COSL signs new geothermal well cementing services contract in the Philippines

As COSL has always been providing quality cementing services to its clients, the Company successfully won the bid among competitions with other international peers. The development plan of the geothermal well cementing services contract in the Philippines includes 28 wells. The total amount of the two-year contract is approximately US 3.

7 million and the drilling operation is expected to commence in March 2006. According to the terms of the contract, COSL will provide PNOC with facilities, tools, manpower and technical support in order to help PNOC to extract geothermal energy for power generation.

Mr. Yuan Guangyu, CEO and President of COSL, said, International expansion strategy has always been one of the four strategies embraced by the Company upon listing. Recently, apart from the new drilling contracts we obtained in Myanmar and Australia, we have also secured more and more international services contracts in other business segments.

This contract signifies an important breakthrough for COSL s cementing services in the overseas market. We would like to thank PNOC for the recognition of our service quality. Looking ahead, we will further enhance our service quality, in order to win more contracts from our new and existing customers.