Rheochem Renews Offshore Service Contract with Santos

Rheochem has announced that its 100% owned subsidiary Rheochem Ltd has renewed its site services contract to supply drilling fluids and related engineering services to Santos Limited ("Santos") for its Australian offshore operations for a period of twelve months. This is an extension of the previous contract which will now continue until December 31, 2009.

Santos is one of Australia's top 40 companies and is a major Australian oil and gas exploration company with interests and operations in every major Australian petroleum province and in Indonesia, Papua New Guinea, Vietnam, India, Bangladesh, Kyrgyzstan and Egypt.

It is also Australia's largest domestic gas producer. Santos has the largest Australian exploration portfolio by area of any company and is pursuing new venture opportunities with a focus on Asia.

Haydn Gardner, CEO of Rheochem, said, "We are delighted that Santos has chosen Rheochem to continue to provide these services for their offshore operations in Australia for 2009. This contract in conjunction with the current Santos onshore contract, new Australian contracts and the extension of the Mighty River Power contract in New Zealand, gives Rheochem great visibility in forward income for the next year and beyond."