Abstract: A water based fluid additive useful in drilling mud used during drilling of an oil or gas well is disclosed, produced by reacting water at temperatures between 210.degree.-280.degree. F. with a mixture comprising in percent by weight:______________________________________ Gilsonite 25-30% Tannin 7-15% Lignite 25-35% Sulfonating Compound 15-25% Water Soluble Base Compound 5-15% Methylene-Yielding Compound 1- 5% ______________________________________and then removing substantially all of the remaining water to produce a dried product.