1. 11 th Annual Sucker Rod Pumping Workshop Renaissance Hotel Oklahoma City, Oklahoma September 15 - 18, 2015 Sensorless Artificial Lift Technology John Lesnick Power Management Controls, Inc. Kerry Cooper DistributionNOW

2. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop2 Intuitive Well Automation & Control Problem –Conventional controls for Artificial Lift Systems provide less than optimal results. –Regenerative power losses, peak demand charges, labor-intensive production optimization, and costly failures/repairs can all lead to less than optimum results. –Add-on controls are available but costly and do not necessarily provide the desired results for today’s well formations.

3. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop3 Intuitive Well Automation & Control Solution –A Well Automation and Control System that minimizes energy consumption, helps reduce mechanical failures, optimizes production, and is cost effective. –A control system that automatically makes intuitive adjustments to match the well’s productivity, prevent loading violations, and minimizes costly shutdowns. –An automation system that helps mitigate well intervention, minimizes energy consumption, and provides a more favorable return on investment.

4. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop4 Sensorless Artificial Lift Technology Power Management Controls, Inc., a proven leader in Patented Technology Solutions for the Oil and Gas Industry for nearly forty years, patented the use of Variable Frequency Drives (VFD’s) for power management and pump control to operate Beam/Rod Pumps in 2002. Sensorless Artificial Lift Technology (SALT™), Patent No. 6,414,455, eliminates the need for Resistors or Regenerative VFD’s, decreases Peak Demand charges and reduces Power Consumption. Installed in over 6,000 locations world-wide, SALT™ has proven an average annual power savings of 22% when used on Beam/Rod Pumps.

5. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop5 SALT TM – Ease of Use Designed specifically for oilfield applications, Sensorless Artificial Lift Technology (SALT™) incorporates patented algorithms and pump-off control into a Sensorless Vector Variable Frequency Drive (VFD). SALT TM is a versatile technology that offers significant advantages for all types of down-hole pumps, including beam, progressive cavity and electric submersible as well as surface pumps and compressors. SALT TM sets up in minutes using pump specific terms to enter motor data, speed and load limits, and target setpoint. SALT TM can also manage shutdown switches and transducers without the need for another controller.

6. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop6 SALT TM – Increase Production SALT™ maintains minimum intake pressure to the well by varying the speed to match the well’s productivity, thereby minimizing the shutdowns that cause loss of production. Unlike standard pump-off controllers, which shut off the pump when the fluid is at the optimum level, SALT TM reduces the pump speed, maintaining and maximizing production while reducing energy consumption and mechanical stress. SALT™ automatically adjusts speed to match the variable fluid volumes caused by: – Changes in reservoir level – Shutdown of adjacent wells – Water, Steam, or CO2 injection – Pump wear

7. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop7 SALT TM – Lower Cost SALT TM built-in control continuously monitors well conditions and automatically makes adjustments for pump-off, paraffin buildup, gas pockets, recovery failures, load limits, and changes in production level. SALT TM replaces the standard pump panel and requires no field end devices, such as load cells, bottom-hole pressure sensors and their related cost and maintenance requirements. SALT TM increases system efficiency, allowing the use of smaller motors, transformers, and VFD’s. SALT TM can eliminate the need for a mechanical brake to minimize backspin on Progressive Cavity Pumps.

8. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop8 SALT TM – Reduce Failures SALT TM reduces rod overloading and compression by adjusting the speed of each stroke and matching overall speed to production. Simple adjustments help reduce rod float and compression. By slowing rather than stopping, SALT TM reduces potential for solids to cause a stuck pump and SALT TM never exceeds load limits while starting, running, or binding downhole. Unique gas and sand purge algorithms allow the pump to continue to run, reducing rod stress and prolonging pump and motor life.

9. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop9 SALT TM – Minimize Energy Usage On Rod Pumps, the patented SALT TM system eliminates regenerative losses thereby reducing energy cost by 20% or more. SALT TM also reduces peak demand charges as much as 50%. During operation, SALT TM runs continuously so energy is not wasted getting fluid to surface over and over. As Submersible Pump power consumption is proportional to the cube of speed, significant energy savings are realized as SALT TM automatically reduces centrifugal pump speed to match well productivity.

10. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop10 SALT TM – History of Success Since 2002, SALT™ has proven its claims through numerous trials on one, three, or a handful of pumps and testing in a variety of locations that could be achieved over a few days or weeks. This delivered the claimed results for the specific test, Minimized Energy Usage, Increased Production, and Reduced Failures along with the Lower Cost and Ease of Use. Long term results for numerous wells over a long period of time were never made possible…… until now

11. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop11 SALT TM – Long Term Study Here we present the culmination of work in a region near Provost, Alberta, Canada over nearly four years that has resulted in the accepted use of the SALT™ Well Automation and Control System. We will show that SALT™ Well Automation and Control with its patented algorithms, is a versatile technology that offers significant advantages for all types of artificial lift pumping systems including reduced energy consumption, increased oil production, minimized well intervention, and effective return on investment.

12. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop12 SALT TM – Long Term Study There are 900 wells in this area with various levels of control. In 2011, SALT™ was installed on a few wells with acceptable results. Over the next several years, additional SALT™ units were installed on various wells throughout the entire field in an attempt at reducing workovers In 2014, a field with 75 producing wells, including a mix of sucker rod pump and progressive cavity pump wells producing into a single battery, was selected for testing. Dedicating the complete section of wells allowed accurate measurements of power consumption and produced oil, water and solids. Today over 230 SALT™ units operate in this area.

13. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop13 SALT TM – Single Battery Test Existing wells power consumption measured for 10 days from 37 power meters feeding the field. SALT™ was installed and power measured again for 10 days. The wells were operated as they had before the changes to keep the comparison relative to the change of equipment only. With power consumption baselines established, SALT™ Well Automation and Control was switched to automatically control the pumping system for 30 days after which power was measured once again. Production by well and into the battery was recorded to correlate back to each stage of the project.

14. SALT TM – Single Battery Test Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop14

15. SALT TM – Single Battery Test Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop15

16. SALT TM – Long Term Study Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop16

17. SALT TM – Long Term Study Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop17

18. SALT TM – Long Term Study Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop18

19. SALT TM – Long Term Study Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop19

20. SALT TM – Long Term Study Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop20

21. SALT TM – Long Term Study Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop21

22. SALT TM – Long Term Study Results Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop22

23. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop23 SALT TM – Summary While many other versions of well automation exist, none can do it in a way that produces equivalent results. SALT™ Well Automation and Control System can save energy (patented process) and optimize the well (SRP/ESP/PCP) in a way that sets a precedent and marks a unique era in well automation. Cost effective and easy to use, SALT™ has proven: –Average annual power savings of 23% –Increased production of 6% while improving efficiency 3% –Reduced failures of 27% –Increased pump life of 23% What can SALT™ do for you?

24. Sept. 15 – 18, 2015 2015 Sucker Rod Pumping Workshop24 Copyright Rights to this presentation are owned by the company(ies) and/or author(s) listed on the title page. By submitting this presentation to the Sucker Rod Pumping Workshop, they grant to the Workshop, the Artificial Lift Research and Development Council (ALRDC), and the Southwestern Petroleum Short Course (SWPSC), rights to: –Display the presentation at the Workshop. –Place it on the www.alrdc.com web site, with access to the site to be as directed by the Workshop Steering Committee. –Place it on a CD for distribution and/or sale as directed by the Workshop Steering Committee. Other use of this presentation is prohibited without the expressed written permission of the author(s). The owner company(ies) and/or author(s) may publish this material in other journals or magazines if they refer to the Sucker Rod Pumping Workshop where it was first presented.

25. Sept. 15 - 18, 2015 2015 Sucker Rod Pumping Workshop25 Disclaimer The following disclaimer shall be included as the last page of a Technical Presentation or Continuing Education Course. A similar disclaimer is included on the front page of the Sucker Rod Pumping Web Site. The Artificial Lift Research and Development Council and its officers and trustees, and the Sucker Rod Pumping Workshop Steering Committee members, and their supporting organizations and companies (here-in-after referred to as the Sponsoring Organizations), and the author(s) of this Technical Presentation or Continuing Education Training Course and their company(ies), provide this presentation and/or training material at the Sucker Rod Pumping Workshop "as is" without any warranty of any kind, express or implied, as to the accuracy of the information or the products or services referred to by any presenter (in so far as such warranties may be excluded under any relevant law) and these members and their companies will not be liable for unlawful actions and any losses or damage that may result from use of any presentation as a consequence of any inaccuracies in, or any omission from, the information which therein may be contained. The views, opinions, and conclusions expressed in these presentations and/or training materials are those of the author and not necessarily those of the Sponsoring Organizations. The author is solely responsible for the content of the materials. The Sponsoring Organizations cannot and do not warrant the accuracy of these documents beyond the source documents, although we do make every attempt to work from authoritative sources. The Sponsoring Organizations provide these presentations and/or training materials as a service. The Sponsoring Organizations make no representations or warranties, express or implied, with respect to the presentations and/or training materials, or any part thereof, including any warrantees of title, non-infringement of copyright or patent rights of others, merchantability, or fitness or suitability for any purpose.