Shearforce Ltd. Co. PRESENTATION IN-SITU CLEANING of WBM, OBM & DRILL CUTTINGS

1. Shearforce Ltd. Co. PRESENTATION IN-SITU CLEANING of WBM, OBM & DRILL CUTTINGS Utilizing Shearforce Patented Technologies Shearforce Ltd. Co. Forth Worth, Texas U.S.A. Contact: webmaster@shearforce.biz

2. In-Situ Process……the REASON DRILL CUTTINGS MUST BE TREATED SINCE THEY ARE HARMFUL TO THE ENVIRONMENT. UNTREATED DRILL CUTTINGS CONTAMINATES THE DRINKING WATER THROUGH PERCOLATION INTO THE SOIL AND CAN KILL AQUATIC LIVE AND BIRDS AND FARM LAND. THE INSITU SHEARFORCE PROCESS IS ONE OF THE ONLY TOTALLY GREEN PROCESSES AVAILABLE IN NIGERIA. THE INSITU SHEARFORCE PROCESS ASSURES THAT NO UNTREADTED DRILL CUTTINGS CAN BE DISCHARGED ACCIDENTALLY INTO THE ENVIRONMENT DURING TRANSPORT OR INTENTIALLY DUE TO POOR BUSINESS PRACTICES.

3. Drill Cuttings…the Problem A Typical Seawater / Polymer / KCl System consisting of 6500 barrels of Mud & 3000 barrels of Drill Cuttings. Mud composition as follows:

4. Treatment of Drill Cuttings “IN SITU”…the Solution BACKGROUND: Bioremediation is the process of encouraging the natural process of biodegradation to clean drilling mud and drill cuttings, oil spills and other environmental problems caused by humankind’s activities. There are three different types of bioremediation: nutrient enrichment, seeding with naturally occurring microorganisms, and seeding with genetically engineered microorganisms. Shearforce experience with the cleaning of drill cuttings in Nigeria using the nutrient enrichment process of SF-1000 has demonstrated that there is a diverse enough indigenous population of oil-degrading microorganisms in the soil to carry out the bioremediation process. Populations of oil-degrading microbes in most environments are limited by the availability of hydrocarbons. When this limitation is overcome, the microbial population expands. In order for this to occur, the microbes need oxygen for respiration and other nutrients that are not available in petroleum. Oxygen is assured by the use the Shearforce Pumps which added millions of microscopic air bubbles by injecting air into the suction of the pumps. Oil provides a rich source of reduced carbon, but no readily available nitrogen or phosphorus. These nutrients are vital to the growth of microbes. Nitrogen is essential for the synthesis of proteins and nucleic acids and phosphorus is vital for nucleic acids, and the energy metabolism of the cell. Some bacteria can fix nitrogen from the atmosphere, but this is not widespread in oil-degrading microbes. Thus, the growth of oil-degrading microorganisms is limited by the availability of nitrogen and phosphorus. SF-1000 provides these nutrients assuring the goal of the bioremediation process

5. Treatment of Drill Cuttings “IN SITU” BACKGROUND (cont.) The use of SF1000 will cause a breakdown of the hydrocarbon contamination into small minute particles so that the indigenous microbes in the soil and water will be able to consume the hydrocarbons as a food source. Nutrients in theSF1000 will cause the stimulation of the indigenous microbial colonies to multiply at an expediential rate. The following treatment procedures are for the cleaning of WBM and drill cuttings. The operation will begin with the analysis of the WBM. The background TPH (Total Petroleum Hydrocarbons) will also be determined using a portable field lab Dexsil system. Option 1 is for In Situ cleaning will take at drilling sites where the drilling mud is placed Directly into the SF wash tank. Option 2 is for the drill cuttings to be removed for Ex Situ processing.

