On July 5, under the joint witness of Rosneft acceptance representatives, the derrickbase of HAIHUAs first drilling rig were successfully lifted. The national flags of ChinaRussia fluttered high on the top of the derrick.

A crispclear siren sounded,the stress test of the brake systemstructural parts of the drilling rig before hoisting officially started. The employees in each position stick to their posts, perform their duties,cooperate closely to ensure that the lifting is foolproof.

After intensive progress, HAIHUA completed the procurement of low-temperature raw materials, international bidding for purchased parts, user drawing reviewagreement clarification with the most efficient progress; then completed all drawing designs, components were putproduction,the project started in full swing; as of early July, The first equipment hostsupporting parts are all assembleddebugged in place, reaching the testacceptance status,accepting user acceptance.

At present, the first equipment has passed the customers acceptancewill be shipped soon; the derrick base of the second equipment has been assembled,related accessories are being finalizedshipped one after another. The subsequent 9 sets of equipment are being advanced in strict accordance with the production planwill be shipped in batches.