Eliminate Routine Well Site Checking

Backgrounder Advanced Flow Technology – Calgary, Alberta – 7 Years in gas well monitoring – 1 year oil well monitoring – Patented technologies using temperature and acoustics Len Johnson – 30 years’ CEO technology companies – Last company: Advanced Measurements Inc.

Goals Validation of potential in US market – We know the Great White North, but.. Beta Test Partner – Fall time frame

Well Site Visits Over 700,000 oil wells in North America – Majority low production, manually monitored – 50% of operator time spent checking! Is the well producing as expected? – Pump Working? – Fluid being produced? – At the expected levels Is there a leak at the well head?

Well Monitoring Choices: SCADA Controller : $10k-$25kBert: Have Truck Will Travel: $800 per well/month

Filling the Gap Field based system – Low Cost ($3,000 range) – Self Powered – Easy to Install: Any well, anywhere – Cellular Network for communication – Class 1 Div 1 – All weather conditions

Information Easy to access and understand – Simple – Available from Smart Phone, Computer… Provides answers to basic questions: – Pump working, – well producing at expected levels, – not leaking Manage by exception

Manage by Exception Green = all systems go Yellow = maybe a problem Red= go to the well Click on an icon to drill down for well status

Is the Pump Working?

Is the pump working?

Is Fluid Being Produced?

Is Fluid being produced? ΔT = VariableΔT = 0 FlowingNot Flowing

Normal : Well Producing

Reduced Flow

Well Down

Delta T: Simple but powerful Any flow change – Flow trends easily spotted Sub-surface problems spotted in near real time Big reduction in requirement to trouble shoot – Fluid shots, putting wells on test

Is It Leaking?

Considerations for Leak Detection Accurate detection of leaks – 0 false negatives – Very limited tolerance for false positives Timely – Within hours

Not a Problem

Problem?

Problem

Leak Notification Green well, all good Sliding scale for notification – Notify when somewhat oily? – Notify only when visit is required? – Different levels of notification for field vs. office?

Benefits of Reduced Visits Lower Costs – 50% of operator time spent on routine checking – Leak remediation costs reduced Fewer Safety Incidents Higher Production – Problems spotted immediately – Operator time shifted from problem finding to problem solving

Summary The pump is working Fluid is being produced – At the expected level There is no leak Do we need to send a guy to the well?

The Ask 2-3 parties to advise and assist Some personnel time required in field 5-10 wells each Fall for field beta test