ANNOUNCING THE OPENING OF OUR PERMIAN BASIN SUPPLY CENTER IN MIDLAND, TEXAS

American Gilsonite Company is pleased to announce the opening of our Permian Basin Supply Center in Midland, Texas. Located in America’s second largest oil and gas producing region, our new Supply Center is strategically situated to expand our customer base as well as to better serve the needs of our existing customers.

A full range of Gilsonite^® products for both cementing and drilling fluids (both OBM and WBM) are now available for same day pickup or delivery. Plus, customers have the option of buying less-than-truckload quantities – especially important to smaller independents who can now realize the benefits of Gilsonite^® in their projects without the need to maintain a large inventory of the product.

“With the help of our distribution partner, Agri-Empresa, we’ve significantly reduced delivery time to our customers in the Permian Basin area,” says Stanley Jepsen, Vice President – Drilling Fluids for American Gilsonite Company. “This makes it faster and easier than ever to take advantage of Gilsonite^®’s cost-effective strength, flexibility, bonding and high-temperature capability.”

For more information, download our information sheet.

To place an order from the Permian Basin Supply Center, contact our distribution partner, Agri-Empresa:
832-974-4387.

A 2015 study by the Western Regional Superpave Center at the Department of Civil and Environmental Engineering of the University of Nevada, Reno, proved that Gilsonite^®-modified binders significantly extend the useful life of asphalt pavement. This is good news for agencies looking to reduce the long-term costs of asphalt pavement maintenance.

Findings from comprehensive testing demonstrated that Gilsonite^®-modified binders showed significant improvement in:

• Tensile strength – The addition of Gilsonite^® uintaite significantly increased both the unconditioned and moisture-conditioned tensile strength.
• Compressive strength – Gilsonite^®-modified binders showed significant improvement in compressive strength.
• Rutting strength – Gilsonite^®-modified binders significantly increased projected pavement life. In all but one case, adding Gilsonite^® yielded a ten-fold increase.
• Fatigue resistance – The projected pavement life is 1.5 to 5 times longer with the Gilsonite^®-modified binders.

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Gilsonite^® improves performance and reduces cost
Industry reports of Gilsonite^®-modified asphalt lasting more than twice as long as unmodified mixtures are common. In addition, the high modulus provided by Gilsonite^® uintaite allows the base and binder courses to be up to 20% thinner while still providing the same level of performance, enabling the use of less material. Gilsonite^® can also act as a lower-cost, performance-enhancing extender in a mixture including SBS polymers.

By significantly extending the useful life of asphalt pavement and allowing a reduction in the amount of paving material required, Gilsonite^® uintaite has proven to offer substantial cost effectiveness.

For more information about improving asphalt with Gilsonite^®, contact us today.

After extensive R&D and a multimillion dollar investment in mining capacity, American Gilsonite Company now has an expanded range of HT drilling mud additives ready for immediate delivery.

Gilsonite^® HT performs in the most extreme conditions

• Enhances mud properties for HP/HT environments
• High softening point extends thermal life 10% or more
• Prevents lost circulation and minimizes differential sticking
• Proven to be safe, natural and effective

A new range of higher softening points (% cumulative particle)
Gilsonite^® HT performs at temperatures as high as 500ºF.

Gilsonite^® HT reduces costs more than 60% vs. premium polymers

Our full line of high-temp products:

• NEW PRODUCT: Gilsonite^® HT450 (softening point >450º)
• Gilsonite^® HT430 (softening point >430º)
• Gilsonite^® HT415 (softening point >415º)
• NEW PRODUCT:Gilsonite^® HT400 (softening point >400º)
• Available for WBM, OBM and SBM

Contact us today for pricing and delivery.

HOUSTON, TEXAS, May 28, 2015 – In the current oil and gas market, cutting costs has become a universal priority. Gilsonite^® uintaite has proven to be an effective way to reduce the costs of using hollow beads without compromising the quality of a cementing job.

Hollow beads are frequently added to cement to reduce slurry density and increase compressive strength of set cement. While they are effective, hollow beads represent a significant expense. Field trials have shown that adding Gilsonite^® uintaite to cement slurry while reducing the concentration of beads produces considerable cost savings.

