TACROM INTRODUCTION Company Structure

1. TACROM INTRODUCTIONCompany Structure Parent Company: C.A.T. GmbH

2. TACROM INTRODUCTIONCompany Presentation • June 2006-Tacrom Services was established in Romania • Oct 2006-first frac campaign in Moinesti area (10 wells) • Since then we performed 160 fracs on-shore and off-shore of Romania, Azerbaijan and Bulgaria • March 2008-we started to provide coil tubing and nitrogen service (more than 100 jobs in Romania) • June 2008-gravel-pack service was provided (more than 45 jobs in Romania)

3. TACROM INTRODUCTIONServices Provided • Hydraulic Fracs • Acid Fracs • Frac-Packs • Acidizing • Gravel-Packs • Coil Tubing & Nitrogen Service

4. TACROM INTRODUCTIONHydraulic Fracs • The objective of hydraulic fracturing is to increase well productivity by creating a highly conductive flow path some distance away from the well bore • Using this technology we can increase production rates as well as overall recoverable hydrocarbons.

5. TACROM INTRODUCTIONHydraulic Fracs

6. TACROM INTRODUCTIONAcid Fracs • Much of the theory of hydraulic (proppant) fracturing is applicable to acid fracturing especially regarding fracture initiation and propagation. Leak-off and fracture conductivity are however fundamentally different • Acids create enhanced productivity by dissolving acid-soluble rocks, such as carbonates. The acid etches (dissolves) the walls of the fracture. Alternatively, the acid leaks off into the formation (accelerated by wormhole formation)

7. TACROM INTRODUCTIONAcid Fracs • The most common acid system is hydrochloric acid and this reacts effectively with above mentioned rocks

8. TACROM INTRODUCTIONFrac-Packs • Frac-Packs are a combination of a hydraulic fracturing and a gravel pack • This type of treatment is suitable for medium permeability unconsolidated formations • Is reducing to 0 formation sand flow and is creating a hi-permeability path for hydrocarbons

9. TACROM INTRODUCTIONAcidizing • Apart from acid fracturing jobs, there are also two categories of acid treatment: - acid washing - matrix acidizing • In acid washing, the objective is simply tubular and wellbore cleaning. Treatment of the formation is not intended. • For matrix acidizing, acids are used to create enhanced productivity when the acid reacts with the soluble substances in the formation matrix to enlarge the pore spaces. • Hydrofluoric acid (HF) is occasionally used in sandstones for the removal of fines or clay minerals. It is never used in carbonate reservoirs as it produces an insoluble precipitate (calcium fluoride)

10. TACROM INTRODUCTIONGravel-Packs • Gravel-packs are sand control operations applicable to unconsolidated hydrocarbons reservoirs in terms of reducing dramatically the sand flow, this way extending the work over intervals and life for bottomhole equipment

11. TACROM INTRODUCTIONWell Candidate Evaluation Hydraulic fracturing is generally applicable in reservoirs with low permeabilities (< 10 mD) FracPacks (Sand Control) in moderately permeable reservoirs Well selection involves finding candidates that will benifit from increasing payzone conductivity All treatments require reservoir pressure for the drive mechanism The history of stimulation operations should be taken into consideration

12. TACROM INTRODUCTIONWell Candidate Evaluation • The fracture must not propagate in water-saturated zones • Wells with high skin factor • Wellbore integrity • Possibility of equipment emplacement at the wellsite

13. TACROM INTRODUCTIONFracture Summary

14. TACROM INTRODUCTIONStatistics of Increased Production

15. TACROM INTRODUCTIONOperational Overview All of the services provided by Tacrom Services are done in a professional manner Production gained after stimulation average 2 to 4 times more.

16. TACROM INTRODUCTIONFracturing Equipment 10 m3/min Blender. Fully process controled Hydration Unit. On the fly mixing of polymer 2,250 HHP Pumptrucks. State of the Art Data Acquisition Truck Sandtruck - proppant handling Efficient Rig Up/Down Heating and filtering of frac fluid Purpose built, stackable frac tanks Providing underbalanced well cleanout after the frac

17. TACROM INTRODUCTION10 m3/min BLENDER

18. TACROM INTRODUCTION10 m3/min BLENDER • Truck mounted hydraulically driven mixing and blending unit • Fully computerized on the fly mixing capability • 2 each sand screws up to 6,0 tons / min • 2 each dry additive feeders • 2 each liquid additive feeders • 450 HP available from truck engine

19. TACROM INTRODUCTIONHydration Unit

20. TACROM INTRODUCTIONHydration Unit • Mixing Unit for linear gel preparation • Hydraulically driven pumps. Installed Power 410 HP • Discharge rate: Up to 10 m3/minute • Chemical Feeders: 1 each dry chemical feeder for guar injection 3 each liquid chemical pumps with coreolis flow meters • 26 m3 on board storage • 3 magflow flow meters for mixing and transferring fluid • Total “mix on the fly” technology. No contamination of water tanks. No wasted chemicals or mixing time compared to batch mixing

