....provides industry leading technology for: Production Enhancement Barclays CEO Energy-Power Conference September 2-4, 2014 Investor Presentation
One of the biggest economic opportunities in the oil and gas industry is to increase the recovery factor. In the shale reservoirs we are leaving over 90% of the oil in the ground. Fracturing Technology Evolution
Shale Reservoirs Need For Improved % Recovery Tighter rock needs fracs with more Contact Area and Conductivity Current Shale Recovery Factor < 5%-8% Conventional Sands Tight Sands Shale Millidarcies Microdarcies…
To Increase Recovery In Shales..We Need Contact Area Conductivity To be economical, low perm reservoirs Convergent Flow from Transverse Fracs require large contact areas to drain creates enormous flow velocity near Create multiple…
Contact Area Techniques To Create More Dependent upon the reservoir, the industry has attempted several methods to create more Contact Area Transverse fracs in horizontal wells Longer laterals Stages, spacing, perf density Zipper…
Contact Area Creating Complex Network Fracs One Size Does Not Fit All The Brittleness of the shale Barnett vs reservoirs greatly influences Eagle Ford whether a complex network frac is being created, or a more planer-type frac.…
Conductivity - Connecting The Reservoir & Wellbore 200 ft perfs 200 ft perfs 200 ft height Hydrocarbons enter 6 casing. Very large pressure drop & high velocities Vertical Well Frac Horizontal Well Transverse Frac 2 x 200 ft…
Conductivity Multi-phase Flow Restricts Production 7000 White Sand gas Low Density Ceramic liquid Effective Conductivity (md-ft) 6000 4310 5000 4000 Modest liquids addition of 2 bbl/day, reduces effective 3000…
Conductivity - Effects of Pressure on Sand Conditions: Northern White Sand 20/40 9,000 psi, 250 F Flowing 2% KCL for 30 days Cross sections of Proppant pack shown At 9,000 psi, the Sand experienced severe crushing and the…
Conductivity - Sand Crushes at High Pressure White Sand 6,000 psi stress White Sand 10,000 psi stress Widthfrac Widthfrac Sand crushes Formation Formation and limits oil & gas flow. Reduces EUR .most wells are…
Conductivity Proppant Comparisons 6,000 CARBOLITE 20/40 CARBOLITE 30/50 5,000 CARBOLITE 40/70 White Sand 20/40 Smaller mesh size Conductivity (md-ft) White Sand 30/50 4,000 proppant, has lower White Sand 40/70 Conductivity…
Conductivity Flow Through The Proppant Pack Animation depicts flow through a 16/20 Low Density Ceramic proppant pack, 2 lb/ft2 and 4000 psi ISO Test Conditions: Velocity at 2 Well Conditions: 100 bopd, or 120 ml/min MSCFD at 1500 psi…
Conductivity Proppant Options To Increase % Recovery Ceramic will have the highest Conductivity and EUR Sand will have lower Conductivity and EUR Sometimes 100 mesh Sand is used as a lead-in proppant in slickwater, with…
What is the right balance between initial Investment and maximizing Recovery % Shorter Term Perspective Longer Term Perspective AFE ( ) EUR ( BOE )
Shorter Term Perspective Longer Term Perspective Fracs Are Not Optimized Reasons to Optimize Fracs
Over 150 SPE papers have been written documenting the benefits of increased conductivity on well Production and EUR. Generally, the payout on the additional Proppant investment is less than 2 - 6 months, and increases Production and EUR…
Bakken - Statoil Mountrail County 350,000 CARBOECONOPROP CARBO (7 Wells) (7 wells) 309,781 300,000 WhiteSand White Sand (12 (12 wells) Wells) Ceramic wells out produce offset Sand 250,000 Cumulative Oil Production (bbls)…
Bakken - Liberty Resources Williams County Liberty Resources has lead the way in increasing Contact Area and Conductivity Higher well production results compared to offset wells, has verified the technical success of their…
Liberty Resources Leader in Contact Area & Conductivity In liquid-rich or unconventional oil reservoirs, operators have typically sacrificed some contact area to maximize fracture conductivity. They have done this by lowering fluid…
Bakken Operator Optimizing Completion Design 70 Thousands 6 Mo Cum Oil 16 60 NPV (M) 14 50 52 12 6 Mo Cum Oil (bbl) 60% 10 40 NPV (M) 8 30 34 32 27 6 20 4 10 2 0 0 Conductivity Low Cost Contact Area Contact…
Eagle Ford Field Trial on Offset Wells, Karnes County Offset Wells: Karnes Trial One well with 30% white sand 120,000 2.40 lead and 70% Ceramic tail-in White Sand/RCS 101,982 One well with 80% white sand White Sand/ECONOPROP lead…
Eagle Ford Operator Optimizing Completion Design 25,000 30 Day Cum Oil 23,400 20,000 30 Day Oil (bbl) 15,000 13,260 12,414 10,000 5,000 0 Conductivity Design (Ceramic) Increased Contact Design (Sand) Increased…
Eagle Ford - Operator Design Comparison Six Months Oil 5th Highest McMullen County 80,000 Oil Recovery 60,000 40,000 20,000 0 Company B Company F Company A Company X Company E Company C Company D…
Small Mesh Proppant Study Production Drivers: Initiated a study of the impact of using primarily small mesh sand, may have on a wells long term production Preliminary observations: Early production governed by Contact Area Longer…
