Tracings or copies of drawings, originals
and other material prepared by or delivered to CONTRACTOR pursuant to this Contract shall be given to
COMPANY upon completion or termination of Services.

ARTICLE 15 — RELATIONSHIP OF PARTIES AND SUBCONTRACTORS

15.1 Relationship of the Parties. This is a Contract for Services and shall not be construed as a charter or lease
of CONTRACTOR's equipment. All of CONTRACTOR's Operations are those of an independent contractor, and
CONTRACTOR, its employees, agents and representatives are not employees or agents of COMPANY. As an independent
contractor, CONTRACTOR assumes all legal and contractual obligations arising out of the performance of the Work, no
matter to whom such obligations may be owing, whether to the Country or any political subdivision thereof, to
CONTRACTOR's own personnel or to third persons. Use of subcontractors by CONTRACTOR shall not relieve CONTRACTOR
from any liability or obligation under this Contract. The terms of this Contract regarding CONTRACTOR's Work to be
performed, its equipment and personnel shall likewise apply to any subcontractor's Work to be performed, its property
and personnel as if such Work, property and personnel were the Work, property and personnel of CONTRACTOR.
COMPANY may instruct and direct CONTRACTOR as to the results to be obtained from CONTRACTOR's employees.
CONTRACTOR, as an independent contractor, however,

29
shall have complete control, supervision and direction over its equipment and personnel and over the manner
and method of all Operations to be carried out except when and to the extent that COMPANY assumes control
and supervision of Operations under Article 3.15.

15.2 Subcontractors. CONTRACTOR may not engage subcontractors for the performance of any part of
the Operations without first obtaining approval from COMPANY; provided that no such approval shall be required
if the value of the subcontractors work under the subcontract at issue is less than $100,000. CONTRACTOR shall
provide COMPANY an adequate opportunity to review the form of any subcontract to be entered into by
CONTRACTOR with an estimated value in excess of $100,000. CONTRACTOR shall be responsible for all work,
acts, omissions and defaults of all of its subcontractors. Between COMPANY and CONTRACTOR, CONTRACTOR
shall ultimately be responsible for all taxes and costs and expenses of any kind in connection with its su
bcontractors.

ARTICLE 16 — LOCAL LAWS

CONTRACTOR agrees to be subject to all applicable permits, concessions and clearances and all
applicable laws and regulations, including those of Chile except to the extent such agreement might subject
either Party to liabilities or penalties under U.S. laws. Contractor shall defend and indemnify Indemnitees
against all liabilities, damages, claims, fines, penalties and expense of whatever nature resulting from
contractor's failure to comply with this provision.

ARTICLE 17 — ASSIGNMENT

17.1 COMPANY's assignment rights are as follows:

17.1.1 COMPANY may assign this Contract at any time (i) to an Affiliate, or (ii) to any entity
which is then acting as operator in the Contract Area.

17.1.2 COMPANY may also assign this Contract to a third party for operations in other areas of
the Country with the prior written consent of CONTRACTOR, which consent shall not be unreasonably withheld.
CONTRACTOR shall be free to negotiate any additional terms it may deem desirable with any such other third
party assignee, with the prior written approval of COMPANY.

17.1.3 In the event of any assignment, COMPANY shall retain the right of reassignment. Any
assignment, except to COMPANY or any of its Affiliates, shall exclude the right to make further assignments
except an assignment to COMPANY or to an Affiliate, without COMPANY's prior written consent.

17.1.4 Upon any reassignment to COMPANY, notwithstanding the terms of agreement between
CONTRACTOR and an assignee, the pre-assignment terms of this Contract, as between COMPANY and
CONTRACTOR, shall prevail, unless otherwise agreed in writing by COMPANY alter such reassignment.

17.2 CONTRACTOR may not assign any of its rights and obligations under this Contract in whole or in
part without the prior written consent of COMPANY. Any governmental approvals required therefore shall be the
sole responsibility of CONTRACTOR.

17.3 This Contract will be binding upon and will inure to the benefit of the successors and assigns of
COMPANY and CONTRACTOR.

30 Hi9
 ARTICLE 18 — FORCE MAJEURE

Force Majeure means any act, circumstance or event beyond the control of either of the Parties,
including but not limited to earthquakes, hurricanes, fires, storms, tidal waves or other acts of God, riots, labor
disturbances (but excluding labor disturbances directly affecting only the labor force of a party claiming non-
performance on such basis) picketing, boycotts, insurrections, rebellions, civil disturbances, war, and acts of
expropriation by governmental authorities..Any failure by a Party to comply with this Contract (except for the
payment of money) shall be excused if and for so long as compliance by either Party is prevented, by Force
Majeure despite the affected Party's reasonable efforts to overcome such Force Majeure. In such event, the
Party so prevented shall give written notice to the other Party by the fastest means of communication available
(with a follow up notice in writing), specifying the circumstances which such Party believes constitute Force
Majeure and the estimated duration thereof. Such Party shall make all reasonable efforts to relieve such Force
Majeure condition and to mitigate its effects.

ARTICLE 19 — APPLICABLE LAW AND SETTLEMENT OF DISPUTES

This Contract, including this Article 19 shall be governed, construed, interpreted, enforced and the
relations between the Parties determined in accordance with the laws of the State of New York without regard to
its choice of law rules (other than Section 5-1401 of the New York General Obligations Law). Subject to Article
19.9 below, the Parties hereby submit to the non-exclusive jurisdiction of the federal courts located in the State
of New York for any matters arising under this Contract.

19.1 Any dispute, controversy or claim arising out of, in relation to, or in connection with this Contract
or the operations/activities carried out under this Contract, including without limitation any dispute as to the
existence, construction, validity, interpretation, enforceability or breach of this Contract (hereafter "Dispute")
shall be exclusively and finally settled as set forth hereafter.

19.2 Failing settlement of the Dispute by direct negotiations, either Party may initiate mediation
proceedings by written notice to the other Party. Any mediation hereunder shall be conducted in accordance with
the mediation rules published by the American Arbitration Association (hereafter "AAA"). Should mediation fail to
resolve the matter within thirty (30) days of said notice, then either Party may initiate binding arbitration by
giving notice to the other Party.

19.3 The arbitration will be administered by using the UNCITRAL rules. The AAA Is hereby designated as the
appointing authority. The place of arbitration shall be Santiago, Chile, and the language to be used in the arbitral
proceedings shall be English. All arbitration fees and costs shall be borne equally, notwithstanding which Party may
prevail. Each Party shall bear its own "other" costs, i.e., fees and costs of its own lawyers and witnesses.

19.4 If the claim under the Dispute is five million or less Dollars or other currency equivalent, then the
arbitration shall be conducted by a sole arbitrator. If the claim under the Dispute is over five million Dollars or
other currency equivalent, then the arbitration shall be conducted by three arbitrators. Procedure for selection of
the specified number of arbitrators shall be In accordance with pertinent articles of the UNCITRAL rules. For
purposes of this Article 19.4, the Parties agree that the time limit of sixty (60) days in paragraph 2 of Article 6 of
the UNCITRAL rules is hereby changed to thirty (30) days.

19.5 The arbitrator(s) shall be fluent in the English language and shall at all times remain wholly
independent, fair and impartial regarding the Dispute and the Parties. The presiding arbitrator shall be a lawyer
experienced in international commercial geothermal related disputes.

31
 19.6 The Parties agree that all documents considered relevant by the submitting Party shall be
submitted with the respective statement of claim/defense, and any counterclaim/reply. Neither Party may compel
the other to produce additional documents. However, the arbitrator(s) shall have discretion, on the arbitrators'
own motion or at the request of a Party, to request the submission of additional documents for the arbitral
tribunal. The Parties agree to limit the number of witnesses each may call to give evidence on its behalf to two
witnesses of fact and one expert witness.

19.7 The Parties agree that the dispute should be resolved as promptly as possible. Therefore, any time limits
specified in the Arbitration Rules shall be strictly complied with and the award should be issued by the arbitrator(s) within
three (3) months of the commencement of the proceedings, or as soon thereafter as possible.

19.8 The arbitrator shall give a reasoned award in writing and any award shall be final and binding. The
Parties expressly agree to exclude any right of appeal or (except for enforcement or confirmation) reference to
any court. The award may be enforced by judgment or otherwise in any court having jurisdiction over the award
or over the person or the assets of the owing Party. Applications may be made to such court for judicial
recognition of the award and/or an order of enforcement, as the case may be.

19.9 Notwithstanding anything in this Article 19 to the contrary, if COMPANY gives CONTRACTOR
reasonable notice of a dispute or controversy with or a claim by or against one or more of its other contractors
("Other Contractor Dispute") and either Party determines that such Other Contractor Dispute raises issues related
to this Contract, or to either Party's performance under this Contract or to a dispute between COMPANY and
CONTRACTOR under this Contract such that common issues of fact or law create the possibility of conflicting
rulings by arbitrators or courts ("Related Disputes"), then the Parties shall cause their Related Disputes and the
Other Contractor Disputes to be resolved before an arbitration panel convened to hear and determine the issues
in a consolidated arbitration proceeding or in a consolidated proceeding or action in court as provided herein. In
event of Related Disputes, the Parties to this Contract and the other contractors involved in the Other Contractor
Dispute first shall attempt in good faith to agree on the manner of selecting and the composition of the arbitration
panel and other administrative details of such a consolidated arbitration and then shall implement their
agreement. If agreement cannot be reached on those issues within thirty (30) days of notice by COMPANY of
Related Disputes, the Parties to this Contract and the other contractors involved in the Other Contractor Dispute
shall request that the AAA appoint a single arbitrator from its National Energy Panel for the limited purpose of
establishing and implementing a fair and appropriate process for selecting and appointing a panel of arbitrators
from AAA's National Energy Panel and/or from among arbitrators qualified to serve on International Centre for
Dispute Resolution arbitration panels. The panel so selected shall resolve, in a consolidated arbitration, the
Related Disputes and Other Contractor Disputes and shall apply UNCITRAL rules in doing so. AAA may take
reasonable administrative action to accomplish the consolidation as directed by the arbitrator or, after the panel
is appointed, the panel may do so. The Parties agree to be bound to the results of such a consolidated arbitration
to the same extent as provided in Article 19.8. If all parties deemed necessary by COMPANY cannot be compelled
to participate in such a consolidated arbitration, then the Related Disputes and the Other Contractor Disputes
shall be decided by litigation in a consolidated action or proceeding.

19.10 The Parties agree that the terms of this arbitration agreement are enforceable under the United
States Federal Arbitration Act. The Parties further agree that any disputes relating to or in connection with the
enforceability of this arbitration agreement shall be brought only in a Federal court in New York, New York and
each Party consents to the exclusive jurisdiction of the Federal courts in New York, New York for that purpose.

32
 ARTICLE 20 — ANTI-CORRUPTION AND ANTI-BRIBERY LAWS AND CONFLICTS OF INTEREST

20.1 The Parties understand and agree that they will comply with all applicable anti-corruption and anti-bribery
laws, including the United States Foreign Corrupt Practices Act ("FCPA"), the anti-corruption and anti-bribery of any
jurisdiction in which either of the Parties may be domiciled or may otherwise maintain a presence or conduct business,
and all other applicable laws. CONTRACTOR represents that no payments of money or anything of value will be offered,
promised or paid, directly or indirectly, to any Governmental Official (as defined below) to
(i) influence any official act or decision of any Governmental Official, (ii) to induce the Governmental Official to
do or omit to do an act in violation of a lawful duty, (iii) to secure any improper business advantage or (iv) or to
obtain or retain business for, or otherwise direct business to, COMPANY (or any affiliate of COMPANY) or any
other person or entity in any way related to this Contract or any related activity.

20.2 CONTRACTOR shall (i) not give, offer, promise or pay any political contributions or charitable
donations that are in any way related to this Contact or any related activity without COMPANY's prior consent;
(ii) keep accurate books and records with respect to this Contract or any related activity, including records of
payments to third parties, supported by detailed invoices and will make such books and accounting records
available for review upon reasonable request by COMPANY; and (iii) promptly notify COMPANY if it ever receives
a request to take any action which would or may violate its obligations under this Contract and agrees to inform
COMPANY if it or any of its employees, directors or officers becomes subject to any investigation for corruption or
any other illicit conduct during the course of this Contract.

20.3 For the purposes of this Contract, "Government Official" means any officer, employee or
representative (including a low-leve) employee) of any national, regional or local non-U.S. government or any
department, agency or instrumentality of a non-U.S. government; any officer or employee of any commercial
enterprise owned or controlled by any non-U.S. government, or of a public international organization (such as
the United Nations or the World Bank); any person acting in an official capacity for or on behalf of any non-U.S.
government or department, agency or instrumentality, or for or on behalf of any public international
organization; a non-U.S. political party or party officials; or any candidate for non-U.S. political office. A person
does not cease to be a Government Official by purporting to act in a private capacity or by the fact that he or she
serves without compensation.

20.4 If COMPANY reasonably and in good faith believes that there may have been a breach of any
applicable anti-bribery or anti-corruption law, CONTRACTOR shall cooperate in good faith with COMPANY to
determine whether such a breach has occurred and will provide reasonable cooperation in any anti-corruption
investigation conducted by COMPANY, including making relevant personnel available for interviews and relevant
books and records available for inspection.

20.5 In the case of any termination of this Contract for CONTRACTOR's violation of anti-bribery or anti-
corruption laws, COMPANY shall have no obligation to provide further payment to CONTRACTOR and
CONTRACTOR shall defend and indemnify COMPANY against any and all costs, of any nature, arising from any
improper payment made by CONTRACTOR or any of its Subcontractors in violation of the FCPA, any applicable
anti-corruption law or this Contract, directly or indirectly, by, on behalf of or with the knowledge of
CONTRACTOR, in relation to this Contract.

20.6 CONTRACTOR represents and warrants as follows:

20.6.1 CONTRACTOR represents that it is not a Government Official. CONTRACTOR represents

no government of Governmental Official is directly or indirectly a principal owner of investor in CONTRACTOR and
that no Government Official has any substantial financial interest, directly or indirectly, in the contractual

33
relationship established by this Contract. CONTRACTOR represents that none of its officers, directors,
employees, or principal owners is a Government Official. CONTRACTOR represents that none of its officers,
directors, employees or principal owners is a member of the immediate family (including, without limitation,
spouse, parent, child, sibling or sibling's spouse) of, or financially dependent on, a Government Official

20.6.2 CONTRACTOR warrants that it shall promptly notify COMPANY if it ever receives a
request to take any action which would or may violate its obligations under this Contract.

20.6.3 The representations and warranties in this Article 20.6 shall be continuing for the life of
this Contract, and any change of circumstances inconsistent with these representations and warranties shall
constitute a breach. CONTRACTOR agrees that, if, at any time there is such a change in circumstances,
CONTRACTOR will give COMPANY prior notice of such change.

20.7 CONTRACTOR agrees to certify compliance with the representations and warranties in 20.6 when
requested to do so by COMPANY.

20.8 CONTRACTOR shall ensure that any subcontractor who will be involved in performing Operations or
any related activity shall certify to comply with all applicable anti-corruption laws and the obligations set forth in
this Contract prior to any involvement in this Contract or any related activity.

20.9 Conflict of Interest. No director, employee or agent of CONTRACTOR or of any subcontractor or

vendor of CONTRACTOR of any tier shall give to or receive from any director, employee, or agent of COMPANY or
any Affiliate any commission, fee, rebate, or any gift or entertainment of significant cost or value in connection
with the Work, or enter into any business arrangement with any director, employee or agent of COMPANY or any
Affiliate other than as a representative of COMPANY or its Affiliate, without prior written notification thereof to
COMPANY. CONTRACTOR shall promptly notify COMPANY of any violation of this Article 20.9 and any
consideration received as a result of such violation shall be paid over or credited to COMPANY. Additionally, if any
violation of this Article 20.9 occurring prior to the date of this Contract resulted directly or indirectly in COMPANY's
consent to enter into this Contract with CONTRACTOR, COMPANY may, at COMPANY's sole option, terminate this
Contract at any time, and notwithstanding any other provision of this Contract, pay no compensation or
reimbursement to CONTRACTOR whatsoever for any Work done alter the date of termination.

20.10 Audit. Any representative(s) authorized by COMPANY may audit any and all records of
CONTRACTOR and any such subcontractor or vendor for the sole purpose of determining whether there has been
compliance with this Article 20.

ARTICLE 21 — NOTICES

All notices and other communications under this Contract shall be in writing. Notices shall be delivered:
(a) by mail (postage prepaid), (b) in person, (c) by facsimile, or (d) by e-mail to the appropriate address
indicated below or to such address specified from time to time by written notice to the other Party. Notices shall
be effective at the time of receipt.

COMPANY ADDRESS CONTRACTOR ADDRESS

GGE Chile SpA Geo Estrella S.A.

Carmencita 25, Oficina 52, Las Condes Lo Campino 432, Quilicura

Santiago Santiago

34
Chile Chile
Fax: 562 231 4910 Fax: 562 620 7700
e-mail: Rudiger.trenklelgeoglobal-energy.com e-mail: rdeangelisegeoestrella.c1

ARTICLE 22 — TITLES

The various captions and tities of Articles of this Contract are for conveniente only and shall not be used to
interpret the contents of its Articles.

ARTICLE 23 — PRIOR AGREEMENTS/MODIFICATION/LANGUAGE

23.1 Prior Agreements. This Contract contains the entire agreement of the Parties. No prior stipulation,
agreement or understanding by the Parties or any of their representatives shall be of any effect.

23.2 Modification. This Contract may be modified only in writing signed by both Parties.

23.4 Language. The language of the Contract shall be English, and in the event of any conflict
between the English language version of the Contract and any translations thereof, the English language
version shall be controlling.

ARTICLE 24 — EFFECT OF WAIVER OF PERFORMANCE

The right of either Party to require strict performance shall not be affected by any prior waiver or
course of dealing.

ARTICLE 25 — SEVERABILITY

If any provision or portion of this Contract shall be adjudged invalid or unenforceable by a court of
competent jurisdiction or by operation of any applicable law, such provision or portion of this Contract shall
be deemed omitted and the remaining provisions and portions shall remain in full force and effect.

ARTICLE 26 — COUNTERPARTS

This Contract may be executed in any number of counterparts, each of which shall deemed to be
an original, but all of which shall constitute one and the same instrument.

The remainder of the page intentionally left blank.

35
 The Parties have executed this Contract as evidenced by the following signatures of authorized
representatives of the Parties:

IN WITNESS WHEREOF, each Party has caused this Contract to be signed by its duly authorized
representative as of the Effective Date.

GEOESTRELLA S. GGE CHILE SPA

By:
/ R. Av I1_ p f 1,1 /4),,
By:
Aqic h
ae
✓ t
Nam Name: e kL
Title: E511) t Title: FreSici

GEOESTRELLA S.A. GGE CHILE SPA

By: By:

Name: 4V6¿LiS Itait€ I/2A Name:

2101 121117

Title: H y)--AM Gt2 Title:

GCivr 2,4L

36
 EXHIBIT A
SCOPE OF WORK

Exhibit A
 EXHIBIT A - SCOPE OF WORK
To Drilling Contract

TABLE OF CONTENTS

DETAILED SERVICE DESCRIPTION 4

COMPANY INFRASTRUCTURE AND REPRESENTATIVE(S) 6

COMPANY'S OPERATION REPRESENTATIVES AND ADDRESS 6

CONTRACTOR INFRASTRUCTURE AND REPRESENTATIVE(S) 6

CONTRACTOR'S REPRESENTATIVES AND BUSINESS ADDRESSES 6

CONTRACTOR'S REQUIREMENTS 6

CONTRACTOR REPORTING REQUIREMENTS 7

MOBILIZATION AND DEMOBILIZATION ISSUES 9

CONTRACTOR MANAGEMENT PROGRAM 9

BEST PRACTICES AND STANDARD OPERATING PROCEDURES 10

TRANSPORTATION 10

HANDLING OF GOODS 10

STOCK CONTROL 15

RESTOCKING POLICY 15

DAMAGE OR LOSS OF CONTRACTOR'S DOWNHOLE TOOLS 15

Exhihit A
 EXHIBIT A - SCOPE OF WORK
To Drilling Contract

1. DETAILED SERVICE DESCRIPTION

1.1.CONTRACTOR shall provide the Drilling Unit complete with all of the equipment, personnel and support equipment to
efficiently and professionally operate, move, rig up and maintain the Drilling Unit consistent with Good oilfield
and/or geothermal field practices at COMPANY'S geothermal field in Tolhuaca. COMPANY intends to drill six or
more geothermal wells in Tolhuaca field. COMPANY may conduct well repairs as the need arises. COMPANY, at its
sole discretion, shall determine the number and type of wells to be drilled, re-drilled or workover. COMPANY will
provide a drilling program to the CONTRACTOR before the spud of each well, and notify CONTRACTOR in writing
of any changes to this drilling program that might require the CONTRACTOR to source new equipment.

1.2.The service includes the provision of logistical, quality assurance and administrative support to be provided both at
CONTRACTOR's base and office infrastructure in Tolhuaca for a one year contract period starting from the
Commencement Date.

1.3.CONTRACTOR shall provide the Services described in Exhibits A, A-1, A-2 and A-3, for the prices listed in Exhibit D, and
shall adhere to the Independent Contractor HES Guidelines specified in Exhibit B, and the Drug and Alcohol and
Search Policy in Exhibit C.

1.4.COMPANY intends to commence drilling on or before 1 May 2011.

a. The number of wells to be drilled during the initial Contract period of twelve months is six production or
reinjection wells. Types of wells to be drilled include directional wells to an approximate vertical depth of
2500 m. A typical drilling program and well profile is described in Exhibit A-3.

b. COMPANY also reserves the right under this Contract to use the contracted materials, equipment, and
services of CONTRACTOR at any location within the Tolhuaca site shown in red on Figures 1 and detailed
in Figure 2. Should such a requirement occur, all terms and conditions included herein would apply. The
only known variation to this contract extension of service would be in regards to logistical differences for
materials, equipment, and personnel at a specified location. These variations would be appropriately
addressed on a case by case basis.

Exhiba A
 Figure 1 Site Location of Tolhuaca

4 5,
.

,•••

.••••

Santiagg

paule

Region 4X
— la Arucanic-

Figure 2 Site and pad locations

5 Exhibit A
2. COMPANY INFRASTRUCTURE AND REPRESENTATIVE(S)

2.1. COMPANY's Drilling Department is headquartered in Santiago. This office is the central
communication point for engineering support for supervision of COMPANY's operations.
COMPANY will manage its operation from the Tolhuaca office through its rig site supervision.

3. COMPANY'S OPERATION REPRESENTATIVES AND ADDRESS

3.1. Copy of all notices should be sent to COMPANY's operation representative: He is also the contact
person who will handle all technical and operational resolution
Rüdiger Trenkle
Country Manager
Carmencita 25, Oficina 52, Las Condes
Santiago, 7550157
Chile
Phone: 562 656 4700
Fax: 562 231 4910
Email: rudiger.trenkle@geoglobal-energy.com

4. CONTRACTOR INFRASTRUCTURE AND REPRESENTATIVE(S)

4.1.CONTRACTOR shall maintain technical support in the Tolhuaca area to support engineering and well
planning.

4.2.CONTRACTOR shall provide and maintain adequate and functional office, warehouse, repair facilities,
and/or computing centers as applicable and required to support the contracted Services in the
Tolhuaca area. The storage, warehousing, and/or repair facilities must exist for all-weather
operations and of an appropriate size in order to properly and adequately support CONTRACTOR
operations in a safe, efficient, and professional manner as well as maintain a high standard of
quality control on CONTRACTOR supplied Services.

4.3.CONTRACTOR shall provide adequate communication links, as specified in Table B2.

4.4.The sole cost to provide, maintain, and operate CONTRACTOR's entire infrastructure required to support
its operations is for CONTRACTOR's full account only.

5. CONTRACTOR's REPRESENTATIVES AND BUSINESS ADDRESSES

Corporate and Technical Representative:

Name •. Roberto De Angelis
Title :. General Manager
COMPANY •. GeoEstrella S.A.
Address •. Lo Campino 432, Quilicura
Santiago
Chile
Phone •. +56 2 620 7700
E-mail rdeangelis@geoestrella.cl

6. CONTRACTOR's REQUIREMENTS

6.1.All rig site work will be based on twenty-four (24) hours per day, seven (7) days per week, continuous
operation and CONTRACTOR will perform its Services to meet the requirements of the operation.

6 Exhiba A
 6.2. In performance of the Service, CONTRACTOR shall fully cooperate with any other contractors or sub-
contractors utilized by COMPANY and give them all reasonable assistance as requested by
COMPANY.

6.3. In order to perform its obligations hereunder, CONTRACTOR shall provide and use, at no extra cost
to COMPANY, all administrative and technical services and facilities of its entire organization,
(including any parent, subsidiary, or affiliated company), to achieve optimum results, whether or
not such resources are situated within the area of operations.

6.4. CONTRACTOR shall ensure that its personnel comply with any requests or instructions given by
COMPANY under the terms of this Contract, and in particular with any safety regulations or
directions that may be enforced at the Work Site.

6.5. CONTRACTOR'S personnel shall participate in general orientation meetings conducted by COMPANY
prior to commencement of operations. Participation of all members of each crew is required prior to
entering COMPANY's rig site.

6.6. It is CONTRACTOR'S responsibility to ensure continuous availability of personnel, equipment, and

materials to meet COMPANY'S needs without interruption to the Services or COMPANY's operations.
It is the responsibility of both Parties to liaise on a continuous basis and to ensure that
CONTRACTOR is at all times aware of COMPANY's operational plans and schedules and their
consequences with respect to the Services. CONTRACTOR's crew changes shall be scheduled to allow
full participation in routine safety meetings and/or pre-spud meetings.

6.7. COMPANY will provide all reasonable and appropriate information requested by CONTRACTOR, which
CONTRACTOR considers necessary to its understanding of COMPANY plans.

6.8. With particular reference to CONTRACTOR equipment, CONTRACTOR shall instigate regular meetings with
COMPANY to ensure CONTRACTOR's local inventory of equipment and plans for adjustments to that
inventory meet with COMPANY's operational requirements. The management and control of
CONTRACTOR's equipment inventory shall be the sole responsibility of
CONTRACTOR.

6.9. CONTRACTOR shall liaise and cooperate as required with COMPANY's outgoing contractor, if any, when
preparing to commence the Services. Where CONTRACTOR shall provide any fixed equipment at
any COMPANY location, then CONTRACTOR shall cooperate to ensure the dismantling of the
outgoing contractor's equipment and subsequent installation and commissioning of CONTRACTOR's
fixed equipment proceeds in a safe and effective manner, with no interruption to COMPANY operations.
The same obligation applies to CONTRACTOR at the expiry or termination of the contract, in respect of
COMPANY's incoming contractor.

6.10. Throughout the life of this Contract, CONTRACTOR is expected to liaise and cooperate with all other
contractors supplying services, materials, and personnel to COMPANY projects concurrently.
Teamwork is essential for efficient operations and CONTRACTOR is expected to be fully team-
oriented at all times.

6.11. CONTRACTOR shall liaise with COMPANY concerning the process of selecting and hiring any required
local laborers in order to determine who is authorized to work within the Location.

