1. CoResource Solutions – Technology Review
Turning oilfield “waste” into our most valuable resource… Water.

2. The Oil Industry’s Water Challenge
Traditional oil industry avoidance of water processing is expensive & risks environmental issues
Truck hauling of water to offsite injection wells can be expensive
Dealing with permits and drilling costs for a new disposal/injection well can be prohibitive and risks production shut in or over-pressuring on your injection well
Surface discharge of fluid often does not meet regulatory specs 
Industry’s current water treatment processes are operating and/or capital cost intensive AND often incomplete
Plates or cartridges reduce flow, and require much more maintenance
Flocculants that only remove suspended solids, without a specific ability to target free hydrocarbons are incomplete solutions
Desalination without removal of solids and hydrocarbons uses much more energy and consumables is very problematic
CoResource has a 
Constant Flow, Low Cost, Low Maintenance
SOLUTION

3. The CoResource PATENTED Technology Micro-encapsulating Flocculating Dispersion (MFD)
Video URL
Start – Oily Water Samples
MFD Process Begins – Nanopolymer begins grabbing Hydrocarbons
MFD Completed – Hydrocarbons bound up in the nanopolymer, naturally settled either to top or bottom for removal
MFD Nanoparticles
Provides very large reactive surface area
Leads to rapid and efficient chemistry
Binds to FREE OIL and suspended solids
Additional chemicals bind into a bulk flocculant
The Technology Enables
Low chemical dosage rates per barrel
Low treatment cost per barrel
Custom solutions for the unique chemistry of each water sample

4. The CoResource Patented Nanopolymer Scavenger Grabs Suspended Hydrocarbons and Solids in Water
Patented nanopolymer hydrocarbon scavenger, when mixed with oily water rapidly attaches to nearby carbon based molecules producing a pin-flocculant, which is then rapidly settled by creating a larger bulk flocculant.
Active sites grab the suspended oil and solids in water
The oil and solids are removed with the nanoparticles

5. MFD Captured Hydrocarbons and Solids are Settled and then Removed
After settling, the bulk flocculant containing the nanopolymer and the hydrocarbons are removed from the water along with any other remaining solids.
Clean Water
Flocculant
After adding an activator and conditioner, the MFD Molecules aggregate to form the bulk flocculant, which settles, leaving clean water

6. The CoResource Continuous Flow Water Process Patented nanopolymer enables efficient and economical oil and solids removal
Step 1 - Oily water (separated from produced oil) is pumped into a patent pending mixing unit with a customized chemical program that includes the patented nanopolymer hydrocarbon scavenger. Step 2 - This unique nanopolymer is mixed into the oily water to bind with hydrocarbons and solid contaminants, and does so more efficiently than most other competitors. Step 3 - Additional chemicals are added to create a bulk flocculant that gathers the nanopolymer containing the hydrocarbons and solids pulled from the water. Step 4 - After settling, the bulk flocculant is removed. Step 5 - The remaining water is run through a back-flushable filter to capture any residual flocculant, leaving water suitable for reuse, release, or desalination if required. Step 6 - If desalination is required, then the system will include equipment (such as reverse osmosis or alternative technologies) to perform this step. The result is water with significantly reduced levels of salt that is suitable for reuse or surface release, and a high salinity brine with market value. Step 7 – Usable End Products: The biodegradable bulk flocculant removed from the water can be composted, or used as a component of aggregate in road construction.

7. CoResource Patent Pending Process
Untreated Oily
Water
OSR
System
Settling
Tank
Mechanical
Filter
Desalination
If Required
Processes
Filtered Residual Flocculant
Settled
Flocculant
End Products
Flocculant
Storage for Composting or Aggregate Use
Clean water For
Reuse or
Surface Release (if salt level is low)
Concentrated
Brine for Sale
Fresh water For
Reuse or
Surface Release

8. CoResource OSR System Patent pending “Oil and Solids Removal” System
Patent Pending Continuous Flow System
Chemicals tailored to fit specific site chemistry
Continuous flow system can handle anywhere from 2000 barrels to 10,000 barrels per day
Multiple systems can be tethered together to handle any amount of water
SCADA (Supervisory control and data acquisition) compatible for remote monitoring
Dependable, Easy, Low Cost in the Field
Fork lift compatible for easy transport and on-site adjustment
Automated – Designed for ease of operation/maintenance
Remote monitoring of operations to reduce overhead
Minimal maintenance by client personnel
All OSR systems are Class 1 Division 2 safety rated

9. CoResource System Design
Generation IV OSR System boast a small footprint design (48” X 130”) for minimal space on and off-shore

10. Valuable End Products Can create an unheard of ZERO waste oilfield operation
Produced Water after Processing
Residual Oil < 1 ppm
Solids < 1 NTU
Clean Water: Hydrocarbons and solids removed
Great for industrial purpose or reuse in drilling, fracking
Surface release or Desalination
After Desalination: “Reverse Osmosis” or other technology
Desalinated Water: Suitable for surface release or reuse – constructed wetlands, irrigation, industrial processes
Concentrated Brine: US Clear Brine industry market size was valued at $870 million in according to Global Market Insights.
Bulk Flocculant End Use
Use in Concrete Aggregate for Well Pads, Well Casings, Roads, and Jersey Barriers sold to public and private entities
Composting or “land farming” the flocculant

11. Intellectual Property Strategy
Patent and Patent Pending
Patent: Micro-encapsulating Flocculating Dispersion (MFD)
Strategy: to Expand Rights beyond US and Canada
Patent Number: – July 6, 2010
Description: Creating and using of nanopolymer to attach to a contaminant
Patent Pending: OSR System - Filed July 1, 2015
Possible Future Technologies
Proprietary Desalination Process – Lower Energy and Cost
Future Applications that may be possible
Refineries
Bilge Water
Emergency Management Systems

12. On-Shore Applications
Clean Produced and Flow Back Water from Ongoing Production
Provide clean produced water for reuse in drilling, completions, fracking, and workovers
Cleaning Oil Spills
Other Industrial Applications, including Refineries

13. Off-Shore Applications
The Oil and Solids Removal system provides a small footprint in order to be mounted on a ship or off- shore rig.
Uses
Initial Focus: Pipeline Remediation programs
Next Step: Expect water management service contracts for drilling and production platforms in the next rounds of bidding.
The CoResource system is being considered for emergency processing of oil/hazardous waste spills in the Gulf and Inland waterways.

14. Environmental Solutions are Smart Business
Surface discharge saves significant costs vs. disposal
Surface release of treated water (where applicable) creates a new fresh water resource
Environmentally sensitive water processing solutions promote a more positive relationship with landowners and local stakeholders
Technology that is inherently regulatory compliant leads to increased production opportunities and lower supervision costs
Positive corporate image
ZERO WASTE has a significant financial impact on bottom line

15. Environmental Solutions
CoResource created a wetland in Custer MT. From completion to today, this site has processed almost 1 million bbls for surface release with a positive impact on the environment.

16. Competing Systems Compared

17. Produced Oil Water Market - $5. 8 Billion. Worldwide
Produced Oil Water Market - $5.8 Billion* Worldwide *Grandview Research 2015 market size
2016 Oil Production (mm BBLs/Day)
Crude Oil* Share of Oil Est’d Water**
USA mm % mm BBLs per Day
Canada mm % mm BBLs per Day
Rest of World 67.4 mm % mm BBLs per Day
Total World 80.0 mm % mm BBLs per Day
*  World's Top Oil Producers 2016 U.S. Energy Information Administration
** Assumes industry average of 6 BBL water/1 BBL Oil