UCOIL- OPERATOR AND SERVICE PETROLEUM COMPANY. MAIN OFFICES: PANAMA

2. UCOIL- OPERATOR AND SERVICE PETROLEUM COMPANY. MAIN OFFICES: PANAMA BRANCHES: UKRANIA, RUSSIA FEDERATION, AND COLOMBIA OUR OBJECTIVES ARE: • SUPPLY THE BEST ENHANCED OIL AND GAS RECOVERY PCUS TECHNOLOGY. • INCREASE OIL AND GAS PRODUCTION IN DECLINING FIELDS. • OBTAIN INCREMENTAL PRODUCTION IN SEVERAL AREAS. • DELEGATED MANAGEMENT OF OIL FIELDS. • OUR TECHNOLOGY AND SERVICES CONTRIBUTE WITH THE ENVIRONMENTAL CONSERVATION. OUR COMPANY COUNTS WITH THE BEST HUMAN, TECHNICAL AND FINANCIAL RESOURCES TO GET OUR GOALS WITH TOTAL QUALITY.

3. PCUS TECHNOLOGY Piezoceramic Ultrasonic Technology

4. GENERAL DESCRIPTION PCUS-technology is an enhanced oil and gas recovery technology with a database, recording, and software system which consists of power source, ultrasonic generator, collector, and down-hole acoustic sounder (radiator) manufactured on the basis of piezoceramic converters. The down hole instrument is hanging in the electric cable inside the casing, with diameter of 1 ¾” and lenght of 5 Ft. The total weight of the equipment set does not exceed 70 kg. (without electrical cable). The consumed power is not more than 5 kw. The acoustic generator and the acoustic sounder are joint by the electrical cable in order to produce pulsated bubbles, and blow out in the nearest production zone that let us to create cavities, and break organics and inorganics pluggings, getting the enhanced permeability and improve efficiency in the hydrocarbons flow production.

5. 5,0 4,0 BOPD 3,0 START ACOUSTC STIMULATION 2,0 1,0 TIME (DAYS) 20 40 60 80 100 120 140 PCUS -TECHNOLOGY TO INCREASE THE HYDROCARBONS PRODUCTION

6. PCUS - TECHNOLOGY TO INCREASE THE HYDROCARBONS PRODUCTION According to reservoir simulations studies, we have learned that after secondary oil recovery or enhanced oil- gas recovery, The Petroleum Companies have lost up to the 50% of the initial reserves in the reservoir.

7. WHEN AND WHY TO USE OUR TECHNOLOGY It is ideal WHEN oil production decreases from 30% to 70% BECAUSE OF the reservoir plugging, coming from the organic and innorganic agents (like asphaltenes and clay fine particles precipitation), which are physical causes. It is ideal WHEN it is necessary to enhance the reservoir conditions as oil and gas saturations (GOR, Sg, So, Sor, Bsw, K, Porosity) It is ideal WHEN the reservoir is losing its dynamic pressure.

8. TECHNOLOGY ADVANTAGES • HYDROCARBONS PRODUCTION INCREASES IN A RANGE FROM 15 TO 80% OR MORE, BECAUSE OF PLUGGING AREAS BREAK DUE TO PCUS TECHNOLOGY, INCREASING THE PERMEABILITY (k) IN THE PAYZONE. • DAMAGES FORMATION RESTAURATION AND TREATMENT. • WORK-OVER (SPECIAL KIND OF TREATMENT) FOR WELLS. • ENVIRONMENTAL TECHNOLOGY. • CONTINUOUS OIL AND GAS PRODUCTION. NOT WASTING TIME, OBTAINING ECONOMICAL BENEFITS.

9. TECHNOLOGY ADVANTAGES • ALLOW TO USE OTHER TECHNOLOGIES WITH PCUS ENHANCED OIL RECOVERY. • DO NOT PRODUCE ADDITIONAL DAMAGES (CASING, CEMENTATION, FORMATION, AND OTHERS). • ACOUSTIC SOUNDER HIGH PRESSURES, AND TEMPERATURES RESISTANT. • IT LET DOWN HOLE THE ACOUSTIC SOUNDER THROUGHT THE PRODUCTION TUBING, AVOIDING TO CONTRACT ADDITIONAL EQUIPMENTS AND HIGH COSTS. • COMPATIBLE TECHNOLOGY WITH SEVERAL PRODUCTION SYSTEMS, THAT INCLUDE THE GRAVEL PACKAGES AND SLOT LINERS.

10. BASES AND PRINCIPLES CAVITATION PROCESSES THE ACTION OF ULTRASOUND PRODUCES ACOUSTIC WAVES, AFTER PULSATED BUBBLES FILLED WITH STEAM OR GAS, OR THE MIXING OF TOGETHER. THE PAYZONE (THE NEAREST ZONE TO THE PRODUCTION ZONE). THE ACOUSTIC SOUNDER IS USING IN THE LIQUID MEDIUM WITH LOW PRESSURE IN THE BOTTOM HOLE (IN THE SHOOTING INTERVALS). JUST AFTER THE CROSSING TO THE HIGH PRESSURE AREA, THE BUBBLES BLOW OUT PRODUCING CAVITIES. THE PRODUCTOR SAND WITH THE PLUGGING AND DAMAGE IS LOSSING THE EFFECTIVE PERMEABILITY; BY USING THE ACOUSTIC SOUNDER, IT IS INCREASING THE COMMUNICATION CHANNELS AMOUNG THE SAND POROUS; DESTROYING THE SURFACE OF THE SOLIDS OF STRONGEST MATERIALS, AND PLUGGING BODIES (ASPHALTENES).