7. CONTRACTOR REPORTING REQUIREMENTS

7.1.CONTRACTOR shall use standardized software (Microsoft Office) for generating reports.

7.2.CONTRACTOR shall cooperate with all requests to provide COMPANY with information, data and reports in a timely
manner necessary to monitor CONTRACTOR's performance.

7.3.CONTRACTOR DRILLING REPORTS

Exhibit A
7.3.1. CONTRACTOR shall furnish three (3) copies of the operational rig site job ticket on the IADC
tour sheet for each twenty four (24) hour period. The Tour Sheet for each day shall be
completed and signed by CONTRACTOR shift supervisor (Drillers and Toolpushers) each
twelve hour shift and signed by CONTRACTOR Operations Superintendent and COMPANY
Drill Site Manager each twenty-four (24) hour period. Tour Sheet must include, as a
minimum, the data or information listed below.

(a) Location identification giving times and dates of services, well name, field, and rig
name.
(b) Job identification giving relevant depth (casing and/or hole). tool string components
designations, lengths, ODs, and serial numbers (if CONTRACTOR uses sub-contractor
equipment, must use consistent serial/part numbers for job ticket for invoicing
purposes), layman's description of Services and stating the purpose of the Job.
(c) Activity breakdown by IADC Activity Codes to the nearest 'A hour.
(d) Activity description to the nearest 1/2 hour.
(e) Number, Size, Grade and Weight of Drill Pipe on location.
(f) Fuel Usage for 24 hour period and fuel on location and in storage in field.
(g) Days since LTA.
(h) Any accidenta, incidents or near misses.
(i) Any safety meetings, tailgate meetings or other safety-related matters.
(j) BHA and Bit run information.
(k) Any preventive or scheduled maintenance including ton-mile report on drilling line.
(I) Names and Job titles of all CONTRACTOR's Personnel providing the service, and dates
and time of departure and return from the Job.
(m) Report of any malfunctions of CONTRACTOR's equipment and/or Job and reason(s)
thereof.
(n) Any downhole conditions or drilling conditions deemed pertinent to COMPANY.
(o) Itemized cost breakdown of all costs to be invoiced to COMPANY.
(p) Any other items deemed pertinent to the project by COMPANY.
(q) A job detail with time breakdown.
(r) Copies of all accident and incident reports generated on the project including all
CONTRACTOR safety meeting minutes.

7.3.2. An End of Well Report shall be furnished to COMPANY'S Tolhuaca office. CONTRACTOR shall
provide the report in both hardcopy and digital format. Reports are expected to be 100%
accurate. The report content and format to be used shall be approved by COMPANY
Representative prior to use. End of Well Reports must be submitted within fourteen (14)
working days after the completion of the well and may include the information listed below:

(a) Lessons learned.

(b) Conclusions and recommendations.
(c) Material and equipment costs (daily, and total for the well).
(d) Material tally for all Goods (equipment, tools, materials, etc.) for each well. This tally
will show quantities at the beginning of the well, goods delivered, goods used, goods
transferred, goods returned, and the end of well balance. The quantities of goods
delivered, used, transferred, or returned shall be identified by date that the balance
was adjusted. The report must show the material location if it is different from the
drilling unit. The report should be updated consistently and accurately to reflect the

Exhiba A
 true material tally in the field. A physical audit could be required in order to facilitate an accuracy
check.
(e) Job plans and job execution summaries.
(f) Downtime statistics and details of same.
(g) Incident reports.

7.4. Procurement Reports

7.4.1. CONTRACTOR will maintain a mutually agreed upon procurement report and Contractor Management
Scorecard ("Scorecard") for Drilling Rig, Materials and Services in a Microsoft Excel format.

7.4.2. The Scorecard will also include commercial spend data with a listing of invoices generated for the reporting
period and individual job summaries. These reports will be available to COMPANY's Representative as
requested.

8. MOBILIZATION AND DEMOBILIZATION ISSUES

8.1.CONTRACTOR's equipment and personnel shall be mobilized and demobilized to and from COMPANY's location and rig
sites according to COMPANY's written instructions.

8.2.CONTRACTOR may be required to provide temporary equipment that can be used in the interim period during the time
that CONTRACTOR's permanent rig site equipment is being installed and commissioned. CONTRACTOR shall
receive COMPANY's approval prior to utilizing temporary equipment in this Contract.

8.3.Coordination meetings will take place between CONTRACTOR and COMPANY to determine operational planning for
mobilizing temporary equipment and permanent rig site equipment. These meetings will determine the required
time period necessary to complete installation of the equipment.

8.4.CONTRACTOR shall provide a written description of the Rig-up and Tear-out Procedures for providing any equipment
related to the Contract and provide an estimate of time, resources, and cost required.

8.5.If circumstances under control of CONTRACTOR cause COMPANY operational delays, then CONTRACTOR will be
responsible for all costs incurred in installing or moving temporary or permanent CONTRACTOR's surface
equipment to accomplish this work. Both installation and removal of the temporary equipment must be completed
in a time frame and in a manner such that it will not disrupt COMPANY's operation.

8.6.CONTRACTOR will provide written communication with COMPANY's Representative to ensure the supply of
CONTRACTOR's equipment and materials meets COMPANY's scheduling needs. If an equipment or material
shortage arises from CONTRACTOR's failure to liaise and adequately plan for COMPANY's needs, all costs to
transport CONTRACTOR's equipment and materials from other areas will be borne by CONTRACTOR and
CONTRACTOR will be entitled to no charges until operations resume.

9. CONTRACTOR MANAGEMENT PROGRAM

9.1.The COMPANY may devise and implement a CONTRACTOR Management Program designed to keep the Parties working
closely together as a team and set the structure to improve performance, operations, and safety.

9.2.Changes made to the Contractor Management Program can be suggested by either COMPANY or
Changes to the program should be submitted in writing to
CONTRACTOR at any time.
COMPANY's Representative prior to the meeting that they will be discussed and any changes
will be reviewed

11
9 Exhibit A
 by the Parties at the next meeting. COMPANY will have the final approval for any changes to the
Contractor Management Program.

9.3. COMPANY and CONTRACTOR shall mutually develop a Contractor's Performance Scorecard to
evaluate the performance of Parties to meet the obligations of the Contract. The responsibility of
tracking the items in the scorecard will be assigned accordingly.

9.4. CONTRACTOR shall meet with COMPANY as mutually agreed upon to provide information requested
by COMPANY for continuous improvement of operations as required by the Contractor Management
Program. The agenda of the meeting shall include at a minimum:

(1) Financial Review:

a) Review of required procurement reports
b) Review of invoicing to date
c) Review of disputed items
d) Review of payment schedule

(2) CONTRACTOR Performance Scorecard Review

(3) Operational Review and Continuous Improvement

a) Listing of Jobs executed with appropriate Key Performance Indicators (KPIs) as defined
in CONTRACTOR Performance Scorecard
b) Performance statistics
c) List of problems, frequency, and impact upon COMPANY
d) Root-cause analysis and operational changes for major problems
e) New products that could benefit COMPANY
f) Specify at Ieast two (2) things COMPANY can improve — specify at least two (2) things
COMPANY does very well
g) COMPANY must specify at Ieast two (2) things that CONTRACTOR can improve — specify
at least two (2) things that CONTRACTOR does very well

10. BEST PRACTICES AND STANDARD OPERATING PROCEDURES

10.1.It is CONTRACTOR's responsibility to ensure that its operating procedures are in compliance with
CONTRACTOR's and COMPANY's Operations Management System requirements, Best Practices, and
Standard Operating Procedures for the services covered by this Contract. CONTRACTOR shall at a
minimum provide the leve) of service specified in both CONTRACTOR's and COMPANY's Best
Practices and Standard Operating Procedures and the cost of providing inspections, reports,
engineering work. etc. as specified within the Best Practices and Standard Operating Procedures
are to be borne by CONTRACTOR unless specifically defined elsewhere within this Contract.

10.2.COMPANY'S Best Practices and Standard Operating Procedures may be modified or developed during
the term of this Contract. Changes to the Best Practices or Standard Operating Procedures will be
reviewed as part of the continuous improvement efforts of the Contractor Management Program.

11. TRANSPORTATION

11.1.Operational and financial responsibilities for transportation of CONTRACTOR's personnel, equipment

and materials are indicated in the terms and conditions of this contract and the Table B2.

12. HANDLING OF GOODS

1\ 1
1 10 Exhibit A
 12.1. General Handling of Goods by COMPANY.

12.1.1. COMPANY will provide CONTRACTOR with at least twenty four (24) hours of notice prior to equipment
and materials being returned from the well site in order to have a representative present to verify the
cargo manifest and expedite the material return process. If CONTRACTOR does not send a
representative to COMPANY's well site to assist the material return, then CONTRACTOR will have three
(3) working days from the time the equipment is received at CONTRACTOR's designated stock point to
notify COMPANY of any Goods discrepancy. COMPANY will not be responsible for, nor will it be financially
obligated to CONTRACTOR, for discrepancies reported beyond the three (3) working day limit.
Regardless of the notification of CONTRACTOR, it is CONTRACTOR's responsibility to notify COMPANY's
Drilling Superintendent for the project of any Goods discrepancy within three (3) working days of any
partial return of equipment.

12.1.2. Any trucks and related loading and documentation provided by CONTRACTOR will meet all Chilean and
COMPANY's transportation regulations. COMPANY may refuse to load or unload CONTRACTOR's supplied
trucks if deemed unsuitable. There will be no charges by CONTRACTOR for lost time/equipment rentals
due to inappropriate CONTRACTOR's supplied trucks.

12.1.3. COMPANY will only receive loads that are properly packaged and ticketed and have all necessary
paperwork in hand, including Material Safety Data Sheets (MSDS). Loads that are not properly
documented or loads that are found to be improperly packaged may be immediately returned to
CONTRACTOR at CONTRACTOR's expense.

12.1.4. COMPANY reserves the right to audit CONTRACTOR's Material Management Program for all Goods
classified as high risk. CONTRACTOR will be notified by COMPANY prior to the audit.

12.2. General Handling of Goods by CONTRACTOR

12.2.1. CONTRACTOR is responsible for ensuring that CONTRACTOR's Goods are packed safely and securely to
avoid risk to personnel involved in handling and shipping said Goods and prevent loss due to damage or
deterioration. Tools within racks are to be secured with web slings or other restraining equipment
compliant with current legislation. Packaging failures prior to delivery to COMPANY well sites are the
complete responsibility of CONTRACTOR.

12.2.2. CONTRACTOR will designate a representative for issues dealing with Goods handling for this Contract.

12.2.3. CONTRACTOR shall advise COMPANY of any special handling, packaging, or trucking requirements it may
have regarding any and all of CONTRACTOR's Goods. This is especially critical at the stages of
Mobilization and Demobilization. COMPANY and CONTRACTOR will jointly develop specific guidelines for
handling equipment and materials at these, or any other, critical times.

12.2.4. CONTRACTOR will mark all items with the exact weight for all items weighing over 1500 (one thousand
five hundred) kg. The markings shall be legible and visible so that roustabouts and crane personnel can
clearly see the weight when transporting the items. The weight must also he clearly indicated on
CONTRACTOR's delivery ticket(s).

12.2.5. All equipment with exposed flange openings, machined faces, or threads, etc. shall be properly packaged
to prevent damage and ensure that foreign objects and debris cannot enter or damage the item.

12.2.6. Where multiple items are shipped in a common outer packaging, they must be properly packaged for safe
handling and protection of the Goods.

12.2.7. CONTRACTOR shall provide to COMPANY five (5) complete copies of MSDS in a form acceptable to
COMPANY for each of the products that CONTRACTOR supplies under the

11 Exhibit A
Contract. It will be the responsibility of CONTRACTOR to ensure that MSDS sheets are available and
visible whenever and wherever its materials are moved or stored.

Exhibit A
 12.3. Palletized Equipment and Materials

12.3.1. COMPANY's preference is to avoid the use of standard sacks and drums and prefers Goods shipped in
bulk. COMPANY will work with CONTRACTOR in any way to minimize its use, recognizing that 100%
elimination may not be possible or practical.

12.3.2. All Goods are to be adequately packaged for safe handling and transportation by ground from
CONTRACTOR's source of supply to COMPANY's designated well sites. All costs associated with
packaging, bulking, and handling are included in the Contract prices. Sufficient weather protection of
Good's during transportation is also CONTRACTOR's responsibility and at CONTRACTOR's cost.

12.3.3. With respect to CONTRACTOR's Goods presented to COMPANY for shipment to COMPANY's well sites in
sacks or drums, all such sacks and drums are to be palletized using heavy-duty new pallets suitable for
handling with pallet bars or basket hitches. If pallet bars are not used then a basket hitch should be used
instead of a choker hitch to avoid a crushing effect on the pallet. Each pallet shall be covered with a
plywood sheet and weather protected. All pallets shall be steel strapped using a minimum of two straps
with safe working load sufficient for their intended purpose.

12.4. Drums

12.4.1. In the event that drums are used, the following requirements apply to all drums used by CONTRACTOR.
Drums must be approved for the product they contain. Drums can be new or used. Drums that do not
meet the requirements below will be held without payment until they are returned to CONTRACTOR at
CONTRACTOR's cost. Empty drums will be returned to CONTRACTOR for reuse or disposal in an
environmentally responsible manner, no exceptions.

12.4.2. All drums shall be marked and labeled in accordance with all applicable (including all Chilean) regulations.

12.4.3. Drums should be transported in either a barre) rack or basket for safer handling to and from the
installation.

12.4.4. All drums to be shipped shall be accompanied by MSDS. Otherwise, it will not be received from
CONTRACTOR by COMPANY.

12.4.5. CONTRACTOR will inspect all drums for leaks. Drums that are punctured, excessively rusty, dented, or
with folded rims will not be used.

12.4.6. CONTRACTOR shall fit all used drums with new stoppers and seals or they will not be accepted.

12.4.7. Al! used drums will be required to be steam cleaned, dried, and tested prior to use by CONTRACTOR.
CONTRACTOR may be required at anytime to verify the recycled drum preparation process as requested
by COMPANY.

12.4.8. COMPANY will return to CONTRACTOR any empty or used CONTRACTOR supplied drums, for the safe
and proper disposal by CONTRACTOR and at CONTRACTOR's cost.

12.5. Slings and Pad Eye Management

12.5.1. CONTRACTOR shall ensure that all of its lifting equipment will be certified or successfully load-tested and
documented prior to use.

12.5.2. CONTRACTOR shall ensure that any of its personnel who will operate mechanical lifting
devices are qualified per applicable regulations, competent and authorized to do so.

13 Exhiba A
 12.5.3. CONTRACTOR shall provide lifting gear for the transportation of CONTRACTOR's skid mounted equipment
between CONTRACTOR's designated stock points to COMPANY's well sites. Lifting gear and carrying
units provided by CONTRACTOR shall comply with API RP 2D for wire rope and slings and API
Specification 9A for lifting gear or other applicable Chilean regulations. All carrying units shall be
delivered with certified slings.

12.5.4. CONTRACTOR shall have a program implemented for the inspection, operation and management of
CONTRACTOR's lifting gear including the training and supervision of personnel involved in using such
equipment and a system that uniquely identifies the Safe Working Load (S.W.L) and inspection frequency
of alI lifting equipment and pad eyes. A register of alI lifting gear will be maintained at each of
CONTRACTOR's installations and facilities. Each item of lifting gear must have a means of identifying it
and cross-referencing it to certificates and inventory records. The identification number and S.W.L. must
be forged, stamped, tagged to, or permanently marked on the lifting gear.

12.5.5. Hand-spliced wire slings are not permitted on any COMPANY well site - no exceptions. All slings when
purchased and delivered will be provided with a certificate of test. Certificates will be available for
inspection if requested by COMPANY at any time. The certificate of scrapped slings will be destroyed.
While in CONTRACTOR's use on a Job, CONTRACTOR will inspect slings daily for damage. Wire slings will
be clearly marked with the S.W.L. When slings are not in use CONTRACTOR will ensure that they are
stored in an area to protect them from weathering. CONTRACTOR shall not hammer or use other force
on the ferrule.

12.5.6. Slings made of synthetic fiber may be used by CONTRACTOR in special cases. For example lifting of
chromium pipes, special drill pipe, engine cylinder heads, etc.

12.5.7. CONTRACTOR shall ensure any barre) slings are certified and marked with S.W.L. for use of lifting barreis
made of plastic or PVC. The conventional barre! slings and hooks will not be used. Using a net, basket of
specialist device is recommended.

12.5.8. COMPANY may elect to use a color-coding of lifting gear to readily identify if slings have been inspected
within the Iast year. CONTRACTOR agrees to implement the color coding scheme if required.

12.5.9. CONTRACTOR shall ensure that shackles are stenciled with a tracking number and Iogged to ensure they
were inspected with in the year, and if required be color-coded. CONTRACTOR shall ensure that its
shackles as well as the slings are covered by a valid certificate. Shackles should have an N.D.T.
performed annually to ensure there are no cracks, or worn and damaged parts.

12.5.10. All pad eyes in use, regardless of the location, will be drilled. Flame cut pad eyes are banned from all
Iocations. Deliveries of materials in shipping containers, baskets, etc. where flame cut pad eyes are in
use will be immediately returned to CONTRACTOR at CONTRACTOR's cost.

12.6. Basket and Container Management

12.6.1. CONTRACTOR shall ensure that regardless of the type of container, all types of its containers will be
approved for the product as applicable, and clearly marked with the load weight and the maximum
allowable weight when shipping materials to COMPANY. Failure to post this information clearly may result
in delays in the transport time to COMPANY operated rig.

12.7. Delivery Tickets, Shipping Manifests

12.7.1. Delivery tickets are required with every delivery of Goods at COMPANY well sites. The
following informational data must be included by CONTRACTOR on every delivery ticket

4
O with no exceptions: Exhiba A
 (a) The well name.

(b) COMPANY or CONTRACTOR representative who ordered the shipment.

(c) Date of the delivery.

(d) Itemized description of the Goods.

(e) Posted Goods weight if the individual lift is over 1,500 kg.

(f) Name, location. and telephone number of CONTRACTOR representative responsible for the
shipment. This number must be available twenty-four (24) hours per day, seven (7) days per week
in order to support the material movement process.

13. STOCK CONTROL

13.1.CONTRACTOR will maintain a comprehensive inventory of system parts, spares, and consumables in a protected
environment at a designated stocking point within the project area. In the event that CONTRACTOR's stock falls
below the agreed minimum level (equipment, materials, and personnel to drill six wells at all times require such
that CONTRACTOR needs to replenish on an urgent basis). All additional costs of providing such stock shall be
borne by CONTRACTOR.

14. RESTOCKING POLICY

14.1.Goods purchased by COMPANY from CONTRACTOR that are in a "new and unused" condition may be returnable to
CONTRACTOR at an agreed restocking value on a case-by-case basis. COMPANY will pay return transportation
charges to CONTRACTOR's closest stocking point in Santiago. CONTRACTOR may refuse to re-purchase
equipment sold by CONTRACTOR to COMPANY.

15. DAMAGE OR Loss OF CONTRACTOR's DOWNHOLE TOOLS

15.1.COMPANY solely will make a decision as to whether to fish for CONTRACTOR's tools on a case-by-case basis based on
many factors, including but not limited to: Government regulations, the risk associated with the fishing operations
to the rig and wellbore, the probability of successfully fishing the tools, the cost of rig operations while fishing,
and the cost of the tools lost in hole.

15.2.CONTRACTOR shall provide COMPANY with a written Damage and Loss Report of any damage or loss of
CONTRACTOR's tools as soon as practicable to COMPANY Contract Manager. This report will identify all tools
damaged or lost, the cost of repairing or the depreciated replacement cost of the tool, the cause of the failure,
and documentation that the tools were properly prepared for the Job.

15.3.Promptly upon receiving the Damage and Loss Report, COMPANY and CONTRACTOR will meet to discuss the charges
for damages to tools or replacement costs of downhole equipment lost in hole. COMPANY shall be solely
responsible for the repair cost or value of tools damaged or lost because of downhole conditions, subject to the
terms and conditions provided in Article 11.1.1(ii) of the Contract. If CONTRACTOR's tools were damaged or lost
due to failure of CONTRACTOR to adequately assemble, test, inspect, makeup, install, or follow written
procedures or policies, CONTRACTOR shall be solely responsible for the cost of the tools. Upon determination of
the charges for the tool replacement, they will be forwarded by CONTRACTOR to the rig for inclusion in the daily
cost estimate. CONTRACTOR will not be liable for the lost in hole, replacement or repair cost of COMPANY's or
third party equipment in the hole.

15.4. CONTRACTOR will provide COMPANY with a lost in hole price list itemizing all down hole equipment subject to the
terms and conditions provided in Article 11.1.1.(ii) of the Contract.

15.5. CONTRACTOR shall assume the risk of and shall be solely responsible for damage to or loss of only its materials and
equipment furnished which are lost or damaged while being transponed to or

Exhiba A
 from COMPANY's well site. COMPANY shall be responsible when transportation is furnished by
COMPANY.

15.6. In case of conflict between this Article 15 of Exhibit A - Scope of Work and Article 11.1.1(ii) of the
Contract, the provisions of Article 11.1.1(ii) of the Contract will prevail.

16 Exhibit A
 EXHIBIT A-1
EQUIPMENT AND
MATERIAL
SPECIFICATIONS

Exhibit A-1
 EXHIBIT A•1 - EQUIPMENT AND MATERIAL SPECIFICATIONS
To Drilling Contract

TABLE OF CONTENTS

GENERAL EQUIPMENT AND MATERIAL SPECIFICATIONS 19

CONTRACTOR'S QUALITY CONTROL AND ASSURANCE PROGRAM 19

PERFORMANCE OF EQUIPMENT 20

EQUIPMENT - DESCRIPTION AND SPECIFICATION 20

TABLE 1- EQUIPMENT LIST TABLE 35

TABLE 2 - EQUIPMENT, MATERIALS AND SERVICES TO BE FURNISHED BY DESIGNATED PARTY 41

8 Exhibit A-1
 EXHIBIT A-1 - EQUIPMENT AND MATERIAL SPECIFICATIONS
To Drilling Contract

1. GENERAL EQUIPMENT AND MATERIAL SPECIFICATIONS

1.1.CONTRACTOR will provide a drilling unit complete with the equipment, drill string, tools, materials,
supplies and services as specified in this Exhibit A-1. Replenishment of CONTRACTOR-furnished
items will be arranged by CONTRACTOR at its own expense and CONTRACTOR will be responsible
for maintaining an adequate inventory of consumables.

1.2.CONTRACTOR must provide and thereafter must maintain the Drilling Unit and all items and equipment
provided pursuant to Exhibit A-1 in proper operating condition for the entire term of this Contract in
accordance with Good oilfield and/or geothermal field practices. CONTRACTOR, at its sole cost and
expense, must make any necessary replacements or repairs in order to prevent lost time, with
respect to suitability of any drilling unit and use thereof.
1.3.The Drilling Unit must be certified by a recognized agency. CONTRACTOR must keep the Drilling Rig
certified at all times during this Contract and ensure that it meets all of the specifications. All
certification costs are at CONTRACTOR's expense.

1.4.CONTRACTOR represents that the Drilling Unit and supporting equipment will at all times be
competent to the full rated capacity, discharge rate, and/or pressure rating, and be physically
capable of drilling as per the specifications provided In this Exhibit A-1.
1.5.CONTRACTOR warrants that the Drilling Unit meets all the requirements for BOPE system(s) specified
and all other specifications in this Contract and that it is in good working condition.

1.5.1. CONTRACTOR is required to have a Preventive Maintenance Plan for equipment that meets
original manufacturer's recommendations and shall ensure that such preventive
maintenance is undertaken in accordance with that Plan. The Preventive Maintenance
Program shall be performed "Off-line." "Off-line" shall be defined as the time when such
equipment that is being maintained is not engaged in drilling operations. COMPANY will
provide time for CONTRACTOR to perform preventive maintenance of their equipment as
per their Plan. CONTRACTOR shall provide spares and consumables sufficient to eliminate
work stoppage or disruption to COMPANY's operations.
1.6. CONTRACTOR will ensure that at all times CONTRACTOR's equipment and material stock never
depletes through loss, damage or otherwise to such an extent that an adequate inventory of tools,
equipment, and/or materials is not available. It is the sole responsibility of CONTRACTOR to keep
the equipment and tool inventory complete at all times. In the event that CONTRACTOR anticipates
a problem in not being able to fulfill its obligation then CONTRACTOR must notify COMPANY's
Representative.

2. CONTRACTORIS QUALITY CONTROL AND ASSURANCE PROGRAM

2.1.CONTRACTOR is responsible for ensuring that Services and Goods provided by CONTRACTOR meet
the specifications, performance, packaging, and other quality standards as specified in the
Contract.

2.2.CONTRACTOR shall have implemented a Quality Assurance Program (QAP) and shall supply Services and
Materials in accordance with said QAP. Such QAP shall be either the API Quality Assurance
Program Q-1; International Organization for Standardization Guidelines 150 9000-9004, ISO 9001; or
similar. CONTRACTOR shall provide a copy of CONTRACTOR's quality assurance program and
demonstrate its implementation upon COMPANY's request.

19 Exhibit A-1
3. PERFORMANCE OF EQUIPMENT

3.1.CONTRACTOR shall ensure that the equipment is adequately maintained in such condition as to permit
its continuous and efficient performance. Should the time for repairs be so significant or the nature
of the breakdowns be such as to indicate that the equipment has not been maintained or
sufficiently serviced to permit its continuous and efficient operation, COMPANY may request that
operations cease, at no cost whatsoever to COMPANY until the necessary repairs and maintenance
or modifications have been completed. Provided that COMPANY has given written notice to
CONTRACTOR specifying in detail the causes of its dissatisfaction, CONTRACTOR must provide
COMPANY satisfactory evidence that it has taken effective action to correct the conditions
specified in COMPANY's written notice. CONTRACTOR will be paid at the Rig Repair rate in Exhibit
D for the rig repair time as described in the Contract.
3.2.If any part is cracked, damaged or worn, the part must be replaced with a newly manufactured part or
repaired to original manufacturer's specifications.
3.3.Damage to equipment due to Abnormal Conditions (Stuck Pipe, Fishing Operations, Drilling Blind,
Corrosive Environment, Unexpected Temperature and Pressure increase and Uncontrolled Well
flow, etc.} will be charged to COMPANY. Other than as provided for in Article 11.1.1(ii) of the
Contract, damage due to normal wear and tear or damage due to equipment failure at normal
conditions will be for CONTRACTOR's account. It is the responsibility of CONTRACTOR to provide
COMPANY with the normal operating parameters of all tools and equipment and notify COMPANY's
Representative when they are aware that these operating parameters are being exceeded. Normal
wear and tear includes routine maintenance and inspection.
3.4.CONTRACTOR shall be responsible for the design, testing, and inspection of all its equipment, including
modifications to its equipment. CONTRACTOR shall not make modifications to its equipment that
would result in the equipment not meeting the specifications described In the Contract without
prior written approval of COMPANY. COMPANY shall not make modifications to CONTRACTOR's
equipment without the prior written approval of CONTRACTOR.
3.5.COMPANY and CONTRACTOR may mutually agree to operate equipment outside of normal operating
parameters, and in this event, liability and damages due to equipment failure will be mutually
agreed to in writing by the Parties prior to the Job. In these circumstances, commercial terms and
specific health, environmental, and safety (HES) issues will be addressed and mutually agreed.

