2014 Global Hunter Securities Conference Chicago June 24, 2014 OTC Markets: ESES 1
Eco-Stim Energy Solutions key objectives Bring the best practices from the US unconventional Offer technology to reduce surface footprint, of stages, plays to the international market required horsepower & water usage Introduce…
Highly experienced management and operational team Bjarte J. Chris Alexander Bobby Bruheim Boswell Nickolatos Chapman Chairman and President, CEO Chief Financial Chief Operating Founder and Founder Officer Officer Co-founder of…
Strong financial backing combining experienced energy investors with emerging market experts Ahmad Al-Sati In May 2014, the Company announced a significant financing from an internationally recognized private equity firm managed by…
Eco-Stim investment thesis 1 Shale development dramatically impacting global economy 2 Technology from US will be improved, exported and adopted globally 3 Hydraulic stimulation is the fastest growing market in the oilfield…
Significant growth in global pressure pumping market Strong Historical Growth, with Predicted Continued Growth 60 50 40 (Billions) 30 20 10 0 2008 2009 2010 2011 2012 2013E Pressure Pumping Offshore Drilling…
Strong growth can be achieved in an undersupplied market 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 2012 Revenue…
Global shale distribution 9
Eco-Stim market selection criteria Key Ranking Criteria For International Shale Market Opportunities 1. Geology Resource produces economic hydrocarbons 2. Pace of activity Sufficient wells to maintain good equipment utilization 3.…
Ranking of technically recoverable shale oil & gas reserves Eco-Stim Targets Key Markets with Significant Recoverable Oil & Gas Reserves Top 10 Countries with Technically Recoverable Shale Top 10 Countries with Technically…
Significant investments expected by oil majors in Argentina Investments Driven by Large Recoverable Resource Base and Improvements in the Political Landscape (Remaining country risks to be managed diligently) Developments Post April…
Target market with significant current and future revenue opportunities Argentina is 3rd largest shale play behind China & US; most mature of international markets Mexico is next 82% of all stimulation equipment in North…
Actual Eagle Ford versus predicted Vaca Muerta - Drilling rigs and stimulation fleets 300 265 250 220 200 150 160 Eagle Ford play in Texas - 4 rigs & 100 1 stimulation crew operating in 87 50 50 75 2008 4 0 1 2008 2010…
International pricing remains strong Stimulation Revenue Streams US Example Revenue Per Stage In Argentina Revenue is invoiced on a per stage basis ranging from Number of stages / stimulations differ between type 50,000 to 150,000 in…
Strong demand for hydrocarbons and reduced political risk High Demand for Oil and Gas in Argentina Consumption began to exceed production in 2009 Argentina one of the fastest growing import markets for natural gas - Subsidized oil…
Key company highlights Well stimulation agreement signed with an operator in Argentina providing solid anchor customer partnered with Shell for a three year program Solid Anchor Customer Work to begin Q3-14, represents potential…
Equipment lease 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 Quintaplex Pumps 2 Large 100 BBI Blenders 40ft Data Van Trailer Combination Hydration / Chemical Additive Unit 19
Survey says: The primary reason for poor shale wells is lack of subsurface understanding 20 Page 20
Due to the low understanding of the subsurface, 60% of unconventional wells drilled are most likely uneconomic Most likely not economic to produce 25% are good wells; 15% are questionable Source: IHS 21
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 production 22
Due to the low understanding of the subsurface, completion teams choose to stimulate the full horizontal section 23
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…
Differential stress is mapped from 3D data to reflect orientation and intensity Longer arrows indicate strongest horizontal stress Horizontal well should be placed perpendicular to the stress orientation 26
Shale formations are not homogeneous and each stimulation is not created equal Formation breakdown pressure 27
Confirmation of producing zones.. (It is generally accepted in the industry that only one of three stages actually produces) Derived from Fiber Optic Acoustic Signatures 9 8 7 6 5 4 3 2 1 TIME Gas Production from zone 7 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…
Increased efficiency improves completions Reliable Sliding Sleeves Provides Low Cost Means of Keeping Fiber Optics Antenna Alive During Stimulation Process No pump-down plugs, actuating balls or perforating guns Five minutes…
Industry standard casing perforation process requires 90+ bpm flow rate and typically three perf zones (Same force and flow rate delivered by sleeve stimulation with 30bpm rate) High pressure fluid and proppant follows path of…
Smart combination drives efficiency Result of Smart Stimulation Process is to Concentrate Standard Completion Before Field Stages in Those Areas with the Highest Probability of Management Production thus Reducing Cost and Increasing…
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) 34
LCav.e-6 EcoStim Field Management System Upper Resistivity Zone Real-Time Fiber-Optic Data Proprietary Geo-Predict Results Recorded on Vertical Appraisal Well Show Correlation w/ Best Zones with 18 Stages Stage 1 Stage 2 Stage 3…
UpperSMResistivity Geo-Predict Zone Targeted Sweet Spot Map Production All Wells-Acoustic Impedance Sweet High Spot Sweet Attributes Spot Low Observed in Monitored Zones Have Been Projected Out to Surrounding 5 KM…
Pro forma capitalization ( Millions) (Pro-forma assuming 13M in additional equity is sold at 6 per share) Description Balance Albright Albright Pro-forma Pro-forma Sheet Convertible Option / Adjustments Balance Sheet Highlights Debt…
Conclusion Unique position to capture value from emerging market developments and the strong sentiment for Eco-Friendly unconventional solutions Seasoned management team with comprehensive Early mover and solid footing in one of…
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