An Innovative Technology Russian Federation Institute of Geophysics An Innovative Technology for Remote Sounding of Mineral Deposits 1

1. About Innovative Technology Classification Direct method of remote sounding of Mineral Deposits Nuclear magnetic resonance Use of aerospace photograph Work on site Diagnostic s of large territory 2 – 3 months Expedition to location Search and survey of deposits Up to 10 000 sq. km and more 1 – 1000 sq. km In the deposit area Patented processing of satellite images Point sounding We virtually "see" underground deposits that provides high effeciency of the executed works

The Innovative Technology is patented Name of useful model: 4 METHOD OF SEARCH FOR MINERAL DEPOSITS Serial number: u 35122 Date : 26.08.2008 Formula of useful model: Method of search for mineral deposits, which includes processing of an space photograph, which differs due to the fact that a black-and-white negative is used as an space photograph which was obtained in an infrared range of frequencies, and processing of an space photograph is conducted after a package was preliminary formed which consists of a negative of space photograph, test wafer and X-ray film, the formed package is treated with γ-rays, X-ray film is separated, the latter being chemically processed and placed in an alternating electric field of high pressure of a camera of gas-discharge visualization and visualize an obtained image on a PC screen.

Capabilities of the Technology Services are provided in the following format: Territorial applicability – no limitations (any in-land or shelf area) Total size of the territory – practically without limitations Sounding depth – 0-5 km underground Detectable minerals – water, oil, gas, different metals in ore beds Success ratio – for hydrocarbons and water reserves > 90% Duration – typically 2 months Safety – the method is environmentally friendly and completely safe for people We work with: hydrocarbons, underwater accumulations, other minerals in large and small territories, on land, on shelf 4

A large area of research 2. Work with aerospace photographs Remote Sensing using digital satellite images Prospective geological structures A large area of research to 10,000 sq. km and more By interpretation of digital multichannel satellite imagery specialists reveal the geological structures, in which basins of hydrocarbons or other minerals can be located Onshore Offshore Diagnosis of territories with the help of our patented method Oil field Gas field Water flow We conduct radiation-chemical processing of analogue infrared satellite images of territories according to the patent. Diagnosis is a simplified version of the technology allowing to quickly detect and delineate the oil fields (and other minerals) in large areas. Also, we determine the number of horizons and the possible depth. Several minerals can be surveyed at the same time. After that we can prospect and explore deposits in a localized oil field.

Remote prospecting and exploration of deposits Using the patented technology processing of satellite images we can identify and investigate in detail the deposits onshore and offshore Thus we have: - Surface contours of the deposit, - The number of horizons, - The depth of the horizons, - Thickness of horizons, - Calculation of extractable reserves. To 100 sq. km and more Deposits Remote survey of drilling point Information necessary for work: coordinates of drilling point - the desired mineral and, if possible, a sample from a well in the region. Results of the survey: Presence or absence of mineral deposits in the drilling point, - Number of horizons, estimated depth of the horizon, thickness of horizons. Drilling location Gas N°, E°

The results of remote sounding of an area (processing of analogue satellite images) Two deposits of natural gas in the crystalline shield were identified

Operating sequence 1 Preparatory works 2 Object identification 3 № list of works of remote detection and investigation of deposits 1 Preparatory works Order and obtaining of aerospace photographs of the investigated territory. Order and obtaining of ultra-pure chemical reagents. Laboratory manufacture of test gel-wafers. Recording of electromagnetic spectrum of the sought-for substance on test wafers. 2 Object identification Radiative processing of aerospace photographs on research nuclear reactor with test wafers of the sought-for substance and sensitive X-ray film. Chemical processing of negatives that have undergone radiative and energoinformational impact in the nuclear reactor. 3 Contour object deciphering Visualization of object contours and also incoming and outgoing torrents with the help of Kirlian-camera. Obtaining of computer image with the help of digital camera connected to Kirlian-camera. 4 Photogrammetric calibration of computer image of the object (geographic connection of the image’s points and the area). 5 Object’s fixation – definition of its size, form and location on the area according to the photograph. 6 Analytical data processing obtainment of coordinates of beds and preliminary calculation of supplies 7 Preparation of report and providing the Customer with it 2 weeks 2 weeks 1 week 1 week 2 weeks Total = 2 months

4. Comparative efficiency for large territories Methods Executable works Results (for an area ~1000 sq. km) Effectiveness Duration Average number of mining holes Traditional methods Space survey Geological survey Geophysical survey Searching boring 30 % 2 - 3 years 6 (From data of Russian State Institute of Oil and Gas) Innovation technology Radiation-chemical treatment of spaces pictures Nuclear-magnetic resonance sounding of a deposit on-site 90 % 2 months 1 Comparative Characteristics with 3D Seismography # Parameters 3D-Seismography "IT" 1 Topographical binding + (anomalies) + 2 Construction of 3D models of objects 3 Search of unstructured traps of oil and gas --- 4 Detection of gas "caps" in oil horizons 5 Definition of gas pressure in gas "caps" 6 Definition of presence of oil mobility 7 Detection of water horizons over oil and gas deposits

5. Testing of the Technology Technology is tested in the USA Testing and practical demonstration of innovative technology was conducted in 2009 on territory of state of Utah. Тotal area is 3600sq. km. Directly on locality were inspected 5 beforehand unknown for us underground objects, being drillholes and oil-extracting settings. As a result of inspection the following control indexes were defined by us: presence of deposits of oil and gas, amount of horizons in them, depths of bedding of horizons and their thickness. Information obtained by us during the survey was fixed and presented to the members of commission and officially confronted with information of Arbiter. Тhe results: Effectiveness = 100%, Accuracy of depth ≥ 98%

Testing Results of Wells on the Shelf of the Guinea Gulf Remote Testing - 05.2011 Our data: A = 1st horizon B = 2nd horizon А В Comparison of data was done according to the following parameters: Quantity of control points – 2; Qualitative indicators: presence of hydrocarbons in the well – oil, gas or their absence; Quantitative indicators: occurrence depths and useful capacity of horizons. Results: 1. Рresence of oil and oil inflows in wells have matched 100 %. 2. Average accuracy of definition of oil occurrence depths in horizons is ~ 80 %. 3. Useful capacity of oil horizons is defined with accuracy of 70 % (72m / 50m). The conducted testing of the Technology has proved its unique high efficiency and accuracy during remote control of hydrocarbons on the sea shelf

Project for Shale Gas in Texas, USA The figure shows land contours of 25 detected deposits of shale gas, drilling points in the largest sites, migration routes of gas in cracks and contours of two detected oil deposits. Data obtained on number of horizons (6), thickness and their occurrence depths as well as gas pressure in horizons (30 - 50 atm.): Territory

Project for gas hydrates in Antarctic Map of the anomalous zones of "gas hydrates deposits" type produced by the special satellite data processing results (Antarctic Peninsula region) 1 - the scale of the anomalous response, 2 - points to determine the values of the anomalous response, 3 - position of seismic profiles.

Thank you for your attention We believe that application of the Technology will have a significant economic impact which can be achieved within very short time! Thank you for your attention