1 Driving Efficiency at the Wellhead

Team John Bode, MS ME, Founder, Chairman and EVP Chairman and founder, Bode Aviation, Inc.. Formerly: Assoc. Director Sandia National Laboratories, VP General Manager BDM Corporation, Member USAF Scientific Advisory Board, Colonel USAF (Ret). Charles Call, BS ChE, PhD ME, President Dr. Charles “Chuck” Call has been retained to drive the commercialization of the IVT technology. He has 20 years of commercialization experience as an inventor, entrepreneur, start-up leader and investor. A. Keith Miller, PhD ME, Founder, Chief Technology Officer Dr. Keith Miller, has a 31-year history of successful product development and technical program management. He has had responsibility for the program management of large and technically challenging programs within Sandia National Laboratories. Robert Sachs, BS ME, MBA, Founder, Head of Manufacturing Mr. Robert (Bob) Sachs is owner, President & CEO of TEAM Technologies Inc. Mr. Sachs has 30 years experience developing and managing R&D and production companies and projects and 13 years leading TEAM Technologies. 2

Proven Increased Efficiency with Variable- Speed Drives DC AC Variable Speed Drives Mechanical Electrical maximum efficiency Full speed motor = Across all industries, savings of 30% up to 60% were observed with installed ASD systems As much as 25% of industrial motor applications could save energy with ASD control Only 4% of potential ASD applications are currently under variable speed control Source: United States Industrial Electric Motor Systems Market Opportunities Assessment Executive Summary, US DOE Office of Industrial Technologies, January

Variable Speed Drives (VFDs) Equally Effective in Petroleum Production Similar 30 to 40% electrical savings as measured for other industries Increased pumping efficiency Reduced work-over – no pump off VeriTran’s Infinitely Variable Transmissions (IVTs) provide all of the same benefits to gas-powered wells. 4 Driving Efficiency at the Wellhead

Opportunity: Infinitely Variable Mechanical Transmission for Rod Pump Control Reduced Incidence of Pump Off Increased Production R ate 5 Driving Efficiency at the Wellhead

Qualified Natural Gas Wells Powered by Combustion Engines > 13,000 States West of Mississippi > 70,000 Canada > 37,000 World >> 100, ,000 Combustion Engines >220,000 Qualified Wells 6 Driving Efficiency at the Wellhead

Mechanical ASDs Traction Drives Require high steel- on-steel interface pressures Use elasto- hydrodynamic fluids Require strict temperature control Rotating control surfaces Ratchet Drives Reasonably high torque Low power – typically sub-HP Limited speed range Non-rotating control surface Belted Drives High speeds Tension & compression belts Generally limited speed range Belt wear/replacement Rotating control surfaces Van Doorme push belt 7

Why a Serpentine Poly-vee Belt Transmission ? EFFICIENCY !! Poly-vee (micro-vee) belts have a long legacy in flat-belt technology. Most modern super-chargers use poly-vee flat belt technology. 8 Driving Efficiency at the Wellhead

Highly Efficient 1 HP Design 9

Why a Serpentine Poly-vee Belt Transmission ? EFFICIENCY !! Serpentine belts proven highly efficient -- much, much greater than variable speed belts and v-belts Less temperature sensitive – little cooling required Compact design Non-rotating control surfaces Simple maintenance procedures Proven Technology Proving Technology 10 Driving Efficiency at the Wellhead

Comparative Drive Efficiencies Source: Womack Machine Supply, Industrial Fluid Power, Volume 1, Page 504 Helical, epicyclic gear set Serpentine poly-vee belt VeriTran serpentine transmissions composed of only two major power transfer components: 11

Our Emerging Confidence in Poly-vee Belt Technology Hutchinson Poly-vee Belts Installed Pump Jacks since 1999 Hutchinson Poly-vee Belts Installed 50 Hp Granite Saw Images used with permission from Hutchinson Belt Drive Systems 12

VeriTran IVTs Use Both Sides of Poly-vee Belts VeriTran’s serpentine belted IVT transfers power on both sides of the belt. Front side Back side Equivalent Bend Radii Cross-sections 30 rib J-section and 20 rib double K-section belts specially formulated for VeriTran Inc. by Hutchinson Belt Drives J K J K J K 13

The Testing Journey 14 Driving Efficiency at the Wellhead

Well Worth The Drive! First Turn: April 29, 2014 Surpentine belt held, variator held, epicyclic gears perfect! 15 Driving Efficiency at the Wellhead

Summary VeriTran’s transmission enables ICE-driven artificial lift to have the same capability as electrified systems – 30% Increase in production – Pump-off control (reduced workover)  And well gas is MUCH less expensive than electricity VeriTran seeks collaborators for: – Integration of pumpoff control – Test sites outside of San Juan Basin – Sales and support 16 Driving Efficiency at the Wellhead

Questions? 17 Driving Efficiency at the Wellhead