Document:

FACTORY BUILDING LEASE AGREEMENT

                                  June 19, 2006

                        FACTORY BUILDING LEASE AGREEMENT

Party A: WUXI LONGHUA STEEL PIPES COMPANY LIMITED (lessor)

Party B: WUXI SEAMLESS OIL PIPES COMPANY LIMITED (lessee)

After friendly consultation about the lease of land, factory building and
auxiliary equipment, the Parties hereby agree as follows:

I     LOCATION, AREA, STRUCTURE AND APPLICATION OF LAND, FACTORY BUILDING AND
      AUXILIARY FACILITIES

1.    Location of land and factory building

The factory building located at #25 Plot, Development Zone, Xinqu, Wuxi,
Jiangsu.

2.    Area, structure and application of land and factory building

The land area is about 24 mu; the area of construction of the leased factory
building is 8,911.86 square meters and the area of construction of the
three-storey office building is 592.4 square meters (thus the aggregate area of
construction is 9,504.26 square meters).

The workshop is a steel structure and the office building is a frame structure.
They shall be used as the production factory of Party B.

II    RENTAL FEE, USE TERM AND PAYMENT TERMS FOR THE LAND, FACTORY BUILDING AND
      AUXILIARY FACILITIES

1.    Party A agrees to lease the land, factory building and auxiliary
      facilities to Party B and Party B agrees to accept the lease.

2.    Rental fee

The rental fees for the factory building and auxiliary facilities is RMB 15 per
square meter per month (including the land use fees) and the total amount per
month is RMB 142,563.9 (RMB ONE HUNDRED AND FORTY-TWO THOUSAND FIVE HUNDRED AND
SIXTY-THREE YUAN AND NINETY CENTS).

The lease period of the factory building is two years (from September 1, 2006 to
August 31, 2008). Upon the expiry of this lease agreement, Party B shall return
the factory building to Party A. If Party B intends to renew the lease, Party B
shall contact Party A for consultation 2 months prior to the expiry date and
sign another agreement with Party B. In that case, Party B has priority to lease
the factory building.

3.    Payment terms of rental fee

Both Parties agree that the first payment date of the rental fee is September 1,
2006. To reduce the capital pressure on Party A, Party B shall pay the rental
fee at the beginning of each half year by check.

III   INFRASTRUCTURES OF LEASED FACTORY BUILDING

Party A undertakes to provide the following infrastructure to the leased factory
building (they shall be connected to the factory building).

1.    Electricity: electricity for living. Party A shall be responsible for
      applying for the industrial electricity and Party B shall assist Party A
      in the application.

2.    Water supply: water for living and fire control. 500 tons per month.

3.    Telephone line: Party B shall be responsible for the application.

In case the capacities of the above equipment need to be increased, the various
construction expenses and equipment expenses for the increase shall be borne by
Party B.

IV.   OBLIGATIONS AND RESPONSIBILITIES OF THE PARTIES DURING THE LEASE PERIOD

1.    Obligations and responsibilities of Party A during the lease period:

1.1   Within 3 days from the payment date of the down payment by Party B, Party
      A shall deliver the factory building to Party B for its normal use.

1.2   During the lease period, Party A shall keep the factory building in good
      condition and ensure normal use by Party B.

1.3   Party A shall assist Party B in handling the application formalities
      necessary for company incorporation and normal production and operation.

2.    Obligations and responsibilities of Party B during the lease period:

2.1   Party B shall pay the rental fees within the agreed time limit of this
      Agreement.

2.2   In case Party B intends to modify and decorate of the factory building or
      add facilities, it shall first obtain the written approval of Party A and
      [complete] the relevant approval formalities, with the expenses to be
      borne by Party B.

2.3   In case Party B intends to transfer the lease to a third party or exchange
      the factory building with a third party, Party B shall obtain the prior
      approval of Party A.

2.4   In case Party B damages the factory building due to improper use or other
      causes, it shall be responsible for the compensation or repair.

2.5   Party B shall assist Party A in performing reasonable inspection and
      repair of the factory building

3.    Default Liabilities: in case either Party fails to perform the obligations
      under this agreement or violates the relevant national and local
      provisions on real estate contracts, the other Party may cancel this
      Agreement in advance and the Party violating this Agreement shall be the
      responsible for all incurred losses. In case Party B fails to pay the
      rental fees for more than ten days, Party A shall charge Party B 1% of the
      annual rental fee as a penalty for each day overdue.

