Modeled on 800,000 barrel Crude Tank.

Mobilizing Sludges and Gels saves operators money. Not only is mobilization of crude from sludge important in getting crude storage tanks back into service quickly – but it is also key to unlocking the direct Oil Value in sludge. Mobilizing Sludges and Gels saves operators money. Not only is mobilization of crude from sludge important in getting crude storage tanks back into service quickly – but it is also key to unlocking the direct Oil Value in sludge.

 The example of a 800,000 barrel crude storage tank: With a hypothetical 15% sludge volume (120,000 barrels of sludge) and an HC content of 70%, we would aim to treat the product as soon as we drain the final crude content. We would chemically treat at a regime of 2 gallons per MT + 3 times diesel light crude (cutter- stock) – all returned to refinery process stream.

 Recovered Oil:  120,000 70% HC content = 91,000 barrels of crude x 0.97 (recovery rate) = 88,000 barrels  100usd / barrel = 8,800,000 USD  Recovered Oil:  120,000 70% HC content = 91,000 barrels of crude x 0.97 (recovery rate) = 88,000 barrels  100usd / barrel = 8,800,000 USD

 Asset closure on a typical 800,000 barrel tank in a terminal or refinery levelized over a 5 year rolling tank cleaning program represents a “built in” capacity excess. However, if systematic improvements in tank cleaning can be implemented an increase in facility production can be achieved. These volumes can be conservatively put a 10,000 boe per day for an 800,000 barrel tank. The difference between a 10- day inline tank cleaning desludging using PetroGenesis products and a conventional 90-day operation is 80 days or 800,000 barrels of crude.  This has a total value of 80million USD based on 100 USD barrel price.  Asset closure on a typical 800,000 barrel tank in a terminal or refinery levelized over a 5 year rolling tank cleaning program represents a “built in” capacity excess. However, if systematic improvements in tank cleaning can be implemented an increase in facility production can be achieved. These volumes can be conservatively put a 10,000 boe per day for an 800,000 barrel tank. The difference between a 10- day inline tank cleaning desludging using PetroGenesis products and a conventional 90-day operation is 80 days or 800,000 barrels of crude.  This has a total value of 80million USD based on 100 USD barrel price.

 The difference between a 10- day inline tank cleaning desludging using HCD chemistry and a conventional 90-day  operation is 80 days or 800,000 barrels of crude.  This has a total value of 80million USD based on 100 USD barrel price.  This is not all profit – 10-20% of it could be calculated as lost profit to a vertically integrated asset:  ASSET VALUE = 8-16 Million USD  The difference between a 10- day inline tank cleaning desludging using HCD chemistry and a conventional 90-day  operation is 80 days or 800,000 barrels of crude.  This has a total value of 80million USD based on 100 USD barrel price.  This is not all profit – 10-20% of it could be calculated as lost profit to a vertically integrated asset:  ASSET VALUE = 8-16 Million USD

 120,000 barrels = 17,400 MT  17,400 x 2 = 34,800 gallons  34,800 x 50 = 1,740,000 USD + 10% (x1.1 =1,914,000) + 5% import duty / tax (x 1.05 = 2,009,700)  2,009,700 USD  120,000 barrels = 17,400 MT  17,400 x 2 = 34,800 gallons  34,800 x 50 = 1,740,000 USD + 10% (x1.1 =1,914,000) + 5% import duty / tax (x 1.05 = 2,009,700)  2,009,700 USD

 Equipment inc transport hire = 120,000 USD per day  Personnel inc Insurance, Travel & Accommodation = 40,000 USD per day  Diesel (Discounted from Refinery): 30,000 USD per day  Total 190,000 x 10 days = 1,900,000 USD  1,900,000 USD Total Cost 3,909,700 USD  Equipment inc transport hire = 120,000 USD per day  Personnel inc Insurance, Travel & Accommodation = 40,000 USD per day  Diesel (Discounted from Refinery): 30,000 USD per day  Total 190,000 x 10 days = 1,900,000 USD  1,900,000 USD Total Cost 3,909,700 USD

 Total Saved Before Cost  Recovered Oil = 8,800,000 USD + Saved Tank Lease Value = 12,000,000 USD  Total Saved 20,800,000 USD  Final Balance to Operator after Tank Cleaning  (20,800,000 – PetroGenesis COST (3,909,700) = 16,890,300 USD  Total Saved Before Cost  Recovered Oil = 8,800,000 USD + Saved Tank Lease Value = 12,000,000 USD  Total Saved 20,800,000 USD  Final Balance to Operator after Tank Cleaning  (20,800,000 – PetroGenesis COST (3,909,700) = 16,890,300 USD