TexChem Group International LLC Chemical Control for Paraffin / Asphaltene

The Benefits of Using Chemical for Paraffin Control NO LOST PRODUCTION DUE TO HOT OILING Reduce Workover Costs Eliminate Hot Oil Treatments Eliminate pulling jobs for Paraffin Eliminate steaming rods when pulled for pump repair Reduce Power Cost From Rod Drag Maintain Paraffin Free Equipment Rods, flowlines, separators and tanks Corrosion Treatments More Effective

What Chemicals are Available? TexChem Group International PEC PEC 3

TexChem Group International PEC Effective Treatment for Paraffin

TexChem Group International LLC PEC 3 Reduces Viscosity in Asphaltenic Crude with Paraffin Control

Treatment Methods TexChem Group International LLC Chemical Injection Down Annulus Pumping or Gas Lift Wells Formation Squeeze or Batch Treatment Pump down Chemical Treatment String

MORROW WELL AFTER TREATMENT BEFORE TREATMENT Production = 180 BOPD HOT OIL=None (10 Mo) BEFORE TREATMENT Production = 180 BOPD HOT OIL = 15 DAYS Initial Treatment: 55 gallons PEC down annulus Continuous Treatment: 600 ppm PEC (one quart/10BO)down annulus

ECONOMIC SOLUTION Hot Oil vs. Chemical Treatment Well Name:   Morrow Well Bbls. of Hot Oil Used per Treatment 100 Recovery Rate of Hot Oil Bbls/day 140 Oil Production Rate - Bbls/Day Price per Bbl. of Oil $25.00 Frequency of Hot Oil Treatments - Days 15 Cost of Hot Oil Treatment $250.00 Price of PEC - Dollars/Gallon 19.85 Annual Savings Using Chemical Treatment 74,700

MORROW WELL BEFORE TREATMENT Production = 60 BOPD HOT OIL = 7 DAYS AFTER TREATMENT Production = 60 BOPD HOT OIL=None (9 Mo) Initial Treatment: 55 gallons PEC down annulus Continuous Treatment: 600 ppm PEC (one quart/10BO)down annulus

ECONOMIC SOLUTION Hot Oil vs. Chemical Treatment Well Name:   Morrow Well Bbls. of Hot Oil Used per Treatment 60 Recovery Rate of Hot Oil Bbls/day 35 Oil Production Rate - Bbls/Day Price per Bbl. of Oil $25.00 Frequency of Hot Oil Treatments - Days 14 Cost of Hot Oil Treatment $250.00 Price of PEC- Dollars/Gallon 19.85 Treatment Volume- ppm 850 Annual Savings Using Chemical Treatment $36,570

SOUTHWEST KANSAS CHESTER WELL BEFORE TREATMENT Production = 10 BOPD = 10 BWPD HOT OIL = 30 DAYS AFTER TREATMENT Production = 18 BOPD = 10 BWPD HOT OIL= None (6 Mo.) Initial Treatment: 55 gallons PEC down annulus Continuous Treatment: 600 ppm PEC (one quart/10BO)down annulus

ECONOMIC SOLUTION Hot Oil vs. Chemical Treatment Well Name:   CHESTER WELL Bbls. of Hot Oil Used per Treatment 25 Recovery Rate of Hot Oil Bbls/day 10 Oil Production Rate - Bbls/Day Price per Bbl. of Oil $25.00 Frequency of Hot Oil Treatments - Days 7 Cost of Hot Oil Treatment $250.00 Price of PEC - Dollars/Gallon 19.85 Treatment Volume- ppm 600 Annual Savings Using Chemical Treatment Plus 8 BOPD = $72,000 ADDITIONAL REVENUE $80,820

Windham G No. 1 Sprayberry BEFORE TREATMENT Production = 13 BOPD = 9 BWPD HOT OIL = 45 DAYS AFTER TREATMENT Production = 13 BOPD = 9 BWPD HOT OIL= None (3 years) Initial Treatment: 55 gallons PEC down annulus mixed in 70 Bbls Hot Oil Continuous Treatment: 600 ppm PEC (one quart/10BO)down annulus

ECONOMIC SOLUTION Hot Oil vs. Chemical Treatment   Well Name: Morrow Well Bbls. of Hot Oil Used per Treatment 70 Recovery Rate of Hot Oil Bbls/day 13 Oil Production Rate - Bbls/Day Price per Bbl. of Oil $25.00 Frequency of Hot Oil Treatments - Days 45 Cost of Hot Oil Treatment $250.00 Price of PEC - Dollars/Gallon $20.35 Treatment Volume- ppm 600 Annual Savings Using Chemical $13,788.89 Treatment

Windham “G” No. 1 Case History

RESULTS OF TREATMENT BEFORE AFTER

Guide to Successful Paraffin Elimination Problem: Wells have paraffin deposition in tubing, flow lines, separators and tanks Solution: Chemical Treatment w/ PEC Treat crude before paraffin precipitation and deposition occur. PEC Injection down hole is the best place for chemical and crude to mix. This should be below the point of paraffin deposition. Treatments can be made down the annulus or batch squeeze into formation. FLEXOIL FM193 must be injected in an oil stream at a point that achieves good mixing. This injection should be at a temperature above paraffin participation and deposition. (Cloud Point) Use PEC @ an initial concentration of 1000 ppm (5.375 oz./ Bbl Oil) Concentrations may need to be increased or can be decreased after experience with the particular crude oil being treated. At concentrations of 55 gallons of PEC to 25 Bbls of oil injected into the formation could actually act as a stimulation treatment should the well have formation damage because of paraffin deposition in the formation. This treatment is even more effective when used with hot oil. PEC should not be introduced into a system after paraffin deposition has be occurred unless there is considerable time, heat and/or agitation to put the paraffin back into solution.

PEC EFFECT ON VISCOSITY