Exploreco Pipe Ltd. had renewed its agreement with Baoshan Iron & Steel Co., Ltd. of Shanghai China to market their oil country tubular products within the United States. The contract, which is an extension of a distribution agreement reached in 2002, is expected to generate annual sales in excess of $60 million.

The company also announced plans to continue the development of a proprietary premium tubing connection, which is a joint venture with the Chinese pipe producer. Exploreco Pipe Ltd. has been marketing the Baosteel products since 1997. The products, which enter via the Port of Houston, are stored and processed within the Greater Houston area and stocked in several locations within the U.S.

Baosteel is China's largest integrated steel mill and is among the most modern seamless pipe mills in Asia. The company manufactures high quality seamless oil country tubular goods, which range from 1 inch to 7 inches in diameter. The quality and reputation of this product have led to an increase in demand among American companies operating deep gas wells.

EPL also has similar arrangements with other foreign pipe manufactures known for their quality products. Revenues for 2005 will be approximately $150 million.