PAGE 1 Investor Presentation GASFRAC Energy Services Inc. Presenter: Executive Team 2014 November 14th www.gasfrac.com
Investment Highlights PAGE 3 Leading patented waterless Liquid Petroleum Gas (LPG) gel fracturing technology Recent additional value proposition through Hybrid LPG engineered fluids and HRVP Significant economic advantages over…
PAGE 4 Overview of GASFRAC GASFRAC Energy Services Inc. www.gasfrac.com
Company Profile PAGE 5 GASFRAC Energy Services Inc. is an innovative North American based well-fracturing company that recently expanded its fluid offerings to include conventional fluids, in addition to a complete range of…
GASFRAC Experience PAGE 6 Over 2,400 Fracs on over 700 Locations o 302,000 gallons of LPG and of 143 million pounds of proppant o Largest job to date: 1.5 million pounds, 24 stage (15,000 foot horizontal) o Highest pressure…
Recent Operating Areas PAGE 7 Western Canada Eastern Canada LPG/Hybrid/HRVP Canada LPG Husky, Paramount Corridor Texas Marcellus/Utica United States Hybrid/HRVP Hybrid/HRVP BlackBrush Emerging market Negotiating with…
Operating Segments PAGE 8 LPG Recent renewal of contract with Husky Hybrid Renewal of contract with BlackBrush in South Texas Utica oil window: water fracturing unable to provide required results, GASFRAC has recently completed…
Operating Segments PAGE 9 Currently GASFRAC has three sets of equipment with hybrid blenders and a fourth blender scheduled for February 2015. Two are dedicated to Canada and two to the USA (focus areas of South Texas and the…
The GASFRAC Advantage PAGE 10 Currently the only company offering a range of LPG, Hybrid and Conventional Fracturing Systems in the Market LPG: Use of gelled propane, butane or pentane as fracturing fluid Increased production…
Growing World Class Customer Base PAGE 11 Recently renewed agreements with Blackbrush and Husky and won new business with Corridor www.gasfrac.com
Asset Value (1) PAGE 12 Asset allocation: Fracturing equipment 98.5 MM LPG storage & sand addition 42.6 MM Total operating equipment 141.1 MM Net debt (2) (67.8) MM Implied equity value 73.3 MM Estimated value per share…
Strong IP Base Surrounding Technology PAGE 13 Fifteen product and process patents issued or pending Innovative design of closed stimulation process and injection method LPG is a naturally occurring hydrocarbon that is…
PAGE 14 Frac Industry and GASFRAC Energy Services Inc. LPG Advantage www.gasfrac.com
Industry Background PAGE 15 Fracturing market in North America has grown from 15.5 billion in 2010 to 31 billion in 2013 and is expected to be 34.2B in 2014 Horizontal drilling activity remains strong both in Canada and the US…
LPG Technology: Significant Advantages VS. Conventional PAGE 16 Greatly enhances production and project economics both initially and long term 100% of fracturing fluids recovery Can be handled as a liquid on the Surface No water…
Engineered Fluid Full Cycle Value PAGE 17 2. Reservoir is fractured with engineered fluid Engineered Fluid (LPG and Liquid 1. Engineered Hydrocarbons) are recovered directly down Fluid from Sales Line. facility to operation…
Frac Economics: Example PAGE 18 Water Frac NGL Frac Pump 100 K Pump 120 K Frac Fluid 18 K Frac Fluid 196 K H20 Transfer 7 K Total 316 K Disposal 5 K Frac fluid sale (148 K) Total 140 K/stage Net Cost 168 K/stage Recovery is…
Market Size / Value Proposition PAGE 19 GASFRAC solution is ideal for: o Water sensitive formations o Low pressure / low permeability formations o Oil formations o Areas of environmental sensitivity/ water use concerns o…
Market Size / Value Proposition PAGE 20 The unique value proposition GASFRAC offers is: Increased initial production and EUR Customized fluid solutions addressing each formation Using hydrocarbons to produce hydrocarbons…
Market Size / Value Proposition PAGE 21 LPG allows for increased well Environmental Benefits performance Waterless More effective frac lengths achieve Eliminates issues associated 100% quicker recovery than traditional with…
Market Size / Value Proposition PAGE 22 Cumulative BOE: South Texas Average IP Rates: South Texas BOE Data Data Water Frac Average GASFRACs Processes Allows For GASFRAC Continues To Develop Superior Production Compared…
Market Size / Value Proposition PAGE 23 LPG Technology allows for increased well productivity through refracing of wells nearing the end of their productive life Incremental Reserves from LPG Fracture Treatment 300 23 Years (8…
PAGE 24 Strategy and Outlook GASFRAC Energy Services Inc. www.gasfrac.com
Strategic Focus PAGE 25 New Board of Directors elected May 2014 1. Expand Hybrid capacity to secure revenue from increased demand 2. Establish HRVP as superior solution for oil formations (compatibility, cost and logistics…
Q4 2014 Outlook PAGE 26 Operating Outlook o Fourth quarter to be active providing fracturing solutions for four new customers, while continuing to do work for BlackBrush o Commenced fracturing at first well in Utica Shale…
Contact Us PAGE 27 Mark Williamson, CEO Lori McLeod-Hill, CFO 1900, 801 6 Ave SW Calgary, AB T2P 3W2 Phone: 403.237.6077 Fax: 403.269.3722 Investor Relations: 403.817.2739 Email: investorsGASFRAC.com or…
PAGE 28 Appendix GASFRAC Energy Services Inc. www.gasfrac.com
LPG Technology - Significant Advantages vs. Conventional PAGE 29 Area contributing Area contributing Post conventional frac Post LPG frac www.gasfrac.com
Why an Alternative Stimulation Fluid PAGE 30 GOAL: Enhance ultimate recovery (EUR) Today's reservoirs: Declining Quality Micro Darcies vs. Milli Darcies Low pressure / depletion Clays (swelling, movable) Proppant embedment /…
Characteristics of Ideal Fracturing Fluid PAGE 31 Ultimate Reservoir Performance & Certainty Create the required fracture geometry Effective proppant transport Non-damaging (water blocks, polymer residue, clay swelling)…
Characteristics of Ideal Fracturing Fluid PAGE 32 Economics & Environmental Performance Fluids and gases recovered are marketable Reduces swabbing, coiled tubing, jetting, or extended flowbacks Eliminates water usage, disposal…
The LPG Advantage PAGE 33 Understanding Problems LPG/Hybrid LPG Solution Reservoir Fluid Clay Swelling Miscible with reservoir Compatibility and Time Under-Pressured Zone Hydrocarbons Fracturing Fluids IMBIBE Low Permeability Low…
Patented LPG Technology - Key Attributes and Advantages PAGE 34 Fifteen product and process patents issued or pending Innovative design of closed stimulation process and injection method LPG is a naturally occurring hydrocarbon…
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