FLOWELL vs. Black Wax Crude REPORT SLIDESHOW www.pegresol.com THE ZEN MASTER OF OIL & GAS PRODUCTION, FLOW, TRANSPORT AND STORAGE EFFICIENCY PRODUCTS 1

A brief explanation in general terms of how the oil industry in Utah will benefit from FloWell FloWell will resolve the waxy crude issues in Utah’s Uinta Basin and provide economically long-term solutions for this resource. FloWell will make it possible for the operators in the Uinta Basin to offer and easily transport black & yellow wax crude oil to refineries all across the nation. Given its lower cost and low-sulfur content, demand for these crudes will grow enormously, especially among east coast (PADD I) refineries.

Black & yellow wax crude oil will be able to be transported by traditional methods (pipeline, rail, ships & barges) with the use of FloWell. This will lesson emissions, lower the environmental impact, and bring traffic relief to the highway taking the brunt of the trucks currently transporting the crude (US-40), which is only two lanes for much of its length. FloWell will improve the economic viability of the resource by making it suitable for Multiple Purchasing Markets, which can be established through the operator’s commodity trading platforms. FloWell will help eliminate over-supply and increase netbacks for producers and higher revenues for investors through the efficient and environmentally responsible production of the energy resource.

Advantages of FloWell FloWell has shown encouraging results against high wax preventing paraffin in test samples from precipitating. FloWell successfully remediated a serious wax problem in a pipeline on a platform for a major U.S. operator in the Gulf of Mexico.

FloWell is non-hazardous, non-chlorinated, and does not contain any fluorocarbons. FloWell requires no special handling requirements, and because FloWell does not have a flashpoint, it is non-flammable. FloWell is also non-toxic and is Hazmat rated 0000 (see the MSDS). FloWell DOES NOT require continuous heating to maintain wax in a solution phase, which will mitigate much of the costs and the risks of transporting black and yellow wax crude oil. FloWell also enhances wax separation and improves efficiency in refinery operations. Recent innovations, including fluid catalytic cracking units (FCCUs) can also benefit from the use of FloWell.

The Test It has always been difficult for FloWell to show its full efficacy in laboratory testing; primarily because FloWell requires the full environment of an oil well to perform at its best. The oil well environment consists of temperature, pressure, turbulence, and the raw crude oil containing all aromatics and gases that are not present after separation. FloWell has never failed in an oil well environment, yet when tested in laboratories, often returns inconclusive evidence. 

But after seeing a result from a test on Vietnam Dragon Crude, we knew FloWell would perform brilliantly on Black Wax Crude from the Uinta Basin in Utah (one of the world’s waxiest crude oils). We were able to obtain a sample from the University of Utah to undertake a simple bench test to see what results would be returned from the testing of FloWell against this high wax crude oil. The results were astonishing!

The test was conducted using a 50cc sample of raw Black Wax Crude placed into a large mixing glass. The crude was then heated up by placing the mixing glass into a flat bottomed container holding boiling water. When the oil returned to its minimum visible viscosity level (the oil was fluid), it was checked with the digital thermometer which returned a reading of approximately 88°C (190°F). The surrounding water was checked and it was also approximately 88°C (190°F). The heated sample was then poured into two (2) beakers at 25cc’s each and stirred.

FloWell was added to one 25cc beaker FloWell was added to one 25cc beaker. The mixture was thoroughly stirred for approximately 5 minutes to ensure the FloWell was fully dispersed throughout the sample, and was able to migrate and meet the paraffin. Both glasses were once again immersed in hot water and the temperature stabilized in both samples to approximately 88°C (190°F) again. The heated water was allowed to cool naturally and the samples were checked with the digital thermometer whilst cooling.

At 49°C (120°F) both samples appeared to be stiffening up indicating that this was the end of the pour point temperature range. At 30°C (86°F), in the untreated oil sample a probe left a cavity where it had entered proving that it was indeed solidifying below pour point. The photo clearly shows that untreated sample would not flow in any way and had returned to a shoe polish consistency. What is also evident is that the resistance to the probe entering the untreated sample is extremely high.