VI    FORCE MAJEURE

In case the leased factory building and facilities are damaged due to force
majeure (such as an earthquake, typhoon or flood), neither Party shall bear
responsibility to the other.

VII.  MISCELLANEOUS

1.    Any disputes arising from or in connection with this Agreement shall be
      settled by both Parties through friendly consultations.

2.    During the lease period, in case new taxes are levied due to changes in
      national policies, they shall be borne by the Parties as stipulated.

3.    The Parties hereto may have additional consultations about affairs not
      mentioned herein; supplemental agreements to this Agreement shall be of
      equal force with this Agreement after the application of seals by both
      parties.

4.    This Agreement is made in four copies with each Party holding one copy and
      the other two copies submitted to relevant authorities.

5.    The Parties hereto have caused this Agreement to be executed by their
      legal representatives or authorized representatives; after that, Party A
      shall handle the registration formalities regarding lease contracts with
      the local competent authorities.

This page is for the signature of the lease for land, factory building and
auxiliary facilities for Wuxi Seamless Oil Pipes Company Limited.

Party  A: WUXI LONGHUA STEEL PIPES       Party B: WUXI SEAMLESS OIL PIPES
COMPANY LIMITED                          COMPANY LIMITED

(Seal)                                   (Seal)
       -------------------                      -------------------

Authorized Representative: /s/           Authorized Representative: /s/
                              --------                                 ---------

                                         Date: June 19, 2006

(The special seal for the registration of
real estate lease in Wuxi New Development
Zone Real Estate Management Bureau)FACTORY BUILDING LEASE AGREEMENT

                               September 20, 2006

                        FACTORY BUILDING LEASE AGREEMENT

Party A: WUXI SEAMLESS OIL PIPES COMPANY LIMITED (lessor)

Party B: HAILONG DRILL PIPE (WUXI) CO., LTD. (lessee)

After good faith negotiations regarding the lease of land, factory building and
auxiliary equipments, the Parties hereby agree as follows:

I     LOCATION, AREA, STRUCTURE AND APPLICATION OF LAND, FACTORY BUILDING AND
      AUXILIARY FACILITIES

1.    Location of land and factory building

Factory building located at Plot No. C-03, Phase II, Industrial Supporting Park,
Wangzhuang, Xinqu, Wuxi, Jiangsu

2.    Area, structure and application of land and factory building

The land area is approximately 60 mu; the area of construction of the leased
factory building is 21,749.24 square meters, which includes the construction
area of the workshop (18,407 square meters), the total construction area of the
two-story annex building (1,500 square meters), the construction area of the
three-storey office building (1,475 square meters), and the construction area
for the transformer facilities (190.24 square meters).

The workshop is a steel structure and the office building and the annex building
are are frame structures. They shall be used as the production factory of Party
B.

II    RENTAL FEE, USE TERM AND PAYMENT TERMS FOR THE LAND, FACTORY BUILDING AND
      AUXILIARY FACILITIES

1.    Party A agrees to lease the land, factory building and auxiliary
      facilities to Party B and Party B agrees to accept the lease.

2.    Rental fee

The rental fee for factory building and auxiliary facilities i RMB 12 per square
meter per month (including the land use fees) and the total amount per month is
RMB 260,990 (RMB TWO HUNDRED AND SIXTY THOUSAND NINE HUNDRED AND NINETY ). The
rental fee shall be calculated according to the actual use period.

The lease period of factory building is 1 year, (from September 20, 2006 to
September 20th, 2007). Upon the expiration of this lease agreement, Party B
shall return the factory building to Party A. If Party B desires to renew the
lease, Party B shall contact Party A for consultation 2 months in advance of the
expiration date and sign another agreement with Party B. Party A hereby grants
to Party B priority to re-lease the factory building.

3.    Payment terms of rental fee

Both Parties agree that the first payment date of the rental fee is March 30,
2007. To

reduce the capital pressure of Party A, Party B shall pay the rental fee
semi-annually in advance, with the with the payment being made by check.