Changing slurry formulations can reduce costs by 20%
The hollow beads commonly used as lightweight additives are up to seven times more expensive than Gilsonite^® uintaite on a per-pound basis. Changing the formulation of slurry to incorporate Gilsonite^® allows the use of fewer beads per sack of cement. Revised slurry designs provide the benefits of both the hollow beads and Gilsonite^®, while total costs can be reduced by more than 20%.

Crushed beads compromise wellbore integrity
One disadvantage of hollow beads is that they can be crushed by downhole pressure. Even the wellsite mixing process can destroy beads. When beads don’t survive intact, the expected results are not delivered. Crushed beads can cause increased slurry density and viscosity, decreased volume, premature dehydration and increased equivalent circulating density. The intended cement design, along with wellbore integrity, could be compromised.

Wellbore integrity issues are primary cause of fugitive gases
The quality of the cementing job is critical to wellbore integrity and zonal isolation. According to the Proceedings of the National Academy of Sciences published September 15, 2014, wellbore integrity problems, not fracturing, were the predominant cause of fugitive gases.

Gilsonite^® preserves wellbore integrity, zonal isolation
Gilsonite^® uintaite is crushproof and maintains its chemical and physical properties under extreme conditions. Replacing hollow beads with Gilsonite^® keeps slurry density low, supports compressive strength of set cement, and protects groundwater.

Gilsonite^® in slurry:

• Increases yield
• Reduces slurry weight
• Controls free water
• Lowers slurry water ratio
• Promotes favorable rheologies resulting in lower ECDs
• Prevents lost circulation
• Scours wellbore/enhances mud removal

In set cement, Gilsonite^®:

• Supports compressive strength development
• Increases flexibility
• Reduces cracking
• Heals microfissures
• Reduces permeability
• Strengthens bond to the formation and the casing
• Reduces groundwater contamination risk
• Complies with regulations
• Helps to prevent sustained casing pressure

Gilsonite^® provides cost savings immediately and over the life of the well
With a cost significantly lower than hollow beads, Gilsonite^® uintaite provides an operator with immediate savings. By assuring a high-quality cementing job and eliminating the expense of remedial cementing, Gilsonite^® provides cost savings throughout the life of the well.

For more information, download our information sheet.

HOUSTON, TEXAS, November 26, 2014 – With industry-wide pressure to reduce expenditures, many service companies have found it cost-effective to reduce the total number of drilling fluid additives by incorporating a premium multi-purpose additive. American Gilsonite^® provides a range of important benefits while also producing cost savings of more than 80%.

With its unique chemical properties and physical characteristics, Gilsonite^® is scientifically proven to improve wellbore stability, plug micro-fractures, and bond and seal all types of formations. Gilsonite^® is the only drilling fluid additive that provides all of these benefits:

• Controls fluid loss
• Stabilizes shales
• Prevents lost circulation
• Strengthens the wellbore
• Minimizes differential sticking
• Performs in oil- and water-based drilling muds
• Minimizes HSE risks

Significant cost advantages
Compared to alternative products, Gilsonite^® offers comparable or superior performance at a much lower cost.In water-based mud (WBM) applications, Gilsonite^®’s performance compares favorably with sulfonated asphalts while costing 40% less.

In HP/HT environments using synthetic-based mud (SBM), Gilsonite^® provides a cost reduction of more than 80% compared to premium co-polymer, while the high softening point of Gilsonite^® also results in a 45% reduction in fluid loss.

Proven performance advantages
Laboratory testing and years of field use have proven that Gilsonite^® offers multiple performance benefits over alternative products.

Unique properties control fluid loss and seepage
Gilsonite^® has unique bonding and plugging properties that prevent formation damage. Gilsonite^® forms a physical and chemical bond with permeable formations, creating an effective seal to prevent the passage of drilling fluid. By uniquely functioning as both a malleable and solid plugging agent, Gilsonite^® controls fluid loss and seepage, prevents lost circulation, and protects reactive and low-reactive shale surfaces, even at elevated bottomhole temperatures.

Gilsonite^® prevents lost circulation
Gilsonite^® has been proven to bond and seal any type of formation. It prevents lost circulation when alone or in combination to enhance the performance of other lost circulation materials (LCM).