The FloWell treated sample The FloWell-treated sample was allowed to cool even further to an ambient temperature of around 23°C (73°F). This sample was stirred for 5 minutes, and showed significant reduction in viscosity, but would not flow. It was decided to test how much FloWell would make the sample flow.

The treated sample was reheated to 88°C (190°F) and additional FloWell was added and stirred for 10 minutes. It was noticed during cooling that enhanced shearing took place. This showed a significant improvement in the apparent pour point of the oil. .

Without reheating, and with the temperature stabilized at 23°C (73°F) more FloWell was added to the sample and stirred for 5 minutes. The sample went into liquid phase and did not firm up. Over a 20 minute period, the beaker was tilted several times to check the viscosity. The oil ran off the stirring rod and up edge indicating it was fully pourable.

FLOWELL SMASHES THE POUR POINT !!!!!

The beaker was then put back in the cold water bath and the temperature was lowered to 13°C (55°F). The sample "set" but did not firm-up. A clean stirring rod was then pushed into the center. The oil was found to be soft, slightly pasty, but was not firm or waxy.

The oil flowed back and filled the hole immediately after the rod was removed. This indicated that the pour point had been reduced. .

The sample was then stirred The sample was then stirred. It was discovered that resistance was virtually effortless, even at 13°C (55°F).

The beaker was tilted several times to check viscosity The beaker was tilted several times to check viscosity. The oil ran up the edge of the beaker, indicating it was still pourable.

The sample remained in a solution state, showing the enhanced shearing (thixotropic) capability after the FloWell treatment. FloWell is best applied at the lowest viscosity possible (in this test the highest temperature) into the crude oil flow, and this points to where the oil is extracted from the formation – at the well bottom, or as close as possible, or injecting FloWell at any point where the pumping of the crude oil is conditioned by proper heat treatment.

In the field, an investigation into the best possible injection point, and method of injection, must be made to ensure maximum migration into the crude oil, therefore producing optimum mixing effect. The pour point had indeed been depressed by the FloWell in the mixture, though this was deemed to be the viscosity reduction due to the activity of FloWell on the paraffin, keeping it from crystallizing.

It is well known that the laboratory samples do not contain a lot of the hydrocarbon content that is present in the oil stream as it leaves the formation. Also the pressures, temperatures and turbulence cannot be reproduced in laboratory conditions generally because of safety restrictions and practicality. This observation was qualified by leading authorities within the oil & gas industry who specialize in the investigation of flow problems affecting the industry and are quoted as follows:

“It is known that bench top tests such as cold finger tests, while useful to qualitatively gauge chemical performance, are not useful to quantitatively predict the performance of a chemical under field operating conditions. This is because the operating parameters such as the temperature difference, heat flux, and shear rates experienced in the field cannot be reproduced in such bench top devices simultaneously.”

At the present moment a renowned authority who is a consultant to the oil & gas industry is studying the effect of FloWell on the Black Wax crude oil. When the results of the primary experiment, together with photographic evidence, were presented to this consultant his reaction was of excitement. This person had been working with the industry as a major consultant for many years and expressed that in all the time he had never seen anything capable of producing results that FloWell had, and he is excited to be involved in the testing of this product. When the results of the testing is completed there will be a qualified report issued (white paper).

Conclusions from the test FloWell has proven itself to be a universally effective and efficient additive and greatly enhance the economic viability of black and yellow wax crude oil in the Uinta Basin, and the oil industry within the state of Utah. FLOWELL WILL HELP MAKE ANY crude oil FLOW EASILY, IMPROVE TRANSPORTABILITY AND IMPROVE FEEDSTOCK QUALITY FOR REFINERIES !!! FloWell will maintain crude in solution phase; enhancing all aspects of its production, transport, storage and refining, and will produce a staggering Return-On-Investment (ROI)!

FLOWELL DISTRIBUTOR PeGreSol will assist you with your particular inquiry and we look forward to providing you with a cost effective solution. Our mission is to help our clients achieve increased oil & gas production, transport, storage and refining efficiency. Phone: +66 (0) 89 246 7866 Email: enquiries@pegresol.com www.pegresol.com FOR OIL & GAS PRODUCTION, FLOW, TRANSPORT AND STORAGE EFFICIENCY PRODUCTS