Alliance Drilling Fluids, LLC Has Been Acquired by Newpark Resources, Inc.

HOUSTON, January 16, 2013 – GulfStar Group (“GulfStar”) is pleased to announce the sale of Alliance Drilling Fluids, LLC (“ADF” or the “Company”) to Newpark Resources, Inc. (“Newpark”). GulfStar served as exclusive financial advisor to ADF throughout the transaction, which closed on December 31, 2012.

ADF is a leading independent provider of drilling fluids, proppants and related services primarily in the Permian Basin and Eagle Ford Shale markets. The Company is headquartered in Midland, Texas and was founded in 2004. ADF Co-founder and CEO Shawn Savage has joined Newpark to continue running the business in the Permian Basin.

“I am thrilled we chose GulfStar to represent ADF in this transaction,” said Shawn Savage, President of ADF. “Throughout the process, GulfStar guided our management team to close this transaction in a very compact time frame. GulfStar’s extensive knowledge of the process and negotiating expertise were invaluable. We were able to find a great match in Newpark Resources. We are very excited to be joining such a dynamic organization and look forward to the opportunities this Company has in the marketplace,” Savage added. “Working with the GulfStar team allowed senior management to meet specific goals; particularly the goal of maintaining opportunities for our employees and finding an organization that is as customer-focused as we were. I would recommend their dedicated and talented team to anyone who is thinking about going through this exciting and stressful process.”

Headquartered in The Woodlands, Texas, and serving North and South America, Europe, the Middle East, Africa and Asia Pacific, Newpark is a worldwide provider of drilling fluids, temporary worksites and access roads for oilfield and other commercial markets, and environmental waste treatment solutions. Newpark operates in three primary segments: Fluids Systems and Engineering, Mats and Integrated Services, and Environmental Services.

The GulfStar team included Managing Director Cliff Atherton, Managing Director Tom Hargrove, Senior Vice President John O’Brien, Associate Jay Stone and Analyst Nico Gayle. “Shawn Savage is an outstanding leader who partnered with Mack Energy to build a high quality drilling fluids business,” said Atherton. “Now Shawn will lead this business for Newpark, and we know he will continue to grow the business profitably for Newpark’s shareholders.”

About GulfStar
Group GulfStar is a leading middle market investment and merchant bank headquartered in Houston. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed over 575 transactions in more than 30 states and seven foreign countries across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.

Securities offered through GulfStar Group I, Ltd. an affiliated entity, member FINRA – SIPC.