The Kraken is a propellant. Powered by GasGun

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1 (Front cover) The Kraken is a propellant enhanced perforating gun system designed to overcome the reservoir damaging effects of conventional perforating guns. This integrated system allows for perforation and formation breakdown in a single trip. Powered by GasGun The Kraken is a propellant enhanced perforating gun system designed to overcome the reservoir damaging effects of conventional perforating guns. This integrated system allows for perforation and formation breakdown in a single tool. The GasGun, Inc The GasGun,Inc. All rights reserved.

2 The Kraken system incorporates shaped charges for perforation and propellant boosters for fracture stimulation in a single tool. The propellant boosters contained inside the Kraken are based on the same progressively burning propellant technology used in our patented GasGun stimulation tools. This propellant generates high pressure gas that creates fractures in every perforation tunnel resulting in improved production and injection performance. Our progressively burning propellant has been proven by independent research to be many times more effective in creating fractures and is the key advantage that sets our tools apart from the competition. Listed below are four of the most common applications for this unique stimulation tool. Perforate and break down formation in a single trip Selectively break down tight zones Prepare the wellbore for hydraulic fracture Remove skin damage from perforators, drilling, scale, cement, etc. Fractures created at every perforation tunnel Improve effectiveness of acidizing Increase injection rates Reduce injection pressures Create homogeneous injection profile Reduce tortuosity and resulting screen-outs Break down formation/ reduce treating pressures Create factures in preferred plane The Kraken system is compatible with most commercially available perforating charges with a minimum entry hole of 0.42 Standard shot density of 4 shots per foot. Available in shot density of 1-4 shots per foot upon request. Standard shot phasing is 60 degrees. Shot phasing can be customized upon request. Compatible with simultaneous or select fire systems. Conveyance: Wireline, Pump Down, TCP, Coil Tubing, Slickline, Tractor

3 Powered by GasGun T he Kraken derives its name from the legendary beast that lurks in the ocean depths. This ferocious creature reminds us of our Kraken tools which thunder in deep oil and gas wells, at times ejecting fluid as the well snarls, and eliciting primal cries from wireline operators...release the Kraken!!!! Visit our website or contact us directly and our technical team will review your application today! info@thegasgun.com 2017 TheGasGun, Inc. All rights reserved.

4 For all the latest field results, please visit our website: Learn how the Kraken has helped operators solve their tough production problems. Call us today at

5 Powered by GasGun 2 3 / 4" Kraken Perforating Gun in./70mm O.D., 4spf, 60 Spiral System The Kraken is a propellant enhanced perforating gun designed to overcome the reservoir damaging effects of conventional perforating gun systems. The propellant boosters contained inside the Kraken are based on the same progressively burning propellant technology used in our patented GasGun stimulation tools. Progressively burning propellants have been proven by independent research to be many times more effective in creating fractures and is the key advantage that sets our tools apart from the competition. Benefits Powered by GasGun Perforates and stimulates the reservoir in one trip. Creates multiple radial fractures extending 1-5 feet past the perforation tunnels with the use of progressively burning Kraken propellant boosters. Removes skin and cleans up the wellbore damaged by perforators, drilling fines, cement, mud cake, etc. Prepares well for hydraulic fracturing by breaking down formation first with the Kraken. Treating pressures are often dramatically reduced, flow rates improved, and the effects of tortuosity minimized. Improves effectiveness of acidizing by fracturing first with the Kraken. Features The Kraken perforating system is compatible with shaped charges that create a 0.42-inch entrance hole or larger. Standard shot density of 4 shots per foot. Customized shot density from 1-4 shots per foot available upon request. Standard shot phasing is 60 degrees. Shot phasing can be customized upon request. Compatible with simultaneous or select fire systems. Conveyance: Wireline, Pump Down, TCP, Coil Tubing, Tractor Patent Pending Specifications Propellant Booster Part Number KRAK Nominal O.D. (in) [mm] [70] Max Shot Density (spf) [spm] 4 [13] Max Pressure (psi) [MPa] 20,000 [138] Max Temp. ( F) [ C] 280 [138]* Recommended Detonating Cord 80 grains/foot Typical Gun Swell (in) [mm] 2.97 [75] Warning: Exceeding the maximum temperature ratings can result in unintentional detonation * 280 F (138 C) maximum temperature rating is for a 1-hour exposure; 260 F (127 C) maximum temperature rating is for a 10-hour exposure. The GasGun, Inc SE 122nd Ave. Clackamas, OR The GasGun,Inc. All rights reserved.

