Environmentally Focused Well Solutions Roth Conference March 2015
Technology-Driven, Emerging Growth Platform Capitalize on emerging market developments and sentiment for Eco-Friendly unconventional solutions Emerging growth, technology-driven independent oilfield service company providing: Well…
Seasoned Leadership Team with Highly Relevant Experience Relevant Experience Bjarte Bruheim 30+ years international management experience Chairman and Founder J. Chris Boswell President, CEO and 28 years experience in the…
Track Record of Consistent Success Building Profitable Energy Service Platforms Co-founded by Bjarte Bruheim in Developed in 1995 by Bjarte Bruheim, Deepwater exploration venture initially Bjarte Bruheim named Executive 1991; served…
Leading Equity Sponsors with Extensive Oilfield and Emerging Markets Expertise Experienced energy investors dominate the In May 2014, the Company received founding shareholder group 30 million in private financing from Albright…
History Shows Strong Growth can be Achieved in Undersupplied Markets Actual Results From A Pure Play Pressure Pumping & Coiled Tubing Business Which Experienced Strong Growth In An Under-Supplied North American Market From 2009 To…
Eco-Stim Targets Markets With Attributes Meeting Its Key Investment Criteria Approximately 80% of global shale resources lie outside the United States Key Selection Criteria For International Shale Market Opportunities Top 10 Countries…
Commercial Success has only been achieved in two countries outside the North American Market 9
Commodity Prices in Argentina are RisingWhy WTI Oil Price March 2015 = 50/barrel Argentina Medanito Light Oil Price in March 2015 = 77/barrel Henry Hub Natural Gas Price in March 2015 = 2.80/mcf YPFs Disclosed Average Natural Gas…
Strong Demand for Hydrocarbons and Reduced Political/Commodity Risk Argentina has the opportunity to reverse its balance-of-trade issues through the development of the Vaca Muerta and other non-conventional fields - Kyle Bass,…
Argentinas Vaca Muerta Is Massive in Terms of Size and Quality Of those nations with significant shale resources, Argentina is the best bet to replicate U.S. shale revolution Worlds third largest resource nation of shale oil and gas…
Significant Investments Being Made in Argentina Once the issues with the vultures have passed, Argentina will attract hundreds of billions of dollars in foreign direct investment. - Kyle Bass, 11/14/2014 (Bloomberg) Resolution with…
Mature Oil Producing Country with Strong Customer Base E&P Companies Operating in Argentina Source: Management research 15
International Pricing Remains Strong in Undersupplied Market Lack of sufficient well stimulation equipment, technology and expertise is driving superior pricing power Early Mover Advantage in Lucrative Pricing Market 350,000 Assets in…
Actual Eagle Ford VS Predicted Vaca Muerta - Drilling Rigs and Stimulation Fleets 300 265 250 220 200 150 160 Eagle Ford play in Texas - 4 rigs & 1 Frac 100 crew operating in 2008 87 75 50 50 4 0 1 2008 2010 2012 2014 %…
Illustrative Market Economics for Argentina Equipment Illustrative Run-Rate Field Level Cash Flow Pressure Pumping Fleet Coiled Tubing Fleet Number of Wells 3 to 5 Number of Jobs Per Month 8 to 12 Number of Stages Per Well 3 to 5…
Coiled Tubing Equipment Leased Financed for First Contract 2 Coiled Tubing Unit 2250 HHP Fluid Pumper Nitrogen Pumper Nitrogen Transport 18
Equipment Purchased for First Contract Pressure Pumping Equipment Package 4 Quintiplex Pumps 2 Large 100 BBI Blenders 40ft Data Van Trailer Combination Hydration / Chemical Additive Unit 19
Turbine Powered Pumping Units Purchased at Significant Discount Latest generation turbine-powered pressure pumping units 12 dual pump trailers with multi-fuel capabilities Turbine Powered Pressure Pumping Assets Acquired Proven…
Potential Savings using Alternative Fuels Annual savings per frac crew: LNG = 352,800 CNG = 4,737,600 Field gas = 6,930,000
Survey says, the primary reason for poor shale wells is lack of subsurface understanding 22
Due to low understanding of the subsurface & currently low oil prices, 80% of unconventional wells are uneconomic 80% not economic to produce 20% are good wells Source: IHS 23
Once subsurface is understood, sweet spots can be located. Note that almost 90% of all production comes from a few wells Hogs and Large wells account for almost 90% of new production Source: IHS 24
Technology Platform to identify sweet spots and ground truth (Predict, Execute, Measure, Re-Predict) Eco-Stim conducts its stimulation services within a systematic methodology - Leverages fiber-optic technology and predictive…
Example of Sweet Spot Prediction Mud logs on this horizontal well show flare markers that confirm predictive fracture maps Using proprietary technology for accurate well + placement and stimulation stage planning Mud Log…
Confirmation of Producing Zones.. (It is generally accepted in the industry that only one of three stages actually produce) Derived from Fiber Optic Acoustic Signatures 9 8 7 6 5 4 3 2 1 TIME Gas Production from zone 6 Gas…
Geo-Iteration Technology Provides Significant Cost Savings Reduction in Stimulation Zones Cost Comparison (Millions) Job executed with 30 zones stimulated Conventional 3.0 5.3 USD 2.3 million in savings 7 predicted zones…
Plug & Perf vs Sleeves Plug & Perf Sliding Sleeves FRAC Perf Perf Perf FRAC PLUG Cluster Cluster Cluster PLUG Fractures follow path of least resistance, i.e., stress orientation Sleeve systems provide better focus and…
In new shale plays, technology advances can accelerate learning curve Well Drilled in Eagle Ford Best producing areas Early Maps Of Eagle Ford to Identify Sweet Spots within Eagle Ford play - Play in Texas - 2009 and to hold…
Eagle Ford Hogs after years of Drilling; Clearly certain areas produce better that other areas (same shale formation) 31
LCav.e-6 EcoStim Field Management System (Example Upper from Permian Resistivity ZoneBasin) Real-Time Fiber-Optic Data Proprietary Geo-Predict Results Recorded on Vertical Appraisal Well Show Correlation w/ Best Zones with 18…
SM Searches Out Re-occurance of key attributes Upper Resistivity Zone Production GeoPredict to provide guidance as to Sweet Spots in new shale play All Wells-Acoustic Impedance Attributes Observed in Monitored Zones Can Be…
Investment Highlights Technology-driven, oilfield services company in fast-growing, high-margin international shale regions. Estimated 70% of shale reserves located outside North America with just 20% of global pressure pumping…