11. BASIC EQUIPMENT • ELECTRICAL UNIT (E-LINE) WITH RECORD SYSTEM, DATABASE PROCESS, CONTROL PANEL WITH REAL TIME INFORMATION, AND WITH AN SPECIAL COLLECTOR, BY USING AN ELECTRIC CABLE WITH THREE PHASES CONDUCTORS LINES (TWO LINES ARE TO TRANSFER INFORMATION IN BOTH WAYS, AND ADDITIONAL EMERGENCY LINE). • PRESSURE AND LUBRICATION CONTROL EQUIPMENT. • CASING COLLAR LOCATOR (CCL), AND GAMMA RAY CORRELATION EQUIPMENT AND SOFTWARE SYSTEM. • ULTRASONIC GENERATOR AND ULTRASONIC SOUNDER (RADIATOR) IN THE SHOOTING PRODUCTION ZONE. • WEIGHT BARS. • DIRECTIONAL ROLLER WITH DEPTH SENSOR. • ELECTRICAL POWER GENERATOR (5 KW).

12. EQUIPMENT E-LINE UNIT RECORDING DATABASE IN REAL TIME PRESSURE AND LUBRICATION EQUIPMENT ELECTRICAL CABLE (THREE CONDUCTORS LINES) SHOOTING AREA GAMMA RAY – CCL ACOUSTIC SOUNDER ACOUSTIC WAVES RADIATION

13. DATABASE UNIT AND SOFTWARE MONITORS, REGISTER PANEL IN REAL TIME LOCATED IN THE UNIT E-LINE (TRUCK)

14. EQUIPMENTS (GENERATOR AND ACOUSTIC SOUNDER) ACOUSTIC SOUNDER ULTRASONIC GENERATOR

15. EQUIPMENTS ACOUSTIC SOUNDER ULTRASONIC GENERATOR CONTROL

16. TECHNICAL DATA SHEET • ACOUSTIC SOUNDER DIAMETER: 1 3/4” = 1.75 ” (44 MM ) LENGHT: 5 FEET (1.5 MTS) TEMPERATURE: 350° F (180° C) PRESSURE: 5880 PSI WEIGHT: 40 POUNDS (20 KG) CORROSION RESISTANT MATERIAL • ELECTRICAL CABLE (THREE CONDUCTOR LINES) DIAMETER:13/32” (10.5MM) INTENSITY: 5 AMP VOLTAGE AMOUNG CONDUCTORS: 1.5 KW • ULTRASONIC GENERATOR DIMENSIONS: 45X30X45 CMS EQUIPMENT WEIGHT (WITHOUT ELECTRIC CABLE): 70 KGS

17. TECHNOLOGY APPLICATION • LOCATION: UCOIL SUPPORTED ON THE CCL AND GAMMA RAY LOGS CORRELATION, DETERMINES THE PAYZONE AND SHOOTING INTERVALS. • DESIGN OF THE ACOUSTIC APPLICATION PROGRAM: TAKING IN CONSIDERATION THE LOGS CORRELATIONS, UCOIL DESIGNS THE PROGRAM, AS WELL AS ITS APPLICATION WITH THE ACOUSTIC SOUNDER OF OUR ULTRASONIC GENERATOR JOINT BY THE ELECTRICAL CABLE. WE START THE ACOUSTIC RADIATION IN THE FIRST INTERVAL FROM BOTTOM WITH A MAXIMUM OF 4 FT. OF LENGHT THROUGH THE PRODUCTION TUBING. AFTER, WE CONTINUE IN ASCENDENT ORDER WITH OTHER INTERVALS. • EXPERIENCE: BASED ON OUR EXPERIENCE IN SEVERAL RESERVOIRS AND OILFIELDS, WE REQUIRE FROM 2 TO 3 HOURS PER INTERVAL (4 FT.). THE PROGRAM IS CONTINUED ASCENDING INTERVAL BY INTERVAL.

18. MINIMAL OPERATIONAL CONDITIONS • PRODUCTION TUBING INTERNAL DIÁMETER (ID): NO LESS THAN 2 3/8” = 1.995” (50 mm). • DRIFT 1.9 ” (STANDARD API) • ACOUSTIC SOUNDER DIAMETER: 1 3/4 ” = 1.75 ” • TEMPERATURE: 350° F (180° C) • ACOUSTIC SOUNDER RESISTS A MAXIMUM HYDROSTATIC PRESSURE OF 5880 PSI (400 ATM) • UNEXISTING OBSTRUCTION INSIDE THE PRODUCTION TUBING OR CASING (LINER) IN THE PRODUCTION FORMATION (PAYZONE) OR SHOOTING INTERVALS. • THE LEVEL OF FLUID IN WELL MUST BE AT LEAST 328 FT. (100 M.) OVER SHOOTING INTERVALS (MINIMAL LEVEL ACOUSTIC SOUNDER REQUERIMENT). • WELLS OPERATING WITH MECHANICAL PUMP, IT IS NECESSARY TO TAKE OUT THE MECHANICAL PUMP SYSTEM.

