2.  Can be used in liquid form for Chemical & Waterflood EOR; or used in vapor-form for Thermal or N2+CO2 Gas Injection EOR  Cleans the well bore, opens clogged pore-space and channels, improving near-wellbore permeability  Reduces the particle size of the oil to improve the oil’s viscosity and mobility.  Provide’s a persistent surfactant action downhole  Restores wellbore/reservoir interface (e.g. repairs “skin damage”)  Reduces interfacial forces.

3.  Surfsol’s patented technology and post treatment effluent are 100% facility compatible.  Surfsol treatment virtually eliminates the possibility of a shut- in well with our treatment program because it prevents precipitation of asphaltenes and paraffin wax crystals.  Surfsol can be used in its liquid-phase for Waterflood EOR to reduce oil viscosity and neutralize asphaltene and paraffin wax clogging of reservoir pore space – increasing oil mobility to and through the wellbore  Surfsol can be used in its vapor-phase for Thermal EOR and Gas Injection EOR to reduce oil viscosity and neutralize asphaltene and paraffin wax clogging of reservoir pore space – increasing oil mobility to and through the wellbore

4. Starting from a Small Pilot Program through Comprehensive Production Enhancement Program. The demonstrated increase in production is offsetting the declining production curve of this field.

5. If time is money…  Surfsol’s process generates an average 30% gain in incremental oil from wells that are treated.  The typical time for the treatment process is a brief 24-48 hours. We’ll get your wells back on- line quickly.

6. Benefits of Surfsol’s proprietary rig-less technology  There is no waiting for work-over rigs or other scarce resources to start treating wells and impacting production. You can deploy those resources to their highest and best uses.  Decreased time on site and a small footprint mean reduced exposure on the job site.

7.  Surfsol’s proprietary technology is proven to economically increase oil production even during periods of low commodity prices.  A fully scalable solution, it may be implemented on a single well, as a pilot program, or as a comprehensive production enhancement program.

8.  Designed to increase the production from moderately producing fields or fields that have had a consistent decline in production  Surfsol E4EOR addresses key issues that occur at the wellbore/reservoir interface which may impede the flow of heavy oil.  It reverses impeded flow due to blockage at the wellbore caused by common skin damage mechanisms—asphaltene, paraffin, inorganic scale, changes in wettability and emulsion block.

9.  Oil particles attached themselves to the to the conditioned water, and are held in suspension, preventing re-soiling from occurring and safely allowing FOG to be permanently dissolved in water.  The wash off is completely bio-degraded and becomes soil constituents such as nitrate, dissolved oxygen, carbon dioxide, biomass and water.  Mixed together in a very diluted water solution, the bio-based surfactants within Surf-sol drastically reduce surface tension and work as a dispersing agent that carry other active ingredients more effectively than common surfactants.

10.  The relatively high success rate, particularly at low commodity prices, demonstrates the insensitivity of this process to this often volatile key economical variable. Net oil price ($USD/BBL)% Success 1656 2465 3671 6075

11. The Problem  The operator of an aging oil field in California with over 1,050 producing and 1,275 injection wells had been using water flooding to maintain reservoir pressure for over 20 years.  Oil production targets were being missed and continued subsidence had occurred due to dropping pressure in the reservoir.  This situation was further exacerbated by injection wells being shut down because injection pressures were exceeding governmental allowable limits.

12. The Solution  Surfsol’s patented proprietary technology was injected in the wellbore/reservoir interface and used to remove mineral accretions and hydrocarbon/water emulsions in the flow channels of the rock in the near wellbore.  A 25% increase in average injection rates was achieved across the treated wells. Treatments were accomplished in 2-4 hours and have been effective for 3- 6 months, depending on specific well conditions and flood water quality.

13.  From the time period of January, 2007 through October 2008, 2,688 treatments were performed in this program.  The overall impact in the time period of study was 712,700 bbls of incremental oil production.  This impact was achieved with an average increase of 3 BOPD ( a 30% increase) over 2,688 treatments performed.

14.  An ROI in excess of 500% was achieved based on the actual cost of treatment, production down time, and assuming the price of oil per bbl to be fifty USD. The operator currently produces 17,000 BOPD from approximately 2,000 wells.

15. The Solution  Surfsol was able to treat mechanically damaged wells that had not previously been candidates since it does not require coiled tubing for effective treatment.  Surfsol for water flood substantially increased injection rates for over 3 months while keeping injection pressure within regulatory limits.

16.  Rig-less well interventions using this technology and process are, not only a success from an incremental production standpoint, but more importantly an economic success in this field of operations.  Using rig-less well interventions as the primary method allows more expensive and limited rig resources to be used more effectively while managing the reservoir’s decline.  With its lower costs, the Surfsol’s interventions can be used on a higher percentage of the field’s wells to help arrest the field’s overall decline rate  Rig-less interventions of this type are a cost effective and readily available technique for building a pro-active production enhancement program.

17. This solution consists of five components:  Candidate selection  Treatment design  Treatment execution  Evaluation of treatment response  Refinement of the first three steps based on the evaluated results.

18. Key indicators for candidates with a high probability of success include:  A history of detrimental depositional issues  Thermal stability at a suitable production temperature  Indications of wettability changes induced from other work-over treatments  The presence of producible oil in the reservoir

19.  Nanotechnology is used to create this powerful line of environmental friendly oilfield application solutions  Conditioned water is used in conjunction with bio-based products to increase removal of paraffin, asphaltene and scale within the well.  Well stimulation products are based the use of all natural components as well as micro sized conditioned water particles in order to penetrate deep into the production zone

20.  Installation of fluid conditioner within well bore reduces buildup  90 – 120 day effective rate reduces need for regular treatment  Quarterly maintenance reduces required work-over treatment for problematic and mechanically damaged wells

21. Traditional Approach Surfsol’s Approach