Providing Global Resource Remediation and Recovery Solutions 1

Saxon Petrotechnologies and Petromax provide cost effective solutions specialized in mobilizing crude waste streams, waste minimization, ease of handling down stream, and pre-conditioning crude sludge for optimum separation processing. Introduction Ecuador Amazon Region Hydro blasting Petromax into crude tank sludge samples to mobilize the sludge and eliminate sticking to surfaces 2

About Petromax Products Petromax products are water-based proprietary non-toxic, non-flammable, and environmentally safe formulations designed to remove hydrocarbons from surfaces in such a manner as to not allow the oils to re-attach. Breaking mature fine tailings emulsion from Suncor’s Pond One in Alberta, Canada Breaking water out of produced oil 3

Petromax applications are a combination of specific chemical components and related mechanical applications. Petromax tailing pond remediation testing at the University of Southern California USA Environmental Laboratory 4

Crude tanks Waste pits & Lagoons Railcars Tankers Surface cleaning Sand cleaning Categories of Use Unocal Remediation Effort at Guadalupe Beach, CA, USA BeforeAfter Valero Refinery, Wilmington, CA, USA Tank Cleaning 5

Resource remediation and recovery are evaluated as part of any solution and a Petromax application may be combined with conventional technologies to enhance their existing processes. 6

Petromax can be utilized to enhance, or de-bottleneck, existing sophisticated sludge handling/remediation facilities aimed also at improving end products and disposal components. Initial testing introduced by hydro blasting sludge in enclosed 5 gallon buckets followed by bench top centrifuging. 7

Cleaning Clays in Ecuador This laboratory clay sample testing was conducted using Petromax and a hand held mixer at ambient temperature. Lab testing oil contaminated clays for hydro carbon removal at ambient temperature ……… at the University in Ambato, Ecuador 8

Testing clays for remediation work in Ecuador Petromax water based formulation bench test application at ambient temperature to remove oil from clay Before clays are cleaned of oilMechanical shearing with hand held mixer using Petromax solution Results within seconds of shearing application 9

In this field test the oil has been hydro blasted off the soil with a Petromax water-based solution at ambient temperature. After the application the oil is floating on top of the water. The oil is removed from the soil in seconds and will not re-attach to the solids within the aqueous solution. Cleaning Soils in Ecuador 1 Oil contaminated soil2 Hydro blasting with Petromax solution3 Oil rises to water surface Recovered Sand & Clays Preparing to do a field sample test using a hydro blaster 10

The following two slides are from ongoing work related to the oil sands and tar sands petroleum industry. The objective is to utilize a Petromax cold water process to remove bitumen in both water-wet and oil-wet conditions. Further, such a Petromax sand cleaning/oil recovery process will not create a tailings emulsion. Water recovery, soils/clay compaction, and energy savings becomes a dramatic plus over the current process in Alberta, Canada. An Environmental Breakthrough for the Oil and Tar Sands Bitumen Recovery Industry 11

Syncrude Oil Sands Production and Suncor Tailings Pond Sample Testing Suncor (Tailing Ponds, Alberta, Canada) MFT Pond One 3-Phase Separation Canadian oil sands - water wet. Oil Recovery Tailing Pond Remediation BeforeAfter 12

Oil-Wet Bitumen Removal from Utah Tar Sands Our oil sands projects are headed up by Dr. Geoff Dolbear Dr. Geoff Dolbear 13

This picture shows a before and after sample testing of California’s Guadalupe Beach sand that was at a UNOCAL production site. The removal of hydrocarbons (light oils) was accomplished in less than a minute using a water-based formula at ambient temperature. Sand Cleaning /Remediation Associated Laboratories certified results: Contaminated soil - 4,620 ppm TPH Cleaned soil ppm TPH Guadalupe Beach Sand Before Guadalupe Beach Sand After 14

Crude Sludge Mobilization, both up stream and down stream, is typically the first problem encountered in crude waste handling. The final objective is often focused on remediation and recovery and therefore Petromax seeks to optimize at each step along the way. A few key enhancements gained from our application as listed below: Once the crude sludge is mobilized/conditioned it will not stick within hoses or secondary containment. The minimized waste stream will remain suspended and pumpable. Heat is not required as part of the application. If inorganics are within the waste stream then partial cleaning of these solids will have already began. 15

