PetroJet Advanced Fluid Jet Systems for Increased Oil and Gas Production

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PetroJet Laterals

PetroJet places directed permeability channels into your reservoir

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PetroJet Laterals
In existing vertical wells

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PetroJet Laterals
deviated or horizontal wells

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PetroJet Laterals
Customized lateral configurations to meet your needs.

Precise lengths 100% Permeability Oriented Multiple Horizons

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Benefits of PetroJet Laterals Increase Production and Reserves

Increase drainage area Direct permeability channels to where needed Access bypassed pay Add wellbore surface area Bypass near wellbore damage Decrease well drawdown

Reduce or avoid water or gas coning

Inject fluids directly to optimal locations
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Benefits of PetroJet Laterals

ALTERNATIVE TO HYDRAULIC FRACTURING

Formations that cannot fracture

unconsolidated sands oil sands fluid thief or leak-off zones

Concerns about undirected fractures

nearby gas caps water zones

Concerns about injecting fluids into formation

drill underbalanced (N2)

Fluid availability or disposal issues

Uses less fluid volumes Fluids are cycled not injected Fluids can be re-used

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Benefits of PetroJet Laterals

ENHANCEMENT TO HYDRAULIC FRACTURING Alternative multi stage process

Extend reach of fractures

Replace tortuous pathways with multiple superhighways Retain hydraulic pressure for a longer distance

Direct fractures to desired location

Orientated channels Initiate fractures 20-50m from main wellbore

Reduce potential for screen-outs

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Benefits of PetroJet Laterals Pemex Study

Pressure Gradient after 1 year for a vertical well

Vertical Well - 365 Days

vertical well with 8 laterals

8 Laterals - 365 Days

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Benefits of PetroJet Laterals Pemex Study

Vertical 5-70 bpd

4 Laterals 15-140 bpd

8 Laterals 35-200 bpd

Vertical 85,000 bbls 4 Laterals 137,000 bbls (+61%) 8 Laterals 167,000 bbls (+96%)

Cost of PetroJet Laterals

Horizontal + Multi Stage Fracs Conventional Horizontals

How are your Economics?

Cost

Multi Stage Fracs Fracs

PetroJet Multilaterals

Perforations

Effectiveness = Increased production and recovery REACH YOUR RESERVOIR POTENTIAL

PetroJet History
Bechtal (1970s to early 1980s)

Petrolphysics (early 1980s to 2006) Research and Development Over 1,000 laterals in hundreds of wells

PetroJet (2007 to present) Refine and optimize Incorporate new and updated technology

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Various - Canada

Texaco Wyoming
Labarge Field, 3 Laterals Conventional Oil | Unconsolidated Sand 1.1 1.6 (PRE), 6.4 (POST) 300-482%

Four fields, four wells , 84 Laterals Conventional, Heavy Oil and Bitumen | Sandstone, Dolomite and Shale Various results

Crosco - Croatia
Lupt Field, 17 Laterals Conventional Oil | Very Hard Sandstone with Chert stringers 1.9 (PRE), 6.8 (POST) 228%

Williams CO Wyoming
Power Basin, 20 Laterals, 5 wells De watering | Coal Bed Methane Water production increase 20-95%

Chevron - California
Taft Field, 4 Laterals Heavy Oil | Unconsolidated Sand 0.63 (PRE), 1.75 (POST) 178%

Louisiana
Caddo Pine Field, 4 Laterals Conventional Oil | Sandstone 0.3 (PRE), 0.95-1.9 (POST) 217-533%

Unocal - California
Midway Sunset Field, 8 Laterals Heavy Oil | Unconsolidated Sand 3.18 (PRE), 7.15 (POST) 125%

Corpoven - Venezuela
Pozo Rica - Mexico
Various Fields, 10 wells 20 Lateral Project Conventional Oil | Sandstone and Limestone Project is yet to be completed Budare Field, 1 Laterals Conventional Oil | Sandstone 6.2 (PRE), 62 (POST) 900%

PetroJet Historical Results

Type of Application Geographic Location Type of Reservoir Rock Wellbore Extender Stimulation Pre-Stimulation Production (m3/d) Post-Stimulation Production (m3/d) Comments

Conventional Oil

Labarge Field, Wyoming

Unconsolidated Sand

3 laterals 1.1 - 1.6 2.2 - 3.2

This was a depleted older well. Production was doubled and it was cited by the State of Wyoming as having the lowest decline in the state for the year after stimulation.

Conventional Oil

Labarge Field, Wyoming

Unconsolidated Sand

3 laterals 1.1 - 1.6 6.4

This was a new well. The well produced 4 times that of the offsets and half the decline rate.

Conventional Oil

Caddo Pine Field, Louisiana Caddo Pine Field, Louisiana

Sandstone

4 laterals

0.3

1.3

Average production 6 times that of nearby vertical wells without laterals. The decline rate in production was markedly reduced over adjacent wells.