6. Treatment of Drill Cuttings “IN SITU”…the Solution OPERATION- Off shore Rigs (Option 1) The WBM and DC will be loaded from the shale shakers directing into the SF wash tanks. The SF wash tanks will be located on a barge which is anchored or tied directly to the drilling rig. The total qty. of Mud and DC is 9500 barrels in a four day period of drilling or approx. 2375 barrels/day (376 m^3/day). Each SF tank is capable of treating 126 barrels/hr or 3024 barrels/day. The Mud and DC will receive an thirty minute to one hour wash. The SF1000 will be mixed at a Ratio of 1 ½ parts of concentrate to 10 parts water. One and one half gallons of SF1000 is required for 1 m^3. Shale Shakers SF Wash Tank 1 ChemicalStorage SF WashTank 2 water source

7. Treatment of Drill Cuttings “IN SITU” OPERATION- Off shore Rigs (Option 1) Each wash is approximately 20 cubic meters of contaminated media. Before being discharged, SF1000 will reduce the TPH levels to less then 1 % to meet international regulations. After treatment and testing, the entire solution will be discharged off shore with attention given to the discharge of the treated solution to assure: 1: That the solution is not discharged as piles which could smother the local organisms on sea bottom by utilizing high pressure spraying of the solution over a large area. 2: That there is no potential of toxic affect. The chemical levels contained in the Mud/DC will not exceed the limits of the surrounding environment. 3: That there is no anoxic conditions caused by the microbial degradation of the organic components in the solution by regeneration using the nutrients in the sf-1000.

8. Treatment of Drill Cuttings “IN SITU” OPERATION- Off shore Rigs (Option 1) CONCLUSION SF1000 will reduce the TPH levels to less then 1 % in 1 hour. EQUIPMENT LIST 1: qty. 2: Shearforce SF950 Mission type pump with xxp motor 2: qty. 2: SF Washing Tank built to suit for foot print required. 3: qty. 2: SF submersible pump for water loading. 4: qty. 1: Portable TPH test lab. 5: qty. 36 Drums /1000 m3 of SF1000 Chemical in 55 gallon drums.

9. Treatment of Drill Cuttings “IN SITU” OPERATION- Off shore Rigs (Option 1) Each tank will clean approx. 20 M^3 /wash in 30 to 60 minutes. Foot print: 24'x8'x8' , dry 6000 LBS., wet 28,000 lbs/.Skid

10. Treatment of Drill Cuttings “IN SITU” OPERATION- Off shore Rigs (Option 1)

11. Treatment of Drill Cuttings “IN SITU”…the Solution OPERATION- Land Farming (Option 2) The WBM and DC will be loaded from the shale shakers directing into an XOM vessel which will transport the total qty. of Mud and DC (9500 barrels, 1500 m^3)) to on shore. The Mud & DC will then be loaded into 30 ton Dump Trucks (50 loads) for transportation to a wash site. At the wash site, each load will receive a treatment identical to that offered for option 1. After treatment however, the solution will be used either for: 1: Land fill in an acquired land site. 2: Manufacture of bricks. SP1 Wash Vehicle w/weir walls Chemical Storage 20 ft container Drill Cuttings Pit Loading Machinery Custom Wash Vehicle SP2 water source

12. Treatment of Drill Cuttings “IN SITU” OPERATION- Land Farming (option 2) Procedure: The DC will be loaded into Dump Trucks using a combination front loader and back hoe or conveyors. Each wash is approximately 20 cubic meters of contaminated media. Before being discharged there will be a TPH reduction of approximately 93 to 95% upon completion of the wash cycle. TPH levels of 200,000 ppm are dramatically reduced to acceptable levels of less then 1% or 10000 ppm.

13. Treatment of Drill Cuttings “IN SITU” OPERATION- Land Farming (option 2) Once in the Dump Trucks the drill cuttings will be transported to the work area where the drill cuttings are washed with a solution of SF1000 and water. The DC will receive a 20 to 60 minute wash depending on the type of drill mud (OBM or WBM). After the washing cycle, the DC will be placed in a designated DC clean area or removed from sites using dump trucks for deposit elsewhere.