4. EQUIPMENT DESCRIPTION AND SPECIFICATION

-

4.1.CONTRACTOR shall enclose fully detailed drawings of its equipment giving all dimensions of
component's parts as well as their technical specifications at COMPANY's request.
4.2. The equipment must be available for inspection prior to being installed on the rig. It should be fully
inspected and ready for service. COMPANY at its option may send a third party representative to
inspect the equipment. All cost involved with this initial third party inspection will be paid for by
COMPANY; however, the cost to fix the equipment will be paid for by CONTRACTOR. Subsequent
third party inspections that are required to ensure the equipment has been properly repaired will be
paid for by CONTRACTOR. CONTRACTOR will assist with any reasonable arrangements as
necessary to enable an inspection to be carried out.
4.3. All equipment furnished by CONTRACTOR to meet the requirements of the Contract shall be
operated by CONTRACTOR. The equipment shall be designed and maintained in accordance with
CONTRACTOR's appropriate programs. In the event third party equipment is used as part of
CONTRACTOR's standard business practices, CONTRACTOR shall notify COMPANY in writing, in

20 Exhibit A-1
 advance of any equipment being shipped to COMPANY well sites, that it is obtained from, or being provided by, a
third party. Third party equipment will only be accepted by COMPANY if it has been designed and manufactured
to specifications that meet or exceed CONTRACTOR's specifications, and has been inspected as per
CONTRACTOR's inspection program.

4.4. For medica! clinic, living quarter, catering and Iaundry services, CONTRACTOR shall comply with COMPANY safety
hygiene standard and guidelines where applicable.

4.5. RIG: The CONTRACTOR shall supply one (1) self contained land rig and ancillary equipment in accordance with
the following detailed requirements and summarized in Table 1:

4.5.1. The CONTRACTOR's land rig and ancillary equipment shall be rated to a drilling depth in excess of 2500
meters taking into account that, at times, the hole will be partially or completely filled with fluids other
than typical drilling mud including, but not limited to water, steam, air, nitrogen, other liquids, gases, or
solids. The hole may be directionally drilled at deviation angles up to 45 degrees from vertical.

4.5.2. The drilling rig shall have a derrick or mast rated to a gross nominal capacity of seven hundred fifty
thousand pounds (750,000 lbs.), a static hook load capacity of 700,000 lbs. The water table height of
the derrick shall be a minimum one hundred and thirty six feet (136 feet). The mast must be API
certified and complete with the manufacturer installed original identification/ load-rating plate attached
to mast leg at floor level and must have an inspection record showing that the mast was magna-fluxed
in the last 5 years. The clear working height of derrick or mast must permit handling of Range 2 triples
(approximately 30 m of dril) string) and full Range 3 casing (without removing the rotary table or
modifying the rig floor).

4.5.3. The sub-structure shall have a distance of at least eight meters (8 m.) from ground level to the bottom
of the rotary beam(s) or enough accommodate the Contractor's BOPE equipment and COMPANY's
wellhead with an allowance of 12" wellhead growth due to thermal expansion. The substructure shall
have a capacity of seven hundred thousand pounds (700,000 lbs.) with a simultaneous set-back
capacity of five hundred thousand pounds (500,000 lbs).

4.5.4. The drilling rig shall be equipped with a minimum 1000 input horsepower drawworks, with travelling
block, crown block, hook, and swivel meeting the minimum requirements set out in this section. The
draw works shall be provided with an auxiliary electric or water brake and make-up and break-out
catheads with hand operated controls. A crown block safety device (Crown-o-Matic) shall be installed.

4.5.5. The rig shall be equipped with a minimum 1000 hp, 350 ton, (or greater) top drive, torque system and
power unit (if hydraulic).

4.5.6. The drilling rig shall be equipped with minimum rotary table size, standard, independent 37-1/2" 300 ton
rotary table complete with rotary bushings, standard kelly, casing bushings, split bushings and casing
bowls to fit COMPANY's casing program. The rotary table shall be removable to allow the running of
oversized (up to 30 inches) line pipe or tubular below the rotary table. Non-slip rig floor mats shall be
provided around the rotary table and over the main trafficked or active areas of the rig floor.

4.5.7. The rig shall be supplied with an optional air or hydraulic operated power slip capable of handling
tubular sizes from 3-1/2" up to 8-1/4" OD. The power slip shall be gravity set and include provision for
a foot operated slip release.

4.5.8. The derrick (or mast) shall be equipped with an adjustable casing stabbing board. This requirement is
optional if the top drive unit has robotic hydraulic systems that allows for the handling, picking up,
stabbing in, manipulation and running in of buttress threaded casing up to and including 20" outside
diameter.

21 Exhibit A-1
 4.5.9. The drilling rig shall be capable of being skidded or moved intact (mast up with tubular up to the set-
back capacity) on the same well pad for distances of at least 30 m. The fully operational skidding
system is optional and will be provided on a mutually agreed schedule.

4.5.10. The drilling rig shall be furnished with adequate sectionalized matting to suit substructure, pumps etc.

4.5.11. The drilling rig shall be equipped with prime mover power supply meeting all rig needs and complying
with industry standards.

4.5.12. The drilling rig shall be provided with all the necessary safety equipment, fittings and devices in
compliance with API standards and recommended practices. Inspection records conforming to API
recommended practices relating to the mast, substructure and all tubular handling gear shall be made
available to COMPANY as and when required.

4.5.13. At the Effective Date of this contract, CONTRACTOR shall supply drawings showing the plan layout of the
rig and associated equipment including mast lay down position. The drawings shall include details of
the skidding system (if available), dimensions of all key elements and distances relative to the center of
the well. Relevant manuals, loading diagrams or procedures (e.g. skidding procedures) shall also be
provided to ensure that all information on the drawings is clear and unambiguous.

4.6. CIRCULATING SYSTEM: The drilling rig shall be equipped with at least two independent triplex pumps. The
combined hydraulic horsepower shall be at least 2450 hp or a combined minimum mechanical horsepower of 2720
hp, assuming 90 per cent mechanical efficiency of the pump from the drive wheel. Each pump shall be complete
with a pulsation dampener, shear relief valves. All pumps shall be powered by independent driver and capable of
pumping, on a continuous basis, 1400 gallons (100% volumetric efficiency) per minute at 3000 psig, in tandem.
Two to four independently powered pumps may be required to be connected in parallel to meet these
requirements. Suction and delivery lines for each pump shall be designed, constructed and tested to efficiently
conduct the drilling fluid at high flow rates to the standpipe. Each pump shall be fully dressed with pistons and
liners and supplied with spare pistons and Iiners in a range of sizes.

4.7. The drilling rig shall be equipped with a mud pit system suitable for use with water-based mud with a minimum
pit capacity as follows:
a. Active mud system — 3 x 300 or 900 bbl. minimum
b. Pill capacity - 50 bbl. minimum
c. Water tank capacity — 2x300 or 600 bbl. minimum
d. Separate compartments must be supplied for the sand trap, desander, desilter, mud cooling unit
(Geocooler, tower or 3 bay mud cooler) suction, pump suction, mud chemical pre-hydration, and pill
mixing. The cooling unit suction shall be taken from the desilter discharge tank at a rate equal to or
less than the desilter processing rate.

4.8. Mechanical mud paddle type agitators and/or mud guns must be supplied for the mud tanks including the pre-
hydration and pill compartments. Each solids control compartment except the sand trap must have one
mechanical paddle type agitator. Larger tanks or compartments should be equipped with two or three agitators
and/or mud guns.

4.9. The water tank shall be manifolded to the suction end of each triplex mud pump (direct or via the
mud suction tank) so that water can be pumped to the full capacity of each pump and at any time.

4.10. All tanks, including the shale shaker tank, must be arranged in such a way that the choke line passes from the
BOPE directly to the sump side of the tanks without any bends.

4.11. All tanks must be skid mounted, equipped with walkways, handrails and access ladders and
plumbing for easy connect and disconnect.

22 Exhibit A-1
 4.12. An accurate drawing of the mud system showing all valves, lines, pumps, other equipment and how
the tank requirements specified aboye are satisfied shall be submitted to COMPANY's
Representative upon the Effective Date of the contract.

4.13. The drilling rig shall be equipped with a complete selection of mud conditioning equipment including
desanders, desilters, shale shakers, mud cooling system, mud mixers and centrifuga! pumps, as
follows:

a. Desander: One unit of an acceptable brand complete with suitable pumping unit and
pressure gauge. The quantity of 10" or 12" cones must be sufficient to process a minimum of
1000 gpm total flow. Pump must supply sufficient pressure at 1000 gpm for proper operation
of unit.
b. Desilter: One (1) unit of an acceptable brand complete with suitable pumping unit and pressure
gauge. The quantity of 4" or 5" cones must be sufficient to process a minimum of 1000 gpm
total flow. Pump must supply sufficient pressure at 1000 gpm for proper operation of unit.

c. Mud cleaner: One (1) unit of an acceptable brand complete with suitable pumping unit and
pressure gauge. The quantity of cones and screen mesh size/area must be sufficient to process
1200 gpm total flow. Pump must supply sufficient pressure at 1200 gpm for proper operation of unit.
[OPTIONAL]
d. Degasser: One (1) "Poor Boy" type unit or equivalent with liquid seal and a minimum height
of 3 m.
e. Mud mixing pumps: Two (2) 5 x 6 centrifugal pumps, with hoppers and bag cutting trays,
independently driven or equivalent.
f. Forty kilogram or 94 lb bags of bentonite and other chemicals will be used by COMPANY during
drilling operations.
g. A minimum of 2 mixing and dispensing tanks (approximately 50 gallons capacity) for the
safe mixing and discharge of caustic soda into mud tanks.
h. Mud cooling system: One (1) unit of cooling tower or mud cooler (3 bay Geo-Cooler type, or
equivalent) shall be provided with centrifugal pump capable of processing 1000 gallon/minute drilling
fluid capacity and capable of maintaining a return drilling fluid (mud or water) temperature of 70° C
or less while circulating under normal drilling conditions at any depth

i. Shakers: Three (3) Derrick linear motion shakers, or equivalent high-speed, linear-motion
type. Must be sufficient to provide a minimum of 6.5 square meters of screen area. Units
should be provided with an assortment of spare screens with mesh sizes from 40 to 210. Screens
shall be a Pyramid type, or equivalent.

4.14. BOPE: This section shall be read in conjunction with the diagrams shown in Figure 3 and 4 and
Table 1.

4.15. The Contractor shall supply a BOPE stack to be used on the 20" intermediate casing for drilling the
17-1/2" hole. The equipment shall include or be equivalent to, but not be limited to:
a. All equipment to mount on 21-1/4" ID x 2000 psi flange (top of 21-1/4" ID x 2000 psi flange to be
approximately at ground level).
b. Choke and kill spool with 3-1/8" x 2000 psi side valves.
c. Choke manifold and choke and kill lines. If Coflexip hoses are used, they must be rated to
withstand high temperature geothermal conditions. Include check valve on kill line and
hydraulic gate valve on the choke line.
d. One 21-1/4" 2000 psi double gate ram-type blowout preventer.
e. One 21-1/4" 2000 psi annular blowout preventer.

23 Exhibit A-1
 f. 21-1/4" x 2000 psi Grant 8069 or Williams 9000 dual stripper rubber drilling rotating
head or equivalent.
g. Rubber components of all the aboye shall be rated to withstand high temperature
geothermal conditions.
h. All necessary crossover and spacer spools.
i. All primary choke and kill valves shall be expanding gate type, 3-1/8" bore, with temperature
rating of at least 270° C. The gates and seats shall be faced with Stellite (OPTIONAL).

4.16. The CONTRACTOR shall supply a BOPE stack to be used on the 13-3/8" anchor casing for drilling the
12-1/4", 8-1/2" and 6-1/8" hole. The equipment shall include, but not be limited to:
a. All equipment to mount on 13-5/8" ID x 3000 psi flange.
b. Choke and kill spool with 3-1/8" x 3000 psi side valves.
c. Choke manifold and choke and kill lines. If Coflexip hoses are used, they must be rated
to withstand high temperature geothermal conditions. Include check valve on kill line
and hydraulic gate valve on the choke line.
d. One 13-5/8 x 3000 psi annular blowout preventer
e. One 13-5/8 x 3000 psi double gate ram-type blowout preventer
f. One 13-5/8" x 3000 psi Grant 8069 or Williams 9000 dual stripper rubber drilling
rotating head or equivalent.
g. Rubber components of all the aboye shall be rated to withstand high temperature geothermal
conditions.
h. All primary choke and kill valves shall be expanding gate type, 3-1/8" bore, with temperature
rating of at least 270°C. The gates and seats shall be faced with Stellite (OPTIONAL).

Exhibit A-1
 Figure 3 BOPE setup for drilling 17-1/2" hole

A water cooling injection

system sholl be installed
to keep the rotating heod cool

on roc or to provide flowline

Rototing heod with throttlinq volve and Flow—sho
NOTES: o s stem instolíed

1. All volves attached to each 21-1/4" 2M Annular

side of mud cross for the

kill and choke line sholl be 3-1/8"
o
minimum bore ond roted
for temperatures over 220 deg C

Controctor to provide oil volves,

connections ond lines for kill and choke line.

21-1/4" 2M
Double Ram
From rig floor
standpipe manifold
To poor boy
LIN degosser or
, 11.1% shoker tank
Hydroulic To sump
o
From cemen t ing Check
unit or kill pump valve actuated volve
KILL LINE
Mud L-
Cross 015
1 CHOKE MANIFOLD — 3-1/8" minimum bore
Set casing heod ot height to
suit Rig Controctor's component
heights and flowline requirements

20" casing

30" conductor pipe

25 Exhiba A-1
 Figure 4. BOPE setup for drilling 12-1/4" and 8-1/2" (or 6-1/8") holes

A water cooling in jection

system sholl be instolled
to keep the rototing head cool

Controctor to provide flowline

Rototing heod with throttling volve ond Flow-sho
system instalTed

NOTES:
O

1. Ab volves attached to eoch 13-5/8" 3M Annulor side oí mud cross for the
kilt ond choke line shall be 3- 1/8"
minimum bore ond roted
for temperatures over 220 deg C

2. Controctor to provide oll valves.

connections ond lines for kilt and choke line.

13-5/8" 3M
Double Ram
From rig floor
stondpipe manifold
To poor boy
TI degosser or

• "
shaker tonk

Uy.
From cementing Check HydroulIc 1111 To sump
volve octuated volve
ilL
unit or kill pump
Mud
Cross
KILL LINE
CHOKE MANIFOLD - 3-1/8" rninirnurn bore

oo
euro

13-3/8" cosing 13- 3/8" casing

Ir 1120" casing
20" casing
30" conductor pipe 130" conductor pipe

Drilling 12-1/4" hole Drining 8-1/2" hoIe

Exhibit A-1
4.17. The CONTRACTOR shall provide all necessary crossovers, adapter flanges and spacer spools to rig
up on top of the flanged connections described below:
a. 21-1/4" API 2000 psi with ring groove
b. 13-5/8" API 3000 psi with ring groove
c. ANSI 10" 900 Series with ring groove

4.18. The CONTRACTOR shall provide BOPE required for the drill string as follows:

a. One (I) 5000 psi upper Kelly cock compatible with contractor s drill pipe.
b. One (I) 5000 psi lower Kelly cock compatible with contractor s drill pipe.
c. Two (2) full sized opening drill pipe safety valves for each drill pipe size provided by
contractor. The Contractor shall also maintain at least one redress kit for each size of valve.
d. Two (2) inside BOPEs (dad type with high temperature seals) for each drill pipe size
provided by the Contractor.

4.19. The CONTRACTOR shall provide a BOPE control system consisting of a 3000 psi accumulator unit
equipped with type TR regulators satisfying the following minimum requirements:
a. Have enough capacity to close all blowout preventer rams and annular element in
accordance with API specification 16D.
b. Include an electric driven triplex pump and automatic starter.
c. Have one 5-station hydraulic control manifold.
d. Include one or more remote BOPE control stations.

4.20. The CONTRACTOR shall provide all BOPE rams, rubbers and seals for CONTRACTOR's equipment.
The CONTRACTOR shall provide ram BOPEs equipped with blind rams, 3-1/2" and 5" pipe rams, and
9-5/8" and 13-3/8" casing ram assemblies. Rubber components of all BOPE ram assemblies shall
be rated to withstand high temperature geothermal conditions. Also all seals in hydraulic circuit and
bonnet seals to be rated to withstand high temperature service.

4.21. The CONTRACTOR shall provide all spools and flanges, and power tools necessary to install BOPE
equipment as directed by COMPANY's Representative. Furthermore, CONTRACTOR shall provide all
the necessary metal seals, adaptor flanges and other items to allow mating of surfaces and other
interfaces between CONTRACTOR's equipment components.

4.22. The CONTRACTOR shall provide guy lines, turnbuckles and anchors to brace the BOPE when
installed.

4.23. The CONTRACTOR shall provide safe access and working platforms to all components of the BOPE,
including the rotating head, in compliance with the Safety Plan, IADC Code of Practice, API RP53,
COMPANY's General Policies and Procedures, COMPANY's Project Manual and other relevant Chilean
Regulations, regarding working at heights.

4.24. AUXILIARY EQUIPMENT: The CONTRACTOR shall provide Caterpillar or equivalent oilfield type units
rig engines. All units must meet or exceed appropriate regulatory agency requirements for noise
control, spark control, and exhaust emissions. All noise sources shall be permanently controlled in
accordance with the project safety plan and government regulations. For the purpose of this
Contract the maximum acceptable noise level of any continuous noise source, like engines, shall be
85 dBa within 2 m of the noise source or within 2 m of the normal enclosure of the noise source.
Hearing protection shall not be considered a means of permanent noise control or management.
When personnel are required to enter noise source enclosures, good quality hearing protection shall
be readily available at the point of entry.

Exhibit A-1
 4.25. All engines, electrical fittings (including lights) and other susceptible equipment shall be made to be
explosion proof. Suitable fire extinguishers shall be mounted in convenient places around the rig
area and in close proximity to likely fire zones.

4.26. The swivel shall have a minimum 300 ton static capacity and 300 ton dynamic capacity complete
with bumper support.

4.27. Two sets of links shall be provided to suit running gear:

• 108" long, 350 ton capacity or similar.

• 132" long, 350 ton capacity or similar.

4.28. The hook shall have a minimum 300 ton rated capacity.

4.29. The travelling block shall have a minimum 300 ton rated capacity.

4.30. The drilling rig must have a complete 125 psi rig air system capable of operating all air controls,
clutches, air winches and air starters, consisting of two compressors, dry type intake filter,
instrument panel, air dryer and two air receivers ASME coded for 150 psi. All air receivers shall
have up to date pressure testing and certification.

4.31. The drilling rig must have an emergency air supply system capable of supplying 80 cfm at 100 psi.

4.32. The drilling rig must have a 3" x 5000 psi high pressure Coflexip hose attached to the derrick for
cementing and circulating. [OPTIONAL]

4.33. The drilling rig must have minimum of two (2) generator units to supply sufficient AC electricity to
the drilling rig and ancillary equipment plus 50 KVA for usage by COMPANY at the drilling site.

4.34. The drilling rig must have mounted on the rig floor two air winches, one 5000 lb and one 10000 lb
capacity, each with 150 meters of 5/8" wireline or equivalent. One winch shall be suitable and
certified for lifting personnel.

4.35. The CONTRACTOR shall provide all rig site accommodation for CONTRACTOR (number of personnel
places determined by CONTRACTOR), COMPANY's Representative and service contractors
contracted to COMPANY (maximum of 5 COMPANY personnel).

4.36. WINTERIZATION: The Rig and other Equipment shall be designed or set up for operating
continuously in the expected severe climatic conditions. Weather monitoring data is not available
for the Site but the severe conditions may include outside temperatures as low as -20 ° C, wind
speeds of up to 40 m/second in very exponed areas and snow drifts of up to 10 m high. Operations,
apart from critical tasks, will be shut down if COMPANY's Representative deems it to be unsafe.
Although the following may be more applicable for the appropriate season, the Contractor shall be
prepared at all times for the following requirements:

a. Office and accommodation must have insulation and adequate safe heating to maintain a
comfortable temperature.
b. All entrances to buildings must be covered to prevent a build-up of snow from blocking the
door.
c. All liquid and air hoses or pipes must be insulated and/or have heaters fitted to prevent
malfunctioning in freezing conditions.
d. Vehicles and motors must have anti-freezing in their coolant systems.

4.37. The rig equipment shall be winterized. The winterization shall consist of, but not be limited to, the
following:

a. The diesel tanks must be fitted with electric heating elements to prevent the diesel gelling in
the cold conditions. [OPTIONAL]

b. The Koomey unit oil tank is to be completely covered with steel plate or stored within a
container to protect against cold wind, freezing and wet conditions. All hydraulic and

28 Exhibit A-1
 pneumatic pipes from this unit to the BOPE stack must be fully insulated to a high standard.
Hydraulic fluid shall be selected for use at low temperatures.
c. The following items must be wrapped in insulation of sufficient thickness and quality to prevent
freezing of the fluid inside the lines: Stand pipes, shock hoses, choke and kill lines, air hoses, mud
flowlines, and connections to the mud tanks, inlets and outlets of the brake in the draw works.

d. In addition to protect all inlet and outlet pipes according to the standard, tanks will be
covered by iron roof and a mixer pump will keep water moving in water tanks.
e. The drill-floor is to be surrounded on all sides up to a height of 3m from the drill floor, by
steel plate or similarly strong partitions of reasonable thickness and strength to withstand
the expected wind conditions. Freely sliding doors of approximately 2m high by 1m wide are
to be fixed at the entrance of each staircase to the floor, and the vee door. The walls must have
vents to allow for some ventilation to prevent the build-up of H2S or other noxious gases. Partitions
or walls must not interfere with the drillers view of the mast and travelling equipment. Evidence of
engineering design for these walls is to be provided to the Operator's representative for
acceptance.
f. To avoid blockage of the building doors by heavy snowfall, each door must be protected by a
sturdy entranceway cover with a roof.
g. Water supplied to the rig must be kept from freezing at all times.
h.For rig site accommodation, the following winterization is required:
1) All water pumps must be kept warm with a heater and protected with insulated covers.
2) All the water lines, storage cylinders and reservoirs in the kitchen, baths and toilets should be
protected by insulation.
3) All rig site accommodation shall be fitted with reliable and adequate heating.
4) Walkways between the rig and rig site accommodation shall either be covered or
protected (from strong winds and snow drifts) to provide continuous safe and snow free
access at all times during rig operations. Other means to secure walkways can be
devised and agreed between CONTRACTOR and COMPANY.
5) The rig site accommodation shall have storage facilities to sustain the rig site personnel
with adequate fuel and food supplies for periods of isolation of up to 3 days continuous
duration.
6) Two fully operational 2 seater snow-mobiles shall be located at the rig site at any time when
snow is prevent. [OPTIONAL]

4.38. MONITORING EQUIPMENT: The CONTRACTOR shall furnish one centrifugal pump or equivalent for
continuous filling of the hole during trips.

4.39. The CONTRACTOR shall provide a calibrated pressure measuring sensor for measuring the standpipe
pressure. This sensor shall be located at the stand pipe manifold or other location approved by
COMPANY's Representative. This sensor and connections shall be properly maintained to provide a
continuous data stream to the A01, M/D Totco Rig Sense system or equivalent, digital monitoring
system. This sensor shall also be connected to a rig floor indicator, recorder, and alarm and trend
line analyzer.

4.40. The CONTRACTOR shall provide a calibrated pressure measuring sensor for measuring the fluid pressure
inside the BOPE and riser. This sensor shall be located at or below the lower ram BOPE. This sensor
and connections shall be properly maintained to provide a continuous data stream to the AOI, M/D
Totco Rig Sense system or equivalent, digital monitoring system. This sensor shall also be
connected to a rig floor indicator, recorder, and alarm and trend line analyzer. [OPTIONAL]

4.41. The CONTRACTOR shall provide a calibrated stroke per minute (SPM) measuring sensor for
measuring the SPM of each mud pump. These sensors and connections shall be properly

29 Exhiba A-1
 maintained to provide a continuous data stream to the AOI, M/D Totco Rig Sense system or equivalent, digital
monitoring system. This sensor shall also be connected to a rig floor indicator, recorder, and alarm and trend line
analyzer.

4.42. In conjunction with, and approval of COMPANY's Representative, CONTRACTOR shall devise a monitoring and
remediation plan for the driller and toolpusher on all shifts to set and respond to alarms. No alarms shall be
turned off without the prior approval of COMPANY's Representative.

4.43. CHOKE AND KILL SYSTEM: This section shall be read in conjunction with the diagrams shown in Figure 3 and 4
and Table 1.

a. CONTRACTOR shall furnish one 3-1/16" actuated valve (with hydraulic actuator) and one manual valve on
the drilling spool flanged choke line outlet as shown in Figure 3 and 4. The manual valve shall be a parallel
slide expanding gate WKM Power R Seal valve, or equivalent, API 2000 psi rated and furnished with
geothermal trim, including Stellite (OPTIONAL) hard facing on gates and seats. The actuator to be suitable
for high temperature geothermal service.

b. CONTRACTOR to furnish one 3-1/8" manual valve and one check valve on the drilling spool kill line flanged
outlet as shown in Figure 3 and 4. The manual valve shall be a parallel slide expanding gate WKM Pow-R-
Seal valve, or equivalent, API 3000 psi rated and furnished with geothermal trim, including Stellite
[OPTIONAL] hard facing on gates and seats which shall be hooked up to either the mud pump or
cementing unit pump. The check valve shall be suitable for high temperature use.

1) Two (2) 0-5000 psi pressure gauges, with block valve.

2) Two (2) 0-1000 psi pressure gauges.
3) Two (2) 0-500 psi pressure gauges.

4.44. The choke manifold shall consist of a straight steel pipe to a hydraulically operated flow control valve (rated for
high temperature use) and shall be designed to return fluid to the mud system or vent line to the sump. All steel
lines and connections shall be rated for 5000 psi working pressure at all temperatures and shall be secured or
anchored. A conventional oilfield choke manifold is not acceptable for geothermal drilling.

4.45. CONTRACTOR to furnish manifold and lines for pumping water or mud through kill line.

4.46. TUBULAR INSPECTION EQUIPMENT: The CONTRACTOR shall provide at the cost of COMPANY tubular inspection
services to inspect CONTRACTOR's downhole tubulars. The services shall include plant, equipment and trained
personnel for inspecting (and repairing) all down hole tubular and other rig equipment. The Equipment must
include, but not limited to
a. Magnetic particle crack detection equipment
b. Re-facing tools
c. Gauges and calipers.
d. Reporting forms.

4.47. For the purposes of inspecting COMPANY owned downhole tools, COMPANY reserves the right to use
CONTRACTOR's inspection services at the convenience of CONTRACTOR and at the cost of
COMPANY.

