Sucker Rods & Couplings

Sucker Rods & Couplings

About Us Q2 Artificial Lift Services opened in December 2016 in Red Deer, Alberta, Canada. Our Senior Management team has an average of 20+ years working in the oilfield business. Years of experience coupled with innovative new ideas, solidify us as leaders in the industry. We have expertise in engineering, manufacturing, and product development of sucker rods & associated components along with rod string and rod lift system designs. Our Steel Sucker Rods Q2ALS has designed our rods using well proven engineering, starting with the raw materials, processing techniques and heat treatment. Raw materials used for Q2 ALS rods are literally manufactured from the ground up, it is virgin steel. We use integrated steel mills that start with raw iron, transform this into steel, then add the necessary alloys to produce the grades of materials we require. During the process of manufacturing the steel it is desulfurized and dephosphorized. Most other manufacturers providing products in North America use mini mills that recycle steel such as old cars and appliances that lead to elements in their steel (such as aluminum and copper) that have a negative effect, requiring the addition of grain refining materials to overcome these issues. The sulfur and phosphorus content is some of the lowest in the industry allowing us to minimize the nonmetallic inclusions, leading to a higher resistance of corrosion in sour gas environments. The manufacturing facility has one of the oldest and continuous API Monogram Licenses dating back to 1989. In 2014, the company moved into a brand new, state-of-the-art faciity purposely designed with a focus on the highest quality sucker rods. Our lead team members and the production and engineering representatives of the manufacturing company designed, developed and put into place the criteria and requirements for all the equipment and processes in the new facility. 2 Sucker Rods & Couplings Straighten & Descale EMI flaw detection Heat Treatment Wet Magnetic Particle Inspection of the Rod Ends

Quality Above and Beyond Raw material samples are sent and tested in a national level laboratory to ensure they match the mill certifications Quality gates are set at all operations for review and approval prior to moving to the next process Mechanical properties testing occurs in the factory and test samples are sent to a national level laboratory for validation and final approval Straightness requirements are more stringent than API 11B 100% magnetic particle examination of the upset ends after heat treatment Normalized and Tempered Ferrite/Pearlite Steel at 500X magnification 100% inspection of all machined surfaces Q2 ALS provides both Normalized and Tempered (N&T) and Austenitized, Quench and Tempered (Q&T) sucker rods in all API and High Strength grades. All rods have cold rolled threads and are manufactured to exceed in quality and requirements of the latest edition of API Specification 11B in modified UNS G-Series of steels. The minimum yield strength of all Q2 ALS rods start higher than the API requirement begins, giving them an application advantage in lifting loads, allowing for better taper string designs with lower rod string weight. Normalized and Tempered (N&T) rods have mechanical properties and load carrying capacities higher than API requirements. With a typical ferrite pearlite grain structure that is common in the industry. Our N&T rods typically have yield to tensile strength ratios of 0.82 to 0.89 ratios, whereas other N&T rods have typical ratio of 0.67-0.87. Austenitized, Quenched and Tempered (Q&T) sucker rods have higher load carrying ranges than a typical API sucker rod manufactured by normalized and tempered (N&T). Typical yield strength to tensile strength ratios for Q&T rods are 0.90-0.96. This method of heat treatment results in a highly refined grain structure of tempered martensite (sorbite), that greatly enhances impact and the fatigue resistance. Additionally, our Q&T rods have high charpy impact values of typically 180 Joules for all D grades and 143 joules for all High Strength grades of rods indicating a higher fatigue and impact resistance then normalized and tempered rods. Sorbite Austenitized, Quench and Tempered Martensitic Steel at 500X magnification Rods and pony rods are stocked in: API grades D-Alloy (DA, DA-N) D-Special (DS, DS-N) High Strength Alloy (HA, HA-N) High Strength Special (HS, HS-N). API grade C, K, and D-Carbon are provided by special order. www.q2als.com 3

