Enhanced Oil Recovery Through Electro-Treatment

1. Enhanced Oil RecoveryThrough Electro-Treatment GLOBAL OIL RECOVERY SYSTEMS,LLC

2. Introduction Global oil recovery systems,llc • Entering the international market by establishing international companies • Developed to be a global pioneer in Enhanced Oil Recovery and Upgrading worldwide • Technological know-how is based on 40 years of R&D by leading scientists from the Petroleum Institute of the former USSR • Current staff includes several of these former scientists • Technologies are patented or patent pending • Focus on Electro Treatment for Enhanced Oil Recovery and Upgrading & Recovery of Heavy Oil • All processes have low energy consumption and are environmentally sound GLOBAL OIL RECOVERY SYSTEMS,LLC

3. Introduction Global oil recovery systems,llc • Oil well treatment through Electro Treatment increases the output of aging oil fields while decreasing the water-cut • Major breakthroughs in utilization of Electro Treatment in the oil field occurred 17 years ago and have been perfected by our partner in Russia • Mr. Alexander Rybakov (presently a team member and researcher for Advanced Oil Recovery Technologies) was the lead pioneer of this technology • Hundreds of field tests have been conducted in countries worldwide, including Russia, Kazakhstan, India, Brazil and former Soviet states GLOBAL OIL RECOVERY SYSTEMS,LLC

4. Electro Treatment Theory The Electro Treatment technology is based on the effects of changing the cavitated spatial pattern within the rock of a reservoir and spacious structure of two-phase liquid filtration (oil & water) in the reservoir as a result of repeated cycles of electric pulses. GLOBAL OIL RECOVERY SYSTEMS,LLC

5. Electro Treatment Theory Utilizing the existing production casings from two well points as “antennae” electrical waves are modulated directly into the reservoir at both high and low frequency. Treatment is portable, short term and has relatively no infrastructure cost. GLOBAL OIL RECOVERY SYSTEMS,LLC

6. Max 2 km Max 3 km Treatment continued 24-30 hours GLOBAL OIL RECOVERY SYSTEMS,LLC

7. Theory R1 If the capillary sections radii ratio R1 / R2 = 3.2 then the energy emission density ratio E2 / E1 = 100 In other words – energy concentrates in narrow spaces R1 R2 R2 GLOBAL OIL RECOVERY SYSTEMS,LLC

8. Effect 1 – Enhanced oil recovery Steam and gas bubbles Electric impulses create gas and steam bubbles, mainly in spaces filled with water, since water conducts electricity much better than oil GLOBAL OIL RECOVERY SYSTEMS,LLC

9. Effect 1 – Enhanced oil recovery Steam and gas bubbles These bubbles prevent fluid flow – mainly water – and reorganize fluid flow routes GLOBAL OIL RECOVERY SYSTEMS,LLC

10. Effect 1 – Enhanced oil recovery Oil and gas bubbles Bubbles are created mainly in water since impulses go mainly through water and viscosity of water is less than viscosity of oil GLOBAL OIL RECOVERY SYSTEMS,LLC

11. Effect 2 - intensification Rock Structure Oil reservoir rock particles consist of a hard skeleton with a low electric conductivity which is covered by a less firm component with a double electric layer (with better electric conductivity), which together with the mud partially covers rock particles. GLOBAL OIL RECOVERY SYSTEMS,LLC

12. Effect 2 - intensification Micro Explosions Due to the electric pulse, the energy emission in the narrow capillaries significantly increases local temperature and intensifies all processes (creating micro explosions)‏ GLOBAL OIL RECOVERY SYSTEMS,LLC

13. Effect 2 - intensification Effect When the temperature reaches the threshold value, the mechanical destruction of the surface component and mud occurs in the narrow pore passages and new oil paths are opened GLOBAL OIL RECOVERY SYSTEMS,LLC

14. Treatment gives two effects : 1. Enhanced oil recovery in extensive zone 2. Intesification of production by reducing clogging in nearest zone 5...10 m 100...200 m GLOBAL OIL RECOVERY SYSTEMS,LLC

15. 1. Enhanced Oil Recovery By creating gas & steam bubbles ET prevents water flow in reservoir and reorganizes fluid flow routes in it 2. Intensification By crushing soft layers on top of rock particles ET enlarges the routes for fluid flow As a result: - oil production increases - water-cut decreases GLOBAL OIL RECOVERY SYSTEMS,LLC

16. Oil production, t / day After Treatment Additional oil Time Prognosis on output Technical Effects Oil production of oil well increases Electro Treatment Usual increase 4-25 % GLOBAL OIL RECOVERY SYSTEMS,LLC

17. Prognosed After ET Technical Effects Water content in oil-water mixture decreases Water-cut, % Usually water-cut decreases 10-20 % (best results 80 %)‏ Electro Treatment Time GLOBAL OIL RECOVERY SYSTEMS,LLC

18. 100 80 60 40 20 0 Water-cut, % Water-cut before Electro Treatment Results 4 months after Treatment Kazakhstan, June 1998 Results 4 months after Electro Treatment 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Oil well GLOBAL OIL RECOVERY SYSTEMS,LLC

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27. Selection of Wells for ElectroTreatment • More than 50 parameters are used for selecting suitable oil wells for treatment • A pair of wells is necessary • If a well suitable for treatment is not close enough, any well (even “empty”) is selected even though no positive results are expected GLOBAL OIL RECOVERY SYSTEMS,LLC

28. Additional Facts • It is possible to work both on-shore or off-shore • It is also possible to treat gas fields and fresh water wells • Electro Treatment is 100 % harmless for the oil field and oil field equipment • Continuing R&D is leading to even greater results GLOBAL OIL RECOVERY SYSTEMS,LLC

29. What Can Be Done: • Approximately 20 % of all oil wells worldwide can be treated • Positive results in more than 90 % of cases • No risk of harming well • First results of Electro Treatment can be measured and confirmed within 1-2 months after treatment GLOBAL OIL RECOVERY SYSTEMS,LLC

30. What Can Be Done: • Electro Treatment positively affects 2-5 years of production • One team can treat 2-3 oil well pairs per week • Other technologies can be used simultaneously GLOBAL OIL RECOVERY SYSTEMS,LLC

31. What Can NOT Be Done: • Recover “empty” oil wells • Treat 100 % of oil wells • Guarantee 100 % positive results, even though we are confident in our results GLOBAL OIL RECOVERY SYSTEMS,LLC

32. Treated oil wells 1 2 3 Month Measuring the Results Oil well group X1…X9 First measuring and analysis of result Results shall be followed up at least 12 months after Treatment Results after Treatment are compared to predicted results without Treatment = additional oil output Average additional oil output is calculated Average of additional oil output from a well group defines charge for Treatment GLOBAL OIL RECOVERY SYSTEMS,LLC

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34. Business Process Agreement upon Electro Treatment of 4-6 pilot oil wells Selection of oil wells and expected prognosis Treatment of pilot wells Measurement and analysis of results Determination for further operations GLOBAL OIL RECOVERY SYSTEMS,LLC

35. For more information contact: Global oil recovery systems,llc GLOBAL OIL RECOVERY SYSTEMS,LLC