EcoStim Investment Thesis Refinanced company establishing two market platform to balance risk; maintain upside in Argentina Provide superior equipment and operations team at lowest cost Rely on technology to drive efficiency and…
Refinanced Company In early March 2017 Fresh cash injection of 17 million to repay debt, finance capex and working capital Proforma Proforma Actual at for Fir Tree for Fir Tree Total debt of 41 million to be converted into equity at…
Technology-driven, growth platform in solid markets Emerging growth, technology-driven independent oilfield service company Well stimulation; Coiled tubing; and Reservoir field management services Proprietary proven technologies…
EcoStim Rolling Stock Equipment Distribution Moving from 10,000 HHP in 2015 to over 100,000 HHP in 2017 Argentina Oklahoma Flex Crew - 14 pumps (31,500 HHP) Crew 1 - 16 pumps (35,000 HHP) Blender Blender TPUs Palmero…
Evercore Research shows that when our equipment is put to work, we should be able to more than triple the value of the Company 7
Seasoned leadership team with local and international experience Relevant Experience Bjarte Bruheim 30+ years international management experience Chairman and Founder J. Chris Boswell President, CEO and 28 years experience in…
Management team has consistent track record of building profitable energy & energy service platforms Co-founded by Bjarte Bruheim in Developed in 1995 by Bjarte Bruheim, Deepwater exploration venture initially Bjarte Bruheim named…
Establishing two strong positions in high growth markets with long term contracts Argentinas Neuqun Province Tight Gas and Vaca Muerta shale Oklahomas Mississippian/Stack/Scoop Plays 10
Contract signed with well established operator in Oklahoma Contract is for one year beginning on readiness date (estimated Q2 of 2017) Investment is relatively light to achieve readiness; much of the equipment is available or has…
Expansion to the US starts in North Central Oklahoma to position EcoStim to service the growing regional market - ESES base of operation 12
Operators & Rigs as of January 2017; OK rig count up by 60% since March 2016 Midstates - Woods 1 Comanche - Major 1 Chesapeake Major 1 Kirkpatrick Major 1 Tapstone - Woodward 1 Devon Woodward - 1 Sandridge Woodward 1 PPP Petroleum…
OK rig count up further in March 2017; New base in close proximity to Blaine/Kingfisher counties 14
Argentinas growth opportunity is unique Key Selection Criteria For International Shale Market Opportunities 1. Geology Resource produces economic hydrocarbons 2. Pace of activity Sufficient wells to maintain good equipment…
Summary from YPFs Recent Earnings Webcast Shale Oil Benchmarking Vaca Muerta Well Productivity Compared To Best in USA 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 Wolfcamp Vaca Muerta Bone Springs Eagle Ford…
What has changed in Argentina New pro-business, free markets President Natural Gas prices set at 6.00-7.50 through 2021 Currency controls removed New trade agreement with US & rejoins IMF New deal between government, labor unions,…
Drilling efficiency gains Eagle Ford vs Vaca Muerta Drilling days per horizontal well 120 100 80 60 40 20 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Eagle Ford Vaca Muerta Source: Management Estimates &…
Mature oil producing country with strong customer base E&P Companies Operating in Argentina Source: Management research 19
Major Investments Now Being Made 20
Review of past business and new contract opportunities for EcoStim 2015 Customers And Partners New Customers - 2016 New Contracts 2017 21
Argentina market oversupplied in 2016 due to rig count reduction. Rigs starting back to work, prices improving; barriers to entry remain Barriers to Entry: Importation of new stimulation equipment is still challenging Any new…
Neuqun Offices and Operational Base 2 OFFICES IN NEUQUEN AND 1 OFFICE IN BA ACTUAL YARD AT THE PIN NEUQUEN AND FUTURE YARD IN PLOTTIER 23
Argentina Operations Team TEAM OF 74 PEOPLE IN ARGENTINA 24
Operations in Neuqun Argentina 25
III. Technology 26
EXECUTION - Technology well suited to reduce cost and environmental impact Only pumping unit in the world capable of: running on 100% natural gas can run on multiple fuel sources including natural gas, CNG, LNG and Diesel delivering…
EXECUTION - Technologies Integration Traditional EcoStim Multiple Natural Gas Fueling Options First Frac Operation with TPU in Argentina 28
You cant manage what you dont measure Eco-Stim conducts its horizontal stimulation services within a systematic methodology Leverages fiber-optic technology and predictive modeling (how many stages dont actually produce hydrocarbons)…
Example of sweet spot PREDICTION; largely based on the identification of micro-fracture swarms or natural fracturing Technology used primarily in high cost regions Using proprietary technology for accurate well placement and…
MEASURE & EVALUATE - Confirmation of producing zones.. (It is generally accepted that only one of three stages produce hydrocarbons) Derived from Fiber Optic Acoustic Signatures 9 8 7 6 5 4 3 2 1 TIME Gas Production from…
UPDATE MODEL & CALIBRATE - Target completion stages based on technology & empirical data 32 Stages 100k / Stage = 3.2 Million 16 Stages 100k / Stage = 1.6 Million 32
EcoStim Investment Thesis Refinanced company establishing two market platform to balance risk; maintain upside in Argentina Provide superior equipment and operations team at lowest cost Rely on technology to drive efficiency and…
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