WellDynamics Norge a.s. Awarded North Sea Advanced Well Steering Framework Agreement by Hydro

WellDynamics, the leading provider of intelligent completion
technology to the upstream oil and gas industry, announced today that
its Norwegian office, WellDynamics Norge a.s., has been awarded a
framework agreement by Norsk Hydro Produksjon a.s. (Hydro), one of the
world's largest offshore oil companies, to provide and implement
SmartWell(R) intelligent completion technology in three of Hydro's
North Sea fields. WellDynamics will also provide associated services
under terms of the agreement, which is valued at approximately NOK 540
million over a contract period of up to 7.5 years.

The project, set to begin immediately, is targeted at implementing
WellDynamics' intelligent completion systems in Hydro's Grane, Oseberg
and Brage fields.

"We are delighted to extend our longstanding relationship with
Hydro in this important project," said Phil Longorio, WellDynamics'
CEO and president. "We look forward to contributing to Hydro's future
success with SmartWell completions designed to improve reservoir
control and increase ultimate recovery."

Hydro, a world leader in implementing multilateral well
technology, has drilled wells with as many as six branches in the
North Sea. The advanced completion solutions contemplated in the new
agreement will allow the company to steer the well stream from the
individual branches within a single well.

"This is extremely important technology for the Norwegian
continental shelf, and for maintaining production levels in the years
ahead," says Hydro.

WellDynamics' intelligent completion technology includes solutions
for subsurface flow control, zonal isolation, and real-time monitoring
and control from surface facilities.

About WellDynamics

WellDynamics, a joint venture company of Halliburton Energy
Services and Shell Technology Ventures Fund 1 B.V. (managed by Kenda
Capital B.V.), is the world's leading provider of intelligent
completion technology to the upstream oil industry. WellDynamics'
SmartWell technology, introduced in 1997, was the industry's first
intelligent well completion system. Today, the company offers a broad
complement of products and services that range from reservoir
engineering studies to advanced completion design, zonal isolation and
flow control, reservoir monitoring and surface digital infrastructure
solutions. WellDynamics operates offices around the globe. Its
Norwegian office, which houses both operations and manufacturing
facilities, is based in Stavanger.

Visit the WellDynamics website at www.welldynamics.com.

About Hydro

Hydro is the one of the world's largest offshore oil companies,
operating 13 oil and gas installations. Hydro produced 563.000 barrels
of oil equivalents per day in 2005.