Grades And Application Sucker Rods Rod application is dependent on well depth, load, and corrosion as a minimum. There are other factors that contribute heavily to the proper design of the rod string as well as a proper corrosion inhibition program in operation on the well. Corrosion Environment Load Mild Medium Light to Medium C Grade K Grade As a general statement when used with a corrosion inhibition program the following applies: Light to Heavy DC Grade Light to Extra Heavy - DA and DA-N Grade DS and DS-N Grade HA and HA-N Grade HS and HS-N Grade Couplings Marking API Grade Steel Type Application TA D Alloy Grade UNS G5140MD Designed for reciprocating and progressive cavity pumps a Non-corrosive or effectively inhibited corrosive fluids TAS D Alloy Grade with spray metal coating UNS G5140MD Designed for reciprocating and progressive cavity pumps a Non-corrosive or effectively inhibited corrosive fluids HA High Strength Alloy UNS G4130MD Designed for reciprocating and progressive cavity pumps Non-corrosive or effectively inhibited corrosive fluids HAS High Strength Alloy with spray metal coating UNS G4130MD Designed for reciprocating and progressive cavity pumps Non-corrosive or effectively inhibited corrosive fluids a TA and TAS couplings may be used for progressive cavity pumps, however it is recommended that HA and HAS couplings be used 4 Sucker Rods & Couplings

Mechanical and Chemical Properties By Rod Grade Rod Grade DA-N DA DS-N DS HA-N HA HS-N HS HY API Grade D Alloy D Alloy API Color Code D Special Alloy D Special Alloy High Strength Alloy High Strength Alloy High Strength Special High Strength Special High Strength Alloy Yellow Orange Green Purple Pink Steel Type 4142MD 4130MD 4330MD 3130MD 4138MD 4138MD 4330MD 3130MD 4138MD Heat Treatment N&T B Q&T A N&T B Q&T A N&T B Q&T A N&T B Q&T A Case Induction Hardened Mechanical Properties Yield Strength, KSI Tensile Strength, KSI Elongation, % in 8" Reduction of Area, % 100 Min 110 Min 100 Min 115 Min 115 Min 115 Min 115 Min 125 Min 115 / 140 115 / 140 115 / 140 120 / 140 140 / 155 140 /155 140 / 155 140 / 155 10 Min 10 Min 10 Min 10 Min 10 Min 10 Min 10 Min 10 Min 50 Min 55 Min 45 Min 55 Min 45 Min 50 Min 45 Min 55 Min Brinell Hardness C 248-285 248-285 248-285 248-285 273-313 273-313 273-313 273-313 155 min reference based on hardness of 42 HRC minimum Chemical Properties, percent Carbon (C) Manganese (Mn) Phosphorus (P) Sulphur (S) Silicon (Si) Nickel (Ni) Chromium (Cr) Molybdenum (Mo) Vanadium (V) 0.40-0.45 0.26-0.33 0.30-0.37 0.22-0.29 0.40-0.43 0.40-0.43 0.30-0.37 0.22-0.29 0.40-0.43 0.75-1.00 0.40-0.70 0.70-0.95 0.71-1.00 1.10-1.40 1.10-1.40 0.70-0.95 0.71-1.00 1.10-1.40 0.02 Max 0.02 Max 0.02 Max 0.02 Max 0.02 Max 0.02 Max 0.02 Max 0.02 Max 0.02 Max 0.01 Max 0.01 Max 0.01 Max 0.01 Max 0.01 Max 0.01 Max 0.01 Max 0.01 Max 0.01 Max 0.15-0.30 0.17-0.37 0.15-0.35 0.15-0.35 0.25-0.35 0.25-0.35 0.15-0.35 0.15-0.35 0.25-0.35 0.50 Max 0.50 Max 1.65-2.00 0.72-1.00 0.50 Max 0.50 Max 1.65-2.00 0.72-1.00 0.50 Max 0.80-1.10 0.80-1.10 0.80-1.10 0.42-0.65 0.55-0.85 0.55-0.85 0.80-1.10 0.42-0.65 0.55-0.85 0.15-0.25 0.15-0.25 0.20-0.30 0.01-0.06 0.25-0.35 0.25-0.35 0.20-0.30 0.01-0.06 0.25-0.35 a Austenitized, Quenched & Tempered B Normalized and Tempered C Brinell hardness is for reference only - - 0.06-0.10-0.045-0.065 0.045-0.065 - - 0.045-0.065 www.q2als.com 5