III   INFRASTRUCTURES OF LEASED FACTORY BUILDING

Party A undertakes to provide the following infrastructure to the leased factory
building (which shall be connected to the factory building).

1.    Electricity: Party A shall be responsible for applying for the industrial
      electricity and Party B shall assist Party A in the application.

2.    Water supply: water for living and fire control. 500 tons per month.

3.    Telephone line: Party B shall be responsible for the application.

If the above amounts need to be increased during the term of the lease, the
various construction expenses and equipment expenses for the increase shall be
borne by Party B.

IV.   FIRE-FIGHTING APPROVAL CERTIFICATE AND OWNERSHIP CERTIFICATE

Party A shall obtain the following certificates and ownership certificate after
this lease agreement has been made and before the required deadline stipulated
in this supplementary agreement.

1.    Fire-fighting: Party A shall complete the fire-fighting approval and
      obtain the approval certificate no later than December 1, 2006, provided
      this agreement has been signed.

2.    Construction Completion: Party A shall obtain the construction completion
      approval certificate issued by the construction authorities before
      December 1, 2006.

V.   OBLIGATIONS AND RESPONSIBILITIES OF THE PARTIES DURING THE LEASE PERIOD

1.    Obligations and responsibilities of Party A during the lease period:

1.1   Within 3 days from the date of down payment by Party B, Party A shall
      deliver the factory building to Party B for its normal use.

1.2   During the lease period, Party A shall keep the factory building in good
      conditions and ensure the normal use by Party B.

1.3   Party A shall assist Party B in handling the application formalities
      necessary for the company incorporation and normal production and
      operation.

2.    Obligations and responsibilities of Party B during the lease period:

2.1   Party B shall pay the rental fee within the agreed time limit in
      accordance with this agreement.

2.2   If Party B desires to modify or alter the factory building or add
      facilities, it shall first obtain the written approval of Party A and
      [complete] the relevant approval formalities, with the expenses borne by
      Party B.

2.3   If Party B desires to transfer the lease to a third party or exchange the
      factory building with a third party, Party B shall obtain the prior
      approval of Party A.

2.4   If Party B damages the factory building due to improper use or other
      causes, it shall be responsible for compensation or repair.

2.5   Party B shall assist Party A in performing the reasonable inspection and
      repair of the factory building

3.    Default Liabilities: in case either Party fails to perform the obligations
      under this agreement or violates any relevant national or local provisions
      related to real estate contracts, the other Party may cancel this
      agreement in advance and the Party violating this agreement shall be the
      responsible for all incurred losses of the other party. If Party B fails
      to pay the rental fee for more than ten days, Party A shall charge Party B
      1% of the annual rental fee as the penalty for each day such rental fee is
      overdue.

VI    FORCE MAJEURE

In case the leased factory building and facilities are damaged due to the force
majeure (such as earthquake, typhoon, flood, etc), both parties shall have no
obligations or responsibilities to the other party.

VII.  MISCELLANEOUS

1.    Any disputes arising from or in connection with this Agreement shall be
      settled by both Parties through good faith negotiations.

2.    During the lease period, if new taxes are levied due to national policy
      changes , such new taxes shall be borne by the parties as stipulated.

3.    The Parties hereto may have additional consultations with respect to
      relevant issues not covered herein; any supplemental agreements to this
      agreement shall be of equal force with this agreement after the sealing of
      both parties.

4.    This Agreement is made in four copies with each Party holding one copy and
      the other two copies submitted to relevant authorities.

5.    The Parties hereto have caused this Agreement to be executed by their
      legal representatives or authorized representatives. Party A shall be
      responsible for the registration formalities with respect to lease
      contracts with the local relevant authorities.

This page is for the signature of the lease for land, factory building and
auxiliary facilities for Hailong Drill Pipe (Wuxi) Co., Ltd..

Party A: WUXI SEAMLESS OIL PIPES            Party B: HAILONG DRILL PIPE (WUXI)
COMPANY LIMITED                             CO., LTD.
(Seal) ___________________                  (Seal) ___________________
Legal Representative: __________
                                            Legal Representative: _________

                                            Date: September 20, 2006

(The special seal for the registration of real estate lease in Wuxi New
Development Zone Real Estate Management Bureau)

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