4.48. FISHING TOOLS: The drilling rig shall be equipped with all first run fishing tools for CONTRACTOR 's drill string
(drill pipe, drill collars and subs) which shall include but not limited to the following tools:

a. Overshots full strength, to recover all Contractor's drill string items in each hole size (i.e., 26", 17-1/2", 12-
1/4", 8-1/2" and 6-1/8"), and each casing size (i.e. 20", 13-3/8", 9-5/8", 7" and 5"). The
CONTRACTOR shall stock and furnish on site a complete set of drive bushings,
extension subs, guides, basket and spiral grapples, mili controls and packers for each

Exhiba A-1
 overshot to catch all drill strings (body and tool joints) at full diameter, 1/8" under gauge, %"
under gauge, 3/8" under gauge and %" under gauge.
b. Reverse Circulation Junk Baskets; one (1) to run in the 26" to 12-1/4" hole sizes and one (1) to run in
the 8-1/2" and 6-1/8" holes, complete with shoes, junk catchers and spare parts.
c. One (1) junk mill for each hole size 17-1/2", 12-%„ 8- 1A" and 6-1/8".
d. One (1) screw-in-sub for each drill string connection furnished by CONTRACTOR.
e. Boot baskets for 12-1/4", 8-1/2" and 6-1/8" hole sizes.
f. Magnets for 17-1/2", 12-1/4", 8-1/2" and 6-1/8" hole sizes.
g. Optional 9-5/8" and 7" casing spear and cutters (with spares).
h. Lead impression block for 13-3/8", 9-5/8", 7" and 5" casing.

4.49. CASING TOOLS: The CONTRACTOR shall furnish complete casing handling tools for COMPANY's 20",
13-3/8", 9-5/8", 7" and 5" Range 3 casing sizes consisting of but not limited to:
a. Side Door Elevators,
b. Two rotary tongs with appropriate or extended tong heads,
c. Rotary insert bushings or rotary slip bowl,
d. Slips to match bushings or bowl,
e. Single joint elevator.
f. Three (3) new each Clamp-on Quickie Thread Protectors.

4.50. The CONTRACTOR shall provide hydraulic power casing tongs and power unit capable of being used for the 20",
13-3/8", 9-5/8", 7" and 5" casing sizes. The CONTRACTOR shall provide trained personnel to set up,
function test and operate the casing tongs when needed. The CONTRACTOR shall also be responsible for
maintaining the equipment in good order including the supplying of dies.

4.51. DRILL PIPE, BHA AND CROSS-OVERS: The CONTRACTOR shall furnish the following drill string items:
a. Six (6) 9-1/2" x 3" ID Range 2 with 7-5/8" Regular connection drill collars, with stress
relief/bore back features.
b. One (1) 9-1/2" x 3" ID 3 meters long pony with 7-5/8" Regular connection drill collar, with
stress relief bore back features.
c. Twenty Five (25) each 8-1/4" OD x 2-13/16" ID, Range 2 with 6-5/8" Regular connection
spiral drill collars with stress relief/bore back features. Each drill collar shall have, and be
maintained during the term of the Contract, a minimum Bending Stress Ratio of 2.5. By way
of example, this means that OD of drill collar shall not be less than 7-7/8" for a 6-5/8"
Regular connection.
d. Twenty Five (25) each 6-1/4" or 6-1/2" OD x 2-13/16" ID Range 2 with NC50 connection,
plain or slick drill collars with stress relief/bore back features.
e. Twenty (20) each 4-3/4" OD Range 2 with NC38 connection, plain drill collars.
f. One 3-meter and one 4.5- meter long pup joint 8-1/4" and 6-1/2" OD drill collar with
features as specified aboye for each corresponding OD drill collar.
g. Connections must be specified and recorded for all drill collars provided.
h. Thirty (30) each 5" 49.5 Ibs/ft Range 2 with NC 50 connection, heavy walled drill pipe. Pipe
shall not be plastic coated.
i. Three thousand (3000) meters 5", Range II or III, 19.50 Ib/ft premium class or brand new,

,
* grade G drill pipe. The combined pin and box length shall be a minimum of 450 mm. Drill
pipe tool joints shall be furnished with 3" of hard banding by CONTRACTOR at CONTRACTOR
's expense before it is used. Hard banding shall be Hughes Smooth X or COMPANY approved
equivalent. Pipe shall not be plastic coated. Brand new drill pipe shall be subject to a
Exhiba A-I
 certified factory break-in procedure to eliminate any rig make and break sequence. The CONTRACTOR
shall provide all documentation, including factory break-in certification, with regards to the drill pipe
delivered to Site. Following the first use, the dril! pipe shall be maintained within the specifications of
premium class in accordance with API RP7G. The CONTRACTOR shall reapply Hughes Smooth X hard
banding or equivalent as often as necessary to prevent hard banding from wearing to less than 1/8" thick
or 3" in length.
1. One set (3 each) of 5" Premium class, grade G 19.5 lb/ft drill pipe pup joints (3 m and 4.5 m). Drill pipe
shall be maintained within the specifications of premium class in accordance with API RP7G.

k. Two thousand (2000) meters 3.5", Range II, 13.30 lb/ft Premium class, grade G drill pipe with NC38
connection. Pipe shall not be plastic coated. Drill pipe shall be maintained within the specifications of
premium class in accordance with API RP7G.
1. Sufficient numbers of steel framed drill pipe baskets to safely store and transpon all drill pipe tubular.

m. One (1) drill pipe spinning and make-up/ break-out tong, Hawk Industries Hawk jaw SR or equivalent, for
spinning and making up CONTRACTOR's drill pipe and collars (3-1/2" to 9-1/2" diameter), complete with
all necessary spares for the duration of the drilling operations. The tong must be able to fully makeup an
NC56 connection to the correct torque in less than 16 seconds.

n. One lot of drill pipe and drill collar crossover subs for all CONTRACTOR's down hole tools (i.e. Bit Subs,
Drill Collars, Heví Wate Drill Pipe, Drill Pipe, etc.).
o. Bit breakers and gauge rings for 26", 17-1/2", 12-1/4", 8-1/2" and 6-1/8" tri-cone rock bits.
p. The aboye dril! string items to be complete with all handling tools, manual slips, thread protectors, lifting
subs, safety clamps and tongs.
q. The aboye drill string items to be complete with bit subs bored for drill pipe floats for each drill collar size.
The CONTRACTOR shall provide drill pipe floats at its cost suitable for use in high temperature
environments. The CONTRACTOR shall maintain an adequate stock of spare parts for each float.

r. The CONTRACTOR shall provide and use a thermal grade pipe dope conforming to API specifications. Zinc
based pipe dope shall not be used. If copper based pipe dope is used CONTRACTOR shall ensure that all
threads on new tool joints avoid the use of copper or a copper based products as a corrosion protection
coating or plating.

4.52. OTHER EQUIPMENT AND SERVICES: CONTRACTOR shall provide a 40 hp floating or submersibie sump pump plus
sufficient length of pipe or hoses for recycling effluent from the waste sumps adjacent to the rig site back to the
active system containing the drilling fluid.

4.53. CONTRACTOR shall furnish one (1) complete set of well deviation (inclination) survey instruments and accessories
which shall include recorders to cover 0° to 16° inclination from the vertical in appropriate stepped ranges, slick
line unit with 3000 meters of 0.092" plow steel line and counter and instrument retrieving tools. CONTRACTOR
shall also provide with this instrument a heat shield rated for temperatures up to 250o C and with an outside
diameter small enough to allow the complete tool to be run inside all tubular and cross overs supplied by
CONTRACTOR.

4.54. The drilling rig shall be equipped with portable high pressure water cleaner for cleaning CONTRACTOR and
COMPANY's equipment.

4.55. The drilling rig shall include the following instrumentation (maintained in working condition):
a. rotary RPM
b. pump #1 SPM
c. pump #2 SPM

32 Exhiba A-1
 d. pump #3 SPM
e. stand pipe pressure
f.flow line indicator
g.rotary torque indicator (ft. lb)
h. Martin Decker Type D weight indicator calibrated in lbs (pounds)
i.deadline anchor sensator
j.tong torque indicator

4.56. The drilling rig shall include a 6 pen Geolograph or similar, and original/ copy chut refills (and maintained in
working condition) with pens recording:
a. hook load
b. rate of penetration
c. rotary torque
d. pump #1 SPM
e. pump #2 SPM
f. pump #3 SPM
g. stand pipe pressure

4.57. CONTRACTOR shall provide three separate 12 m ( or equivalent number of 6 m) long container type
accommodation units at the rig site for COMPANY's rig site personnel (1-drilling supervisor, 1 mud engineer, 1
geologist, 1 drilling engineer, 1 visitor) to a standard acceptable to COMPANY. Each unit shall include an office
measuring a minimum 3m x 4 m, a shower room, a toilet, small kitchen with hand basin and 2 bedrooms with one
single bed per room. The shower and hand basin shall have hot and cold water supply. CONTRACTOR shall be
responsible for connecting all services to each unit. The CONTRACTOR shall supply all bedding and linen
materials, potable water supply, microwave, electric kettle or jug, utensils, crockery and cleaning materials for
each unit. The office of each unit shall include the following:

a. desk,
b. chairs,
c. lighting, overhead and desk lamp,
d. 3-drawer filing cabinet,
e. rig telephone,
f. local and international telephone connection (two lines)
g. air-conditioning and heating unit
h. Book shelves.
i. Internet connection

4.58. The CONTRACTOR shall provide at least one fully trained first aid person for each and every shift. The
CONTRACTOR's safety and emergency plan shall make provision for emergency medica! assistance and
evacuation.

4.59. The drilling rig shall have rig fuel day tanks plus storage for a total of 100,000 liters at the rig site.

4.60. The drilling rig shall have one (1) office unit to be used by the rig mechanic and electrician complete with all
necessary tools and equipment for onsite rig repair and maintenance.

4.61. The drilling rig shall have one (1) skid mounted unit complete with office, sleeping quarters and
accommodation.
* toilet facilities for CONTRACTOR's toolpusher

4.62. The CONTRACTOR shall furnish wooden walkways in wet weather.

Exhibit A-1
 4.63. The CONTRACTOR shall supply H25 detection and alarm systems. In particular CONTRACTOR shall provide, install
and maintain:
a. a well lit wind sock in two elevated locations (mud tank and at the edge of the pad),
b. a reliable 4 channel gas analyzer unit with audible and visual alarm systems connected to all weather
sensors located at the rig floor, shale shaker, and under the rig floor near the cellar.
c. provide a set of 10 x10 minute self contained breathing packs in a weather proof storage area
located about 25 meters away from the cellar.
d. provide a set of 4 x 30 minute self contained breathing packs in a similar location.
e. portable gas monitors for all staff.

4.64. In addition, CONTRACTOR shall

a. engage an expert technician to regularly calibrate and maintain the fixed and mobile gas monitoring
units.
b. train personnel in evacuation techniques and use of the self contained breathing packs.
c. produce and submit a written set of procedures to cover this training.
d. conduct regular drills.

4.65. The drilling rig shall have welding equipment consisting of:
a. One (1) mobile 300 - 400 amp. Electric arc welder complete with weld rods, and weld rod container/dryer.

b. One (1) set of cutting torches complete with oxygen and acetylene equipment.

4.66. The drilling rig shall have 1000 m of new drilling line on a spool.

4.67. The drilling rig shall be equipped with a minimum of 6 sets of steel fabricated pipe racks.

4.68. The drilling rig shall be equipped with a complete cellar pump (must not be a cellar jet).

4.69. The drilling rig shall come equipped with 2 each bug blowers, electric driven, with 30" steel blades.

4.70. The CONTRACTOR shall ensure that it has sufficient spare parts and supplies for a continuous drilling and
workover program. The CONTRACTOR shall provide to COMPANY's Representative each calendar month a
complete and accurate inventory of spare parts.

4.71. The CONTRACTOR shall provide

a. drill pipe and drill collar thread lubricants, lubricating oils, hydraulic oils and accumulator oils required for
Contractor's equipment.
b. all drill pipe and drill collar thread protectors plus drill pipe wiper rubbers.
c. all lifting gears and cables with safe load test certificates
d. welding units and supplies including rods, oxygen and acetylene.
e. all general rig materials and supplies.
f. in the Tool Pusher's office, all first aid medica) supplies and non-prescription medications for
CONTRACTOR, COMPANY's Representative and COMPANY's third party contractor personnel.

4.72. The CONTRACTOR shall provide an all terrain fork lift with telescopic boom, Caterpillar TH63, or equivalent,
complete with forks, buckets, and heavy duty gear box, minimum of 5-tonner capacity.

34 Exhibit A-1
 TABLE 1 — Equipment List Table

This Table 1 summarizes COMPANY's requirements and CONTRACTOR's detailed response. Details of
COMPANY's requirements are provided in Exhibit A-1 - Equipment and Material Specifications. During the
execution of the Contract, COMPANY reserves the right to direct CONTRACTOR to meet COMPANY's
detailed requirements if CONTRACTOR's equipment in the "AS SUPPLIED BY CONTRACTOR" column does
not meet the requirements of Exhibit A-1. The cost of new equipment will be paid by COMPANY or the daily
rates will be adjusted to reflect the cost of the new equipment by mutual agreement between COMPANY and
CONTRACTOR.

No. Description COMPANY Requirement As supplied by CONTRACTOR

Depth Capacity 10,000 — 12,000 ft In excess of 15000 ft
(Vertical)
2 Pre mob Rig Required As defined in contract
Inspection
3 Drawworks
3a Manufacturer: Major manufacturer IDM — MAC 1200

3b Min. Rated Rated at 1000 HP minimum with 1- 1200 hp 1-1/4" line

Input: 1/4" or 1-3/8" drilling line
3c Power Electric or mechanical Electric AC
4 Mast
4a Manufacturer Height: minimum working clearance Mast, Crown and substructure to

and Height: of 136 feet. comply with API 4F.

Hook Load 660,000 lbs Lines 10 Mast
Height 136 feet
Rotary Table 27.5" (37.5" optional)
Rotary Load 750,000 Ib. with full
setback
Setback Load 400,000 lb.
Clear Height below rotary beam: 17.6'
standard, 21.6' with pony extension
Drill Floor Height 22.4' standard 26.4'
with pony extension
4b Rated Capacity 750,000 lb minimum 750,000 lbs
4c Rotary Capacity: 750,000 Ib minimum Rotary Table 37.5"
Rotary Load 750,000 lb. with full
setback
Setback Load 400,000 Ib.
4d Racking 12,000 ft x 5" DP Racking Table 14,400 ft. 5" DP, 4 stands
Capacity: 6Y2" DC
5 Crown and Travel ing Block

5a Manufacturer: Major manufacturer Crown IDM

Block American Block

Crown sheave assemblies comply with
API 8A. Travelling Block API 8A.

Drawworks and Rotary Table will

comply with API 7K . 400 ton

Exhibit A- I
 No. Descriptio COMPANY As supplied by
n Requirement CONTRACTOR
5b Main Cluster: 6 x 52" OD 6 x 60"
5c Fast Line: 1 x 60" OD 60"
5d Line Size: 1-1/4" 1-1/4"
5e Hook 500 ton 350 ton
5f Links Two Sets: one standard, one for Short and Long length sets
double plug cement head
Sg Mud Bucket Required Provided
6 Tubular Handling Equipment

6a Pipe Spinner Required NOV 65,000 ft lb MU/BO tool for 3-1/2"

to 8-1/4" OD
6b Top drive Required 1000 hp minimum, 350 275 ton, 600 hp AC Canrig 6027 AC
ton
6c Tool sizes To fit all tubulars OD Provided for common size tubular
between 9.5 in. and 3.5 in.
6d Casing sizes 20", 13-3/8", 9-5/8", 7", 5" Provided
6e Power tongs 20", 13-3/8" to 5" Provided
6f Pipe handler or Pipe handler or iron rough neck Pragma PowerCat 3000 pipe handler,
Crane preferred 45' max length and 20" max OD
7 Rotary Table

7a Min size 27-1/2" (37-1/2" preferred) 37.5"

7b Drive Independent or off draw works 800 hp AC traction motor

7c Static Load 750,000 lbs 375 Ton
Rating:

8 Substructure
8a Make: DRECO "Slingshot" or Box on Box
IDM Quicksilver
(Rig Skid Capability preferred) Pony sub 4' tall to support quicksilver
8b GL to Underside 26 ft preferred substructure
Clear Height below rotary beam: 17.6'
of Rotary Beams: standard, 21.6' with pony extension
8c Setback Load: 450,000 lb Drill Floor Height 22.4' standard 26.4'
with pony extension
400,000 lb
8d Casing Load: 400,000 lb Slip support beams 750,000
8e Matting Boards Required Not provided
for Substructure
and Pumps
9 Blowout Prevention Equipment

9a Large Annular 21-1/4" x 2000 psi

29.5" x 500 psi
BOPE
9b Large Double 21-1/4" x 2000 psi 26-3/4" x 3000psi
gate rams
9c Large Rotating 21-1/4" x 2000 psi 30" x 500 psi
head

Exhihit A-1
 No. Descriptio COMPANY As supplied by
n Requirement CONTRACTOR
9d Annular 13-5/8" x 5M Supplied
9e Double gate 13-5/8" x 5M Supplied
rams
9f Rotating head 13-5/8" x 5M Supplied
9g Choke manifold automatic manifold 5 M oilfield
9h Large Mud cross 21-1/4" x 3-1/8" x 2000 psi Provided
9i Small Mud cross 13-5/8" x 3-1/8" x 5000 psi Provided
9j HT Manual Gate 4 pcs 3-1/8" x 5000 psi 2 pcs Provided
valves
9k HT HCR valve 1 pcs 3-1/8" x 5000 psi Provided
91 Accumulator Floor and remote control CPC RP-16E/16D
Unit 350 gal capacity
22 bottles
242 litres total bottle capacity
Two triplex pumps 11.4gpm @ 3000psi
Remote panel ACE at the rig floor
9m BOPE Handling Required sub floor lifting &roll Rolling platform with Draw works
assistance
9n Test stump Required Not provided
90 Inside BOPE for Required Provided
5" Drill Pipe
9p Inside BOPE for Required Provided
3 1/2" Drill Pipe
9q Float Valves for Required Provided
7 5/8" reg.
connection
9r Float Valves for Required Provided
6 5/8" reg.
connection
9s Float Valves for Required Provided
4 1/2" reg.
connection
9t Float Valves for Required Provided
3 1/2" reg.
connection
9u Full Opening Required Provided
Safety Valve for
5" dril) pipe,
(TIW valve)
9v Full Opening Required Provided
Safety Valve for
3 1/2" drill pipe,
(TIW valve)
10 Input Power

10a Engines Caterpillar preferred 1 4x Cat D3512,

37 Exhibit A-1
 No. Description COMPANY Requirement As supplied by CONTRACTOR
10b Drawworks AC or DC 1200 hp AC
power
10c Pump power AC or DC 2 x 1600hp AC
11 Auxiliary Power Generation
11a Power Output: 2 x 250 KVA units cold start generator with 9 hp

compressor
11b Volts: 400 AC
12 Mud Pumps
12a Input hydraulic 1000 hp x 3 or 1600 hp x 2 Triplex 2 x 1600 hp F1600

hp
12b Power Independent Individual AC electric traction motor
12c Liner sizes 7-3/4" to 5-1/2" provided
12d Mud Manifold 4" rated for 5000 psi 5" rated to 5000psi
and Stand Pipe
13 Solids Control System
13a Shakers Three (3) Derrick linear motion Three Derrick 3 pannel linear motion

shakers
13b Desander 2x10", 500 gpm Two 10" cone desander
13c Desilter 500 gpm 16 x 4" cone
13d Degasser Yes (poor boy, vacuum (optional)) Atmospheric: Drillco Seeflo
Poor Boy: 48" dia x 15' tall
13e Centrifuge Preferred Not provided
13f Mud cooler Required — 1000 gpm capacity Provided 2 units of 837gpm each
14 Tanks
14a Active mud 3 x 300 bbls (minimum) Total capacity approx 1000 bbls.

system Suction 500 bbls, Int 5 x 89 bbls,

14b Trip Tank 75 bbl 70 bbl
14c Pill Tank 50 bbl 85 bbl
14d Water tanks 2 x 300 bbls (minimum) 2 x 500 bbl
14e Pump suction Direct connect to 2 water tanks No, 2 centrifugal pumps on each
14f Mixing hoppers 2 minimum 1 skid with 6" hopper and sack table
14g Agitators Paddle type in each tank provided
15 Tubulars
15a Large Drill pipe 3500 m 5" OD, G105 grade, 19.5 3500m Grade G105 Range 3

ppf, minimum Premium class

15b Small Drill pipe 2000 m 3.5" OD, E grade, 13.5 ppf 1000m Grade G105
minimum, Premium class
15c Large Heavy 30 jts 5" HWDP Provided
weight DP
15d Small Heavy 15 joints 3-1/2" HWDP Provided
weight DP
15e 9-1/2" collars 6 x 30ft long Provided, 9.5" x 3" 7-5/8" Reg

38 Exhibit A-1
 No. Description COMPANY Requirement As supplied by CONTRACTOR
15f 8.25" drilling 20 x 30 ft long and 2 x 10 -15 ft long Provided, 8" x 3" 6-5/8" Reg, (7-7/8" —

collars BSR> 2.5 8-1/4" OD)

15g 6-1/2" drilling 20 x 30 ft long and 2 x 10 -15 ft long
Provided, 6.5" x 2.25" NC50
collars
15h 4-3/4" drilling 15 x 30 ft long
Provided, 4.75" x 2.25" NC38
collars
15i 5" drill pipe pup Required
2 x Provided
joints
15j 3 1/2" drill pipe Required
2 x Provided
pup joints
15k Bit sub for 17 Required bored for floats
Provided for 7-5/8, 6-5/8, 4-1/2 and
1/2", 12 1/4", 8 3-1/2" API REG connections
1/2" or 6-1/8"
hole
151 Cross overs / Required
Provided to connect CONTRACTOR's
subs equipment
15m Tubular Contractor responsibility prior spud
Provided
Inspection first well
16 Safety Equipment

16a H2S 3 sensor alarm system, SCABA

4 x SCBA units provided. Alarm system
16b Ladder Full harness fall arrest not provided.
Provided
16c Working at Man rider winch Provided, Hydraulic.
heights
16d HP connections Whip protection Provided
17 Base Camp for rig personnel

17a For Contractor's Required

Provided by Operator
personnel
17b For Operator's 15 places required for Operator use Provided by Operator
personnel and as part of the rig operating rate
third party
contractor's

18 Others
18a Instrumentation Analogue and digital w recording Provided Pason System

systems
18b Rig site For contractor supervisor and up to Provided.
Accommodation 4 operator personnel
18c Air supply Air compressor, receiver and Provided for rig air needs
system pressure regulators
18d Water supply 150 m x 6" ID pipe+ 2 indep Pumps 150m of 6" pipe
system One 2500 1pm pump
Two 1500 Ipm pumps

Exhibit A-I
9
 No. Description COMPANY Re e uirement As supplied by CONTRACTOR
18e Full Strength For all contractors dril) collars and One per size for CONTRACTOR's
Over shots and dril) pipe equipment
accessories
18f Fuel Tank Minimum Capacity of 20,000 gallons Provided
18g Fishing Magnets at least 2 sizes Provided
18h Junk subs and at least 2 sizes Provided
RCJ B
18i Junk milis at least 2 sizes Provided
18j Winterisation Must be fully enclosed and able to Provided, steam heaters, tarps
operate at temperatures of -10 `) C enclosure for rig floor, sub structure,
and wind speeds of 100 km/hr mud pumps and engines.
19 Personnel (as part of the operating rate)

19a Per 24 hour 1 rig manager, 1 safety officer 1 operations superintendant, 1 rig

period, 7 days manager, 1 safety officer, 1 asst driller

per week
19b Per 12 hour shift 1 tool pusher, (rig manager serves Operations superintendant serves as
as day tool pusher) day tool pusher and rig manager serves
1 driller, 1 asst driller, 1 derrick as night tool pusher as required , 1
man, 3 rough necks driller, 1 derrick man, 3 rough necks
19c Day work 5 roustabouts, 1 mechanic, 1 5 roustabouts, 1 mechanic, 1
electrician, 1 forklift operator, 1 electrician, 1 forklift operator, 1
welder, 1 store man welder, 1 store man

Exhibit A-1
 TABLE 2 — Equipment, Materials and Services to be furnished by
Designated Party
CONTRACTOR and COMPANY will be responsible for the equipment, materials, services and other responsibilities as
specified in Table 2. In case of conflict between this Table 2 and the provisions of the other sections of the Exhibit A, Table
2 will prevail.

RESPONSIBILITY MATRIX
Activity
A Mobilization / Demobilization / Permitting / Inspection
B Drilling Location
C Camp Location
D Communications
E Storage
F Inspections
G Materials Handling
H Transport
I Maintenance and Disposals
JMaterials and Supplies
K Drilling unit and Equipment
L Drilling and other services
M Safety

!tem # [tem Description Supplied By At Expense

Of
A Mobilization / Demobilization / Permitting / Inspection
A-1 Transport to mobilize the Rig and other CONTRACTOR's CONT CPY
equipment and consumables to the first location and
demobilize from the last location
A-2 All fees, registration payments and permits required by CONT CONT
government agencies for the Contractor to operate in Chile
A-3 Customs, duties and all other charges on importation of CONT CONT
Contractor's equipment and supplies into Chile
A-4 Licenses and consents to operate rig equipment CONT CONT
A-5 Passport processing, immigration fees, work permit, visas and CONT CONT
other documents required by CONTRACTOR's personnel
including all agent expenses
A-6 Pre-mob rig inspection including meal and transportation CPY CPY
expenses.
A-7 Allow access for third party inspection, prior to mobilization CONT CONT
A-8 Third party inspection costs including meal and transportation CPY CPY
expenses
A-9 Rig modification required to bring drilling rig into compliance CONT CONT
with the Specifications in the Drilling Contract, or required to
repair rig as a result of rig inspection
A 10
- Rig modifications related to compliance with governmental or CONT CONT
local regulations.

Exhibit A-I
 At Expense
Item # Item Description Supplied By
Of

A-11 On demobilization, clean up of Contractor's storage area and last rig CONT CONT
location area of any supplies and rubbish generated by the
Contractor.

