** See<ctes.pk> (NASDAQ:CTES)

We are a provider of enhanced oil recovery, or EOR, services in China. We believe we are a leading domestic non-state-owned player in China's EOR sector. We provide innovative EOR services to major oil companies in China using leading edge technologies, which include certain patented lateral hydraulic drilling, or LHD, technologies, which we have an exclusive right to use in China, and a molecular deposition film, or MDF, technology for which we hold a PRC patent. We also provide technical services to coalbed methane, or CBM, customers using the LHD technology.

Our LHD services increase crude oil or methane gas output by using a high-pressure water jet to drill horizontal holes in multiple directions from an existing vertical well to the surrounding reservoirs, thereby increasing the quantity of the flow of oil and methane gas. Based on pilot tests conducted over a period of three months at our customer sites, the 18 oil wells across five major oil fields in China where we tested the LHD technology showed on average an increase in daily production volumes of approximately 230% and the seven coalbed methane wells where we tested the LHD technology showed on average an increase in daily production volumes of approximately 976%.