Rod Comparison by Grade of Various Manufacturers Manufacturer Mark Material Yield Ksi Minimum Tensile Ksi Range % Elongation in 8 Inches Minimum % Reduction of Area Minimum Heat Treatment Method API DA Grade DA UNS G41XX 85 115/140 10 40 Q2 ALS DA-N 4142MD 100 115/140 10 45 N&T Q2 ALS DA 4130MD 110 115/140 10 55 Q&T NORRIS 78 A-4142MD 95 120/140 11 45 N&T TENARIS DA 4142MD 85 B 120/140 ~ ~ N&T UPCO AD 4142MD 85 115/140 10 40 N&T WEATHERFORD D 4142MD 100 115/140 10 45 N&T API DS Grade DS > 1.15%, Ni, Cr and Mo 85 115/140 10 40 Q2 ALS DS-N 4330MD 100 115/140 10 45 N&T Q2 ALS DS 3130MD 115 120/140 10 55 Q&T NORRIS 90 A-4320MD 95 120/140 10 40 N&T TENARIS DS 4320MD 85 B 125/140 ~ ~ N&T UPCO KD 4730MD 85 115/140 10 40 N&T WEATHERFORD KD 4720SR 95 115/140 10 45 N&T API HA Grade HA UNS G41XX 115 140/155 10 40 Q2 ALS HA-N 4138MD 115 140/155 10 45 N&T Q2 ALS HA 4138MD 115 140/155 10 50 Q&T NORRIS 96 A-4138MD 115 140/155 10 45 N&T TENARIS MMS-HR 4138MD 115 138/155 ~ ~ N&T UPCO HS 4138MD 105 140/160 8 A 30 N&T WEATHERFORD T66/XD 4138MD 115 140/155 10 40 N&T API HS Grade HS > 1.15%, Ni, Cr and Mo 115 140/155 10 40 Q2 ALS HS-N 4330MD 115 140/155 10 45 N&T Q2 ALS HS 3130MD 125 140/155 10 55 Q&T NORRIS 97 4330-M 115 140/155 10 45 N&T TENARIS UHS-NR 4330M 115 140/160 ~ ~ N&T UPCO HX 4334M 115 140/160 8 A 30 N&T WEATHERFORD HD 4332SSRX 115 140/150 10 40 N&T API HY Grade HY UNS G41XX - 155 C - - CASE HARDENED Q2 ALS HY 4138MD - 155 C - - CASE WEATHERFORD EL SPECIAL - - - - HARDENED Parameters outside of api 11b 28th edition are in red a Elongation measured in 2 inches B Tenaris shows higher values in published literature, with a footnote of only meeting API 85K minimum C Minimum tensile based on minimum hardness of 42HRC case hardening 6 Sucker Rods & Couplings

Rod String Design Q2ALS rod string design parameters for all grades of rods are based on T/2.8 (New Modified (Modified Goodman Diagram)), whereas most manufacturers use T/4 for their C, K and D grade rods with T/2.8 reserved for the high strength rods. 140 130 Comparison of T/4 and T/2.8 Showing the Effect on D Grade 120 Rods and the Difference in Minimum Tensile Strengths 110 100 90 80 70 API and Q2 ALS HS Grade Rod Q2 ALS DS Grade Rod API D Grade Rod 60 50 40 30 20 10 10 20 30 40 50 60 70 80 90 100 110 120 130 140 API and Q2 ALS HS Grade Rod T=140 and T/2.8=50 and T/1.75=80 Q2 ALS DS Grade Rod T=125 and T/2.8=44.6 and T/1.75=71.4 API D Grade Rod T=115 and T/4=28.5 and T/1.75=67.5 www.q2als.com 7

Rod System Design Data Sheet Rod System Design Data Sheet 8 Sucker Rods & Couplings