B Drilling location
B-1 Authorization for access to location and project area CPY CPY
B-2 Licenses and consents to perform the operations, including CPY CPY
drilling, completion, suspension or abandonment
B-3 Construction and maintenance of suitable access road to rig site CPY CPY

B-4 Rig site preparation including leveling, grading, compaction and CPY CPY
features such as cellars, drainages. Additional lighting at location if
necessary.
B-5 Construction of cellars and installation of conductor pipe CPY CPY
B-6 Site survey required by Contractor's insurers, suppliers and CONT CONT
partners
B-7 Well positioning (Geodetic Survey) CPY CPY
B-8 Welding and installation of riser pipe including furnishing CONT CONT
temporary flow line.
B-9 Construction and maintenance of mouse hole CPY CPY
B-10 Construction and maintenance of rat hole (where applicable) CPY CPY
B-11 Construction and maintenance of discharge pits CPY CPY
B-12 Construction and maintenance of reserve pits for drilling water CPY CPY
B-13 Final cleaning-up & restoration of each well site CPY CPY
B-14 Provide water supply system to the boundary of each well site (or CPY CPY
reserve pit) and operate and maintain pump at a water source close
to the rig
B-15 Water lines, from well site boundary to the CONTRACTOR's mud CONT CONT
and water tanks.
B-16 Rig water storage tank CONT CONT
B-17 Cellar pump, self priming CONT CONT
B-18 Supply of sectionalized matting for sub-base CONT CPY
B-19 Sheltered facilities for mud & cement products CPY CPY
B-20 Necessary space on well site for installation of Operator's other CPY CPY
Contractors
B-21 Supply, maintenance, and servicing of site office and CONT CONT
accommodations, as per specification in the contract.
C Base Camp
C-1 Civil construction of base camp platform and Contractor storage CPY CPY
area including providing at the base camp area: untreated water
supply, septic tank, solids disposal pit and storm water
collection.
C-2 Construction and maintenance of access road to base camp CPY CPY
C-3 Transport to mobilize the complete base camp to the camp site CPY CPY
and demobilize from the last location

42 Exhibit A-1
 At Expense Of
Supplied By
Item # Item Description
CPY CPY
C-4 Supply of complete base camp including water treatment plant
and power generators to accommodate Contractor's personnel
and 15 Operator personnel CPY CPY
C-5 Base camp for Operator's, CONTRACTOR's and Third Party
personnel, as per specification CPY CPY
C-6 Setting up base camp for all weather conditions and installing
all utilities. CPY CPY
C-7 Maintenance and operation of base camp CPY CPY
C-8 Snow clearing of roof on base camp and clearing snow from
access ways to base camp units and contractor storage units in
the Contractor's storage area CPY CPY
C-9 Snow clearing of road to the base camp and vehicle access and
parking areas within the base camp area and contractor's
storage area. CPY CPY
C-10 Catering at Base Camp for up to 15 Operators and Third Party
personnel CPY CPY
C-11 Catering at Base Camp for Contractors personnel CPY CPY
C-12 Catering at Base Camp for over 15 Operators and Third Party
personnel CPY CPY
C-13 Supply a satellite connection at camp with telephone, TV and
data CPY CPY
C-14 Wiring and wireless distribution of satellite telephone, TV and
data signal to all base camp units CPY CPY
C-15 Cleaning-up of all contractor produced rubbish from base
camp area
D Communication
D-1 Supply a satellite connection at rig with telephone and data. CONT CONT

International calls from Company and Third party are at the

expense of Company.
D-2 Wiring or wireless distribution of satellite telephone and data CONT CONT
signal to rig site units (minimum 4 units)
D-3 Rig phone system (GAltronics or equivalent) with phones on rig CONT CONT
floor, mud laboratory and in tool pusher's and Company
Representative's office
D-4 Emergency Satellite phone system CONT CONT
E Storage
E-1 Open storage area for CONTRACTOR's equipment, material CPY CPY

and supplies at the Rig Site

E-2 Prepare for and erect Contractor's storage and workshop CONT CONT
facilities
E-3 All weather storage, including the supply of tarpaulins or CONT CONT
containers for CONTRACTOR's equipment.
E-4 All Weather storage facilities for consumables and other CPY CPY
supplies for Operator and third party.

Hxhibit A-I
 At Expense Of
Supplied By
ítem # Item Description

F Inspections
CONT CONT
F-1 Inspection of BHA components, DC, HW, DP, kelly and RIG
ELEMENTS (Mast, HP lines, etc) prior to spud of the first well CONT CPY
F-2 Inspection of BHA components, DC, HW, DP, kelly and RIG
ELEMENTS (Mast, HP lines, etc) after spud of the first well as
per DS-1 category 3-5. CONT CONT
F-3 Inspection of slings, raising lines for mast prior to spud of the
first well CPY CPY
F-4 Supply, maintenance, operation and calibration of gas
detectora at each rig site CONT CONT
F-5 Magnetic particle inspection of pipe handling equipment
including elevators, pipe tongs, and elevator links prior to start
of first well and in intervais specified in API RP 5A5 and RP 7G. CONT CONT
F-6 Hard banding of new drill pipe. Hard banding of new pipe to be
Hughes Smooth-X or Company-approved equivalent. Excludes
pipe replaced due to loss in hole or wear and tear CONT CPY
F-7 Field inspection and maintenance of hard banding of used drill
pipe. Hard banding to be Hughes Smooth-X or Company-
approved equivalent.

G Materials Handling
CPY CPY
G-1 All loading, unioading and materials handling of Operator and
Third party equipment, materials, consumables and supplies
outside the rig site. CONT CONT
G-2 All loading, unioading and materials handling of
CONTRACTOR's equipment, materials, consumables and
supplies within the rig site. CONT CONT
G-3 All loading, unioading and materials handling of Operator and
Third party equipment, materials, consumables and supplies
within the rig site (except where special lifting equipment or
specialized personnel for handling is required, in those cases it
is responsibility and cost of the Operator) CONT CONT
G-4 All loading, unioading and materials handling of
CONTRACTOR's equipment, materials, consumables and
supplies outside the rig site CONT CPY
G-5 Additional cranes, oilfield trucks, flatbed trucks, fíat rack
trucks, crane trucks and other special equipment required
during mobilization of Drilling Rig between wells. CONT CONT
G-6 Supplying, maintaining in good working order and operating
the forklift (c/w forks and bucket) as specified in the Contract

H Transport
CONT CPY
H-1 All transportations costs to mobilize rig between locations
inside the same concession CONT CPY
H-2 All transportations costs to mobilize rig between concessions
Exhibit A-1
 At Expense
Item # Item Description Supplied By
Of

H-3 Transport of CONTRACTOR's personnel CONT CONT

H-4 Transport of Operator-and Third Party personnel CPY CPY
H-5 Transport of Operator and Third Party equipment, materials, CPY CPY
consumables and supplies to and from the concession
H-6 Transport of Operator and Third Party equipment, materials, CONT CPY
consumables and supplies between rig-sites
H-7 Transport of CONTRACTOR's materials, consumables and CONT CONT
supplies to and from the concession
H-8 Transport of CONTRACTOR's materials, consumables and CONT CONT
supplies between rig-cites

Maintenance and Disposal

1-1 All charges for maintenance and repair, including spare parts for CONT CONT
Contractor's Equipment (except where otherwise specified)
1-2 Removal, management and disposal of drilling fluids and CPY CPY
cuttings
1-3 Removal and disposal of waste including permits for such CPY CPY
disposal (includes: industrial, domestic and hazardous waste
except where otherwise specified)
1-4 Containers / baskets for all camp and rig"s waste CPY CPY
1-5 Repair or replacement of CONTRACTOR's fishing tools CONT CPY
damaged or lost as a result of fishing
1-6 Containment and disposal of Lubricants, used Filters and CONT CONT
Hydraulic oil from rig operations.

J Materials & Supplies

J-1 Potable water for rig site CPY CPY
J-2 Nitrogen for accumulator unit CONT CONT
J-3 Welding consumables: welding rods, oxygen, acetylene and CONT CONT
other gases for CONTRACTOR's needs
J-4 Welding consumables: welding rods, oxygen, acetylene and CONT CPY
other gases for Operator or Third Party needs
1-5 Diesel Fuel for the drilling rig and CONTRACTOR's equipment CONT CPY
J-6 Diesel Fuel for Operator and Third Party equipment, including CONT CPY
vehicles
J-7 Mud products & additives CPY CPY
J-8 Corrosion inhibitors and Oxygen scavengers CPY CPY
J-9 Cement & additives CPY CPY
J-10 Drilling bits CPY CPY
J-11 Grease and thread protectors for casing CPY CPY
J-12 Mud cooler as per specifications CONT CONT
J-13 Lubricants, grease, hydraulic fluids, cleaning solvents for CONT CONT
CONTRACTOR's equipment
J-14 Lubricants, grease, hydraulic fluids, cleaning solvents for CONT CPY
Operator and Third party equipment

Exhiba A-I
 At
Item # Item Description Supplied By
Expense
J-15 Rubber casing protectors for dril) pipe Of
J-16 Electricity at the Rig Site from the Rig generators for Operator and CPY CPY
Third Party (where possible) CONT CONT
J-17 All necessary consumable and spare parts to maintain in
continuous operations the mud pumps. CONT CONT
J-18 Repair and/or replacement of slings used for loading or
unloading CONTRACTOR's equipment CONT CONT
J-19 Repair or Replacement of items in the dril) string (Dril) Pipe,
Collars, X0, Stabs, others) as a result of wear and tear due to CONT CPY
drilling operations
J-20 Casing and associated attachments and accessories
J-21 Liner hanger and associated attachments CPY CPY
J-22 Retrievable squeeze packers, bridge plugs, cement retainers, and CPY CPY
similar CPY CPY
J-23 Wellhead materials including valves, gaskets, flanges, bolts, nuts,
gauges and other required items CPY CPY
J-24 Replacement of any downhole tools when lost-in-hole or
damaged beyond repair due to stuck pipe operations. CONT CPY
J-25 Repair or replacement of CONTRACTOR's coring tools
damaged or lost as a result of coring or fishing CONT CPY
J-26 Any production or well testing equipment necessary
J-27 All rope, soap and dope, hand tools and general rig CPY CPY
consumables CONT CONT
J-28 Replacement desander cones, desilter cones and Shaker
Screens CONT CPY
J-29 Maintenance, repair and testing of Contractor's BOPE
J-30 Geothermal high temperature thread lubricant for drillstring CONT CONT
components CONT CONT
J-31 Consumables and spare parts not here aboye designated but
required by Operator through written orders CONT CPY
K Drilling Unit and Equipment

K-1 Rig unit

K-2 Compliance of RIG with alI statutory regulations (customs, duties CONT CONT
or nationalization of Contractor's rig, equipment and supplies etc) CONT CONT

K-3 Top drive (as per specification in the Drilling Contract)

K-4 Manual or hydraulic casing tongs equipped to carry out drilling CONT CONT
program CONT CONT
K-5 Casing handling tools for 20", 13-3/8", 9-5/8", 7", and 5" OD
casing. CONT CONT
K-6 Casing handling tools for sizes other than aboye
K-7 Casing circulating heads and casing scrapers CPY CPY
K-8 BOPE's handling, securing, running devices and testing CPY CPY
equipment (HP pump, test stump, testing tools) CONT CONT

Exhibit A-1
 At
Item # Item Description Supplied By
Expense
K-9 Riser pipe from conductor to rig floor Of
K-10 Choke manifold, kill line, choke line and equipment K- CPY CPY
11 Stabilizers, Shock Subs, Jars, Accelerators. K-12 Drilling CONT CONT
parameter recorder (analog and digital) CPY CPY
K-13 Float Valves CONT CONT
K-14 Handling tools for DP, DC CONT CONT
K-15 Standard IADC tricone bit breakers for 26", 17-1/2", 12-1/4", 8- CONT CONT
1/2" and 6-1/8" CONT CONT
K-16 Drill pipe, DC's, Crossover, Bit subs bored for float valves
K-17 Standard welding and cutting equipment CONT CONT
K-18 Fishing tools (for all DP and DC specified in contract)
CONT CONT
K-19 Fishing tools spare parts and consumables
CONT CONT
K-20 All necessary ropes, cables, wire ropes, chain, slings, shackles,
CONT CONT
hook, blocks on Well site to handle CONTRACTOR's equipment
CONT CONT
K-21 Containers / baskets for Operator's supplies K-22
Containers / baskets for CONTRACTOR's supplies
CPY CPY
K-23 All necessary tools to undertake maintenance of RIG K-
CONT CONT
24 Coring equipment (barreis, bits, containers, others) K-25
CONT CONT
Forklift 10 Ton
CONT CONT
K-26 Crane 60 Ton
CONT CONT
K-27 Sets of seals and other spare parts for Contractor's BOPE
CPY CPY
equipment
CONT CONT
K-28 First brand new element for Contractor's BOPE equipment K-29
Replacement annular element for Contractor's BOPE
CONT CONT
equipment after first element damaged or worn out
CONT CPY
K-30 BOPE remote control stations K-31 BOPE accumulator
unit
CONT CONT
K-32 Double stud adaptor flanges, adaptor spools, ring gaskets, to
CONT CONT
be installed between Contractor's flanges and Operator
CONT CONT
provided master valves, side valves, casing head flanges or
expansion spools. As specified in Drilling Contract (Equipment
Specifications)
K-33 Materials for any permanent installation which will remain
part of well i.e. flanges, expansion spools, master and side
CPY CPY
valves
K-34 Services or installation of any permanent fixtures which will
remain part of well i.e. flanges, expansion spools, master and
CPY CPY
side valves
K-35 Rotating head during drilling operations K-36
Replacement for worn rotating head rubbers K-37 Fuel
CONT CONT
Lines (Pipes and Valves, from tank to rig) K-38 Shale
CONT CPY
Shaker
CONT CONT
K-39 Desander: One set with suitable pumping unit. As per rig
CONT CONT
specification
CONT CONT

Exhihit A-I
 At Expense
Item # ItemDescription Supplied By
Of
K-40 Desilter: One set with suitable pumping unit. As per CONT CONT
rig specification
K-41 Mud manifold and Standpipe: One 4" OD pipeline CONT CONT
manifolded at ground level with spare hose
K-42 All bends and turns in the high pressure mud system to CONT CONT
be made with targeted tees, not elbows
K-43 Pipe racks; 4 sets 30 ft long minimum CONT CONT
K-44 Air or hydraulic winches mounted on rig floor (one each) CONT CONT
rating 6 tons minimum
K-45 Slick line unit 0.125" min diameter independently-driven CONT CONT
with counter (12,000 ft) installed on rig floor
K-46 Tong torque indicator K-47 Pump stroke CONT CONT
counter with rig floor readout CONT CONT
L Drilling & Other Services

L-1 Drilling hole and well activities as per Operator's instructions CONT CONT
L-2 Welding and cutting services on rig site for CONT CONT
CONTRACTOR's equipment
L-3 Welding and cutting services on rig site for Operator's CONT CPY
and Third Party equipment
L-4 Single shot deviation measuring CONT CONT
L-5 Running, screwing, and make up of casing, liner and CONT CONT
tieback strings, screwing and make up well head flange
L-6 Special operations associated to set casing-liners CPY CPY
L-7 Special fishing services including equipment and personnel CPY CPY
L-8 Standard fishing equipment and services for all CONT CONT
Contractor downhole equipment
L-9 Nippling up and test BOPE and wellhead CONT CONT
L-10 Core recovery, cutting sampling and storage. CONT CPY
L-11 Cementing cellar and conductor pipe CPY CPY
L-12 Weld on temporary wellheads and flanges CONT CONT
L-13 Welding joints of casing CONT CPY
L-14 Set bridge plug, squeeze cement retainer CPY CPY
L-15 Directional Drilling unit, personnel, services, consumables CPY CPY
and associated equipment
L-16 MWD/LWD unit, personnel, services, consumables CPY CPY
and associated equipment
L-17 Completions or fracturing unit, personnel, CPY CPY
services, consumables and associated equipment
L-18 Mud logging unit, personnel, services, consumables CPY CPY
and associated equipment
L-19 Mud engineering unit, personnel, services, consumables CPY CPY
and associated equipment
L-20 Cementing unit, personnel, services, consumables CPY CPY
and associated equipment

Exhibit A-1
Item # Item Description Supplied By At Expense
Of
L-21 Wire line logging unit, personnel, services, consumables and CPY CPY
associated equipment
L-22 Supply and maintenance of fishing/drilling jars CPY CPY
L-23 Supply and maintenance of down hole motors CPY CPY
L-24 Snow clearing equipment and road maintenance equipment, CPY CPY
supplies, consumables and personnel
L-25 Installation of equipment for production test CPY CPY
L-26 Supervision of installation equipment for production test CPY CPY
L-27 Installation and maintenance of water supply systems from CPY CPY
source to the rig site boundary
L-28 Kelly or top drive spindle saver sub CONT CONT
L-29 Drill pipe circulating heads. CONT CONT
L-30 Replacement of any drill string componente downgraded below CONT CPY
API RP7G Premium Class due to corrosion if mean corrosion
levels exceed 2.5 lbs per square foot per year.
L-31 Mud pump fluid and power end parts and consumables. CONT CONT
L-32 Spares for choke system. CONT CONT
L-33 Maintenance, spare parts and consumables for all Contractor's CONT CONT
equipment unless otherwise provided herein.
L-34 Mixing of mud materials and chemicals CONT CONT
L-35 Specialist welding services, including pre-heat and post-heat CPY CPY
facilities, for installing permanent casing head flanges to anchor
casing

M Safety

M-1 First aid, rescue equipment and medica) supplies at the rig site CPY CPY
for all Contractors, Operators and Third party personnel
M-2 Medic or paramedic and evacuation vehicle at the rig site CPY CPY
____
M-3 PPE for all CONTRACTOR's personnel and up to 5 visitors CONT CONT
M-4 Rig site safety and evacuation plan CONT CONT
M-5 Rig site safety induction and personnel register CONT CONT
M-6 PPE for all Operator's and Third Party personnel CPY CPY
M-7 SCBA or other breathing apparatus for H2S or other toxic CONT CONT
atmosphere (minimum 20 minute) (minimum 4)
M-8 Cascade air breathing system for work under in H2S or toxic CPY CPY
atmosphere
M-9 Training in the use of SCBA equipment CONT CONT
M-10 Gas detection and alarm system for H2S, calibration and CPY CPY
maintenance.
M-11 Well site, rig related safety procedures for the operation and CONT CONT
handling of the Drilling Rig and its accessories
M-12 Well anti-collision procedures CPY CPY
M-13 Well control procedures CPY CPY
M-14 Well control certifications for drillers and supervisora CONT CONT

49 lixhibii A-1
Item Item Description Supplied At
# By Expense
Of
M-15 Driving policy inside the concession area CPY CPY
M-16 Project's emergency response plan CPY CPY
M-17 Rig site and storage area environmental protection procedures CPY CPY
M-18 Winter operations' procedures and emergency response plan CPY CPY
M-19 Equipment and procedures for continuous weather monitoring CPY CPY
M-20 ABC fire extinguishers as required for rig site and rig site CONT CONT
accommodations, complying with an acceptable international
standard and any relevant government regulations

50 Exhiba A-1
 EXHIBIT A-2
PERSONNEL
REQUIREMENTS

Exhibit A-2
 EXHIBIT A-2 PERSONNEL REQUIREMENTS
To Drilling Contract

TABLE OF CONTENTS

GENERAL PERSONNEL REQUIREMENTS 53

FIELD PERSONNEL QUALIFICATIONS AND DUTIES 54

BASE OPERATIONS PERSONNEL QUALIFICATIONS AND DUTIES 55

TABLE C-1 — REQUIRED CONTRACTOR PERSONNEL* 57

TABLE 3—INITIAL PERSONNEL LIST 60

Exhibit A-2
 EXHIBIT A-2 - PERSONNEL REQUIREMENTS
To Drilling Contract

1. GENERAL PERSONNEL REQUIREMENTS

1.1. CONTRACTOR's Responsibilities

1.1.1. CONTRACTOR shall furnish trained and experienced personnel sufficient in number and with appropriate
qualifications as set forth in Clause 2.0 of this Exhibit A-2 to implement the Contract and meet its
specifications and standards in respect of safety, efficiency and technical competency. Notwithstanding
anything to the contrary in the Contract, it is the responsibility of CONTRACTOR to ensure that the
Contract is being administered efficiently and effectively and comply with the terms and conditions of
the Contract. If additional staffing is required, this will be at the expense of CONTRACTOR, unless
specifically requested and approved in writing by COMPANY.

1.1.2. CONTRACTOR's Personnel will have safety training as described in Exhibit A-1 and Exhibit B, including
any attachments.

1.1.3. CONTRACTOR shall provide any required personal protection equipment (PPE) to meet COMPANY
requirements, including but not limited to the following: hard hats, safety shoes, safety glasses with
side shield, gloves, hearing protection, gloves and clothing to handle hazardous chemicals, breathing
apparatuses, and face shields.

1.1.4. It is CONTRACTOR's responsibility to ensure that the technical and operational competency of
CONTRACTOR's Personnel is maintained throughout the term of the Contract and that such competency
is consistent with any changes in COMPANY's drilling programs and operations.

1.1.5. If at any time COMPANY is of the reasonable opinion that any of CONTRACTOR's Personnel provided
under the Contract is not suitably trained, incompetent or inefficient in the discharge of the duties; or,
working or behaving unsatisfactorily; constantly suffering from illness; or, involved in acts of
misconduct; or, lacks experience or lacks the ability to perform the Services under the Contract; or,
whose continued presence is detrimental to or disruptive of COMPANY's interest, CONTRACTOR shall,
upon request in writing from COMPANY, replace such individual as expediently as practicable under the
circumstances, and at CONTRACTOR's own expense. At its sole option, COMPANY may elect to require
that CONTRACTOR bring qualified and experienced individuals to mentor and enhance the technical and
operational knowledge of CONTRACTOR's Personnel until such times that standards, with respect to
quality, efficiency, and effectiveness are achieved in the Service. All costs associated with these
individuals will be borne by CONTRACTOR.

1.1.6. If CONTRACTOR wishes to replace any of its personnel assigned to the Contract who have been
approved by COMPANY, CONTRACTOR shall first provide a detailed resume to COMPANY's
Representative for each individual proposed as a replacement, and a transition plan for such individual.
This resume shall include as a minimum: the name; COMPANY and industry training; current position;
background / qualifications / educational profile; related work experience; location of work (office, rig,
lab, bulk facilities / warehouse); and years employed by CONTRACTOR. Such personnel shall be
required to fully meet the qualifications described in this Exhibit A-2 and elsewhere in this Contract.
COMPANY will then have the option of interviewing and testing such proposed personnel, and accepting
or rejecting them and the associated transition plan for assignment to the Contract. COMPANY will not
accept the removal of dedicated personnel from assignment to the Contract for a transfer by
CONTRACTOR to a Contract

53 Exhibit A-2
 with another COMPANY without an equally acceptable or superior replacement. If a
transfer is required, a time period of up to two (2) months may be required for the transition to take
place. The time required for transition will be specifically described in
the transition plan. The CONTRACTOR may provide trainees for COMPANY operations along
with its other personnel with the approval of COMPANY's Representative.

1.1.7. CONTRACTOR shall provide suitably qualified technicians for maintenance, equipment
installation, removal, modifications, testing and/or calibrations, and/or any other work
necessary to keep their equipment in top operational condition.

1.1.8. CONTRACTOR shall maintain as necessary an organizational chart denoting the personnel
structure and the titles and names of individuals, (for key positions) who are responsible
for implementing and delivering the Goods and Services as written in the Contract.

1.1.9. CONTRACTOR may be required from time to time to verify CONTRACTOR employee work
schedules as requested by COMPANY.

1.1.10. All drilling personnel (Rig Manager to Assistant Drillers) on the rig shall have a valid applicable Well
Control Certification (including high pressure/overpressure knowledge) as required by appropriate
authorities and as deemed as acceptable to COMPANY.

2. FIELD PERSONNEL QUALIFICATIONS AND DUTIES

2.1.Table C-1, attached at the end of Exhibit A-2 shows COMPANY's estimates of CONTRACTOR's
Personnel required to operate the Drilling Rig.

2.2.Resumes are required for all key personnel (i.e., Assistant Driller and up) employed by
CONTRACTOR in connection with the Operations. CONTRACTOR is also to provide operational
training data and related continuous training programs for all employees. CONTRACTOR shall use commercially
reasonable efforts to ensure that the personnel provided for performance of the
Operations and the support personnel include those individuals Usted in Table C-2. In the event
that any individual usted on Table C-2 (or any of their replacements) leaves the employment of
CONTRACTOR prior to the Termination Date, CONTRACTOR shall ensure a replacement for such individual
with relevant skills and geothermal experience comparable or greater than the replaced individual,
subject to COMPANY's approval of such individual, which shall not be unreasonably withheld or
delayed.

2.3.CONTRACTOR shall provide one (1) Onsite Operations Superintendant who shall have a minimum of fifteen
(15) years of oilfield and/or geothermal field experience, with at least five (5) years as a
Rig or Operations Superintendent, and with a thorough knowledge of all aspects of the Rig, its equipment,
maintenance and drilling operations. The Operations Superintendant will be an effective leader and will
ensure that CONTRACTOR's Operations Management System and HES standards are implemented
and maintained. Must be fluent in English language. The Operations Superintendent shall be required to
have a current Well control certification. The Operations
Superintendant may fulfill the role of day toolpusher.

2.4.The HES Manager to have minimum of fifteen (15) years of industrial safety related experience, preferably
geothermal/oilfield experience, at least five (5) of which is in a supervisory role and with a thorough knowledge
of CONTRACTOR's HES policy and procedures.

2.5.The CONTRACTOR shall provide one (1) HES Safety Officer on-site. The Safety Officer must have a minimum
of five (5) years in the safety profession. It is intended that the CONTRACTOR Safety Officer will primarily be
concerned with the quality, health, environmental and safety of the operation and implementation and
operation of CONTRACTOR's HES systems and procedures, track HES Observation Cards, track and
report any near misses, assist in accident/incident investigations, monitor .ISA's, safety meetings and
report HES statistics as required. The HES Safety Officer shall be

54 Exhiba A-2
 trained in CONTRACTOR'S Safety Management System. This person shall conduct visitor orientations and ensure
that all personnel on location are using proper PPE.

2.6. CONTRACTOR shall provide two (2) Onsite Toolpushers and all of them shall have a minimum of fifteen (15) years
of geothermal/oilfield drilling experience. The Toolpushers should have a minimum of 5 years experience in the
position of Tool pusher with a thorough knowledge of all aspects of the rig equipment, maintenance and drilling
operations. The Toolpusher will be in possession of current, valid Well Control certification. It is COMPANY'S
requirement to have one Toolpusher for each 12 (twelve) hour shift.

2.7. The Driller is to have a minimum of five (5) years geothermal or oilfield experience, at least two (2) of which as a
driller, and to have a thorough knowledge and familiarity of the rig equipment for drilling operations and be fully
conversant in all aspects of well control. The Driller will be in possession of current, valid and appropriate Well
Control certification. Must be able to converse in and have a good understanding of the English language and
Spanish language. CONTRACTOR shall provide a sufficient quantity of qualified Drillers so that no one is on duty
on a twenty-four hour per day basis. Besides the operation of the rig, Drillers will be responsible for supervising
national crews and alerting COMPANY's representative in the event of any irregularity.

2.8. The Assistant Driller to have minimum of five (5) years geothermal or oilfield experience, at least two (2) of which
as an assistant driller and to have a thorough knowledge and familiarity of the rig equipment for drilling
operations and be fully conversant in all aspects of well control. Should be able to converse in English language.

2.9. The Mechanical/Electrical Supervisor will have a minimum of ten (10) years geothermal or oilfield experience, at
least five (5) of which in a senior supervisory capacity and with a thorough knowledge of all aspects of the rig
equipment, maintenance and drilling operations. Must possess good skills in both written and spoken English
language.