6 Powered by GasGun 3 1 / 8" Kraken Perforating Gun in./79mm O.D., 4spf, 60 Spiral System The Kraken is a propellant enhanced perforating gun designed to overcome the reservoir damaging effects of conventional perforating gun systems. The propellant boosters contained inside the Kraken are based on the same progressively burning propellant technology used in our patented GasGun stimulation tools. Progressively burning propellants have been proven by independent research to be many times more effective in creating fractures and is the key advantage that sets our tools apart from the competition. Benefits Powered by GasGun Perforates and stimulates the reservoir in one trip. Creates multiple radial fractures extending 1-5 feet past the perforation tunnels with the use of progressively burning Kraken propellant boosters. Removes skin and cleans up the wellbore damaged by perforators, drilling fines, cement, mud cake, etc. Prepares well for hydraulic fracturing by breaking down formation first with the Kraken. Treating pressures are often dramatically reduced, flow rates improved, and the effects of tortuosity minimized. Improves effectiveness of acidizing by fracturing first with the Kraken. Features The Kraken perforating system is compatible with shaped charges that create a 0.42-inch entrance hole or larger. Standard shot density of 4 shots per foot. Customized shot density from 1-4 shots per foot available upon request. Standard shot phasing is 60 degrees. Shot phasing can be customized upon request. Compatible with simultaneous or select fire systems. Conveyance: Wireline, Pump Down, TCP, Coil Tubing, Tractor Patent Pending Specifications Propellant Booster Part Number KRAK Nominal O.D. (in) [mm] [79] Max Shot Density (spf) [spm] 4 [13] Max Pressure (psi) [MPa] 20,000 [138] Max Temp. ( F) [ C] 280 [138]* Recommended Detonating Cord 80 grains/foot Typical Gun Swell (in) [mm] 3.48 [88] Warning: Exceeding the maximum temperature ratings can result in unintentional detonation * 280 F (138 C) maximum temperature rating is for a 1-hour exposure; 260 F (127 C) maximum temperature rating is for a 10-hour exposure. The GasGun, Inc SE 122nd Ave. Clackamas, OR The GasGun,Inc. All rights reserved.

7 Powered by GasGun 4 1 / 2" Kraken Perforating Gun in./114mm O.D., 4spf, 60 Spiral System The Kraken is a propellant enhanced perforating gun designed to overcome the reservoir damaging effects of conventional perforating gun systems. The propellant boosters contained inside the Kraken are based on the same progressively burning propellant technology used in our patented GasGun stimulation tools. Progressively burning propellants have been proven by independent research to be many times more effective in creating fractures and is the key advantage that sets our tools apart from the competition. Benefits Powered by GasGun Perforates and stimulates the reservoir in one trip. Creates multiple radial fractures extending 1-5 feet past the perforation tunnels with the use of progressively burning Kraken propellant boosters. Removes skin and cleans up the wellbore damaged by perforators, drilling fines, cement, mud cake, etc. Prepares well for hydraulic fracturing by breaking down formation first with the Kraken. Treating pressures are often dramatically reduced, flow rates improved, and the effects of tortuosity minimized. Improves effectiveness of acidizing by fracturing first with the Kraken. Features The Kraken perforating system is compatible with shaped charges that create a 0.42-inch entrance hole or larger. Standard shot density of 4 shots per foot. Customized shot density from 1-4 shots per foot available upon request. Standard shot phasing is 60 degrees. Shot phasing can be customized upon request. Compatible with simultaneous or select fire systems. Conveyance: Wireline, Pump Down, TCP, Coil Tubing, Tractor Patent Pending Specifications Propellant Booster Part Number KRAK Nominal O.D. (in) [mm] [114] Max Shot Density (spf) [spm] 4 [13] Max Pressure (psi) [MPa] 17,500 [121] Max Temp. ( F) [ C] 280 [138]* Recommended Detonating Cord 80 grains/foot Typical Gun Swell (in) [mm] 4.71 [120] Warning: Exceeding the maximum temperature ratings can result in unintentional detonation * 280 F (138 C) maximum temperature rating is for a 1-hour exposure; 260 F (127 C) maximum temperature rating is for a 10-hour exposure. The GasGun, Inc SE 122nd Ave. Clackamas, OR The GasGun,Inc. All rights reserved.

