H2O WORLD SOLUTIONS Technology for the future - making Water Renewable

H20 World Solutions is a company that is dedicated to changing how we view water. A non renewable resource, precious to the environment we can no longer afford to ignore how we use/recover or what we do with water. Imagine millions of barrels of water a day being disposed (Conventional Oil and Gas wells produce 10 barrels of water for every barrel of oil equivalent) only to have millions of barrels of water reused. The H2O way..

Deep well disposal of production and flow back water within the Oil and Gas industry needs to change. Oil and Gas producers are faced with harsh taxes, stiff penalties, increased transportation costs, and a legacy of negative long term environmental effects due to seismic activity. Costs are being driven up, bottom lines are being hit hard, wells are being shut in and jobs are being lost. Vicious circles are past practices that erode current e commerce. How is your company being affected? What are your costs? How will you protect your bottom line?

There are legislative, regulatory, and operation solutions available to address the concerns and meet industry needs. The current landscape of… water used for hydraulic fracturing future potential for production water recycling reuse use of non fresh water sources Increase of world water demand … have all been addressed in this solution. What is your company doing to address solutions?

For this model assume the following: A Oil and Gas producer in North America through their activities produces 450,000 barrels of production water per day. Producer use existing Salt Water Disposal Wells for production water disposal. Distance to disposal wells is within 1 hour of the disposal site.

Assumptions Water Production 450,000 barrels (bbl.) per day Onsite disposal costs are $.60/bbl. Logistics assumed at $3.00/bbl. Total Cost to dispose $3.60/bbl.

To day using the Oil and Gas Producers existing methods for disposal of production water the cost to dispose can be calculated in the following manner: 450,000 bbl. per day x $3.60 per bbl. Total cost could be estimated at $1,620,000 per day or $600 million dollars per year. What is it costing your company?

Trucking and Disposal costs $3.60/ 450,000bbl Costs $1,620,000 PER DAY!

TECHNOLOGY – H20.NEXGEN Our technology takes production water that was earmarked for disposal and converts the water to renewable fresh water. Our equipment is multi stage remediation with zero liquid discharge, capture 100% of the free water available, maximize the amount of oil emulsion recovered and reduce the overall disposal to less than 5%. We are able to treat solid and liquid waste at the same time utilizing three recycle streams, fresh water oil salt Our technology converts waste to energy – we are “green”.

Your Balance Sheet … using H20 World Solutions Technology – same assumptions as before would look like this … 450,000 bbl. per day … H20 will do the following: 300,000 bbl. to atmosphere 125,000 bbl. as fresh water (less than 100ppm) 25,000 bbl. potentially go to disposal Your cost to dispose is 25,000 bbl. X 3.60 per bbl. or $90,000 dollars per day or $33 m per year “Savings to the bottom line using H2O World Solutions are $570 million dollars per year”

FRESH WATER RECOVERY = ADDITIONAL SAVINGS IF YOUR OPERATION IS REQUIRING FRESH WATER THE RECOVERY CAN PRODUCE ADDITIONAL SAVINGS… Use the assumption that purchasing fresh water and recovering fresh water the logistics are the same the savings is in the purchase. Use 20 cents per barrel for fresh water … Savings per Day = $30,000 dollars Savings per Year = $11m

Other Recoveries … Skim Oil 4,500 bbl./day using a net of $15.00/ bbl. $67,500 per day $25m / year Salt is recovered at 50#’s per bbl. of production water and sells for $20 per ton $225,000 per day $82m per year

How H2O World Solutions changes the bottom line: Your yearly operation cost Disposal Cost($600m) Water Purchase(10m) Total($610m) H20 World Solutions Method Disposal Costs($33m) Water Costs($000) Oil Recovery $25m Salt Recovery $82m Total$74m ‘We added $684m to the bottom line’

Your next question could be “What does H20 World Solutions charge for their services?” We provide a License for our Technology We charge a royalty of 20 cents per barrel We build the Capital Equipment at costs plus 20% We supply support We manage the recoverable of Oil and Salt for 40% of the net profit Costs License$20m Royalty 450,000 bbl. X 0.20$32m Capital equipment plus 20% $9m Recoverable Oil and Salt$43m Total$104m Cost of the Equipment – year 1$41m Cost to operate$98m Total$139m

Year One Total Cost is ($243m) Total Savings is $674m Net Savings$431m Year Two Total Cost is ($182m) Total Savings is $674m Net Savings$492m Using H2O World Solutions we answer the concerns of Production Water and allows Oil and Gas Producers the ability to turn a 600m cost center into a 450m profit center.

H2O Is…. World Solutions