2.10. All crew members shall be responsible for the following:

2.10.1. Ensure that COMPANY representative on location is informed of all potential problems or repairs

2.10.2. Review the drilling plan provided by COMPANY and ensure that it is followed
2.10.3. Ensure proper maintenance of CONTRACTOR's equipment
2.10.4. Ensure that all HES policies are adhered to at all times
2.10.5. Proper PPE use and maintenance
2.10.6. Participation in CONTRACTOR'S HSE Observation Card Program
2.10.7. Attendance at Pre-tour Safety Meetings, Pre-job Safety Meetings, JSA Review and Weekly Safety
Meetings

2.11. Other personnel not specifically detailed herein are to have experience in their respective job functions with
sufficient ability and technical expertise plus required certification where applicable. Personnel should have a
thorough knowledge of the appropriate aspects of the rig equipment, maintenance, inventory control, etc., for
drilling operations. Preferably able to converse in English and Spanish languages.

3. BASE OPERATIONS PERSONNEL QUALIFICATIONS AND DUTIES

3.1. CONTRACTOR's Representative

The CONTRACTOR must provide a CONTRACTOR's Representative, based in Santiago responsible for making
decisions regarding rig operations. This position requires frequent (at least twice a week) interaction with
COMPANY. The CONTRACTOR's Representative shall be familiar with CONTRACTOR's Safety Management System
and CONTRACTOR's Operations Management System as well as COMPANY's Operations Management System. The
CONTRACTOR's Representative shall

55 Exhibit A-2
 be familiar and comply with COMPANY's Contractor Management Program and will participate in developing and
monitoring the contract management scorecard. Must be fluent in English language. The CONTRACTOR's
Representative shall provide all reports required by COMPANY. This person is also required to participate in Pre-
Spud Meetings, Training Programs and HES Programs. The CONTRACTOR's Representative shall assist in any
conflicts concerning, personnel, invoicing, community relations, etc. including but not limited to:

• Knowledgeable in all field operations associated with drilling and completions and rig moves;
• Capable of providing full time support for CONTRACTOR's Operations Superintendant and Toolpusher;

• Willing to ensure that CONTRACTOR's QA/QC and preventive maintenance programs are adhered to;

• Able to ensure that all CONTRACTOR and third party work is conducted in a safe and timely manner and in
accordance with COMPANY HES policies;
• Capable of preparing End of Well Reports and participating in the End of Well Reviews.

The CONTRACTOR's Representative shall have overall responsibility for implementing the Contract, and for
achieving the standards as specified therein in respect of CONTRACTOR's performance.

Such standards shall include, but not be limited to:

• Operations
• Quality, Health, Environmental and Safety
• Technical excellence
• Contract compliance
• Preventive Maintenance Programs of all Rig Equipment
• Exception reporting and rectification
• lnvoicing auditing and consistency with Contract terms
• Performance tracking

3.2. After Contract execution and prior to the Commencement Date, the HES Manager may be required to write a
"Bridging Document" that will encompass as a minimum the roles, responsibilities and procedures applicable to
COMPANY's and CONTRACTOR's operations within the Operating Area or any extension thereof, and as described
in COMPANY and CONTRACTOR's OMS, insofar as it applies to Operations and Emergency Response Planning.

This position will be involved in promoting and developing the development of continuous improvement in HES
performance, problem resolution, incident investigation and trend analysis. This person shall be required to spend
25% of his time on the Rig conducting training and assisting rig site personnel.

6 Exhibit A-2
 TABLE C-1 - Re uired Contractor Personnel*
CONTRACTOR Minimum Personnel
No.
on Rig Site at All Times (24 hr Operation)
a Operations Superintendant — one (1) per 24 hr.
period
b Tool Pushers — two (2) persons 1 per 12-
hr. shift (Operations Superintendant can
serve as day Tool Pusher)
c Mechanic— one (1) person per 24-hr. period
d Driller — two (2) persons
1 per 12-hr. shift
5,
Minimum Requirement Remark
a) 15 years of geothermal / oilfieldMust be
experience, preferably in Chile, on site with at
least 6 of them as a Rig or Operations
superintendent,
and with a thorough knowledge
of all aspects of Rig, its
equipment, maintenance and
drilling operations.
b) Will be an effective leader and will
ensure that CONTRACTOR's
Operations Management System and
HES standards are implemented and
maintained.
c) Must be fluent in English.
a) 5 years in position of Toolpusher
with thorough knowledge of all
aspects of rig equipment,
maintenance and drilling operations.
b) Will be in a possession of current,
valid and appropriate certification
and Well Control certification.
c) Must be fluent in English and
Spanish.
a) 10 years geothermal or oilfield
experience, with at least 5 of them
in a senior supervisory capacity and
with knowledge of all aspects of the
rig equipment, SCR electrice,
maintenance and drilling operations
b) Must possess good skills in both
written and spoken English
language, and preferably be able to
converse in Spanish.
a) 5 years geothermal or oilfield
experience, 2 of which as a driller,
preferably on a drilling rig, and to
have thorough knowledge and
familiarity of the rig equipment for
drilling operations and be fully
conversant in all aspect of well
control.
b) Must be able to converse in and
have good understanding of the
Spanish language and preferably
English.
Exhibit A-2
 CONTRACTOR Minimum Personnel
No.
on Rig Site at All Times (24 hr Operation)
e Electrician — one (1) person per 24-hr. shift
f Safety Officer — one (1) per 24-hr. shift
Assistant Driller — one (1) per 24-hr. shift
g
h Derrickman — one (1) per 12-hr. shift
lk
8
Minimum Requirement Remark
a) 10 years geothermal or oilfield
experience in job functions with
sufficient ability and technical
expertise plus required
certification where applicable,
have a thorough knowledge of
the appropriate aspects of rig
equipment, maintenance,
inventory control, etc., for drilling
operations.
b) Preferably able to converse
in both Spanish and English.
a) 5 years in safety profession
b) familiar with the quality, health,
environmental and safety of a
rig; will primarily be responsible
for implementation and
operation of CONTRACTOR's
HES systems and procedures,
track HES Observation Cards,
track and report any near-
misses, assist in
accident/incident investigations,
monitor JSA's, safety meeting
and report HES statistics
c) Must be fluent in Spanish
and preferably English.
a) 5 years geothermal or oilfield
experience, with at least 2 of
them as an assistant driller, and
knowledge and familiarity with
the rig equipment for drilling
operations and fully conversant
in all aspect of well control.
b) Preferably able to converse
in both Spanish and English.
a) 3 years geothermal or oilfield
experience in job functions with
sufficient ability and technical
expertise plus required
certification where applicable,
have a thorough knowledge of
the appropriate aspects of rig
equipment, maintenance,
inventory control. etc. for drilling
operations.
b. Preferably able to converse
in both Spanish and English.
Exhibit A-2
 CONTRACTOR Minimum Personnel
No.
on Rig Site at All Times (24 hr Operation)
i Roughnecks — three (3) per 12-hr. shift
i Forklift Operator — one (1) per 24-hr. shift
k Roustabouts — five (5) per 24-hr. period
I Welders (Certified) — one (1) per 24-hr.
period
Storeman — one (1) per 24-hr. period
59
Minimum Requirement Remark
a) 1 year geothermal or oilfield
experience in job functions with
sufficient ability and technical
expertise plus required certification
where applicable, have a thorough
knowledge of the appropriate
aspects of rig equipment,
maintenance, inventory control,
etc., for drilling operations.
b) Preferably able to converse in
both Spanish and English.
a) 3 years geothermal or oilfield
experience in job functions with
sufficient ability and technical
expertise plus required certification
where applicable, have a
thorough knowledge of the
appropriate aspects of rig
equipment, maintenance, inventory
control, etc., for drilling operations.
b) experience in job functions with
sufficient ability in Spanish and
English.
a) 3 years geothermal or oilfield
experience in job functions with
sufficient ability and technical
expertise plus required certification
where applicable, have a thorough
knowledge of the appropriate
aspects of rig equipment,
maintenance,
Inventory control, etc. for
drilling operations.
b) Preferably able to converse in
both Spanish and English.
a) 3 years geothermal or oilfield
experience in job functions with
sufficient ability and technical
expertise plus required certification
where applicable, have a thorough
knowledge of the appropriate
aspects of rig equipment,
maintenance, inventory control,
etc., for drilling operations onshore
b) Preferably able to converse in
both Spanish and English.
Exhiba A-2
 TABLE 3—Initial Personnel List

Name Nationality Classification Years/Drilling Years/Geothermal

Experience Experience
Didier Lauberge France Operations 38 38

Superintendent
Mario Rivera El Salvador Operations 37 37

Superintendent
Ryvers Simmons United States Tool Pusher 19 1

Carlos Figueroa Guatemala Driller 30 4

Jerry Sanders United States Driller 30 1

Miguel Miranda Argentina Driller 21 1

Luis Jara Argentina Driller 19 2

60 Exhibit A-2
61 Exhibit A-2
 EXHIBIT A-3
TYPICAL DRILLING
PROGRAM

6 Exhiba A-3
 EXHIBIT A 3 - — TYPICAL DRILLING PROGRAM
To Drilling Contract

The following is a preliminary drilling program for drilling each geothermal well. A more detailed program
will be produced by the COMPANY for each well prior to spudding the well.

1) Build road and well pad location. Pre- install 30" conductor at 12 m GL.

2) Move in and setup rig and associated equipment.

3) Conduct pre-spud meetings and rig inspections.

4) Spud well and drill 26" vertical hole to 100 m with water based mud as per the mud program.

5) Rig up and run 20" 94 ppf J-55 BTC casing equipped with stab-in float shoe. Cement to surface
with inner string and using Class G cement as per the cementing program.

6) Install 21-1/4" 2M double ram and annular BOPE with 21-1/4" rotating head on 21-1/4" 2000 psi
casing head flange with kill and choke systems. Pressure test BOPE blind, pipe and annular ram
and casing to 300 psi and 1500 psi for 10 minutes each.

7) Make up BHA and drill 17-1/2" vertical hole to 600 m with water based mud as per the mud
program.

S) Rig up and run 13-3/8" 68 ppf L-80 BTC casing equipped with float shoe and stab in float collar.
Cement to surface with Class G cement as per the cementing program.

9) Install 13-5/8" 5M double ram and annular BOPE with 13-5/8" rotating head on 13-5/8" 3000 psi
casing head flange with kill and choke systems. Pressure test BOPE blind, pipe and annular ram
and casing to 300 psi and 2000 psi for 10 minutes each.

10) Make up steerable drilling assembly and directionally drill 12-1/4" hole to 900-1200 m. Kick-off
approximately 15m below the 13-3/8" casing shoe, build angle at 2.5-4 degrees per 30m to
approximately 20-40 degrees from vertical, and hold specified angle to section TD. Use water
based mud as per the mud program.

11) Rig up and run 9-5/8" 47 ppf, L-80, HES Seal Lock Boss production liner equipped with float shoe,
float collar, landing collar and liner hanger. Set the liner hanger with at 60 m lap from the 13-3/8"
casing shoe.

12) Cement the 9-5/8" production liner with Class G cement as per the cementing program. Release the
liner running tool from the hanger. Wait on cement and pressure test the lap (13-3/8" casing x 9-
5/8" casing). Run clean out assembly and drill out cement below the liner hanger.

13) Rig up and run 9-5/8" 47 ppf, L-80, HES Seal Lock Boss tieback casing with Stab-in the tieback
stem into the tieback receptacle in the liner hanger. Note the depth of the top of the liner hanger
and the length of the tieback space out inside the hole.

14) Rig up 9-5/8" cement head and cement the 9-5/8" tieback production casing with Class G cement
as per the cementing program. Wait on cement.

15) Loosen stud bolts and nuts between the 13-5/8" casing head flange and 13-5/8" BOPE stack. Hang
or nipple down 13-5/8" 3M double ram and annular ram and 13-5/8" rotating head.

63 Exhiba A-3
16) Cut 9-5/8" tieback casing. Make a final cut on the 9-5/8" casing aboye the 13-5/8" casing head
flange. Insta)) the 13-5/8" 3M x 11" 3M expansion spool and the 10" Class 900 master valve
including the 3-1/8" 3M side gate valves with pack-off assembly.

17) Nipple up the 10" ANSI 900 x 13-5/8" 5M adapter flange on top of master valve. Reinstall the 13-
5/8" 5M BOPE stack and rotating head with kill and choke system. Test the BOPE blind, pipe and
annular ram and casing to 2000 psi.

1$) Make up conventional 8-1/2" BHA. Drill out tieback floating equipment. RIH to top of cement
inside the liner. Drill out cement to float collar of liner. Pressure test liner and lap to
recommended surface pressure for 15 minutes.

19) Drill 8-1/2" hole to 2500 m depth, holding specified angle and azimuth, with water and
recommended flow rate. Make course corrections as required with steerable drilling assembly.

20) Rig up and run 7" 23 ppf K-55 BTC slotted production liner with drillable guide shoe. Run 7" liner
with liner adapter on liner running tool. Land 7" guide shoe on bottom. Release liner adapter on
liner running tool with 30 m liner overlap inside the 9-5/8" casing shoe. POH liner running tool.

21) A) If significant hole problems are encountered before the planned TD, consider running the 7"
slotted liner and reducing hole size.

22) B) Make up conventional 6-1/8" BHA and dril) to TD holding specified angle and azimuth with water
and recommended flow rate.

23) C) Rig up and run 5" 18 ppf P-110 HES Seal-lock flush perforated liner with 5" guide shoe. Run
with liner adapter and liner running tool and set the 5" liner on bottom. Release liner adapter from
liner running tool with 30 m liner overlap inside the 7" liner shoe. POH with liner running tool.

1) Lay down dril) pipe and tools. Tighten all flanges on well head equipment and valves.

2) Conduct completion test. Nipple down BOPE stack. Close master valve

3) Rig release and rig down. Move to new location.

64 Exhibit A-3
 ■ Figure 3 Tolhuaca Standard Well Diagram — with Tieback Completion

PROPOSED WELL DIAGRAM

for
Geoulobal Chile
Tolhuaca Tolhuaza 3 Standar: -ole Tieback Des,gn

)-101 F Information CASING Informatiog

C ONDL.C-OR CONDJCTOR F

36 ril0 12m 12 M. Line Pbe

SURFACE 40LE SUR.FAC E CAll!NG
26 rtxi100 m :2 1%94 cDt, K-15, Eurt- n: 1!..

PRODUCTION L- 1 TIE-BACK

5-5,5 rpe. L-8t . P-er , sear leSI

reo ei• 0-6,49 01 ~mera, Lffier 1 at 570

JNTERMEDIATE 1-C_E 1N'ERMF MATE CASING 1

"7-1,'2 10 600 r1 13-13 r 68 ci:& ,-E3, Subes:. Seamiess

re0 0' 7 Pr>0uctia , a: • 1 7C

PRODUCTION HC-E 1 PRODUCTION UPER 1

12-1,4 In lo 1202 rr 9-5:5 e 47 or .-er,cear

reo or 5 .91 Praoucnb, raer 3 al 1P70 te

PRODUCTION HO _E PRODUCTION L1NER 2

-1 ,2 Ir to 2C00 Tm, 7 r 23 pot. K-55. &ultras. 3eamen

PRODUCTION 1-10.E. 3 PRODUCTION UhER 3

6-143Ir lo 2500 m S r, 18 ppl K-SS. Flush J3Int, Oear 511

.1 Malla, saiaGe

65 Exhibit A-3
 EXHIBIT B
INDEPENDENT
CONTRACTOR HEALTH,
SAFETY AND
ENVIRONMENT
GUIDELINES

Exhibit B
 EXHIBIT B — INDEPENDENT CONTRACTOR HEALTH, SAFETY AND
ENVIRONMENT GUIDELINES
To Drilling Contract

TABLE OF CONTENTS

RESPONSIBILITY FOR COMPLIANCE 68

HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION WORK PLAN 68

ENTRANCE TO PROPERTY 69

TRAFFIC AND VEHICLES 69

SMOKING 69

MATCHES AND LIGHTERS 69

WORK PERMITS 70

PRESSURE TESTING 70

EXPLOSIVES AND HAZARDOUS MATERIALS 70

FIRE PROTECTION 70

MEDICAL AID 71
PERSONAL PROTECTIVE EQUIPMENT 71

HOUSEKEEPING 72

INCIDENT REPORTING 72

ENVIRONMENTAL PROTECTION 72

MISCELLANEOUS 73

SUSPENSION OF WORK 74

67 Exhibit B
CONTRACTOR shall comply with the following Independent Contractor Health, Safety and
Environment Guidelines in performing work for COMPANY. These guidelines are to be considered as
minimum standards. CONTRACTOR shall implement additional measures, as necessary, to assure
exemplary workplace health, safety and environmental protection. CONTRACTOR's compliance with
these guidelines in no way reduces or restricts CONTRACTOR's status as an independent contractor
or CONTRACTOR's liability and indemnity under this Contract.

1. Responsibility for Compliance

1.1CONTRACTOR shall provide all of its employees and the employees of all of its Subcontractors
with a copy or these rules, and any other safety and environmental requirements provided by
COMPANY, and shall ensure that all such employees are made aware of the content of the
rules and any other requirements prior to beginning work. CONTRACTOR shall maintain
written documentation of its fulfillment of this responsibility.
1.2CONTRACTOR shall comply with all applicable laws, COMPANY rules, and any other
requirements specified by COMPANY during the performance of work for COMPANY,
except to the extent that such compliance would be contrary to the law.
1.3CONTRACTOR shall also require its Subcontractors to comply with such rules and
requirements and shall be responsible for ensuring such compliance by its
Subcontractors; except to the extent that such compliance would be contrary to the law.
1.4 CONTRACTOR shall provide COMPANY with the name of its qualified representative(s)
and those of its Subcontractors who will be responsible for safety and environmental
protection at the job site(s).
1.5 All Contractors will comply with COMPANY transport procedures within the Contract Area.

2. Health, Safety and Environmental Protection Work Plan

2.1At award of contract, COMPANY will tell CONTRACTOR if a Health, Safety and
Environmental Protection Work Plan is required, the scope of the Plan, and the required
submission date to COMPANY.
2.2If required by COMPANY, CONTRACTOR shall submit a Health, Safety and Environmental
Protection Work Plan to COMPANY for review. The Plan shall describe the safety and
environmental issues and risks associated with the contracted service, and CONTRACTOR's
and Subcontractors' safety and environmental programs in place to address these issues.
2.3CONTRACTOR's Health, Safety and Environmental Protection Work Plan shall be based on,
and comply with, applicable laws, decrees, administrative rules and regulations,
relevant COMPANY policy and standard operating procedures, and international
geothermal field best practices.
2.4Prior to starting work, CONTRACTOR's on-site manager shall participate in a safety and
environmental protection orientation with the COMPANY representative.
2.5Prior to starting work, the COMPANY representative will review CONTRACTOR's Health,
Safety and Environmental Protection Work Plan and either accept it or return it to
CONTRACTOR with notice of deficiencies.

6. Exhiba B
 2.6 CONTRACTOR shall not start work without a Health, Safety and Environmental Protection
Work Plan, if required, that has been accepted by COMPANY.

2.7 Before starting work, CONTRACTOR shall inspect the work site to ensure that it is safe
for its employees and shall provide COMPANY with written notification of acceptance of
the site.

3. Entrance To Property

3.1COMPANY will advise CONTRACTOR of security requirements imponed during travel to

COMPANY facilities and during residence within the Contract Area. CONTRACTOR and
Subcontractors shall comply with all security requirements.
3.2CONTRACTOR and Subcontractors shall ensure that only those persons having authorized
business in connection with the contract are allowed in the Contract Area.

4. Traffic and Vehicles

4.1All CONTRACTOR and Subcontractor traffic on the Contract Area shall observe the posted
speed limit, or if not posted, a safe speed in light of existing conditions. Due to expected
heavy traffic within the Contract Area, all CONTRACTOR and Subcontractor vehicle
drivers must observe COMPANY representative's directions on driving up and down the
main access road to the work site.
4.2CONTRACTOR and Subcontractors shall ensure that all vehicles, cranes and rigging,
vessels, and equipment they provide are maintained in safe operating condition and
that operators are properly qualified, licensed and/or certified.
4.3CONTRACTOR- and Subcontractor-provided vehicles shall be equipped with appropriate seat
belts for driver and passengers. CONTRACTOR and Subcontractors shall ensure that
vehicle seat belts are always used.

5. Smoking

5.1Smoking is prohibited at the rig site and in all areas containing crude oil or fuel storage
except in designated authorized areas.
5.2There shall be no smoking other than in COMPANY designated areas. COMPANY shall have
the right to order persons observed smoking in unauthorized areas to cease, or to leave
such area.

6. Matches and Lighters

6.1"Strike anywhere" matches and plastic disposable lighters shall not be carried or used in
hazardous areas. Safety matches are preferred, but facility or work site rules shall
apply, and control in case of conflict.

69 Exhiba B
7. Work Permits

7.1Before hot work operations are conducted, CONTRACTOR or Subcontractor shall obtain a
determination from COMPANY whether a hot work permit is required, and shall comply
with all conditions of any hot work permit.
7.2CONTRACTOR and Subcontractors shall have written safe-entry procedures, and obtain prior
approval from the appropriate COMPANY representative, for any work involving entry
into confined spaces, limited access vessels, or below grade pits.
7.3CONTRACTOR or Subcontractors shall ensure that a total energy deactivation system (lock-
out/tag-out) is implemented while performing work on any equipment or machinery
where there is a possibility of injury or property damage.

8. Pressure Testing

8.1CONTRACTOR or Subcontractors shall not test pipes or pressure vessels using compressed
air or gas or service fluid, except after prior approval from COMPANY.

9. Explosives and Hazardous Materials

9.1If CONTRACTOR or Subcontractors require the use of explosives in performance of the work, they
shall provide COMPANY with written notification regarding the proposed use, storage and
handling of such explosives prior to the start of the blasting operations, and shall ensure that
the blaster is properly qualified for the type of work being done.
9.2CONTRACTOR and Subcontractors shall ensure the safe and environmentally sound
storage, transportation, identification, security and handling of hazardous materials
used in performance of the work.
9.3CONTRACTOR or Subcontractors shall maintain Material Safety Data Sheets (MSDSs) for all
chemicals and other hazardous materials used in performance of the work, and shall
perform all work consistent with the use specifications and other information in such
MSDSs.

10. Fire Protection

10.1CONTRACTOR and Subcontractors Shall take reasonable precautions to prevent fires.

10.2CONTRACTOR and Subcontractors shall dispose of paper, rags, trash, and other
combustible materials only in safe containers.
10.3CONTRACTOR and Subcontractors shall transport and store flammable liquids, such as
gasoline, kerosene, fuel oil, in lndustry-approved metal containers designed specifically
for handling these liquids. Such flammable liquids shall be stored away from possible
sources of ignition.
10.4 CONTRACTOR and Subcontractors shall not alter or tamper with fire protection
equipment or render it inaccessible.

Exhibit B
 10.5 CONTRACTOR and Subcontractors shall not open or close hydrants or main water
valves except after prior notice to the appropriate COMPANY representative or in the
case of emergency.
10.6 CONTRACTOR or Subcontractor shall immediately report to designated COMPANY
personnel any leak or indication of gas around piping or vessels. CONTRACTOR and
Subcontractors shall assure that all "hot work" in the area ceases immediately on the
discovery of the hazard.
10.7 CONTRACTOR and Subcontractors shall use for cleaning purposes only cleaning
solvents that have a high flash point (aboye 140°F, or 60°C) and are non-toxic.
10.8 CONTRACTOR and Subcontractors shall be responsible for the safety and fire
protection training of their employees.
10.9 CONTRACTOR or Subcontractor shall provide its own fire protection equipment unless
otherwise agreed with the COMPANY in writing.
10.10 CONTRACTOR or Subcontractor shall shut down internal combustion engines before
they are refueled, except where the refueling point is sufficiently remote from the engine
to allow safe refueling.
10.11 In case of fire, CONTRACTOR and Subcontractor personnel in the area shall immediately take
all practical measures to protect the safety of all personnel and to extinguish the fire. The
first priority shall be the safety of all personnel. CONTRACTOR or Subcontractor shall notify
the COMPANY representative of the fire as soon as possible.
10.12 CONTRACTOR or Subcontractors shall shut down all equipment and remove it from the
fire location if feasible and shall clear access routes.
10.13 Motors, compressors, pumps, and other equipment need to be situated such that fluid
leaks are contained to prevent environmental damage or safety hazards.

11. Medical Aid

COMPANY shall provide emergency first aid personnel and equipment, within the
Contract Area, and evacuation by road ambulance to the nearest hospital, at no cost to
the CONTRACTOR and subcontractors. Emergency evacuation by air will be at
CONTRACTOR's cost.

12. Personal Protective Equipment

12.1CONTRACTOR and Subcontractor personnel on the job site shall wear appropriate personal
protective equipment as required by COMPANY or by law, decree, administrative rule or
regulation or other legally binding policy interpretation or pronouncement of a legal
jurisdiction or authority.
12.2The CONTRACTOR and Subcontractor shall prepare equipment and personnel protection
equipment to withstand severe sub zero and high wind weather conditions. The
CONTRACTOR and Subcontractor shall be responsible for ensuring that personnel
protection equipment is adequate for the severe weather conditions. This shall include,
but not limited to, providing with or ensuring personnel wear insulated steel cap water-

Exhibit B
 proof footwear, insulated trousers, insulated jackets or coats, and insulated ear/ head
cover to fit under a hard hat.
12.3 CONTRACTOR or Subcontractors shall pay for and provide such equipment unless
otherwise agreed with the COMPANY in writing. CONTRACTOR or Subcontractors shall
post signs specifying where personal protective equipment use is required.
12.4 All personal protective equipment shall be used and maintained by CONTRACTOR or
Subcontractors in accordance with manufacturer recommendations.

13. Housekeeping

13.1CONTRACTOR and Subcontractors shall maintain good housekeeping at all times and shall
keep all working areas clean and free of obstructions.
13.2CONTRACTOR and Subcontractors shall keep access to emergency exits clear at all times.

13.3CONTRACTOR and Subcontractors shall assure that all ditches, holes, excavations,
overhead work, etc. are property barricaded and, where necessary, provided with
warning signs and lights.

14. Incident Reporting

14.1CONTRACTOR and Subcontractors shall promptly and accurately report all on-the-job
accidents injuries to the proper governmental authorities, where required, and to the
COMPANY representative.
14.2CONTRACTOR and Subcontractors shall immediately report all incidents to COMPANY and
confirm the report in writing within 24 hours. This includes fatalities, injuries, fires,
spills, motor vehicle accidents, and other damages to COMPANY's equipment.
14.3CONTRACTOR and Subcontractors shall maintain and file required accident forms
pursuant to COMPANY procedures or as required by law, decree, administrative rule or
regulation, or other legally binding policy interpretation or pronouncement of a legal
jurisdiction or authority.
14.4CONTRACTOR and Subcontractors shall report summaries of all safety incidents and spills
to the COMPANY safety representative monthly, unless otherwise specified by the
COM PANY.

