CS 52 Fluid Properties and Performance Comparison Comparative Study: The Industry Leading Flow Enhancer Versus HPPE CS 52 and HPPE Rock Release

Title goes here CS 52 Fluid Properties and Performance Comparison Comparative Study: The Industry Leading Flow Enhancer Versus HPPE CS 52 and HPPE Rock Release

Executive Summary HPPE CS 52 is an Engineered Biopolymer Fluid, EBF, surfactant that is environmentally friendly and has been specifically designed to provide superior oil well flow performance characteristics. In a typical mid-weight, asphaltene-laden Permian oil, CS 52 fluid properties show that it has more than half the Interfacial Tension and similar Surface Tension as an industry leading surfactant. In the oil/water column tests, CS 52 has about a third of the break through time, similar water recoveries and tangibly higher oil recoveries than the industry leading surfactant. Longer time duration in the column tests suggests CS 52 has improved performance wetting characteristics that result in higher oil and total fluid recoveries. In all test results, CS 52 is either superior or similar to a current industry leading surfactant. The superior results are indicative of the rapid Surface Tension reduction and superior asphaltene dispersion characteristics of the product. 2016 HPPE. ALL RIGHTS RESERVED. 2

Study Scope and Operational Relevance Assess the Interfacial Tension, Surface Tension, break-through times and total liquid recovery (oil & water) comparing the industry leading well performance enhancer surfactant to the HPPE CS 52 and HPPE Rock Release surfactants. Measure Surface Tension in recovered water from sequential pressurized packed columns to assess relative wetting efficiency of shale/sand media. Use a blended oil to assess the product performance across a broader range of oil chemistries. As fields are produced, the relative proportions of saturates, aromatics, heteratomics and asphaltenes change requiring optimized versatility in product performance. Enhance column media to optimize experimental relevance of fluid recovery and flow performance: - 40/70 silica sand - Mature oil-prone shale 2016 HPPE. ALL RIGHTS RESERVED. 4

Oilfield Status: Leading Well Flow Enhancer Products Two solution approaches Surfactant plus solvent EBF surfactant plus dispersant Highly effective Total load recovery Higher flow rates Better well performance Surfactant Modifies mineral surfaces for oil/water Lower IFT Lower Surface Tension EBF fluid capability Customizable for oil/reservoir Environmentally compatible Solvent Dissolves heavy oil compounds Dispersant Disperses heavy oil compounds Industry Leader Approach HPPE 2016 HPPE. ALL RIGHTS RESERVED. 5

Experimental Descriptions Two consecutive columns were each packed with a sand/shale/oil mixture. The column #1 effluent water solution was used again to treat column #2 to evaluate the long term fluid recovery character and extended Surface Tension reduction of the original fluids. Fluids (water containing surfactant & oil) flowing through the column were measured for a period of 120 minutes. Water recovery rate was calculated as a % of water recovery. % of oil recovery and % of total fluid (water + oil) are based on the pore volume of the column. The maximum theoretical % water recovery is 100%. There is no limitation on % oil recovery during the test as there is no limit of oil supply in the column tests. Therefore, % oil recovery and % total fluid recovery can exceed 100%. 2016 HPPE. ALL RIGHTS RESERVED. 7

Test Materials & Setup Column Pack Solids: Frac Sand (40/70) + HPPE Shale (Sized to 40/70) Test Fluid: 1 GPT surfactant in Tap Water Crude Oil: Permian Crude Oil. Mixture identified as HPPE EGAS Oil. 40/70 Frac Sand 40/70 Oil-Mature Shale Core Shale is mixed with frac sand to simulate surfactant adsorption onto the formation. HPPE EGAS Oil: 40.1 API; NSO + ASP = 4.1% 2016 HPPE. ALL RIGHTS RESERVED. 8

Summary of Results EBF CS 52 yields significantly lower (> 50%) Interfacial Tension for a typical mid-weight, asphaltene-laden oil. Surface Tension evolution between CS 52 and the industry leader is similar throughout the column tests with both products showing similar reductions. EBF CS 52 yields significantly more total oil recovery suggesting more effective dispersion of the asphaltene fraction and less pore throat occlusion in the column matrix. EBF CS 52 yielded the highest total load recovery through both columns. EBF CS 52 yielded significantly faster break-through times in the column tests indicating rapid Surface Tension reduction and more efficient installation of the critical micelle concentration in the fractionally wetted column. 2016 HPPE. ALL RIGHTS RESERVED. 13

New HPPE CS 52 Well Performance Optimizer Maximizes well performance and load recovery Reduced reservoir damage caused by relative permeability impairment Improved flow back rates and recovery Improved well performance Biosurfactant Unrivaled low Interfacial Tension (<5.0 dyne/cm) Rapid wetting Efficient adhesion/wetting in near well bore Deeper penetration by reducing contact angle further from well bore Dispersant Disperses and mobilizes heavy oil molecules (asphaltenes & paraffin) Improves wettability in treated pore network Simpler reservoir chemistry than solvent chemistry - Additional reaction products NOT produced 2016 HPPE. ALL RIGHTS RESERVED. 14