21. TACROM INTRODUCTION60 tonnes Proppant Truck

22. TACROM INTRODUCTION60 tonnes Proppant Truck Hydraulically operated Dumper Fully enclosed, two compartment design 42 m3 storage capacity (60 ton maximum) Roadweight 36 tons maximum

23. TACROM INTRODUCTION2250 HHP Pump Unit

24. TACROM INTRODUCTION2250 HHP Pump Unit Truck mounted remote controlled pump units SPM Triplex Pump, 5“ Fluid End, Allison Transmision, MTU Diesel Engine Work Pressure: 1000 bar max. Rate: 500 – 2200 l/min

25. TACROM INTRODUCTIONData Acquisition Truck

26. TACROM INTRODUCTIONData Acquisition Truck Air Conditioned Design Self Powered - 30 kW Generator Remote Control Frac Equipment Monitoring and Data Recording Real time data transfer to customer State of the Art Meyer‘s Software MFrac – Treatment Design MinFrac - Minifrac Analyses MFrac & MView – Treatment Control

27. TACROM INTRODUCTIONData Acquisition Truck

28. TACROM INTRODUCTION3“ SPM 1502 Piping

29. TACROM INTRODUCTIONCombination heating/filtering unit

30. TACROM ITRODUCTIONCombination heating/filtering unit • Compact 4x4 chassis • Parallel, double pod design for efficient operation • 100 microns primary and 5 microns secondary filters • 90 m3/ hour filtering (with normal field water) • 3.5 million BTU (1025 kW/hr) heater unit • 45 m3/hour heating (from 20C to 200C.) • Heat alone,filter alone, or combination

31. TACROM INTRODUCTIONFiltering unit

32. TACROM INTRODUCTIONFiltering unit • Compact skid or design • Transport on trailer or flatbed truck • 24 kW Hatz diesel motor • Parallel, double pod design for efficient operation • 100 micron primary and 5 micron secondary filters • 90 m3/ hour filtering (with normal field water) • Clean and filter simultaneously

33. TACROM INTRODUCTIONIntermediate, 2800m CTU

34. TACROM INTRODUCTIONIntermediate CTU • 2800 meters of 1 ¼ tubing on the reel • Compact, efficient design. Crane included on unit. • 18 scm/minute 210 bar air compressor included • Foamer pump included for foam cleanouts • All variables recorded during the operation • Full job report given to customer. Graphical and/or tabular data offered • Optional pressure control equipment. Low cost 210 bar annular bag or 700 bar bop‘s. Double or triple pressure control offered. • Optional nitrogen service for inert gas requirements • Extremely fast Rig up and rig down. • Fully trained, experienced crew.

35. TACROM INTRODUCTIONFlowback Trailer • 10 m3 Flowback trailer delivered with CT unit. • Compact, efficient design. • Handles all wellbore debris • Degasser included. • No spills. No mess.

36. TACROM INTRODUCTIONFlameless Nitrogen Pumper

37. TACROM INTRODUCTIONFlameless Nitrogen Pumper • 10-85 scm/minute pump rates possible • 700 bar pressure limitation • Highly accurate Electromagnetic flowmeter • Flameless heating of nitrogen for safe operation • Full recording of all pumping variables. All data will be included in the customer report • 10,000 liter on board storage tank. Most jobs will not require additional product. • Customer charged only for nitrogen pumped down the well.

38. TACROM INTRODUCTIONMobile, versatile, purpose built equipment

39. TACROM INTRODUCTIONTreatment Design Well selection involves finding candidates that will benifit from increasing payzone conductivity. High pressure, low perm, high skin wells are the most desired candidates. Meyer‘s Frac Software State of the Art Software Package Continous Upgrading MFrac – Treatment Design Minfrac – Pressure Analyses MView – Data Processing MProd & MNPV - Economics

40. TACROM INTRODUCTIONMeyer‘s Software Process Control Frac Data Management Frac Design Frac Geometry Modelling Matching Production to stimulation design

41. TACROM INTRODUCTION DATA REQUIREMENTS Reservoir Data Geo-Mechanical Data Frac Fluid Data Proppant Data DATA SOURCES Well Logs Core and Cuttings Analyses Well Tests

42. TACROM INTRODUCTION Rock Properties MFRAC

43. TACROM INTRODUCTION Fracture Geometry MFRAC

44. TACROM INTRODUCTIONMinifrac Step Rate Test Fracture Extension Pressure Step Down Test Near Wellbore Friction Perforation Friction Pressure Decline Analysis ISIP Fluid Efficiency kh, k, p*

45. TACROM INTRODUCTION STEP RATE TEST MinFRAC

46. TACROM INTRODUCTION STEP DOWN TEST MinFRAC

47. TACROM INTRODUCTIONMinifrac Analisys MinFRAC

48. TACROM INTRODUCTION MView / MFrac Control Treatment Net Pressure Early Detection of Screen Out Displacement MProd / MNpv Production analysis and future production estimation Net present value

49. TACROM INTRODUCTIONReal time parameters MView

50. TACROM INTRODUCTION Prefrac Production Estimation MProd