15. Environmental Protection

15.1CONTRACTOR and Subcontractors shall prevent spills of oil or chemical substances to

land or water. Pollution prevention shall be a routine part of CONTRACTOR and
Subcontractor business and work activities.
15.2CONTRACTOR and Subcontractors shall exercise all necessary care to protect and preserve
the environment, including flora, fauna and other natural resources or assets at any
location where the work is performed. CONTRACTORs and Subcontractors shall
minimize and mitigate unavoidable impacts to the local environment.

Exhiba B
 15.3 CONTRACTOR and Subcontractors shall assess the environmental hazards of materials and
supplies used in conjunction with the contracted service and shall use substitute materials
presenting less risk whenever possible. The following materials shall not be used:

• Polychlorinated Biphenyls (PCBs)

• Asbestos
• Chlorinated solvents and thinners
• Halon and other chlorinated fluorocarbons

15.4 CONTRACTOR and Subcontractors shall keep a reasonable degree of order by properly
disposing of accumulated rubbish and waste materials. CONTRACTOR or
Subcontractors shall start site cleanup and remediation immediately upon completion of
their work at that site.
15.5 CONTRACTOR and Subcontractors shall prevent their employees from hunting,
disturbing, or capturing native birds, fish or other animals.
15.6 CONTRACTOR and Subcontractors shall not damage or remove trees and vegetation to
an extent greater than is necessary for the work, as determined by COMPANY.
Whenever reasonably feasible, CONTRACTOR or Subcontractor shall stockpile topsoil
for subsequent use in site restoration.
15.7 CONTRACTOR and Subcontractors shall use only above-ground steel tanks as fuel storage
tanks. Bladder, fiberglass, plastic, and other types of fuel storage tanks shall not be used
without prior COMPANY approval. CONTRACTOR and Subcontractors shall assure that
loading and drainage connections to fuel storage tanks are either plugged or locked in the
closed position when not in use, and that fuel dispensing nozzles are self-closing.
15.8 All above-ground fuel, oil and chemical storage tanks used by CONTRACTOR or
Subcontractors shall have secondary containment with a capacity of 110% of the
capacity of the largest single tank. Secondary containment impounds may have a drain
connection for removal of storm water, provided the drain discharge is normally
plugged or equipped with a valve normally locked closed.
15.9 CONTRACTOR and Subcontractors shall not discharge oil, solvents, chemicals, etc. to
water bodies or onto land.
15.10 CONTRACTOR and Subcontractors shall protect fossils and antiquities found at job
sites from damage or disturbance. CONTRACTOR or Subcontractor shall report the
location to COMPANY and cease work at that location pending further instructions.

16. Miscellaneous

16.1 CONTRACTOR and Subcontractors shall assure that compressed gas cylinders are
secured in place on a regular cart or chained to a support in an upright position; that all
cylinders not in use are protected with protective valve caps, and that compressed
oxygen and flammable gases are not stored together, or near combustible materials, but
stored in accordance with facility safety procedures.
16.2 No firearms, ammunition, or deadly weapons are permitted on COMPANY property
except as may be authorized by COMPANY for security purposes to ensure adequate
protection of property and employees.

73 Exhiba B
 16.3 All CONTRACTOR and Subcontractor provided safety equipment shall be properly
maintained and operable in accordance with manufacturer's instructions and legal
regulations.
16.4 CONTRACTOR and Subcontractors shall provide employees properly trained and
qualified to perform the work and to properly use all applicable safety equipment.
16.5 The COMPANY representative and CONTRACTOR or Subcontractor shall review the
final/completed work site to determine that any hazards related to the CONTRACTOR's
and/or Subcontractor's work Site have been removed in accordance with COMPANY
requirements.

17. Suspension of Work

COMPANY shall have the right to stop work by CONTRACTOR or Subcontractors at any time if
COMPANY identifies the work environment as imminently hazardous to persons, property, or
the environment.

Exhiba B
 EXHIBIT C
DRUG, ALCOHOL
AND SEARCH POLICY

,I\ Exhibit C
 EXHIBIT C — DRUG, ALCOHOL AND SEARCH POLICY
To Drilling Contract

TABLE OF CONTENTS

GENERAL POLICY 77
NOTICE TO CONTRACTOR'S EMPLOYEES 78

DEFINITIONS 79

6 11 Exhibit C
 EXHIBIT C — DRUG, ALCOHOL AND SEARCH POLICY
To Drilling Contract

1. General Policy

1.1Compliance. CONTRACTOR and Subcontractors ("Subcontractor" means any Person who is

engaged by CONTRACTOR or another Subcontractor to provide the Services (other
than a person engaged as an employee, but does not include the vendor of Products to
CONTRACTOR) shall comply with COMPANY's drug, alcohol, and search policy
("Policy") set out in this Exhibit, except to the extent that compliance is penalized under
the laws of Chile or violates applicable laws.
1.2Policy,Program and Training. The Contract Area shall be alcohol and drug free.
CONTRACTOR and Subcontractors shall have in place a written controlled substance
and alcohol policy, an implementation program, and a training program that meet or
exceed the requirements provided in this Exhibit. When required by law, CONTRACTOR
shall comply with Chilean procedures for workplace drug and alcohol testing programs.
1.3Notice to Personnel. CONTRACTOR shall provide a written notice (set out in Section 2 of this
Exhibit) to all personnel of CONTRACTOR and Subcontractors who will be engaged in
performing the Services in the Contract Area, prior to assigning them to work under this
Contract. Each of those individuals must be specifically made aware of COMPANY's and
CONTRACTOR's right to search.
1.4 Search. CONTRACTOR shall have the right to perform reasonable, unannounced
searches of the personnel of CONTRACTOR or Subcontractors at any time while they
are in the Contract Area, including searches of personal vehicles and personal effects
which are in or entering into the Contract Area
1.5 Testing. CONTRACTOR shall have the right to perform reasonable, unannounced controlled
substance and alcohol tests on the personnel of CONTRACTOR or Subcontractors at any
time while they are in the Contract Area. If a test is positive, the individual must be removed
from the Contract Area or cease performance of the Services until reinstatement is permitted
by COMPANY. The individual shall also be removed from the Contract Area if he/she refuses
or fails to have a requested test. Individuals testing positive or refusing tests are subject to
reinstatement at COMPANY's sole discretion.
1.6 Post-Accident Testing. CONTRACTOR shall conduct an immediate preliminary
evaluation into the circumstances of all accidents, injuries, near misses and mishaps in
the Contract Area which arise out of this Contract or the performance of the Services.
This evaluation must include a review of the conduct and behavior of affected
individuals following any incident or near miss involving these individuals to determine
whether personnel performance contributed to the incident. Alcohol and/or controlled
substances test(s) must be required by CONTRACTOR when the evaluation reveals a
reasonable cause to suspect the presence of alcohol or controlled substances.
1.7 Training. At a minimum, CONTRACTOR's and Subcontractors' personnel (before arriving
at the Area of Operations) shall receive training on all items listed in Sections 1.7(A) to
1.7(D) below and CONTRACTOR's and Subcontractors' supervisora shall receive
training on all items listed in Sections 1.7(A) to 1.7(E) below:

77 Exhibit C
 (A) COMPANY's and CONTRACTOR's controlled substances and alcohol policies.
(B) The effects and consequences of controlled substance and alcohol use on personal
health, safety and the work environment

(C) The details of CONTRACTOR's employee assistance program, if any, and available
treatment resources.
(D) The consequences of failing to comply with CONTRACTOR's and COMPANY's
policies.
(E) The physical, behavioral and performance indicators that may indicate controlled
substance and alcohol use or abuse.
1.8 Records. CONTRACTOR shall keep records of activities in compliance with this Exhibit. These
records must be maintained for at least twenty-four months after termination or completion
of this Contract.

2. Notice to CONTRACTOR's Employees

1 COMPANY's Drug, Alcohol and Search Policy.

(A) The use, possession, distribution, purchase or sale of any controlled substances or
alcohol by CONTRACTOR or Subcontractors or their personnel is prohibited while
within the Area of Operations.
(B) The use of any controlled substance or alcohol which causes or contributes to
unacceptable job performance or unusual behavior on the job in the Contract Area is
prohibited. Being under the influence of alcohol or controlled substances while within
the Contract Area is prohibited.

2.2 Penalty for Violation. CONTRACTOR and Subcontractors and their personnel who enter the
Area of Operations shall comply with this Policy. Any Person violating this Policy may be
removed from the Contract Area and may be denied future access. In addition, COMPANY
may suspend the Services or terminate this Contract as a result of violation of this Policy. In
appropriate cases, local law enforcement agencies may be advised of violations.

2.3 Searches and Testing. In support of this Policy, COMPANY or CONTRACTOR may conduct or
require searches and tests as follows:

(A) Searches. Unless prohibited by law, the following searches may be carried out:
(1) COMPANY or CONTRACTOR may carry out reasonable searches of individuals and
their personal effects and personal vehicles when entering the Contract Area,
while within the Contract Area and when leaving the Contract Area. These
searches may be carried out at any time and without prior announcement.

(2) Entry by an individual into the Contract Area constitutes consent to a search of
the individual and his/her personal effects, including packages, briefcases,
purses, lunch boxes and vehicle or any office, dormitory room, locker, closet or
desk.

Exhiba C
 (3) An individual may elect to decline to cooperate; however, refusal to cooperate may
result in the individual being removed from the Contract Area and restricted or
disqualified from performing the Services for COMPANY.
(B) Testing. Unless prohibited by applicable law, the following testing may be
conducted:
(1) COMPANY or CONTRACTOR may conduct or have conducted a controlled substance or
alcohol test(s) on the personnel of CONTRACTOR or Subcontractors upon entering or
while within the Contract Area. This testing may be carried out at any time and without
prior announcement.
(2) Prior written consent shall be obtained from any individual who is to be tested. A
positive test or a failure for individual to give written consent for a test, or a
substituted or adulterated test or a failure to take a requested test is cause for removal
from the Contract Area, and may result in the individual being restricted or disqualified
from performing the Services for COMPANY.

3. Definitions

3.1As used in this Exhibit, these terms have the following meanings:

(A) "Controlled substance" means:

(1) Opiates, including heroin.
(2) Hallucinogens, including marijuana, mescaline and peyote.
(3) Cocaine.
(4) PCP.
(5) Prescription drugs, including amphetamines, benzodiazepines and barbiturates, which
(a) are not obtained and used under a prescription lawfully issued to the person
possessing them or (b) have been prohibited by COMPANY for use in the Area of
Operations by any personnel or personnel performing specified functions.

(6) Any other substance that is controlled under Chilean law or that is otherwise unlawful
to possess or sell under applicable Chilean law.
(B) "Controlled Substance testing" means testing to detect the presence of controlled
substances.
(C) Controlled substance or alcohol "test" means any collection and analysis using urine, breath
or other samples to determine the presence of controlled substances or alcohol in the body.

(D) "Under the influence of alcohol" or a "positive alcohol test" means having a blood alcohol
concentration (% BAC) of 0.01%or aboye.
(E) Those terms defined in Exhibit B - Independent Contractor Health, Environmental and
Safety Guidelines have the same meaning in this Exhibit C - COMPANY's Drug Alcohol and
Search Policy.

79 Exhibit C
 EXHIBIT D
COMPENSATION

Exhibit D
 EXHIBIT D-- COMPENSATION AND PAYMENTS
To Drilling Contract

TABLE OF CONTENTS

COMPENSATION 82
DEFINITION OF RATES 85

LUMP SUMS 86

MOVE RATES 86

OTHER CHARGES 87

CONTRACTOR'S EQUIPMENT - CHANGES IN SCOPE OF SERVICE 88

CONTRACTOR'S DOWNHOLE EQUIPMENT LOST OR DAMAGED IN HOLE 88

TABLE OF RATES 88

PRICE BOOK ERROR! BOOKMARK NOT DEFINED.

Exhibit D
 EXHIBIT D-COMPENSATION
To Drilling Contract

1. COMPENSATION

1.1Total Compensation. In no event shall the total compensation and costs under this Contract exceed
Seventeen Million and 00/100 US Dollars ($17,000,000.00) without the prior written consent
of COMPANY.

1.2Advance Payment Invoice. CONTRACTOR may invoice COMPANY at any time following the
Mobilization Notice Date in the amount of US Dollars 910,000.00, which represents the full
amount of the Fixed Portion of the Mobilization Fee. COMPANY shall pay such invoice in
accordance with Article 9 of the CONTRACT.

Basis of Compensation. The compensation payable by COMPANY to CONTRACTOR for the

performance of the Services is as set forth in Article 8 of this Exhibit D.

1.4 Daily Rates. If rates specified in this Exhibit D are calculated on a daily basis, the applicable
daily rates may begin to apply on the Mobilization Notice Date and end when CONTRACTOR
returns to the Point of Origin or arrives at another destination as CONTRACTOR may elect
(but not exceeding the time it would take to return to the Point of Origin). No charges may
be made after the date that CONTRACTOR could have reached the Point of Origin using the
most expedient route. If travel to or from the Point of Origin is not applicable, the rates begin
as provided in this Exhibit D — Compensation.

"Point of Origin" means Chile's II Region of Antofagasta, El Loa province.

1.5 Wire Transfer Information. COMPANY shall pay funds to CONTRACTOR by wire transfer to the
account of CONTRACTOR as per CONTRACTOR's written instructions prior to the payment of
the first invoice.

1.6 Address for Receipt of Invoices. CONTRACTOR shall deliver invoices to COMPANY at the
following address:

Name: Enzo Contreras

Title: Country CFO
Address: Carmencita 25, Oficina 52, Las Condes
Santiago, 7550157
Chile

1.7 Rates. The rates, prices and fixed sums herein will be adjusted on a monthly basis, as set
forth in Article 1.7.2 of this Exhibit D , to take into account the CPI in the United States and
Chile, the price of fuel in Chile and the exchange rate variation between USD and the Chilean
peso. The adjustment will be done according to the formula presented in Article 1.7.2 of this
Exhibit D where the starting indices are the ones for the month where the last price offer was
presented by CONTRACTOR (October 2010).

1.7.1 Compensation And Payment

1.7.1.1 Rates, Prices, fixed Sums and Penalty - CONTRACTOR'S equipment,

products, materials and CONTRACTOR'S Personnel.

82 Exhiba D
 1.7.1.2 CONTRACTOR shall be paid for the provision of equipment, products,
materials and personnel in accordance with the rates, prices and lump sums
in this Exhibit.

1.7.1.3 For the purpose of this Contract a day shall be twenty-four (24)
hours commencing at 00:01 hours, and all periods of time shall be
computed to the nearest half-hour.

1.7.1.4 All Daily Rates are payable per day and pro rata for part day.
1.7.1.5 All sums properly due under the Contract shall be paid in the Currency
(USD).

1.7.1.6 Where no rate is shown, then the parties shall negotiate a rate.
1.7.2 Adjustment Formula

The following Rates' Adjustment Formula is presented considering that the prictig of this
proposal has rates specified in USD and considering that the cost structure of the
operation is highly impacted by costs that are a combination of services and products
in USD, local currency and are also greatly impacted by the Price of fuel.

Adjustment index: Ax(ind IPC/Ind TC) + Bx(Ind Combilnd TC) + Cxlnd CPI

Where:

A is 0.28 Represents the part of the costs driven b_y_ Local Currency_and will be
adjusted according to the Consumer Price Index (IPC) in Chile and the
exchange rate between CLP and USD.

B is 0.04 Represents the part of the cost that is dependent of the fuel Price
bought in Chile.
C is 0.68 Represents the part of the costs in USD.

Where:

Ind IPC: is the index related to the change of IPC (Índice de Precios al
Consumidor en Chile).

Ind TC: is the index related to the currency Exchange rate change (Pesos
Chilenos por US Dólar}

Ind Comb: is the index related to the change in fuel price.

Ind CPI: Is the index related to the change of the CPI (Consumer Price Index in
USA)

The values for this formula are to be used from the following sources:

(A) Ind_IPC: From the web page: http://www.ine.cl (Instituto nacional de

Estadísticas)
Route to follow:

Chile Estadístico — Estadísticas de Precios — Precios al Consumidor — Series

Estadísticas - índice de Precios al Consumidor — Under índices, look at the index of

Exhibit D
the base month and the adjusting month. Divide the adjusting month by the base
month.

Ind_TC: From the web page: http://www.bcentral.cl (Banco Central de Chile)

Route to follow:

Indicadores Económicos en Planilla de Calculo — (at the end of the page go

to) Tipo de Cambio Observado (Open the Excel file), In this page the observed
USD/CLP value is presented for every business day. Calculate the average of
the adjusting month and divide it by the aveáe of the base month.

(B) Ind Comb: From the web page:http://www.ine.cl (Instituto nacional de

Estadísticas)

Route to follow:

Chile Estadístico — Estadísticas de Precios — Precios al Por Mayor — Series

Anual de índices Mensuales de Productos - (Open the Excel file), Go to row
262 and look at the "petróleo diesel". ir a la línea 262 de Petróleo Diesel,
look at the index of the base month and the adjusting month. Divide the
adjusting month by the base month.

(Clind CPI: From the web page: http://www.bls.gov , (Bureau of Labor

Statistics)

Route to follow:

- Inflation & Prices — Consumer price Index — CPI Tables — Click on "Table
Containing History of CPI-U US. All items indexes and Annual Percent
Changes From 1913 to Present", there are the CPI indexes month by month.
Look for the index of the base month and the adjusting month. Divide the
adjusting month by the base month
The base month for this contract will be considered the month of the
signature of the contract..

As an example the following calculations are based on a base month of

January 2008 and an invoicing month of October-2008. Therefore, the
adjusting month is September-2008.

Example:
Base month : January — 2008

Adjusting month: Sep-08

Ind IPC: January = 133.90

Sep = 144.11

Ind TC: January = 480.90

Sep = 530.17

A) Ind Comb: January = 99.34

Exhibit D
 Sep = 131.55

B) January = 211.080

Sep = 218.783

Adjustment index =
Local Currency costs: 0.28*(144.11/133.90)/(530.17/480.90)=0.273

Fuel costs: 0.04*(131.55/99.34)/(530.17/480.90)= 0.048

USD costs: 0.68*(218.783/211.080)= 0.704

Total=1.025

Adjustment index for the invoicing to be done in Octubre-2008 : 2,5%

2. DEFINITION OF RATES

2.1Daily Operating Rate.

2.1.1 Daily Operating Rate: Refer to Article 7.3 of the Contract. In addition this rate shall apply
during routine lubrication of various rig parts, and when slipping and cutting the drilling
line.

2.1.2 CONTRACTOR shall be allowed a maximum of sixty (60) minutes per day for routine
lubrication and maintenance of primary equipment (crown blocks, traveling blocks, draw
works, rotary table, kelly, hook, swivel, top drive, compound, floor motors) and for slipping
and cutting the drilling line, and be compensated at a rate commensurate to the operating
day rate. When and where possible, and safe to do so, routine lubrication activities should
take place concurrently with normal rig operations, thus minimizing downtime.

2.1.3 Except when superseded by any other rate as set forth herein, Daily Operating Rate shall
remain in force until commencement of Demobilization, Rig Move Rate or Rig Release upon
suspension.

2.2 Standby Rate with Crew

2.2.1 This rate is applicable, provided that CONTRACTOR's full crew compliment is in the area of
operation.

2.2.2 During any period that COMPANY requests that drilling operations cease and that
CONTRACTOR should standby.

Standby Rate with Crew shall remain in force until operations resume or until said rate is
superseded by any other rate as set forth herein.

2.3 Standby Rate without Crew

2.3.1 This rate is applicable, provided that CONTRACTOR's full crew compliment is not in the area
of operation.

2.3.2 During any period that COMPANY requests that drilling operations cease and that
CONTRACTOR should standby.

8 Exhiba D
 Standby Rate without Crew shall remain in force until operations resume or until raid rate is
superseded by any other rate as set forth herein.

2.4 Rig Repair Rate: Refer to Article 7.8 of the Contract.

A Rig Repair Rate shall apply when it becomes absolutely necessary to shut down
CONTRACTOR's rig for repairs. CONTRACTOR shall be allowed compensation while doing such
repairs at a rate commensurate to the operating day rate, provided:

2.3.1 The maximum number of hours CONTRACTOR shall be allowed compensation for such
repairs is thirty-six (36) hours per calendar month.

2.3.2 Repair time in excess of the prescribed time shall be meted a zero rate for the
duration of such repairs.

3. LUMP SUMS

3.1 Retainer Fee is to be paid by COMPANY to CONTRACTOR on a monthly basis for each month
(or a pro-rated portion thereof) between execution of the Contract and the Mobilization
Notice Date.

3.2 Mobilization Fee is comprised of the Fixed Portion of the Mobilization Fee and the Variable
Portion of the Mobilization Fee, the latter which is intended to cover the cost to mobilize the
Rig to the first well location in the Contract Area, undertake rig refurbishment, and transport
rig to initial well location, erect rig and prepare for operations at the commencement of the
Contract. CONTRACTOR shall be allowed a maximum period of 45 days at the rate designated
as the Variable Portion of the Mobilization Fee. The payment of the Fixed Portion of the
Mobilization Fee shall be net of any excess Retainer Fee pre-paid by COMPANY for the month
in which the Mobilization Notice is issued.

3.3 The Fixed Portion of the Demobilization Fee is defined to cover the cost to demobilize the Rig
from COM PANY's final well location to an agreed point from which the rig can either be
demobilized to another location or placed in storage. The Variable Portion of the
Demobilization Fee will be calculated pursuant to Article 7.9.1 of the CONTRACT.

3.4 The Early Termination Fee is intended as compensation to CONTRACTOR for its costs and
losses associated with any termination by COMPANY of the CONTRACT that occurs within
twelve (12) months from the Effective Date. Any applicable Early Termination Fee shall be
payable by COMPANY in addition to the Demobilization Fee (but only if COMPANY terminates
the CONTRACT following the Commencement Date). The Early Termination Fee shall be
payable by COMPANY in the amount of $1,900,000 if the CONTRACT is terminated by
COMPANY less than six (6) months from the Commencement Date and shall be payable by
COMPANY in the amount of $900,000 if the CONTRACT is terminated by COMPANY between
six (6) and twelve (12) months from the Commencement Date. No Early Termination Fee
shall be payable by COMPANY upon its termination of the CONTRACT after twelve (12)
months from the Effective Date.

4. MOVE RATES

4.1Move Rate - Same Pad

(A) Move Rate - Same Pad is applicable during the time when the Rig is moving between
different well locations on the same multi-well pad in the same field.

86 \
 (B) Move Rate - Same Pad shall commence from the time that the Drilling Unit has been
released ("Rig Release") and COMPANY's Drill Site Manager directs CONTRACTOR to rig-
down and move the Rig to the next drilling location.

(C) Except when superseded by any other rate as set forth herein, Move Rate - Same Pad
shall remain in force until the move to the next well location is completed and at the
time is fully erected, the Rig Acceptance Test as determined by COMPANY Drill Site
Manager location is completed, and the Rig is prepared to start operations on the well
then to be drilled.

4.2 Move Rate - Different Pad

(A) Move Rate - Different Pad is applicable during the time when the Rig is moving between
different well locations on different pads in the same field.

(B) Move Rate - Different Pad shall commence from the time that the Drilling Unit has been
released ("Rig Release") and COMPANY's Drill Site Manager directs CONTRACTOR to rig-
down and move the Rig to the next drilling location.

(C) Except when superseded by any other rate as set forth herein, Move Rate- Different
Pad shall remain in force until the move to the next well location is completed and at
the time when the Rig is fully erected, the Rig Acceptance Test as determined by
COMPANY Drill Site Manager on location is completed, and the Rig is prepared to start
operations on the well then to be drilled.

4.3 Move Rate - Between Fields

(A) Move Rate - Between Fields is applicable during the time when the Rig is moving
between different well locations in different fields.

(B) Move Rate - Between Fields shall commence from the time that drilling operations have
been concluded on the well then being drilled, the well has been secured and
COMPANY's Drill Site Manager directs CONTRACTOR to rig-down and move the Rig to
the next drilling location.

(C) Except when superseded by any other rate as set forth herein, Move Rate — Between
Fields shall remain in force until the move to the next well location is completed and at
the time when the Rig is fully erected, the Rig Acceptance Test as determined by
COMPANY Drill Site Manager on location is completed, and the Rig is prepared to start
operations on the well then to be drilled.

5. OTHER CHARGES

5.1Handling Charges

Upon written request by COMPANY, CONTRACTOR shall furnish, if available, equipment and
products other than those specified In Exhibit A-1. COMPANY shall reimburse CONTRACTOR
the cost of such equipment and products delivered to Rig location, plus for each invoice the
handling charges quoted hereto which shall include customs duties, agent fees, etc.

5.2 Rate Adjustments

Rate adjustments will be done on a monthly basis according to Article 1.7.2 of EXHIBIT D.

5.3 Accommodations, Meals and Laundry Services.

87 Exhibit D
 COMPANY, at its cost and expense, shall provide accommodations, catering and laundry
services for CONTRACTOR's personnel and its subcontractors not in excess of thirty (30)
people.

6. CONTRACTOR'S EQUIPMENT - CHANGES IN SCOPE OF SERVICE

6.1Should the scope of work change during the term of the Contract by the release or addition of
equipment or by the addition, reduction, or change in specification of equipment to meet
the requirements of its operation, then COMPANY reserves the right to change the
quantity of the individual equipment and materials required by providing thirty (30)
days written notification to CONTRACTOR. CONTRACTOR is entitled to adjust the rates in
Article 8 of EXHIBIT D to reflect the additional cost due to the changes in scope of
services as it relates to equipment, which adjustment shall be agreed by COMPANY and
CONTRACTOR.

7. CONTRACTOR's DOWNHOLE EQUIPMENT LOST OR DAMAGED IN HOLE

7.1Please refer to Article 11.1.1(U) of the Contract.

8. TABLE OF RATES

The Table of Rates provided below summarizes all charges CONTRACTOR shall invoice COMPANY. Any
invoices that do not fall within the definitions set out in this Exhibit D will not be accepted.

8.1Rig Day Rates

Item Description Rate/Day

(USD)
1 Daily Operating Rate 36,744
2 Rig Repair Rate (up to 36 hours per calendar month) 36,744
3 Rig Standby with Crew Rate 36,744
4 Rig Standby Without Crew Rate 28,632
5 Force Majeure Rate 28,632

8.2 Lump Sum Payments

Item Description Lump Sum (USD)

1 Retainer Fee 180,000 per calendar month through
January 15, 2011 and 400,000 per
calendar month thereafter
2 Mobilization Fee Fixed Portion of 910,000 plus
Variable Portion of 13,000/day (max.
45 days)
3 Demobilization Fee Fixed Portion of 1,150,000 plus
Variable Portion of 450,000
4 Early Termination Fee 11,900,000
if less than 6 months after
Commencement Date
5 Early Termination Fee 2900,000 if
greater than 6 months but less than
12 months after Commencement
Date

8.3 Rig Move Rates

88 Exhibit D
 Item Description Rate/Day (USD)
1 Rig Move Rate same pad
— 29,395 plus actual cost of trucks and
cranes
2 Rig Move Rate — different pad 29,395 plus actual cost of trucks and
cranes
3 Rig Move Rate — between fields 29,395 plus actual cost of trucks,
cranes, permits, additional insurance
and other related additional
mobilization costs.