19. RECOMMENDATIONS TO EVALUATE THE EFFICIENCY OF PCUS TECHNOLOGY TO DETERMINE THE FORMATION DAMAGES, DAMAGES REPAIRMENTS, KIND AND LEVELS OF FLUIDS, WE HAVE TO RUN THE FOLLOWING LOGS: • PRESSURE BUILD UP (PBU) LOG IN REAL TIME OR MEMORY GAUGE (Costs are not included in this program) RUN AFTER AND BEFORE. • PRODUCTION LOG TEST (PLT): RUN AFTER AND BEFORE. (Costs are not included in this program). TO OBTAIN THE BEST RESULTS WHEN WELLS HAD BEEN CLOSED: • START THE PRODUCTION AS SOON AS POSSIBLE, AFTER PCUS TECHNOLOGY APPLICATION.

20. EXPERIENCE • EXCELLENT RESULTS, INCREASING HYDROCARBONS PRODUCTION FROM 10% TO 100% IN: • PETROLEUM AND GAS FIELDS MANAGEMENT IN UKRANIA. • PETROLEUM AND GAS FIELDS MANAGEMENT IN RUSSIA. • WELL TESTING IN “LLANITO”, “LA CIRA” LOCATED IN “GERENCIA CENTRO ORIENTE”, ECOPETROL: STATE OIL COMPANY, COLOMBIA.

22. INCREASING OF PERCENTAGES SHOWING OUR REAL RESULTS

24. WORKOVER ACOUSTIC STIMULATION ADDITIONAL SHOOTING

25. WORKOVER ACPUSTIC STIMULATION ADDITIONAL SHOOTING 133 OIL BARRELS PER DAY (JUN/17)

26. MAXIMUM EFFECT ADDITIONAL SHOOTING WORKOVER ACOUSTIC STIMULATION BARRELS PER DAY 133 PETROLEUM PER DAY (JUN/17)

27. NET PROD. GROSS PRODUC. DATE 20-Nov-02 251 105 21-Nov-02 251 156 04-Dic-02 273 169 08-Dic-02 292 181 28-Dic-02 243 151 29-Dic-02 231 143 23-Ene-03 263 163 11-Feb-03 263 86 11-May-03 0 0 15-May-03 311 22 18-May-03 311 35 20-May-03 288 33 23-May-03 292 42 25-May-03 224 41 04-Jun-03 224 41 10-Jun-03 224 90 12-Jun-03 255 102 14-Jun-03 301 126 17-Jun-03 310 133 MAXIMUM EFFECT OF THE ADDITIONAL SHOOTING WORKOVER ACOUSTIC STIMULATION OIL BARRELS PER DAY: 133 (JUN/17)

28. CONVENTIONAL WORKOVER Work-over Equipment: Rig, wireline, others. (Big Sizes and Mobilization) Stop the Production: Take out the production tubing. Human Resources: At least 10 persons. Environmental Affairs: Impact and Damage (Oil Spills). PCUS – ACOUSTIC STIMULATION WORK-OVER Work-over Equipment: Truck, e-line unit, PCUS Equipment. (Middle Sizes, Easy Mobilization) Continuous Production: The acoustic sounder goes through the production tubing. Human Resources: 3 persons. Environmental Affairs: Secure and compatible, without hazardous effects. TECHNOLOGIES COMPARISSON

29. CONVENTIONAL WORKOVER Operation Work Time: More than 10 days. Guarantee and Efficiency Results: Non determined. Incremental Production: Non determined. Safety: High Risks. PCUS – ACOUSTIC STIMULATION WORK-OVER Operation Work Time: No more than 4 days. Guarantee and Efficiency Results: Minimum 6 months. Incremental Production: at least 8%. Safety: Minimum Risks. TECHNOLOGIES COMPARISSON

30. CONVENTIONAL WORKOVER Well Damages: Several possibilities related with cementation, production formation, casing, and production tubing. Total Costs: Highest. PCUS – ACOUSTIC STIMULATION WORK-OVER Well Damages: Minimum or unexisting possibilities. Total Costs: Low. TECHNOLOGIES COMPARISSON

31. UCOIL AND PCUS TECHNOLOGY WANT TO THANK YOUR TIME AND ATTENTION. WE WILL BE VERY PLEASED TO BE OF SERVICE TO YOU AT YOUR EARLIEST CONVENIENCE, BEING SECURE TO ESTABLISH A LONG AND PROFITABLE COMMERCIAL AND FRIENDLY RELATIONSHIP.