Geothermal Deep Drilling Service WORKSHOP ON GEOTHERMAL ENERGY:

ICELANDIC - BRITISH COOPERATION,

17th of November 2011, London

Vilhjalmur Gudmundsson

Contents

Company overview, history and management

Strategy

Rig Fleet, drilling operations and service

International market overview

Summary and highlights

Overview

Business Area IDC is the largest drilling company worldwide focusing on geothermal energy.

Operation Drilled 160 high and low temperature (up to 320°C) geothermal wells the last 10 years and

over 230 since 1970. Well depths range from 1.000 to 4.500 meters.

Main operating countries Iceland, New Zealand, Dominica, Germany, and Azores.

Upcoming and past International Projects Denmark, Switzerland, Hungary, UK and Ireland.

Rigs and employees 4 rigs in Iceland.

1 in New Zealand, 1 in Dominica and 1 rig in Germany.

135 employees.

Overview cont.

Associations – Membership

IADC, International Association of Drilling Contractors.

IGA, International Geothermal Association.

EGEC, European Geothermal Energy Council.

Certification QHSE

2008 - Quality Management System - ISO 9001:2008.

2010 - Environmental Management System - ISO 14001:2004.

2010 - Occupational Health & Safety Management System - OHSAS 18001:2007.

Auditors

PWC: from 1986.

History

1945 State Drilling Contractors established.

1986 Jarðboranir hf. (Iceland Drilling Ltd.) established.

1993 Listed on the Iceland Stock Exchange (ICEX).

2005 Acquired by Atorka Group and consequently delisted

from ICEX.

2007 Acquired by Geysir Green Energy.

2007 Hekla Energy GmbH established.

2011 Acquired by Miðengi.

2011 Currently in a selling process

Organisation

Bent Einarsson CEO Bent has significant experience in the sector, he has been 21 years with IDC, the last 19 years as CEO and before that as

CFO. Bent holds a Cand. Oecon degree from the University of Iceland.

Gunnar Freyr Gudmundsson CFO Gunnar joined the company in 2008 from Icelandair Group where he worked as CFO of one of its subsidiaries. Before

joining Icelandair Gunnar worked as an auditor for PwC. Gunnar has a Cand. Oecon degree from the University of Iceland

and is also a Certified Public Accountant.

Vilhjalmur Gudmundsson CDO Vilhjalmur joined the company in 2006. He has years of experience as project manager on different international marketing

projects, working for the Trade Council of Iceland. Responsible for business development on foreign markets and

marketing. Vilhjalmur has Cand Oecon and MBA degree from Lunds University in Sweden.

Sturla Birkisson CTO Sturla joined the company 6 years ago. He has 8 years experience on different mechanical engineering projects.

Responsible for drilling equipment, tenders and contracts, planning and procurement. Sturla has a MSc degree in

Mechanical Engineering from Technical University of Denmark.

Thor Növig CEO Europe Thor joined the company in 2007 as CEO Europe as well as being MD of Hekla Energy GmbH. He has 30 years of

experience in the drilling industry, working as MD of the drilling contractor ITAG in Germany prior to joining IDC. Thor has a

MSc degree in Drilling Technology.

Management Team

Strategy

Mission and core values

Our mission is to support our customers to develop and access energy

resources in an economical and environmentally responsible way

We are dedicated to deliver

to the challenging

expectations of our

customers.

We strive to achieve

maximum results through

continuous innovation.

We deploy professional

work ethics and develop

our ability to deliver

according to the highest

standards that govern our

industry.

Our operations and service

adapts easily to new

market situations and

customer requirements.

Our equipment is highly

mobile and we can execute

any project under various

conditions.

The safety of our

employees, customers and

environment are our

cornerstones.

We operate in accordance

to laws and regulations,

fulfill our obligations and

communicate with integrity.

We earn our trust through

consistent reliability and

quality.

Reliable Ambitious Flexible

Vision

Modern rig technology

Our competitive advantage is in geothermal drilling. Our experience in complex geological conditions in Europe

and modern rig technology have provided us with opportunities to diversify into new project types.

Geographically diversified operations

Our turnover will increase through a balanced geographical distribution of revenues.

HSE – Health Safety and Environment

Our reputation is to deliver excellent result for our customers with safety as a priority and in harmony with the

environment.

Human Resources

Employees have solid basis for personal growth and share our vision for the future. Employee satisfaction is the

highest in our industry.

Rig fleet – service and operation

Rig fleet

80% of IDC‘s assets are „new“ drilling rigs

IDC rigs are in the category of medium size rigs suitable for geothermal drilling as well as oil and gas.

IDC rigs are highly automatic for safe and fast operation.

IDC rigs are maintained to highest standards to meet our customers standards.