NorthEast Field Trial on Offset Wells, Belmont County 2.4 x increase in sand/ft lateral yields 32% less Production 2,500,000 CARBOECONOPROP White Sand (Normalized) 2,000,000 Ceramic well Cumulative Gas (MCF) out produces…
Permian Basin - Bone Spring Operators, Lea County 60,000 CARBOLITE & CARBOECONOPROP (3 wells) RCS (4 wells) 49,181 50,000 Sand (19 wells) Ceramic wells CARBOLITE (1 well < 6 mo) Cumulative Oil (bbls) out produce 40,000…
Haynesville High Stress Reservoirs Need Ceramic 3,000,000 ---- CARBOHYDROPROP 40% Tail-in (20 wells) Cumulative Production (MMCF), per well avg. ---- Resin Coated Sand 40% Tail-in (33 wells) 2,528,761 2,500,000 25% 2,018,835…
.a leading production enhancement company Frac Design Frac Conductivity & Durability Economic Optimization Production Assurance Reservoir Performance Fracture Evaluation Post Job Analysis Flow Enhancement Well Site…
Technology to Increase the Recovery Factor KRYPTOSPHERE creates a paradigm shift in improved proppant performance ICDS Infused Chemicals Delivery System creates a step change in the performance of production chemicals. We improve…
Production Assurance - SCALEGUARD Most effective scale inhibitor product in the industry Increases Production and EUR, and lowers L.O.E. costs for E&P Operators Provides production protection for months/years Reduces costly…
Flow Enhancement - CARBORPM Increases Production and EUR by improving the permeability to hydrocarbons in the propped fracture Minimize capillary pressures in propped fracture with neutral wettability Increase effective fracture…
Fracture Evaluation - CARBONRT Identifying proppant placement, helps identify production improvement Non-radioactive tagged proppant Environmentally friendly, manufactured into proppant grains Direct measurement of proppant…
Hierarchy of Proppant Conductivity Highest Production, EUR, ROI Highest Conductivity Ceramic - Engineered product Ultra-high strength Ultra-conductive Ceramic Mono-size and spherical High strength Tier 1 High conductivity…
KRYPTOSPHERE is a paradigm shift in improved Conductivity KRYPTOSPHERE HD Competitors Bauxite KRYPTOSPHERE HD is the strongest, highest conductivity Proppant commercially available today for the industrys deepest, highest stress…
Ceramic Proppant Sales vs Capacity Lbs (Millions) 3,000 2,750 CRR Manufacturing Capacity (Year End) 2,500 CRR Ceramic Sales Volume 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 0 Millen Line 2 est completion near end of…
New Technology Products Growth (Estimated) Percentage of Total 100% Technology Products Growth 90% Base Proppant New Production 80% Business New Technology Enhancement products 70% Products being commercialized 60% Expected to…
Proppant is one of the biggest factors in determining Production and EUR in fracture stimulated wells. It is important that E&P Operators know what Proppant is being used in their wells. Make sure you are getting the Conductivity and…
Industry Awareness of Low Quality Chinese Ceramics The Stakeholders - E&P Operators, Service Companies, Royalty Owners, State Agencies.. are becoming more aware of the losses to well Production and EUR that can occur when using low…
Proppant Quality Matters in Well Production As an E&P Operator investing 4M 12M on a well, how much Production & EUR are you sacrificing by using low quality Chinese ceramic proppant Production & EUR Loss Chinese 20/40 Chinese 20/40…
CARBO vs Low Quality Chinese Ceramic Comparison of three field samples from North Dakota from low quality, low Conductivity Chinese ceramic proppant suppliers, compared to CARBOLITE : CARBOLITE Chinese 20/40 Chinese 20/40 Chinese…
Bakken Operator Field Trial CARBO vs Chinese 30 Day Cum Oil *EUR 12 300 6 wells with 10 CARBOECONOPROP low250 +20% density ceramic +120,000 8 200 4 wells with Chinese bbl Oil intermediate density 6 ceramic (IDC) 150 4 Frac Design…
Finance
Q3-14 Operations Update KRYPTOSPHERE Patent allowed on our innovative, high conductivity proppant KRYPTOSPHERE HD Targeting 12 to 16 GOM Lower Tertiary wells in 2015. Strong likelihood that KRYPTOSPHERE HD will be used by a client in…
CARBO Financials 900 3,000 200 200 Revenue M Cash From Operations M Net Income M 800 2,700 180 171 180 NAM Total Rigcount 691 2,400 160 156 160 700 646 667 147 626 138 2,100 140 140 130 600 1,800 120 120 110 500 473 106 1,500…
Dividends Increased - 14 Years Per Share Shares - Millions 1.30 36 Dividend Amount Paid Per Share Per Year 1.26 1.20 34 1.10 Shares Outstanding 1.14 32 1.00 1.02 30 0.90 0.88 28 0.80 26 0.76 0.70 0.70 24 0.60 0.62 22…
Cash Flow from Operations Reconciliation Results from Continuing Operations in 000s For The Years Ended Dec 31 2005 2006 2007 2008 2009 2010 2011 2012 2013 TTM Net Income 45,463 52,245 49,641 60,405 52,810 78,716 130,136 105,933…
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