Tank Crude Sludge Mobilization THUMS Island Production Wells, CA USA 16

What is clean-up going to be like? 17

One opportunity for recovery is to enhance a decanter or centrifuge operation. That is to say, the crude sludge that has been mobilized with a Petromax application will have already started the oil, water, solids separation process and will continue to do so in a mix tank just prior to the mechanical separation equipment or with added inline shearing. Recovery or Disposal? The mechanical separation process will now be more efficient. The resulting cake will be more liquid free and cleaner. 18

Oil Recovery Secondary Containment The Petromax conditioned crude sludge that will be held in secondary containment (awaiting the decanting/centrifuge process) will remain mobilized for easy transferring to a mix tank. The footprint of such an operation will be smaller since the waste stream has been significantly minimized as compared to a conventional waste handling process. 19

Tests completed by US Filter showed that Petromax conditioned sludge did not require the addition of polymers during a dewatering process. This allows the dewatering technician to more easily dial-in his process, as well as, reduce the dewatering costs. The net results, as tested by US Filter on their dewatering equipment, yielded a significantly drier cake. Instead of the usual 30% to 40%liquid content on typical filter tests, the conditioned sludge yielded result of 17.5%. Solids/Liquid Separation Sludge Testing 20

Crude sludge of this nature are particularly problematic to handle. Conventionally, a combination of heat, diluents, and high volume circulation are used to blend and transfer these types of sludge. Some heavies will remain in a tank and entry will be required for sludge removal prior to inspection. Petromax utilizes a low volume micro encapsulation application (without the use of heat) to rapidly mobilize, within seconds, and remove this type of sludge. Paraffin and Asphaltene Sludge 21

What are we trying to accomplish with these tough sludges? Our chemical solution is water-based (does not contain surfactants) and does not mix with the crude, nor do we want it to. What we have done is rely upon the hydro blasting pressure and close proximity chemical impact to break up the paraffin or asphalt sludge for the purpose of encapsulation. Malaysia Petronas refinery tank crude sample 22

The result is a very pumpable slurry without added heat to the application. This is a successful water-based application on a very waxy crude sludge sample from Petronas refinery in Malaysia. 23

Since there are variations from one sludge to another we must test representative samples to determine proper formulation. Ongoing sample testing Pemex Salinas Refinery, Mexico 24

25 Video of a paraffin sludge sample being tested with Petromax Delek Refinery, TX USA

26 The next video shows a Petromax sludge removal application on free water knockout tank. The solids content is very high (over 70%) with very little hydrocarbons in the mix. Heavy Solids Sludge Mobilization Aera Energy, CA USA

27 Heavy Solids Sludge Mobilization Application Area Energy, CA USA

28 Conventional methods of sludge removal and processing are both manpower and equipment intensive. These methods create costly repetitive and laborious activities. When such methods are utilized, the sludge literally has to be double handled (again outside the tank) at a cost significantly greater than the original removal cost. Within an oil refinery both T&D and handling costs for crude waste streams are high. Coker Unit Crude Sludge Recovery

29 Petromax Sludge Conditioning is a waste minimization process without the cost of dewatering when taken to a refinery coker unit. Fewer temporary storage tanks are required. Conditioned sludge remains suspended and pumpable throughout the refinery coker injection transfer schedule. Time consuming and additional waste generating vacuum truck wash outs are all but eliminated. The conditioned sludge handling application allows the operational tank to be returned to service safer, faster, and in oil free condition. Petromax advantages of disposing to a refinery coker:

30 Petromax Pipeline Drag Reduction Currently Petromax Technologies is testing pipeline drag reduction applications in Southern California, USA

31 Saxon Petrotechnologies Saxon Technologies, Sarl Place Bel-Air Nyon 1 Switzerland Tel: Fax: A solutions oriented company serving oil recovery and remediation needs worldwide Scot von Bergen