LD MICRO VII: Main Event Los Angeles December 2, 2014 OTC Markets: ESES
We are: an early stage technology-driven oilfield services company providing: (1) well stimulation; (2) coiled tubing; (3) field management services focused on reducing the ecological impact and improving the economic performance…
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…
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…
Key Industry Conditions & Considerations Shale Development now impacting the global economy; and now the oil markets Technology will be improved, exported and adopted globally Pressure Pumping Fastest growing market in the oilfield…
Strong Growth can be Achieved in 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…
Eco-Stim Targets Key Markets with Significant Recoverable Oil & Gas Reserves Approximately 80% of global shale resources lie outside the United States Key Selection Criteria For International Shale Market Opportunities Top 10 Countries…
Argentinas Vaca Muerta Shows the Most Promise 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…
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,…
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…
International Pricing Remains Strong in Undersupplied Market Lack of sufficient well stimulation equipment, technology and expertise is driving superior pricing power 350,000 Early Mover Advantage in Lucrative Pricing Market Assets…
Mature Oil Producing Country with Strong Customer Base E&P Companies Operating in Argentina Source: Management research 15
Commercial Success has only been achieved in two countries outside the North American Market 14
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 %…
Technology is Driving Demand for Our Services Conventional Horizontal Well Modern Horizontal Well Vertical Well Hydrocarbon 20 200 3,500 5,000 5,500 10,000 Pay Zone Exposure (ft): HP Required (HHP): 8,000 25,000 25,000…
Illustrative Market Economics for Argentina Equipment Illustrative Run-Rate Field Level Cash Flow Pressure Pumping Fleet Coiled Tubing Fleet Number of Jobs Per Month 8 to 12 Number of Wells 3 to 5 Number of Stages Per Well 3 to…
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
Gas Fired Turbine Powered Equipment Twelve Units Acquired to Support Growth Recently purchased 12 Dual Pump trailers with multi-fuel capabilities Dual Pump trailers contain two 2,250 Triplex pumps (4,500 HHP per trailer) 54,000 HHP of…
Clear Advantages of Turbine Powered Frac Equipment 4500 HHP Turbine Pumps 2,250 HHP Conventional In-Line Pump 1. Smaller Footprint 4500 HP on single trailer Turbine Pump 2. Less Emissions Pollutant 2017 Tier IV Limits…
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 24
Due to the low understanding of the subsurface, 75% of unconventional wells drilled are most likely uneconomic Most likely not economic to produce 25% are good wells; 15% are questionable Source: IHS 25
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 26
The evidence says that even along a given horizontal well, certain zones produce much better than others The prevailing opinion seems to be we are getting better production by doing more stages closer together. It could also be that…
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 + Maps produced in…
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 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…
Providing Better Efficiency Through Highly Efficient Completion System Reliable Sliding Sleeves Provide Low Cost Means of Keeping Fiber Optics Antenna Alive During Stimulation Process No pump-down plugs, actuating balls or…
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) 36
LCav.e-6 EcoStim Field Management System (Example Upper from Permian Resistivity Basin) Zone Real-Time Fiber-Optic Data Proprietary Geo-Predict Results Recorded on Vertical Appraisal Well Show Correlation w/ Best Zones with 18…
GeoPredictSM Searches Out Reoccurance of key attributes Upper Resistivity Zone Production Targeted Sweet Spots All Wells-Acoustic Impedance Sweet High Spot Sweet Attributes Spot Low Observed in Monitored Zones Have Been…
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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