Proven to strengthen the wellbore
The demanding conditions of HP/HT wells, shales and underpressured zones require specialized drilling fluids and wellbore-strengthening techniques to preserve zonal isolation. Adding Gilsonite^® strengthens the well by:

• Reducing pore pressure transmission and sealing micro-fractures in shale and low-porosity sands
• Keeping interbedding formations intact
• Developing effective filter cake
• Providing a “smear effect” that creates a continuous protective sealant along the wellbore wall

An effective additive to prevent differential sticking
Gilsonite^® minimizes the occurrence, expense and downtime of stuck pipe and stuck logging tools by thoroughly sealing permeable formations – even in zones with a highly overbalanced pressure differential – and improving filter cake lubricity.

Multifunctional Gilsonite^® reduces costs
Gilsonite^® is a premium product that provides value from numerous benefits that improve drilling fluid performance as it also reduces overall costs by requiring fewer additives.

HOUSTON, Texas, November 11/PRNewswire-FirstCall/ — American Gilsonite Company, Inc. (“American Gilsonite”, or “AGC”), the world’s primary supplier of Gilsonite®, today announced it has appointed David G. Gallagher as Senior Vice President, Commercial Operations, effective immediately. Mr. Gallagher has more than 30 years of experience in the oilfield service industry, holding executive level positions at leading firms such as Schlumberger, Carbo Ceramics and Baker Hughes.

President and Chief Executive Officer Ted Stevens said, “We are excited to have someone with David’s comprehensive experience and extensive knowledge in the oil and gas industry, including both conventional and unconventional resource development, to lead the continued expansion of our global business. His successful career has included assignments in engineering, operations, marketing and sales, and executive management, both domestically and internationally. David has substantial experience in developing client focused solutions that will be central to our growth strategy, and under his direction, we anticipate further penetration in our core global markets, more focused direction in our R&D efforts and a further expansion of our product portfolio.”

Gallagher earned a Bachelor’s of Engineering degree from The University of New Mexico.

About American Gilsonite Company
AGC operates as an industrial minerals company and is the world’s primary miner and processor of uintaite, a variety of asphaltite, a specialty hydrocarbon which AGC markets to industrial customers under its registered trademark name “Gilsonite®”. Gilsonite^® is a glossy, black, solid naturally occurring hydrocarbon similar in appearance to hard asphalt and is believed to be found in commercial quantities only in the Uinta Basin in northeastern Utah. Because of its unique chemical and physical properties, Gilsonite^® has been used in more than 160 products. The company sells its products to customers in four primary markets: (i) oil and gas, (ii) inks and paints, (iii) foundry and (iv) asphalt. AGC is headquartered in Bonanza, Utah. AGC is a privately held, portfolio company of Palladium Equity Partners III, L.P.

Press Contact
Peter Hill
Kekst and Company
212-521-4800
peter.hill@kekst.com

HOUSTON, TEXAS – July 23, 2013 – American Gilsonite Company, Inc. (“American Gilsonite”, or “AGC”), the world’s primary supplier of Gilsonite®, announced the completion of its Houston office expansion. Major growth in the energy sector prompted the company to establish a significant presence in Houston to better serve the expanding customer base.

“As a strategic supplier to the world largest oil and gas service companies, we felt that it was imperative to expand our commitment to this crucial end market,” said Ted Stevens, President and Chief Executive Officer of American Gilsonite. “We are excited about this important milestone and look forward to the continued expansion of our Houston team.”

After spending more than 30 years in both operations and sales with M-I Swaco, Vice President of Sales and Marketing Bill Dobbs, joined American Gilsonite two years ago to lead the build-out of the AGC Houston team. “Establishing a robust presence in Houston is essential to providing excellent customer service to our core oilfield customers”, said Mr. Dobbs. “With the additions of Technical Director Dario Montes from NOV and M-I Swaco, and Sales Manager for Oilfield Products Matt Garner from Baker Hughes, we have the technical and commercial foundation to provide value to our customers.”

The Houston office is located near the Galleria at 1717 St. James Place, Suite 600.

About American Gilsonite Company. (www.americangilsonite.com)

American Gilsonite is the world’s primary miner and processor of Gilsonite^®, a naturally occurring hydrocarbon resin used as a premium performance additive in oilfield and specialty industrial applications. AGC and its predecessor companies have been mining Gilsonite^® in Eastern Utah since 1888.

