Enhanced Oil Recovery By In-Situ High Energy Elastic Waves

Key Concepts Key Concepts Key Concepts NOT – a single well stimulation Coverage – one tool can cover a radius of up to 1.4 miles EOR – stimulation through fault blocks and layers Safe – no damage to cement bond or increase in fines migration Environmental Impact – ZERO

Key Concepts Key Concepts How It Works

Key Concepts The ASR Seismic Stimulation Tool Reliable – maintenance free Durable – lifespan 1 ½ to 2 years Effective – delivers over 2 million high energy elastic waves Powerful – each wave has the power of over 2 megawatts Deployable – installs in any abandoned well

Key Concepts Key Concepts How the Tool is Installed Shipped in 3 sections (in one crate, 22-ft long) Assembled in 3 hours Run into well in the same fashion as a tubing pump Connected to the pumping unit and started Zero maintenance over typical lifespan of 18 months

Key Concepts Key Concepts The EOR Process – Pore Level

Key Concepts Key Concepts Application Carbonates – Permian Basin and Middle East Sandstones – United States, North Africa, Mexico, and Canada Diatomites – United States Works In – waterfloods and non-waterfloods Criteria – by-passed Oil, API > 13, GOR < 2,000 scf/stb Limitation – requires pumping unit, depth of tubing pump

Key Concepts Key Concepts Permian Basin Clearfork Carbonate – Single ASR Tool 185 Monitored Production Wells (Well Test Data) Total Field Production (LACT Data) Oil Production Stimulation 380 B/D (56%) Oil Production Stimulation 330 B/D (25%) Enhanced Oil Recovered 190,000 Bbls Enhanced Oil Recovered 310,400 Bbls Historical Decline Rate 17 % Historical Decline Rate 13 % Seismic Stimulation Decline Rate 7 % Seismic Stimulation Decline Rate 7 % Severance Tax Credits $4.4 Million

Key Concepts Key Concepts Permian Basin Clearfork Carbonate – Three ASR Tools 401 Monitored Production Wells (Well Test Data) Total Field Production (LACT Data) Oil Production Stimulation 170 B/D (11%) Oil Production Stimulation 300 B/D (13%) Enhanced Oil Recovered 66,000 Bbls Enhanced Oil Recovered 75,000 Bbls Historical Decline Rate 15 % Historical Decline Rate 16 % Seismic Stimulation Decline Rate 8 % Seismic Stimulation Decline Rate 7 % Severance Tax Credits $1.4 Million

Key Concepts Key Concepts Permian Basin San Andres Carbonate – Single ASR Tool Total Field Production (LACT Data) Oil Production Stimulation 80 B/D (85%) Enhanced Oil Recovered 208,000 Bbls Historical Decline Rate 13 % Seismic Stimulation Decline Rate 7 % Severance Tax Credits $1.3 Million

Key Concepts Key Concepts Permian Basin San Andres Carbonate – Single ASR Tool 226 Monitored Production Wells (Well Test Data)* Total Field Production (LACT Data) Oil Production Stimulation 370 B/D (160%) Oil Production Stimulation 340 B/D (75%) Enhanced Oil Recovered 211,000 Bbls Enhanced Oil Recovered 180,000 Bbls Historical Decline Rate 15 % Historical Decline Rate 15 % Seismic Stimulation Decline Rate 5 % Seismic Stimulation Decline Rate 6 % *Analysis of sparse data approved by TRRC Severance Tax Credits $1 Million

Key Concepts Key Concepts Sandstones – Single ASR Tool in each case Oman Mahwis/Al Khalata US Stevens, California 17 Monitored Production Wells (Well Test Data) 40 Monitored Production Wells (Well Test Data) Oil Production Stimulation 345 B/D (41%) Oil Production Stimulation 450 B/D (55%) Enhanced Oil Recovered 96,000 Bbls Enhanced Oil Recovered 240,000 Bbls

Key Concepts Key Concepts Shale – Single ASR Tool Porosity 10 to 18 percent Permeability 0.01 to < 1 md Structure Extremely stratified, shale with interbedded Sandstone, siltstone, and anhydrites Recovery Produces only with long horizontal wells and cannot be waterflooded 30 Monitored Production Wells – Single ASR Tool for 4 ½ casing that is 1/3rd the power of the ASR Standard Tool Oil Production Stimulation 80 B/D (120%) Enhanced Oil Recovered 27,000 Bbls Historical Decline Rate 53 % Seismic Stimulation Decline Rate 19 %

Key Concepts Key Concepts Seismic Stimulation Across Boundaries – Sandstone Belayim Egypt The total increase in oil production from these 7 wells accounts for 203 m3/d (1200 bbls/d).

Key Concepts Key Concepts Non-responding Field Types Low API Gravity Wyoming Tensleep Formation, 13 API Gravity Homogenous Oklahoma Morrow Blanket Sandstone

Key Concepts Key Concepts Field Stimulations Over 50 fields Over 200 tools

Endorsements – Mature Conventional Fields “I read an article about ASR in the American Association of Petroleum Geologist publication ”EXPLORER.” The article pointed out that the ASR technology was the first Enhanced Oil Recovery technology in forty two years to be effective and that the State of Texas would grant a 50% Severance Tax reduction for ten years to operators who used the technology and it proved to be effective on their leases. Our company tried it and after a lengthy testing period during which we kept meticulous records the technology either increased production (sandstone) or stemmed the decline curve (carbonate) depending on the area of our leases we tested. Two of our several producing horizons from shallow (carbonate, less than 2000 feet) to our deeper zones (sandstone, to 4300 feet) responded as predicted. ASR's projection proved accurate and they were instrumental in walking the data through the State in order to obtain the Severance Tax relief, which was approved in a timely manner. We would not hesitate to recommend to producers in mature, waterflooded areas such as ours to consider using ASR's technology to enhance their own production.” A.V. Pieroni President and Owner, BTO Production, Wichita Falls, TX

Endorsements – Shale “I do think that once a shale is fractured and you get the easy hydrocarbons out, that there will be hydrocarbons stuck in those fractures. Having seismic waves squeeze fractured rock results in large amounts of fluid movement and the potential for mobilizing the oil stuck (bypassed) in the fracture.   So yes, I think fractured media is a great application for Seismic Stimulation.” Dr. Steven R. Pride Scientist, Earth Sciences Division Lawrence Berkeley National Laboratories Adjunct Professor U. C. Berkeley

The Tool – 3 Pre-assembled Sections

The Pumping Unit – Safety and Monitoring

Applied Seismic Research Corporation 5900 South Forest Drive Suite 300 McKinney, Texas 75070 Bill Wooden, Vice President (US) 214.293.2848 wow@zowi.to www.SeismicStimulation.net