14. Treatment of Drill Cuttings “IN SITU” OPERATION- Land Farming (option 2) The SF1000 will be mixed at a ratio of 1 ½ parts of concentrate to 10 parts water. One and one half gallons of SF1000 is required for 1 m^3. A portable test lab is used to confirm the total TPH of the now clean drill cuttings. A test is conducted on every 50 m^3 of drill cuttings. When the media is discharged, it should be placed in an area for additional drying and the bio-degradation of the hydrocarbons will continue without additional handling. A final analysis will be taken 48 hours upon completion to determine the reduction in the TPH.

15. Treatment of Drill Cuttings “IN SITU” OPERATION- Land Farming (option 2) CONCLUSION SF1000 will reduce the TPH levels to less then 1 % in less then 24 to 48 hours while being handled only once. The bi-product that is left can be used as road base or sold as materials for brick making. EQUIPMENT LIST 1: qty. 2: Custom Wash Vehicles fitted with Weir Walls (shown below). 2: qty. 1: Loading Machinery 3: qty. 1: Water tank for blending of chemicals 4: qty. 1: Shearforce Pump 5: qty. 1: Portable TPH test lab. 6: qty. 36 drums /1000 m3 of SF1000 Chemical in 55 gallon drums.

16. Treatment of Drill Cuttings “EX SITU” BRICK MAKING 3,500 3" X 3" X 9" concrete bricks in only 60 minutes. And the straightforward apparatus that spewed out all those construction blocks has no motors, no gears, no hydraulic systems, and no other complex hardware. In fact, it's entirely manually operated! And with the production capacity that it has, this little machine is far more than just a unique combination of steel and wood . . Alternate brick making Machine.

17. Technical Explanation of Chemicals SF-1000 is a concentrated water based synergistic blend of biodegradable, non- toxic, non-flammable nonionic surfactants composed ofPolycxyethylene Ethers: - Sodium bis (2-ethyhexyl) sulfosuccinate - CAS # 577-11-7. Classified as Alkoxylated Alcohols C10-12 ethoxylated propoxylated - CAS # 68154-97-2. D.O.T. classification is non-regulated.  The freight classification is a non-hazardous cleaning compound. It does not contain any enzymes or microbes. The surfactant action of SF-1000 allows it to emulsify hydrocarbon contaminants into microscopic droplets suspended in solution. This emulsion solution remains stable in the rinse and/or treated media and plays an important role in the biodegrading of hydrocarbon contaminants since the emulsion is easily biodegradable by naturally occurring microorganisms. Thus SF-1000 represents a food source that promotes the growth and metabolic activity of the micro-flora present. The net effect is an increase in the rate of hydrocarbon biodegradation. It is this methodology provides a multitude of benefits when using Shearforce SF-1000TM for spill response, in-situ bioremediation, water treatment or cleaning applications. Because Shearforce SF-1000 is a non-hazardous, non-flammable, water-soluble liquid, it can be used for removing oil and grease on surfaces while providing the following benefits: Will not diminish the integrity of surfaces Very fast working (TCEQ-1005 TPH testing) Contains no ozone depleting solvents Non-toxic (EPA LC50 testing) Non-chlorinated Does not leave volatile or semi-volatile organics (EPA 8260B & 8070C tests) 100% biodegradable Provides odor control Promotes vegetation growth

18. Treatment of Drill Cuttings “IN SITU”

19. Treatment of Drill Cuttings “IN SITU”

20. Experience of Treatment of Drill Cuttings “IN SITU” The pictures below are from a project for a leading service oil company in Louisiana. 20 cubic yards of OBM mud with TPH level’s of 165,000 ppm were reduced to 800 ppm within 35 minutes wash.

21. Experience of Treatment of Drill Cuttings “IN SITU” Details of the wash tank.

22. Experience of Treatment of Drill Cuttings “IN SITU” The picture below shows the cleaning of OBM. The OBM is 30% and was cleaned to 1000 ppm within 1 hour.

23. Analysis of Treatment of Drill Cuttings “IN SITU”