Cabot Specialty Fluids to be used on Two Norwegian Fields

Cabot Corporation's Cabot Specialty Fluids business unit to provide a supply of cesium formate fluids for both reservoir drilling and completion activities on two large gas and condensate field projects in the Norwegian Continental Shelf. The fields, Kristin and Kvitebjorn, are being developed and will be operated by Statoil. If the cesium formate fluids perform as anticipated, they could be used in more than 20 drilling and completion projects in these fields over the next several years.

Concerning the letter of intent, Ken Burnes, Cabot's Chairman and CEO, stated "We are very excited about the opportunity to establish a significant relationship with a major company such as Statoil on these projects. Successful performance of cesium formate drilling fluids on the projects would demonstrate to a broader customer base that these fluids provide the most effective drill-in and completion solution in high-temperature, high-pressure wells. We are also optimistic that this indicates an increase in HTHP drilling activity." About Cesium Formate

Cesium formate is a dense biodegradable drilling and completion fluid that is used as a solids-free base fluid for large-scale drilling and completion projects. The fluids can be used in a wide range of applications in areas that allow oilfield-operating companies to increase production and improve their drilling speed, which can save time and reduce operating costs. Cabot cesium formate has been used successfully in numerous drilling and completion operations for several major oil companies in the UK and Norwegian North Sea sectors.

Cesium formate is also proven to be compatible with all major elements of the drilling (BOP, surface equipment, MWD, LWD and mud motors) and completion equipment (metals and elastomers), under conditions of high temperature and pressure.

The monovalent nature of cesium formate reduces the likelihood of reservoir formation damage, providing operators with a maximized production index and overall production profile. Because it is biodegradable as well as non-corrosive, cesium formate is considered an environmentally safer product than other drilling fluids on the market.