Varel International Announced as 2005 Best Mechanical Engineering Achievement Award Finalist

(HOUSTON, 28 April 2005) – Varel International, the world’s largest independent supplier of drill bits for the oil and gas industry, has been selected as a finalist for the 22^nd Annual Woelfel Best Mechanical Engineering Achievement Award which is sponsored the American Society of Mechanical Engineers-International Petroleum Institute Petroleum Division (ASME-IPTI). The award recognizes a product or system that demonstrates a practical solution to an engineering challenge in offshore technology. Varel is being recognized for their patent-pending drill-out bicenter bit.

"We are proud to be selected as a finalist for this year’s Woelfel Best Mechanical Engineering Achievement Award,” said Jim Nixon, President and CEO, Varel International. “Since our company’s re-organization in 1999, we’ve put significant resources into engineering and product design. We believe this honor is a reflection of our company’s advanced technology and commitment to product performance."

Varel’s Drill-Out Feature Maximizes Drilling Efficiency and Bit Performance

Historically, bicenter drill bit technology has been an effective solution for the global oil and gas industry. However, traditional bicenter bit designs have compromised drilling efficiency.

Bicenter drill bit technology was initially developed to enlarge wellbores. Because of their unique application, the bit design is not symmetrical. While drilling-out, traditional bicenter bits rotate on the casing centerline, rather than on the drillstring centerline. This can cause damage to the cutters, and the casing, reducing bit performance and drilling efficiency.

“Varel has solved this problem in a unique way,” said Mike Thigpen, PDC Engineering Manager, Varel International. “We positioned cutters so that when drilling-out the bit rotation is around the center of the casing rather than the center of the drill string. This ensures that cutters have efficient contact with the formation both during drilling and drill-out. This improves bit stabilization, drilling efficiency and product performance.”

During drill-out, backward rotation occurs with some cutters. Varel’s patent-pending drill-out bicenter bit design has cutters uniquely positioned to disengage the cutters during backward rotation, preventing cutter damage, when drilling-out. The design protects the cutters during backwards rotation while ensuring efficient rock-cutter interaction. Earlier designs compromise cutter placement to drill out and/or drill ahead. The Varel design achieves optimum cutter placement in both conditions.

Varel’s MBCSeries bicenter bits are engineered and manufactured in their Houston and Tarbes, France facilities. The patent-pending drill-out feature bicenter bit will be on display in Varel’s booth, located in hall E, booth 1470, at the 2005 Offshore Technology Conference, scheduled 2 – 5 May at Reliant Center in Houston.

About Varel International

Founded in 1947, Varel International is the world’s largest independent supplier and the fifth largest company operating in the global oil & gas drill bit market. Headquartered in Carrollton, Texas, Varel services oil & gas, mining, and industrial markets with its comprehensive suite of roller cone and fixed cutter drill bits. The Company employs 1,000 people and has manufacturing facilities in Carrollton, Texas; Houston, Texas; Matamoros, Mexico and Tarbes, France, as well as sales offices throughout the world. Varel’s proprietary design capabilities, low cost manufacturing, and global sales force uniquely positions the Company to provide high-quality drill bits that deliver reliable performance at an attractive price to its customer base. For more information about Varel International, please visit www.varelintl.com.

###

For additional information please contact:
Sherri Scott
Manager, Marketing & Communications
Varel International
Tel: +1.972.512.0467 (direct)
E-mail: sscott@varelintl.com