8 A Kraken Case Study West Texas Operator Improves Production from San Andres Well with Kraken Perforation/Stimulation Technology APPLICATION Reperforation/stimulation (Existing Zone) INTERVAL 4,770-4,850 feet FORMATION San Andres (dolomite) LOCATION Gaines, Texas POROSITY 15 % BACKGROUND Two cased hole wells initially completed with conventional perf and acid in the San Andres dolomite formation were recompleted with the Kraken and acid in order to improve existing production. The Kraken, a propellantenhanced perforating gun, is designed to overcome formation damage and improve the performance of the subsequent acid stimulation. A 5000 gallon acid job was run after each Kraken perforating job. The 5000 gallons comprised of 15% HCL split 90% purely acid and 10% with acitol (xylene) for paraffin inhibition. Each acid job was diverted with ~3500 lbs. of rock salt. Both wells saw a consistent increase in production with this enhanced stimulation method. Before and after oil production for both wells is noted in the graph below. PERMEABILITY 4 md SKIN Unknown GUN DESIGN 3 1/8" Kraken Perf Gun Pre-Acid Improve effectiveness of spotting acid Break down formation/reduce treating pressure Etch channels in newly created fractures The GasGun, Inc. All rights reserved.

9 A Kraken Case Study California Operator Improves Frac Performance and Reduces Completion Cost with Kraken Perforation/Stimulation Technology APPLICATION Pre-Frac (Production Well) INTERVAL feet FORMATION Diatomite LOCATION Kern County, CA POROSITY 25 % PERMEABILITY.01-2 md YOUNG'S MODULUS 50,000psi SKIN Unknown GUN DESIGN 3 1/8" Kraken Perf Gun BACKGROUND (Below is directly quoted from the operator) "In the past we ve had a lot of difficulty placing frac stages in the lap of the 5-1/2 intermediate casing and 7 Production casing. The typical response in the past we would have very high pressures and very low rates (3-5 bpm too low to run an X-link system). I would say we had to re-perforate 3 out of 4 times, this added time and cost to our treatments. Yesterday we used the Kraken Guns for the lap perforations on (lease name confidential) and the injection was pumped at much higher rates (15-19 bpm). We still have high perforation friction which is cleaned up pretty easily with a short ½ ppg stage before going into original program. Many of you are familiar with Kraken Guns that we are using in the injectors, it creates the hole and then blasts behind it to clean out the perforations. We were on location to explain to Haliburton frac engineers that this was a huge improvement to the past work. And as in the past as soon as the proppant touched the perforations the pressure fell and the stage was completed without issues. This will be put into a Kaizen and the future improvement will be to use the Super-Kraken gun and hopefully a Select Fire system." Pre-Frac Reduce tortuosity & resulting screenouts Break down formation/reduce treating pressures Create fractures in preferred plane The GasGun, Inc. All rights reserved.