Maverick Tube Expands OCTG Finishing

Maverick Tube's subsidiary, Prudential Steel Ltd., will expand its oil country tubular goods (OCTG) finishing facilities in Calgary, Alberta, Canada in 2006. The new American Petroleum Institute (API) threading line, scheduled to be completed in the summer of 2006, is in addition to the two existing API threading lines, and a premium threading line which was commissioned in 2002. API connections are used in most conventional wells while premium connections are used in deeper wells and more challenging applications. The expansion of the threading lines is the last phase of a US$10.4 million capital expansion plan for 2005 and 2006. In August 2005, Prudential completed the first phase of the plan which included a US$7.3 million expenditure to increase the pipe making capacity of its Calgary operation.

Bob Lee, President of Prudential, said, "Demand for OCTG has increased significantly over the last year and the outlook for 2006 is very positive. With the expansion of our pipe making capacity last year and the planned threading capacity increase this year, Prudential will be well positioned to meet our customer's increasing needs for OCTG." Mr. Lee added, "Prudential has always practiced continuous improvement and while these two projects result in manufacturing synergies, this is really all about improving customer service and providing a reliable source of Canadian - produced products."

Bob Jaggard, Prudential's Vice President - Sales, said, "The Canadian oilpatch has set drilling records in each of the last three years and we expect 2006 to be very busy as well. The recent sharp upswing in drilling activity has made it challenging for customers to get rigs, pipe and other supplies for well completions this winter. With our expansion, we'll be well positioned to meet future growth in OCTG demand in 2006."

Prudential operates three pipe mills in Calgary with a total annual capacity of about 500,000 tons and an outside diameter range of 2 3/8" to 12". Prudential has been a leading supplier of OCTG and line pipe to the Canadian energy industry since 1966.

Maverick Tube Corporation is a St. Louis, Missouri based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, standard pipe, pipe piling, and mechanical tubing) used in various applications.


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