Oil & Gas Well Testing & Engineering Services For Production Enhancement

1. Oilfield Technology & Trading Company • Oil & Gas Well Testing & • Engineering Services • For • Production Enhancement • Lifting & Operating Cost Reductions

2. Main Business Units OTATCO INC. 100% 100% 100% PRODUCTION SERVICES -Oil & Gas Well Enhancement Services PRODUCTS -Oil Tools -Artificial Lift Systems -Well Diagnostic Instruments IINTERNATIONAL DIVISION -Oilfield Equipment Sales, Service, Rentals -Trading

3. Complete Oil & Gas Well Services • Well performance and productivity testing • Production optimization engineering • Artificial lift performance analysis • Artificial lift design

4. Services Include… • Oilwell deliverability analysis • Gaswell deliverability analysis • Artificial lift system performance analysis • Artificial lift design • Plunger lift design, supply, installation and optimization • Gas lift design, supply, installation and optimization • PBHP & IPR determination • Acoustic Static Reservoir Pressure surveys • Pressure Transient Analysis • Remedial recommendations and productivity enhancement design

5. Internet - Based Communications & Engineering ENGINEERING & ANALYSIS -Dynamometer Testing -PBHP, IPR, SRP -PTA & Skin Damage FIELD WELL ANALYSIS -Field Testing -Well Performance -Artificial Lift System WELL DATA MANAGEMENT -Well Data Storage -Field Test Storage -Report Filing ENGINEERING EPORTS -IPR, PBHP, SRP -Pump Performance -Recommendations Dual Data Servers - Calgary & Red Deer

6. Challenges for producers • Maximize production from existing wells and fields • Minimize unit lifting and operating costs • Operate more wells with less personnel • Apply leading edge technology cost-effectively • Increase reserve value

7. AN OIL COMPANY’S MOST PROFITABLE INVESTMENTIncreased Production From Existing Wells - 67 wells, 450 b/d incremental, 45 day payout - Client: Gulf Canada Resources

8. AN OIL COMPANY’S MOST PROFITABLE INVESTMENT Increased Production From Existing Wells - 5 wells, 195 b/d incremental, 105 day payout - Client: Mobil Oil Canada

9. How reduced lifting & operating costs increase profits - 90-day payout on a $6,300 investment - 2/bbl saving created with a larger pump running slower 35 b/d BEFORE OPTIMIZATION $6.20/BARREL 35 b/d AFTER OPTIMIZATION $4.19/BARREL Power $0.84 Power $0.31 Supervision $0.76 Supervision $0.76 Rods/Equipment $0.35 Rods/Equipment $0.58 Chemicals $0.19 Workovers $0.63 Workovers $1.88 Chemicals $0.19 G & A $0.95 G & A $0.95 Water Disposal $1.00 Water Disposal $1.00

10. Surface Equipment Pumping System Artificial Lift System Production Enhancement Services Power Consumption • Production • Costs Monitoring the performance of all components and processes from the sandface to the flow line Near Wellbore Damage Reservoir Deliverability and Potential

11. Full Life Cycle of an Oil Well Flowing (low GOR, natural drive) Liquid loading or decreased reservoir pressure causes a decrease in production rate Artificial lift is now required Performance enhancement

12. Gather downhole and operating cost data Conduct field tests Analyze data Implement Recommendations MONITOR RESULTS How do we do it?

13. Following this Production Enhancement process flowchart will lead to increased production, reduced costs and optimal performance

14. Dynamometer Testing & Analysis

15. Artificial Lift Design

16. Inflow Performance Relationship (IPR)

17. Acoustic Build-up & Fluid Levels Advanced digital acoustic well analysis instruments provide quality, accurate well performance information

18. Pressure Transducer Wellbore Pressure How Acoustic Pressure SurveysWork AAFL Device Shut In Well for Buildup This permits Static Reservoir Pressure determination without pulling rods or tubing After shut in, the change in the fluid level is continuously monitored using the AAFL instrument Near Wellbore Damage (Skin) Static Reservoir Pressure

19. Fluid Level Plot (Shut-In)

20. Pressure Buildup Curve

21. Reservoir Engineering & PTA

22. SUPORT Uses Mass Balance Engineering To Determine... • Effective fluid level in a high-foam well • Producing Bottom Hole Pressure (PBHP) • Inflow Performance Relationship (IPR) • Annular gas production • Artificial lift system efficiency

23. Closed Chamber Testing of Pumping Oilwells (SUPORT)

24. SUPORT Test Procedure Est. Elapsed Time Operation (min) 0.0 Start Test 0.8 Close Casing Valve 7.1 Open critical Flow Prover Record Flow Temperature 12.7 Close Critical Flow Prover 16.6 Open Critical Flow Prover Record Flow Temperature 22.3 Flow Critical Flow Prover 28.9 Shut-in Pump Unit 36.7 Open Critical Flow Prover Record Flow Temperature 44.8 Close Critical Flow Prover 50.1 End Test

25. Gas Well Optimization

26. Data Collection and Interpretation • Electronic gauges to measure: • Casing Pressure • Tubing Pressure • Line Pressure • Line Temperature • Gas Rate • Liquid Production

27. Full Life Cycle of a Gas Well Flowing Liquid loading or decreased reservoir pressure causes decrease in gas rate Change Required Employ plunger lift Add wellsite booster compression Decrease compressor suction pressure Change tubing size

28. Gas Well Optimization • Data captured from OTATCO gauges can be retrieved in two ways: LOCALLY - Direct connect from carrying case to OTATCO service rep’s laptop

29. REMOTELY - Via Cellular or Satellite

30. The old way • The well is evaluated • The equipment is ordered • The wireline company is called • The pipe fitters are called • The installation is performed assuming that it is a permanent installation • The well operator is given a minimal amount of training • The well is left in the hands of the operator to line out the well

31. The OTATCO way!

32. Plunger Lift Design Calculations

33. The field work is arranged Field Operations are notified. A wireline truck is ordered from the nearest location.

34. The downhole tools are run with slickline wireline • Dummy plunger gauge ring • Equalizing Standing Valve • Bumperspring/Collar Stop • Plunger

35. The lubricator is installed

36. The OTATCO real time optimization unit is rigged in

37. What the unit does • Takes reading every second from all the instruments • Averages these reading every 3 minutes to produce a point on the trend graph • Controls the valve in 3 possible ways • Manual Open and Close • Time Control • Flow Control based on the differential pressure across the orifice plate

39. Presentation of Data

40. Benefits over the old way • No delay to obtain results • The well is optimized by an experienced plunger lift person • The well operator can continue with his regular duties without spending time on the plunger well • There is no down time to implement the changes • The well can be lined out as much as 80% faster

41. Benefits over the old way (con’t) • There is a record of the pressures, rates and temperatures maintained on OTATCO’s central server • The exact equipment required for the well can be specified based on the results obtained • If the system does not yield a saving in operating costs or enough gain in production the system can be removed. (There has been no pipes cut or instrumentation altered)

42. Other Gas Well Optimization Services • Casing Slip Streaming • Casing Tubing Switching • In-line Flow and Build up Test • Single Point Deliverability • Test Data Collection and/or Report Generation • Surface pressure survey • GOR testing

43. Artificial Lift System Performance Products • No-Turn Tool - anti counter-rotation system for PC pumps • Red M BOP - prevents oil spills from rod pumped wells • Rotor Seating Nipple - PC pump enhancement system • Fluid Ranger - digital single shot fluid level instrument • Dyno Ranger - advanced dynamometer system