Rig type Year Model Hook

Load [mT]

MP number power

[hp)

Drilling depth

[m]

Rig002 (HE) 2008 Euro Rig 350 3 X 1600 6000

TÝR 2007 HH300 270 3 X 1000 5000

ÓÐINN 2006 HH220 200 2 X 1000 4000

GEYSIR 2004 HH220 200 2 X 1000 4000

JÖTUNN 1973* 700 E 180 2 X 800 3300

SLEIPNIR 1998 G102 100 2 X 700 2200

SAGA 2001 G55 55 1 X 500 1500

Service and Operations

Integrated drilling solutions

• Directional drilling, Aerated fluid drilling, Casing

running, Cementing, Stimulation, Well completion,

Production testing and logging

Technical expertise

• Geologically challenging and demanding conditions

• Medium / Hard rock drilling

• Difficult basalt drilling

• Drilling in production zones with lost circulation

Drilling efficiency

• In 2008 IDC drilled 70 km in Iceland with average

drilling speed of about 50 meters pr. day of total rig

time including mobilization. Optimal drilling speed

during drilling operation can reach 200-250 pr 12

hours shift

HH-220 and HH-300

New generation of rig

• SCR – hydraulic land rig

• Especially designed for geothermal operations

• Compact rig site

• High environmental standards

• Low noise emission (encapsulated generator sets)

• Fast automatic pipe handling system

(vertical system, 14 sections, DP range 3)

• Hydraulic operated power swivel

• Independent driven rotary table

• Automatic power slips

• Automatic hydraulic power tongs

• Controlled casing make-up

Mud tank system

Drillpipe Bins Engines

Mast

Mud pumps Mud Mixing

Drillers

cabin

Offices

Automatic

Pipehandler

Main rig components

Operations – Rig fleet (Bentec Euro rig)

Operation – rig fleet HH-300

Hekla Energy GmbH, Hunäusstrasse 7a, D-29227 Celle, Tel: +49 (0) 5141 34921 0, www.heklaenergy.com

IDDP: TYR: HH-300 in Krafla, March 2009

Framkvæmdir á Reykjanesi Our Gardner Denver rig working in the Azores 2009

Mauerstetten 2009

Euro Bentec rig in Noville, Switzerland

Click to edit Master text styles

Second level

Third level

Fourth level

Fifth level

Icelandic Deep Drilling Project IDDP

in Krafla spring 2009

IDC chosen because of its experties in high

temperature geothermal drilling

Drilling into high temperature hydrothermal system

Heat expected above 450° C

Target: Super critical conditions

Estimated dept was 5 km in an area where normal

drilling dept is 2,5 km

Drilling stopped at 2,1 km when reaching magma

Supercritical Conditions:

Temperature > 373°C

Pressure > 220 bar

Magma Well Conditions:

Temperature 950°C

Pressure 165 bar

Online monitoring system, available to our customers

International market overview

Project map & Markets

Highlights for international market

Offices

Projects

Pipeline

Project map & Markets – Diversified operations

Highlights for international markets

Foreign projects

All international projects are based on day rates.

Azores Islands have so far been our largest international market.

Recent works in Germany and Switzerland through our subsidiary HE.

Several smaller projects in the past in Ireland, UK and Hungary.

Diversification

Actively looking for new opportunities in Europe, which is our focus area.

Other areas of interest include countries such as; New Zealand and Chile.

Diversification into Oil and Gas (‘O&G’) projects. Some of IDC’s rigs are ready for O&G drilling, besides we have a pool of experienced crew in O&G.

Projects/Pipeline

Awarded projects in 2011 are in New Zealand, Dominica and Azores.

Currently shortlisted for 2 drilling projects: one in Germany, and one in Chile.

Pipeline projects in Germany, Turkey, Indonesia, Guadeloupe and New Zealand.

Recently awarded drilling contract in Viborg, Denmark, planning to start in Dec/Jan 2011.

Summary and highlights

Global expert in geothermal deep drilling.

Well known and respected within the International Geothermal Community. 1)

Positive outlook for the geothermal industry.

Increasing governmental support for renewable energy.

International expansion opportunities.

Modern, high tech rig fleet.

Currently weak home market and growing international operations.

1) Source: Survey conducted by Capacent Gallup on the perception

of the Icelandic Geothermal Energy Sector internationally – with some

view on individual company perception

Íslandsbanki, Nov 2010

Iceland Drilling: www.iceland-drilling.com

Hekla Energy: www.heklaenergy.com

OR: www.or.is/English/

Hitaveita Suðurnesja: www.hs.is

Landsvirkjun: www.lv.is

Iceland Deep Drilling Project: www.iddp.is

Member of IADC: www.iadc.org

Member of IGA: www.iga.is

USEFUL LINKS:

Headquarters: Iceland Drilling Company, Hliðasmára 1, 201 Kópavogur, tel: +354 5855200 www.iceland–drilling.com German office: Hekla Energy GmbH, Hunässtrasse 7A, 29227 Celle, Germany, Tel: +49 (0) 5141 349 210 New Zealand office: Ngahera House, 2283 Vaughan Road, Rotorua 3010, New Zealand Tel: +64 (0) 79299614