Engineered Salinity EnerCom Presentation€¦ · EnerCom Presentation February 11, 2020 About ESal...

Engineered Salinity EnerCom PresentationFebruary 11, 2020

About ESal

Family owned and operated

Over 60 years of experience in oil and gas

Revenue > $1 million in 2019

Consistent 200%+ growth over last 3 years

GPM~84% NPM~ 38%

Product cost discounted for early adoption

No debt to date

All work processes patented or protected

Actively seeking strategic capital partners to

grow and accelerate 2020 goals

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Our M is s ionProvide a low cost and efficient method to enhance

worldwide oil recovery to every size operator through an

environmentally and socially conscious platform.

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Focused on improving worldwide recovery from 32% to >60% while maintaining profits at

market conditions of $40/bbl.

Exp lorat ion to Exp lo i ta t ionW

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• Conventional Oil discoveries are at a 70-year low

• Shale discoveries have offset decline in conventional supplies

• While production in shale is currently prolific, many issues

loom:

• Lower EUR (7-12%)

• Rapid decline rates

• Majority of drilling is in “sweet spots” which will be

fully utilized in the next decade

Exploitation of

current inventory is

the best method for

maintaining

production long-term

Oil Demand is

predicted to be

steady for next 25

years

Altering

wettabi l i ty

We’ve spent a decade studying the

relationship of wettability and salinity

in oil reservoirs to develop a suite of

tools to offer producers maximum

recovery.

Our understanding of altering

wettability through salinity is

unmatched in the industry.

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Considerations

▪ Wettability controls electrical properties,

capillary pressure, relative permeability,

waterflood behavior, ultimate recovery and EOR

options

▪ In many (>60%) reservoirs, wettability is sensitive

to salinity

▪ Using the correct salinity to maintain favorable

wettability

▪ Change salinity to improve wettability and oil

recovery

The best oil recovery is

at neutral wettability

Changing salinity will alter

wettability in many reservoirs

Our Solution - Wettabil ity Control by SalinityW

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An estimated change in residual oil

saturation of ~ .18 units maximum

Oil Saturation Change

In this case, lowering salinity

resulted in the reservoir becoming

less water-wet until a certain point

and then reversing the effect as

salinity continues to lower

Salinity Sensitivity Analysis Enhanced recovery of ~200k bbl

over a standard waterflood could be

achieved by simple water salinity

adjustment

Production Estimation

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An estimated change in residual oil

saturation of ~ .25 units maximum

Oil Saturation Change

In this case, lowering salinity

resulted in the reservoir becoming

less oil-wet through entire sweep

Salinity Sensitivity AnalysisEnhanced recovery of ~650k bbl

over a standard waterflood could be

achieved by simple water salinity

adjustment

Production Estimation

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An estimated change in residual oil

saturation of ~ .22 units maximum

Oil Saturation Change

In this case, lowering salinity

resulted in the reservoir becoming

less water-wet until a certain point

and then reversing the effect as

salinity continues to lower

Salinity Sensitivity Analysis Enhanced recovery of ~10k bbl

during IP could be achieved

Production Estimation

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No change in residual oil saturation

Oil Saturation Change

No effective change in wettability is

achieved by altering salinity

Salinity Sensitivity Analysis

• Ability to use produced water

without jeopardizing loss of

recovery

• Inexpensive determination to de-

risk project decisions

Why you want to know

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Our process

Stepwise Process to Minimize Risk

• Screening to evaluate assets

• Laboratory Testing for Salinity

Sensitivity

• Economic Analysis

• Salinity Design and

Specifications

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Ana ly t ica l Sc reening Tool WW

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Laboratory Ana ly ses

• Modified Floatation Test used to evaluate

salinity sensitivity of rock/oil/water

combinations

• Thousands of tests conducted

• Results comparable to industry standard

techniques such as Amott and Contact Angle

• Advantages over other techniques:

• Fast

• Inexpensive

• Accurate

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ESal® is the simplest and lowest cost

technique to improve recovery in the oil

market today

The Value of ESal

Why ESal

• 5-15% increase in recovery OOIP

• Rapid response in only 3-9 months

• Low cost - $0.50 to $4.00 per incremental

bbl of oil

• Applicable in any stage of the field lifecycle

• Increase reserves

• Lower project payback period

• Little to no change in Infrastructure

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Strategy and Goals for 2020

Scale-up

Improve internal

capabilities to further

market penetration

Predictive

Model

Complete in-house

testing of over 1000

rock/oil/water

combinations

Concept Validation

Field studies in progress

or planned with numerous

producers

Software MVP

Develop MVP for software

solution to integrate with

industry standard

reservoir models

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