Conventional Oil

Sandstone

4 laterals 0.3 0.95 - 1.9

Conventional Oil

Budare Field, Venezuela

Sandstone

1 lateral 6.2 62

Test on a single well to evaluate the effect of Laterals on the near wellbore damage.

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PetroJet Historical Results

Type of Application Geographi c Location Midway Sunset Field, California Type of Reservoir Rock Wellbore Extender Stimulation

PreStimulation Production (m3/d)

PostStimulation Production (m3/d)

Comments Results suggest that PetroJet multilaterals from one vertical well may do the job of five vertical wells.

Heavy Oil

Sandstone

8 laterals between 268m and 270m

3.18

7.15

Heavy Oil

BreaOlinda Field, California

Unconsolidated Sand

4 laterals 9.5 15.9

The steam required per barrel of production was 0.76 m3/day of steam per m3 of oil without laterals and 0.46 m3/day of steam per m3 of oil with laterals.

(SOR reduction of 40% )

Heavy Oil

Taft Field, California

Unconsolidated Sand

4 laterals

0.63

1.75

Prior to placement of laterals this well required a workover every 6 9 months. In the 2 years after lateral placement, the well did not sand up (plug) in that period.

Conventional Oil

Lupt Field, Croatia

Very Hard Sandstone w/ Chert Stringers

17 laterals at multiple depths

1.9

6.8

In addition to the increase in oil production, which has had a negligible decline in the first 4 years after the stimulation, there was also an increase in gas production from the well from 80 m3/d to 552 m3/d.

De-watering for Coal Bed Methane

Powder Basin, Wyoming

Coal

5 wells average 4 x 15m lateral per well between 500m and 650m

Water production increased 20- 95%

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PetroJet Recent Projects

Wyoming Coal Bed Methane Dewatering
20 laterals, 5 wells, total 171 meters Increased dewatering by up to 95 %

Central Alberta Banff Carbonate Workover

10 meter lateral @ 1,750m depth

Fort McMurray Oil Sands Cap Rock

82 laterals from 1 well, total 591 meters Successfully completed remediation project

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PetroJet Case: Cap Rock Remedial Project

The Problem
Surface Casing

Glacial Till

Five attempts to Re-enter lost wellbore

Shale

Lost Wellbore representing a possible cap rock breech

Oil Sands

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PetroJet Case: Cap Rock Remedial Project

The Proposal
Surface Casing

Glacial Till

New parallel wellbore Shale Array of 7 metre long PetroJet laterals

Lost Wellbore representing a possible cap rock breech

Oil Sands

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PetroJet Case: Cap Rock Remedial Project

The Result
Surface Casing

Glacial Till 48 laterals placed in 14 days 34 laterals placed in 3 days 300 m3 of cuttings removed from the rig tanks Total 520+ metres of laterals placed

Shale

Oil Sands

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PetroJet drills any rock

~ 5 seconds

~ 15 seconds Carbonate

~ 60 seconds

Sandstone

Granite

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PetroJet vs. Carbonates

Cuttings from 1,750 metre Banff Dolostone (Carbonate)

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PetroJet vs. Carbonates

Core was <3% Porosity Redwater back reef limestone, PetroJet easily cut the core (at 1/8th power)

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PetroJet Flexible Platform

Flexible
Exit from vertical, deviated or horizontal well bores Openhole or cased Precise lengths Drills any reservoir lithology

Customizable Fluid Options (water, oil, N2, anti-accretion, etc)

Predictable trajectories Precise lateral orientation and lengths Hole size Drilling power

Uses Standard Oilfield Equipment

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PetroJet vs. Other Radial Drillers

Larger
Pumps (2000 hp vs. ~250 hp) Flow rates (200+ gpm vs. ~10 gpm) Delivery system (2.875 tubing vs. hose) Power to the nozzle
Flowrate (m3/min)
0.8 0.7 2000 1500 1000 500 0 PetroJet Competitor 0.6 0.5 0.4 0.3 0.2 0.1 0 PetroJet Competitor

Pump Horsepower
2500

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PetroJet vs. Competitors

< 2% full power

1500 psi @ 30 gpm Hp= (psi)(gpm)/1714

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PetroJet Laterals
A Environmental Choice

REDUCE CHEMICALS

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PetroJet Laterals
An Environmental Choice Reduce
Fluids - water Chemicals Proppants not required More efficient thermal injection = Less energy & CO2

Re-use
Existing vertical wells

Recycle
Fluids are recycled and re-used.

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PetroJet Laterals

Think Outside the Wellbore

Connect Measure Manipulate

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Why PetroJet? Industry Leader in Radial Drilling Successful History

Flexible and Customizable

The power to get the job done
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