HOUSTON, TEXAS – June 19, 2013 – American Gilsonite Company, Inc. (“American Gilsonite”, or “AGC”), the world’s primary supplier of Gilsonite®, announced the hiring of Dario Montes as Technical Director. Mr. Montes brings American Gilsonite approximately fifteen years of management, technical sales and business development experience from National Oilwell Varco and MI Swaco. Mr. Montes joins AGC’s growing Houston office and will spearhead the development of innovative Gilsonite^®-based oilfield products.

“We are extremely pleased to bring Dario on board as Technical Director,” said Ted Stevens, President and Chief Executive Officer of American Gilsonite. “Dario brings outstanding technical credentials and product development experience that will provide our oilfield customers with value-added solutions to their drilling fluid and cementing programs.”

In addition to developing new Gilsonite^®-based products and applications, Mr. Montes will work with AGC’s lab partners to test and highlight the many performance advantages of Gilsonite^® versus inferior substitute products.

Vice President Bill Dobbs, added “I am thrilled by addition of Dario to American Gilsonite. I am looking forward to working with him to demonstrate the technical attributes and performance advantages inherent in Gilsonite^®.”

About American Gilsonite Company. (www.americangilsonite.com)

American Gilsonite is the world’s primary miner and processor of Gilsonite^®, a specialty hydrocarbon resin used as a premium performance additive in oilfield and specialty industrial applications. AGC and its predecessor companies have been mining Gilsonite^®, which is non-hazardous and naturally occurring, in Eastern Utah since 1888.

Press Contact
Peter Hill
Kekst and Company
212-521-4800
peter.hill@kekst.com

BONANZA, UTAH – April 4, 2013 – American Gilsonite Company, Inc. (American Gilsonite or “AGC”), the world’s major supplier of Gilsonite®, announced that it had completed Phase One of its capacity expansion initiative. In response to significant demand for its products, and to help ensure its reliability as a strategic supplier to its customers, AGC embarked on a multi-year mine develpment strategy aimed to increase annual production capacity across all Gilsonite^® ore types to satisfy growing customer demand.

American Gilsonite and its predecessor companies have been mining Gilsonite^®, a non hazardous, naturally occurring hydrocarbon resin found only in Eastern Utah since 1888. Gilsonite^® is used as a performance additive in the oil & gas, inks and paints, foundry and asphalt industries.

Ted Stevens, President and Chief Executive Officer of American Gilsonite commented, “AGC’s customers have come to rely on Gilsonite^® for its unique performance endhancing attributes. American Gilsonite is committed to being a reliable supplier to its customers, and we will continue to invest in mine development as our customers grow their businesses.”

The approximate $20 million initiative entailed capital expenditures directed towards opening new mines, explaring new mine development methods, as well as continued investments in health and safety. “We have opened three new mines in the past twelve months, and five more are under active development,” said Mr. Stevens. “As a result we have production capacity to satisfy customer demand, and are well positioned for the future.”

“We are thrilled by the achievements of the entire Bonanza operations team in successfully completeing Phase One of our mine development initiative,” said Stuart Green, Senior Vice President and Chief Operating Officer. “We believe our miners are the best in the world, and through their hard work and dedication, we have built a solid foundation to support the tremendous growth potential of our products.”

About American Gilsonite Company
AGC operates as an industrial minerals company and is the world’s primary miner and processor of uintaite, a variety of asphaltite, a speciality hydrocarbon which AGC markets to industrial customers under its registered trademark name “Gilsonite®”. Gilsonite^® is a glossy, black, solid naturally occurring hydrocarbon similar in appearance to hard asphalt and is believed to be found in commercial quantities only in the Uinta Basin in northeastern Utah. Because of its unique chemical and physical properties, Gilsonite^® has been used in more than 160 products. The company sells its products to customers in four primatry markets: (i) oil and gas, (ii) inks and piants, (iii) foundry and (iv) asphalt. AGC is headquartered in Bonanza, Utah. AGC is a privately held, portfolio company of Palladium Equity Partners III, L.P.

Press Contact
Peter Hll
Kekst and Company
212-521-4800
peter.hill@kekst.com