Pulling Loads Pulling loads for a rod string are based on the smallest diameter rod in the rod string. The safety factor for new rods is 0.95% and for used rods is 0.75%. To calculate the safe pulling load: Safe Pulling load (SPL) = (Rod Cross Section Area x Minimum Yield Strength x Safety Factor) + Weight of rods above the minimum diameter section of the rod string Example SPL calculation of a DA Grade, 1 diameter, used rod string: Weight of rods above the minimum diameter Safe Pulling load (SPL) = (0.785 x 110 x 64.763) + section of the rod string Grade DA-N DA DS-N DS HA and HA-N HS-N HS HY Diameter Cross Section of Area Minimum Yield Strength (psi) New Rods at 0.95% (Pounds) Safety Factor Used Rods at 0.75% (Pounds) 5/8 0.307 100,000 29,165 23,025 3/4 0.442 100,000 41,990 33,150 7/8 0.601 100,000 57,095 45,075 1 0.785 100,000 74,575 58,875 1-1/8 0.994 100,000 94,430 74,550 5/8 0.307 110,000 32,082 25,328 3/4 0.442 110,000 46,189 36,465 7/8 0.601 110,000 62,805 49,583 1 0.785 110,000 82,033 64,763 1-1/8 0.994 110,000 103,873 82,005 5/8 0.307 100,000 29,165 23,025 3/4 0.442 100,000 41,990 33,150 7/8 0.601 100,000 57,095 45,075 1 0.785 100,000 74,575 58,875 1-1/8 0.994 100,000 94,430 74,550 5/8 0.307 115,000 33,540 26,479 3/4 0.442 115,000 48,289 38,123 7/8 0.601 115,000 65,659 51,836 1 0.785 115,000 85,761 67,706 1-1/8 0.994 115,000 108,595 85,733 5/8 0.307 115,000 33,540 26,479 3/4 0.442 115,000 48,289 38,123 7/8 0.601 115,000 65,659 51,836 1 0.785 115,000 85,761 67,706 1-1/8 0.994 115,000 108,595 85,733 5/8 0.307 115,000 33,540 26,479 3/4 0.442 115,000 48,289 38,123 7/8 0.601 115,000 65,659 51,836 1 0.785 115,000 85,761 67,706 1-1/8 0.994 115,000 108,595 85,733 5/8 0.307 125,000 36,456 28,781 3/4 0.442 125,000 52,488 41,438 7/8 0.601 125,000 71,369 56,344 1 0.785 125,000 93,219 73,594 1-1/8 0.994 125,000 118,038 93,188 5/8 0.307 N/A 36,456 26,479 3/4 0.442 N/A 52,488 38,123 7/8 0.601 N/A 71,369 51,836 1 0.785 N/A 93,219 67,706 1-1/8 0.994 N/A 118,038 85,733 + Weight of rods above the minimum diameter section of the rod string www.q2als.com 9

Maximum Torque by Rod Grade and Size Rod Grade Yield Strength Maximum Torque b Rod Diameter a (in) Ksi Mpa Ft-lbs N m DA 110 758 DA-N and DS 100 689 HA 115 793 HA and HA-N 115 793 HS 125 862 7/8 640 868 1 956 1296 1-1/8 1361 1845 7/8 582 789 1 869 1178 1-1/8 1237 1677 7/8 670 908 1 1000 1356 1-1/8 1423 1929 7/8 670 908 1 1000 1356 1-1/8 1423 1929 7/8 728 987 1 1086 1472 1-1/8 1546 2096 a Not all sucker rod sizes are listed in this table. For additional sizes, contact your Q2 ALS representative. B Q2 ALS values shown at a service factor of 1.0, but requires that a 0.8 service factor be applied to all specified torque limits. Rod Pallet Information Reference Diameter Rods per layer Total number of rods per pallet Canada United States 5/8 20 60 120 3/4 20 60 100 7/8 20 60 80 1 10 60 60 10 Sucker Rods & Couplings

Rod Weights for 25 Foot Rods API Size (in.) Without Coupling (lb) With Full Size Coupling Attached (lb) With Slimhole Coupling Attached (lb) 5/8 27.2 28.5 28.2 3/4 38.5 40.0 39.8 7/8 52.0 53.8 53.5 1 69.9 72.5 71.9 1-1/8 88.7 91.8 91.2 Coupling Weights API Size (in.) OD (in.) Weight (lb) Full Size Slimhole Full Size Slimhole 5/8 1-1/2 1-1/4 1.30 1.00 3/4 1-5/8 1-1/2 1.50 1.26 7/8 1-13/16 1-5/8 1.80 1.50 1 2-3/16 2 2.58 2.01 1-1/8 2-3/8 2-1/4 3.13 2.50 Shot Peening Final Inspection Palletized Rods www.q2als.com 11

Q2 ALS CORPORATE OFFICE CANADA 6798-52 Avenue Red Deer, AB T4N 4K9 Canada P: 403.343.8802 E: sales@q2als.com Contact your local sales representative by visiting our website or find a location near you. www.q2als.com Q2 ALS CORPORATE OFFICE USA TGAAR Tower 24 Smith Road Suite 100 Midland, TX 79705 P: 432.685.2600 E: sales@q2als.com