Introduction to Product PRF-00 / PRF-01

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1 Introduction to Product PRF-00 / PRF-01

2 GQ-300 Our inorganic treatment is a revolutionary controlled acid formulation which is ion balanced. When added to other strong acids it controls them making them non caustic but maintaining all of their corrosive effectiveness. It's ability to control all other strong acids means delivering a safe, problem specific solution every time. PRF (Chemistry Name: RDV) Our organic treatment simply reorganizes long hydrocarbon chains such as paraffin and ashphaltines, into shorter chains. It will eventually spend itself converting completely into more saleable oil improving the overall quality of the final product. Additional benefits realized is its ability to positively impact other organics such as H2S and CO2 and its very active demulsification capability. In Combination for Stimulation When combining the two for reservoir stimulation, we can simultaneously clean organic and inorganic skin damage then condition the rock prior to a deeper penetration with the acid caused by the sequentially pumping of the products where the organic treatment provides the path for the inorganic treatment.

3 Description PRF-00 and PRF-01 is an organic liquid that simply breaks down long hydrocarbon chains such as paraffin and ashphaltines, resulting in shorter hydrocarbon chains. During the reaction PRF s become part of the oil phase and prevents the long chain hydrocarbons from reconnecting permanently changing the oil quality and preventing paraffin's and ashphaltines from reforming. Activation Mechanism PRF s are a multi reactionary chemical liquid compound which was originally designed to enhance the quality of heavy oil by a cold transformation process (not thermal). High energy response originating from the carbon cations created during PRF s contact with the hydrocarbon An energy transformation occurs under a COLD, PERMANENT and Non REVERSIBLE way resulting in the shortening of the longhydrocarbon chains. PRF s contain no Aromatic Solvents. Resulting Benefits By shortening of the long hydrocarbon chains of paraffin's and ashphaltines in any kind of crude oil and prevents the associated precipitates. This contributes to the prevention of scale buildup. Acting to reduce the surface tension of the liquid hydrocarbon means it is an effective demulsifier. Other components of the compound assist in reducing H2S and CO2 levels. There is no chemical finger print in the water phase of oils treated with PRF s no impact on produced water quality.

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5 Test Objectives To evaluate the effectiveness of PRF-00 for the treatment of paraffin in an Eagle Ford rod pumped well, located near Whitsett, Texas (Well name Heard Bower 1H). To increase product and reduce operating costs by eliminating the buildup of paraffin in the wellbore and production facilities resulting in the elimination of need for regular hot oiling and system cleaning. Results - Certified by Intertek laboratories, Corpus Christi 20% reduction by weight in a paraffin content. An increase by 9% the C1-C10 Paraffin's that are integrated into the oil improving its overall quality. Paraffin reduction continued after wellhead. After cloud point testing virgin (untreated) paraffin remained crystallized, treated oil (5 gallon rate) returned to liquid like state. Well was normally hot oiled every three weeks and operated after 8 weeks at elevated production rates. Separator, piping, valves and meters remained paraffin free. Elimination of H2S presence in tanks.

6 Test Objectives Determine impact of PRF-01 on treating H2S in Eagle Ford well. Target well: Eagle Ford well on gas lift located near Kennedy, Texas. Average pre-treatment production 143 BPD (100 oil)and.943mcf gas. H2S ppm at header and over 3000 ppm at plant inlet (comingled various wells). Test Stepped testing from gallons per day over 3 weeks. At all 3 levels H2S was reduced to 450 PPM post treatment. H2S concentrations at the production facility inlet were reduced to ppm where several wells comingled with this well prior to flowing to the facility. Conclusion Operator confirmed PRF-01 is much more effective at treating H2S in gas. Further field testing in process to determine efficiency, but it provides benefit to H2S reduction where treating wells for Paraffin.

7 Pre- treatment prior to every 3 or 4 week hot oil treatment 180 days post treatment commencement without hot oiling Daily production is steadily increasing Lost production due to paraffin blockages eliminated

8 Pig receiver during previous chemical treatment, prior to PRF-01 treatment Pig Receiver after 1 st week of treatment - initial 25 gallon Batch 1000ppm continuous dosage Pig Receiver after 3rd week of treatment continued with initial dosage Oil Sample off of separator after 3 weeks. No BS&W rate

9 Highly Asphalinic Paraffin wells Wells shut in as they were completely locked up hot oiled wells, 25 gallon batch and circulate (3 hours). Continuous treatment started at 5 gallons for 1 week then 1000ppm after wells continue to produce 8-10 barrels a day 3 months later. (13 wells)

10 Well selection Northern British Colombia Canada gas well Natural flow Average production rate is MMCF with 300 BBLs of water H2S level was 100PPM Test Prior to our test a competitors H2S scavenger was used at a 80 gallon per day rate with the H2S being reduced to 10PPM Initially treated at 5 gallons per day and reduced H2S to 20 PPM Added an atomizer in line and increased rate to 20 gallons per day and reduced H2S to 1 PPM Conclusion PRF-01 is proven to be more effective at treating the H2S than the scavenger previously used especially when used in conjunction with an atomizer

11 First bottle is raw sample with sandy oil, dirty water and oily sand Bottle 2 and 3 are post PRF-01 treated, using 50C blend into note clean water mixture, sand, clean water and clean oil cuts

12 Situation Client continuously produces oil that is unsellable, and uses in their own ashphalt mixing facility for their own road maintenance Treatment Client had 800bbl tank full of this particular slop Our treatment consisted of 264 gallons of PRF-01 Prior to treatment client was able to remove 200 BBLs of water from the tanks after sitting for a week Circulation through an external pump back into top of tank was started with a continuous injection of PRF-01 into stream over 24 hours until all chemical was in oil and continued circulating for 48 hours without heat At the end of 48 hours the company was able to sell 300 BBls of clean oil, had 250 bbls of water liberated from the oil and left with 50 bbls of solids and sludge that needed to be disposed of Results While we await lab results of actual BS&W and API gravity and viscosity numbers the client was pleased with the results of the treatment Adjustment of volume would be our next step as we treated well above downhole treatment rates and without lower cost blending options

13 After 2 weeks of treatment there was a reduced amount of liquid wax, but no hot oiling was required for the flow line or oil sales during that period which was weekly on the flowline and each sales load prior to PRF-01 treatment. The customer was also injecting a demulsifier prior to and during PRF-01 treatment and prior to our treatment starting still had 7% BS&W (water). After 4 weeks of treatment there was no wax on the coupon and still no hot oiling was required for the flow line or oil sales. Water cut on sales oil went down to 2/10ths, so competitors demulsifier was not working at all.

14 GQ-300 is an acid additive that when mixed with strong acids like Hydrochloric (HCL), Sulfuric (H2SO4), Phosphoric (H3PO40) and Hydrofluoric (HF) Acid in varying proportions eliminates the caustic effect while maintaining the acids specific corrosive properties.

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16 Results shown were independently certified by the following testing institutions

17 For more information on this others please contact us at: product or Gary Morris Operations Director

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