8.4 Replacement Table (Lost in hole or damaged beyond repair)

Drill Pipe, BHA Components and Fishing Tool Lost in Hole Costs

Unit Please list original cost of CONTRACTOR's Net Unit Cost

down-hole tools. (USD)
Each DP 5" 5135 Range III 7,313
Each DP 5" G105 Range III 7,031
Each DP 3.5" G105 Range II 3,488
Each DC 9.5" 30ft 26,250
Each DC 9.5" 15ft Pony 13,000
Each DC 8.25" 30ft 20,000
Each DC 8.25" 10ft Pony 10,750
Each DC 6.5" 30ft 13,750
Each DC 6.5" 10ft Pony 6,625
Each DC 4.75" 30ft 10,000
Each DC 4.75" 10ft pony 5,125
Each HWDP 5" 30ft 10,375
Each HWDP 3.5" 30ft 5,000
Each XO 9.5" 6,250
Each XO 8.25" 5,000
Each XO 6.5" 4,500
Each XO 4.75" 3,750

89 Exhibit D
 EXHIBIT E
GENERAL RIG
ACCEPTANCE
INSPECTION

9.* Exhibit E
 EXHIBIT E - GENERAL RIG ACCEPTANCE INSPECTION
To Drilling Contract

TABLE OF CONTENTS

FULL RIG ACCEPTANCE INSPECTION 92

INSPECTION PROCEDURES 92

DETAILED DESCRIPTION OF INSPECTION PROGRAM 92

RIG FLOOR AND DERRICK 93

WELL TESTING EQUIPMENT 93

BU LK SYSTEM 93

MUD SYSTEM 93

ELECTRICAL 93

POWER GENERATION 93

MAINTENANCE MANAGEMENT 94

SAFETY SYSTEMS AND EQUIPMENT CHECK 94

CERTIFICATION 94

SAFETY MANAGEMENT 94

91 Exhiba E
 EXHIBIT E - GENERAL RIG ACCEPTANCE INSPECTION
To Drilling Contract

COMPANY requires a full rig acceptance Inspection prior to execution of the drilling contract. Following is a general
description of the scope of the inspection.

1. FULL RIG ACCEPTANCE INSPECTION

This survey is an in-depth visual inspection and function testing of all rig equipment. This includes but is
not limited to full inspections of mud pumps, rotary table, drawworks and internal Inspection of other vital
equipment.

The scope of the inspection will Include:

• Analysis of equipment condition and standards of maintenance, in accordance with API standards and the
equipment manufacturers specifications and recommendations.
• Opening all major items of equipment for internal inspection as requested, for the purpose of performing
a detailed examination of gear teeth, bearings, chains and ancillary parts for excessive wear, damage,
cracks and other defects and for measurements of clearances.
• Function testing, pressure testing, load testing, and insulation resistance checks for all equipment on
board the drilling unit, as applicable, will be conducted.
• A check that the proper safety devices are Installed and are working correctly to prevent accidents and
equipment failures.
• Evaluating the effectiveness of the Preventive Maintenance Program.

2. INSPECTION PROCEDURES

Rig inspections will normally be conducted by two third-party independent consultants selected by and at the
expense of COMPANY. AII other costs associated with the inspection shall be at the expense of
CONTRACTOR. The inspection shall be conducted during a rig move, in shipyard or when stacked.

The minimum number of CONTRACTOR's Personnel required for assistance are: Toolpusher, Assistant Driller,
Derrickman, Mechanic, Electrician, Barge Engineer and two helpers.

The time required for a full inspection is normally six days for two rig inspectors. AII rig time required for
inspection and required repairs, if any, shall be at CONTRACTOR's expense, and shall be conducted prior to
execution of the drilling contract.

3. DETAILED DESCRIPTION OF INSPECTION PROGRAM

The full acceptance program consists of the following sections:

Drilling Equipment: The Drilling Equipment Inspection section specifically relates to equipment. AII items
are comprehensively reviewed, with inspection covers removed for the measurement of tolerances and
clearances and detailed examination of the mechanical and electrical condition.

Hoisting Equipment: Drawworks, Rotary Table, Swivel, Kelly, Kelly Spinner, Kelly Drive Bushing, Crown
Block, Traveling Block, Hook, Top Drive.

Pipe Handling Equipment: Automatic Pipe Handling Systems, Pipe Spinning Wrench, Tongs, Slips and
Safety Clamps, Elevators, Casing Tongs, Spiders, and Elevators.

Exhiba E
9
 Drilling Fluids Equipment: Mud Pumps, Shale Shakers, Desilters, Desanders, Degasser, Mud
Centrifuge, Mud Agitators, Centrifugal Pumps, Standpipe Manifold and Rotary Hoses, Mud Cleaner,
Mud Mixing System.

Miscellaneous: Drilling Instrumentation, Derrick/Casing Stabbing Board, Tuggers and Sheaves, Man
Riding Winches, Survey Line, Well Testing Equipment, Drill String Components.

4. RIG FLOOR AND DERRICK

This inspection insures the standards of maintenance and safe working order of all derrick fittings and
fixtures. Auxiliary drilling equipment items are also tested and inspected, together with a review of
drilling tool and tubular NDT inspection records.

5. WELL TESTING EQUIPMENT

All aspects of the production equipment support pipelines (which belong to the rig) are included in
this section together with review of the current condition and performance of the support equipment.

6. BULK SYSTEM

The performance, specification and condition of the bulk systems are checked, together with internal
inspection and pressurization of the system to ensure pressure integrity and bulk air supply
efficiency.

7. M U D SYSTEM

The mud system inspection relates to all aspects of mud mixing. storage, cleaning, and pumping.
This includes the mud pits, together with the centrifuga) pumps, agitators, ventilation, pipework and
related systems.

All mud cleaning equipment is reviewed, including shale shakers, degasser, desanders, desilters, and
mud cleaners. The mud pumps are given a detailed mechanical/electrical review, together with a
review of pump records to determine whether problems are causing increased fluid end component
usage. Also included is the high pressure mud system from the mud pumps to the top drive or
swivel.

8. ELECTRICAL

This includes an insulation resistance check which highlights problem areas within all DC motors,
critical system AC motors, generators, and transformers. The Elmagco brake is highlighted for
particular attention with regard to the brake monitoring and back-up power supply systems;
electrical supply to living quarter, rig floor and other parts of the rig will be inspected for proper
installation and usage.

9. POWER GENERATION

A full condition and performance review of all power generation and diesel engines and generators,
the emergency generator, propulsion systems, air compressors and water makers to ensure safe,
reliable service. All equipment safety features are checked and tested where appropriate, including
the main engine shutdowns and pressure relief valves.

93 Exhiba E
10. MAINTENANCE MANAGEMENT

Maintenance programs, procedures and historical files are reviewed to establish standards and efficiency.

11. SAFETY SYSTEMS AND EQUIPMENT CHECK

General Rig Safety, Gas Detection System, Fire Control System, Automatic Fire Detection System, CO2 Fire
Control System, Fire Stations, Extinguisher and Firefighting Equipment, Escape Routes, Breathing Apparatus,
Helicopter Facilities, Drilling Facilities, First Aid Stations and Sick Bay, Emergency Procedures, Living Quarters,
Potable Water Maker and Potable Water System, Sewage System, Pollution Control, Work Permits and
General Housekeeping.

12. CERTIFICATION

The current status of the rig is reviewed with regard to the required certification which should be available.
Certification inspections which will fall due within the contract term are highlighted, together with any
deficiencies which may be problematic. Certification of lifting gear and appliances including the registrar in
place are examined.

13. SAFETY MANAGEMENT

The safety programs, level of training and certification, emergency procedures, documentation systems and
procedures can be reviewed to establish the standard and efficiency of the safety management system.

Exhiba E
 EXHIBIT F
DRILLING EQUIPMENT
QUALIFICATION
STANDARD

lk Exhibit F
 EXHIBIT F - DRILLING EQUIPMENT QUALIFICATION STANDARD
To Drilling Contract

TABLE OF CONTENTS

INTRODUCTION 97
DEFINITION OF INSPECTION METHODS 97

INSTRUCTIONS 99

SERVICE CLASSIFICATIONS AND FREQUENCY OF INSPECTION 100

ADDITIONAL EQUIPMENT CONSIDERATIONS 101

INSPECTION REPORT 101

TABLE I TO EXHIBIT F — DRILLING EQUIPMENT INSPECTION FREQUENCY 102

TABLE II TO EXHIBIT F — REQUIRED DRILL PIPE INSPECTION METHODS 103

TABLE III TO EXHIBIT F — BOTTOMHOLEASSEMBLY INSPECTION METHODS 1 104

TABLE IV TO EXHIBIT F — OTHER EQUIPMENT INSPECTION METHODS 105

96 Exhibit F
 EXHIBIT F• - DRILLING EQUIPMENT QUALIFICATION STANDARD
To Drilling Contract

1. INTRODUCTION

This standard is for use by COMPANY for the inspection of used drilling equipment, including drill
pipe, bottomhole assembly components, fishing tools and DST tools. The inspection methods listed
in this standard will generally be performed prior to shipping material or mobilizing a rig to the well
site unless agreed otherwise by COMPANY. Inspection performed at the rig site shall be limited to trip
inspection of bottom hole assemblies. No changes in the requirements of this standard shall be made
without the approval of an authorized COMPANY representative.

2. DEFINITION OF INSPECTION METHODS

2.1 Rotary-Shouldered Connections: Those inspection methods which may be applicable to

any rotary-shouldered connection, regardless of whether the connection is on drill pipe
or any other equipment.
2.1.1 Visual: Visual examination of rotary-shouldered connections to determine pipe
grade, condition of the seal (shoulders), condition of the threads and box swell.
2.1.2 Dimensional: Measurement or go/no-go gauging of rotary-shouldered connection
dimensions to determine box outside diameter, pin inside diameter, bevel
diameter, seal (shoulders) width, tong space, counterbore diameter, pin length,
depth of box, length of perfect box threads and stress relief feature dimensions.
2.1.3 Magnetic Particle: Examination of rotary-shouldered connections to identify
surface and near-surface transverse flaws, such as fatigue cracks, using the
wet fluorescent magnetic particle (black light) technique.
2.1.4 Normal Seam Ultrasonic: Examination of used rotary-shouldered connections to
identify transverse flaws such as fatigue cracks. A normal beam ultrasonic scan
from the box shoulder or pin tip is used to Inspect the threaded areas.
2.1.5 Dye Penetrant: Examination of rotary-shouldered connections to identify surface
flaws, such as fatigue and stress corrosion cracks. Visible and fluorescent water-
washable and visible solvent-removable penetrant techniques may be employed.
2.1.6 Thread Gauge: Mechanical gauging of rotary-shouldered connections to determine
conformance to API or proprietary specifications for lead, taper, ring and plug
gauge standoff.
2.2 Drill Pipe tubes: Inspection methods which apply only to drill pipe tubes.

2.2.1 Visual: FuII-Iength visual examination of the inside and outside surfaces of used
drill pipe tubes for mechanical or corrosion damage and of the inside for debris,
such as scale or drilling mud.
2.2.2 Gauge: Full-length mechanical gauging of the outside diameter of used drill pipe
tubes to identify excessive wear, mechanical damage, such as mashes, and
expansions caused by string shots.

Exhiba F
 2.2.3 Ultrasonic Wall Thickness: Measurement of the wall thickness of used drill pipe
at the points of apparent maximum wear to verify that adequate thickness
remains. Use of an ultrasonic thickness gauge is required.
2.2.4 Electromagnetic Type 1: Full-length scanning (excluding upsets) of used drill
pipe tubes for transverse flaws, such as fatigue cracks, using buggy-type or
fixed-facility flux leakage detection equipment.
2.2.5 Electromagnetic Type 3: Full-length scanning (excluding upsets) of used drill
pipe tubes for transverse and longitudinal flaws, such as fatigue cracks and
manufacturing defects and for thin wall areas. Automated flux leakage detection
and gamma ray wall thickness measurement equipment is used. Gamma ray
equipment shall use the single wall, backscatter or other measurement
technique capable of identifying eccentricity. Double-wall gamma equipment
shall not be used
2.2.6 Ultrasonic Slip Area: Examination of the slip and upper areas of used drill pipe for
transverse flaws, such as fatigue cracks, using shear wave scanning equipment.
2.3 General Inspection: General magnetic particle and dye penetrant inspection procedures
which may be applied to a variety of equipment or internal parts.
2.3.1 Magnetic Particle: Examination of small radii, rapid changes in cross section,
welds, drill pipe upset areas and other high-stress areas in used drilling tools
and equipment. Use may include either active field (AC or DC) wet fluorescent
particle or active AC dry visible particle techniques.
2.3.2 Dye Penetrant Examination of threaded connections (other than rotary-shouldered
connections) and machined surfaces to identify surface flaws, such as fatigue
and stress corrosion cracks. Visible and fluorescent water-washable and visible
solvent-removable penetrant techniques may be employed.
2.4 Drilling Equipment Inspection methods which are applicable to a specific type of drilling
equipment.
2.4.1 Drill Pipe and Heavy-Weight Drill Pipe: Visual, dimensional and flaw detection
inspections of drill pipe and heavy-weight drill pipe to detect service-induced
and manufacturing flaws.
2.4.2 Bottomhole Assembly Components: Visual, dimensional and flaw detection
inspections of drill collars, crossovers, stabilizers, roller reamers, hole openers,
under-reamers, jars, and shock subs for manufacturing and service-
wear/corrosion damage. Includes functional test/inspection of under-reamers,
jars and shock subs.
2.4.3 Kellys and Subs: Visual, dimensional and flaw detection inspection of Kellys,
saver subs, swivel subs and drill pipe crossovers.
2.4.4 Handling Equipment Visual examination and flaw detection inspection of slips,
elevators, spiders, bails and similar handling equipment to locate wear and
mechanical damage.
2.4.5 Kelly Valves, Safety Valves and Inside Blowout Preventers: Visual, dimensional and
flaw detection inspection of Kelly valves, safety valves and inside BOPEs to detect

98 Exhibit F
 excessive wear and corrosion damage. Includes hydrostatic and functional test
to verify functional integrity prior to shipment.
2.4.6 Ram Blowout Preventers: Visual, dimensional, hydrostatic and functional
inspection of ram-type preventer equipment.
2.4.7 Annular Blowout Preventers: Visual, dimensional, hydrostatic and functional
inspection of annular-type preventer equipment.
2.4.8 Choke and KiII Equipment: Visual, dimensional, hydrostatic and functional
inspection of valves, flanges, piping and similar components of choke and kilt
systems.

3. INSTRUCTIONS
3.1Lead Time: Proper inspection requires adequate time to arrange and conduct the
inspections outlined in this standard.
3.2Inspection Responsibility: CONTRACTOR will be responsible to arrange and pay the cost of
all inspections prior to commencement of this Contract. Previous inspections will not
be accepted unless they were done to COMPANY inspection standards and alI of items
involved can be clearly identified with and inspection report using joint or piece
identification numbers.
3.3COMPANY Witness: Unless otherwise specified, all equipment inspections shall be
witnessed by COMPANY Quality Assurance personnel, COMPANY Drilling
representatives or their designated alternates. Sufficient notice shall be given prior to
the start of inspections. COMPANY shall have the authority to enforce COMPANY
standards and decide what is acceptable on matters of judgment.
3.4Rotary-Shouldered Connection Selection Considerations: Unless otherwise specified, the
following requirements apply to selection or rotary-shouldered connections:
3.4.1 The Internal Flush (IF), Extra Hole (XH), Numbered Connection (NC) and 4" Full
Hole (FH) connections shall have the API V•0.038R thread form.
3.4.2 All connections which are recut shall be reinspected. Machined
surfaces shall be treated with a galling/corrosion prevention material; such
as phosphating.
3.4.3 All recut connections shall be thread gauged prior to cold working or surface
treatment.
3.4.4 AII thread roots of recut bottom hole assembly components should be cold rolled.

3.4.5 All critical service bottomhole assembly components shall have bore-back boxes
and stress-relief grooved pins for connection ODs 6-1/4" and larger.
3.4.6 Low torque shoulder features are required on bottom hole assembly components of
the following sizes:
99 * 7-5/8" H-90 with 9-3/4" and larger connection OD

7" H-90 with 8-5/8" and larger connection OD

8-5/8" H-90 with 10-3/4" and larger connection OD
8-5/8" REG with 10-1/2" and larger connection OD
 3.4.7 All refacing of critical service components shall be accomplished using fixed or
portable lathe equipment when performed prior to shipment to the rig. If
refacing is necessary on the rig, the portable lathe or the sander refacing tool
will be used.
3.5 Drill-Stem Material Considerations: Unless otherwise specified, the following material
requirements apply to the selection of drill-stem equipment.
3.5.1 All components shall meet the appropriate minimum mechanical and chemical
properties specified in API Specifications 5A, 5AX and 7.
3.5.2 All steel components shall have been heat treated by one of the methods listed
below:

Equipment Normalized Normalized Quenched and

and Tempered Tempered
All Tool Joints X
All Drill Collars X
All Subs and Crossovers X
Drill Pipe Tubes
E-75 X X X
X-95 X
G-105 X
S-135 X
Heavyweight Drill Pipe
Weld-on Tool Joints X X X
Integrally Forge Tool Joints X

3.6 Surface Equipment Bolting Materials: Bolting materials for surface equipment (such as
blowout preventers, manifolds and outlet valves) must be ASTM A193 Grade for studs
and ASTM Grade2H for nuts. In conditions where the bolting may be directly exposed to
hydrogen sulfide (such as with flange protectors, an enclosed environment, etc.), NACE
bolting will be required.

4. SERVICE CLASSIFICATIONS AND FREQUENCY OF INSPECTION

4.1 Service. Classification: The amount and types of inspections performed shall be tailored
to the well conditions to reduce the risk of failures. To determine the leve) of
inspections for various well conditions, typical service categories are listed below:
4.1.1 Routine Shallow Service: Straight holes less than 10,000' deep. Within this
service classification, premium pipe for normal drilling operations and any
cased-hole workovers requiring high torque and/or tensile strength.
4.1.2 Routine Intermediate Service: Straight holes between 10,000' and 15,000' and
directional wells Iess than 15,000' MD. Only premium or better pipe is acceptable
for routine intermediate service.
4.1.3 Critical Service: All wells which are below 15,000'. Only premium or better pipe
is acceptable for critical service.
4.2 Inspection Frequency: The inspection frequency for drilling equipment can be found using
Table I.

100 Exhibit F
 4.3 Inspection Program: The inspection program for drill pipe, bottomhole assemblies and
other drilling equipment can be found using Tables II through IV.

5. ADDITIONAL EQUIPMENT CONSIDERATIONS

Unless otherwise specified, the following additional inspection requirements apply:

5.1Fishing Tools: The end connections of fishing tools shall be inspected with visual, dimensional,
and flow detection methods. Other inspections, such as magnetic particle inspection of
stress points and measurement to determine clearances, may be required by
COM PANY.

5.2BOPE Stack Accessory Items: For blowout stack accessory items, such as studded adapters,
rotating heads, spools and bell nipples, inspection shall include evaluation of ring groove
condition and verification of proper bolting and gaskets. Pressure testing should be
accomplished in conjunction with the assembled BOPE stack at the rig site. Pressure testing
of individual components under shop conditions may be required by COMPANY.

6. INSPECTION REPORT

At the completion of each inspection. a report will be completed by the inspection company.
CONTRACTOR will forward a copy of al) inspection reports to COMPANY's representative or his
designee.

101 Exhibit F
 TABLE 1 TO EXHIBIT F - DRILLING EQUIPMENT INSPECTION FREQUENCY

SERVICE DRILL PIPE BHA EQUIPMENT OTHER EQUIPMENT

Routine Shallow Prior to Commencement of this Prior to Commencement of this Contract Prior to Commencement of this
Contract Prior to the start of subsequent wells Contract
After every 4500 rotating hours under this Contract
After every 300 rotating hours on any one
well
Routine Prior to Commencement of this Prior to Commencement of this Contract Prior to Commencement of this
Intermediate Contract Prior to the start of subsequent wells Contract
After every 2000 rotating hours in under this Contract
deviated holes After every 250 rotating hours on any one
After every 3700 rotating hours in well
straight holes
Critical Prior to Commencement of this Prior to Commencement of this Prior to Commencement of
Contract Contract Prior to the start of this Contract
After every 2000 rotating hours in subsequent wells under this Contract Prior to the start of subsequent
straight and/or deviated well After every 200 rotating hours on any wells under this Contract
one well

1. Including but not limited to kellys, kelly saver subs, kelly valves, safety valves, inside BOPEs, drill pipe crossover subs, blowout preventers, handling
equipment and choke manifolds.• The frequencies shown do not include routine rig inspections, such as pressure and functional tests.

2. Supplemental requirements for handling equipment may apply for heavy load applications.

102 Exhiba F
 T► BLE II TO EXHIBIT F - REQUIRED DRILL PIPE INSPECTION METHODS

RYSCHEE TUBES
CONNECTIONS ODG UTWT2 EN
VIS DIM r TG 1 VIS MPI EMI3
DRILL PIPE
X

X
• Shallow -- -- --

XXX
X

X
X

XX
• Intermediate -- -- --

X
X
X

X X

X
• Critical

XXX

X
X
-- -- --

X XX
HEVI WATE
DRILL PIPE -- -- --
-- -- --
• Shallow -- -- --
XXX

XXX

XXX
• Intermediate X X -- -- X --

• Critical
1All recent connections must be gauged.

2 0mit UT wall thickness measurement and Type I EMI when Type 3 EMI is selected.

3 If slip area UT is not available, use magnetic particle inspection of internal surface or electronic end area (EEA) tool.

DESCRIPTION OF INSPECTION METHODS

Rotary-Shouldered Connections Tubes

VIS Visual VIS - Visual

DIM Dimensional ODG - OD Gauge

MPI - Magnetic Particle Inspection UTWT - Ultrasonic Wall Thickness
TG - Thread Gauge EMII - Electromagnetic, Type I
UTSA - Ultrasonic Slip Area
MPI - Magnetic Particle of Upsets
EMI3 - Electromagnetic. Type 3

103 Exhiba F
 TABLE III TO EXHIBIT F - BOTTOMHOLEASSEMBLY INSPECTION METHODS'

ROTARY-SHOULDERED CONNECTIONS
VIS DIM 2 UTNB 3 PT2 TG 4 OTHER5,6
MPI
• Shallow X X X -- X -- X
• Intermediate X X X X -- X
--

• Critica) X X X X X X X

'lncluding but not limited to drill collars, BHA subs, stabilizers, roller reamers, hole openers, under reamers, jars, shock subs, etc.
2 MPI performed on magnetic (steel) connections. Penetrant test performed on nonmagnetic connections.
3 Recommended if box failure incidence is high.
4 All recut connections must be gauged.
5 Refer to specific equipment inspection procedures for additional requirements.
6 Disassembly and inspection if internal connections and high stress areas required.

DESCRIPTION OF INSPECTION METHODS

Rotary-Shouldered Connections
VIS Visual
DIM Dimensional
MPI Magnetic Particle Inspection
UTNB Ultrasonic Thickness (Normal Beam)
PT Dye Penetrant Test
TG Thread Gauge
OTHER - Performance of inspections, tests and/or (operations
for specific
pieces of equipment).

104 Exhibit F
 TABLE IV TO EXHIBIT F — OTHER EQUIPMENT INSPECTION METHODS

ROTARY-SHOULDEI CONNECTIONS
VIS DIM MPI PT3 TG4 OTHER5
OTHER DRILL•STEM EQUIPMENT
• Shallow --

XX X
X X
X
• Intermediate --

X
• Critical

X
X
X

XXX
HANDLING AND PRESSURE CONTROL
EQUIPMENT -- -- -- --
--

• Shallow -- -- -- --
--

• Intermediate --
-- -- -- --

• Critical

l lncluding but not limited to Kellys, Kelly saver subs, Kelly valves, inside BOPEs and drill pipe crossover subs.
2Including but not limited to handling equipment (slips, elevators. spiders and bails) and pressure control equipment.
3MPI performed on magnetic (steel) connections. Penetrant test performed on nonmagnetic connections.
4Al1 recut connections must be gauged.
5 Refer to specific equipment inspection procedures for additional requirements.

DESCRIPTION OF INSPECTION METHODS

Rotary-Shouldered Connections

VIS Visual
DIM Dimensional
MPI Magnetic Particle Inspection
PT Dye Penetrant Test
TG - Thread Gauge
OTHER - Performance of inspections, tests and/or (operations for specific
pieces of equipment).

105 Exhibit F
 EXHIBIT G
ACCEPTANCE•BOPE
INSPECTION AND
TESTING

lk Exhibit G
 EXHIBIT G - ACCEPTANCE - BOPE INSPECTION AND TESTING
To Drilling Contract

TABLE OF CONTENTS

BOPE AND CONTROL SYSTEM 108

TEST PROCEDURE 108

107 Exhibit G
EXHIB1T G - AGREEMENT FOR RENDERING DRILLING SERVICES
To Drilling Contract

1. BOPE AND CONTROL SYSTEM

1.1All BOPE and Accumulator unit must be shopped, tested, and re-certified by Original
Equipment Manufacturer (OEM) prior to mobilization and start of the contract.

1.2A three-year inspection of BOPE must be performed by the OEM if the last three-year
inspection was performed more than two years prior to start of contract. A one-year
inspection is acceptable if a three-year inspection was performed within one year from
start of contract.
1.3All replacement parts must be OEM.

1.4A cutting test may be required at COMPANY discretion during the inspection of the rig to
verify BOPE capability.

2. TEST PROCEDURE

All inspection and testing procedures are to be done in accordance with the original
manufacturer's recommended procedures. Proper procedures are the responsibility of the rig
owner to obtain. Any repairs will have to be performed by a qualified OEM Representative.

1 BOPE and Control System

1.1 Flush BOPE stacks with water and function test

Pressure test BOPE stacks at low and high pressures.
1.2 Low Pressures at 500 Psi for 5 min.
High Pressure at full working Pressures for 10 min

2 BOPE Control System

Check out Hydraulic accumulator unit and system.
1. Fluid level and alarm
2. Panel valves
3. Electric pumps
2.1 4. Air Pumps
5. Control Hoses and lines
6. Pressure gauges and flow meter
7. Regulators
Start air pumps then electric pumps and check for proper operation.
2.2
Check operation of pressure cut-in and cuts-out. Function test:

1. Hydraulic accumulator unit panel

2.3 2. Drillers control panel
3. Other remote control panel
Pressure up to operating pressure the accumulator unit using the
2.4
electric pumps. Record the time to charge the unit.
Bleed of all pressure In the accumulator unit and pressure it again
2.5
but with electric pumps.

Exhibit G
 Record the time to charge the unit. Conduct pressure test whole system for
one hour with all pumps off.

3 Diverter System

3.1 Check out and function test whole diverter system

4 Choke and Kill Lines and Manifolds

4.1 Flush all lines, valves and chokes with water and function test them
Pressure tests the lines, chokes and each valve.
4.2 Low Pressure at 500 psi for 5 min
High Pressure at full working pressure for 10 min

4.3 Operate all chokes, manual and automatic from remote panel.

Exhibit G