Innovative Energy Technology February 2015 CJS Production Technologies Inc. “Committed to Production Solutions for the Energy Industry” Innovative Energy Technology February 2015 Scott Kiser – Business Development Director – Calgary, AB, Canada, scott@cjsflatpak.ca (403) 463-4740

CJS The Company & its Business Model CJS is a private Canadian company with offices in Alberta and Texas. Our Company offers alternative artificial lift options for challenged wells to optimize production and revenues and minimize operations costs CJS is an intellectual property owner, manufacturer and an oilfield service company. CJS FlatPak umbilical, ArmorPak umbilical, JetVak, HydraPak PCP, HydraPak HSP & ArmorPak ESP are patented or patent pending technologies. CJS products foster production optimization from conventional and unconventional well configurations. Over the past six years CJS has landed approximately 600,000 feet of CT umbilical to complement hydraulic pump trials and perform well cleanout operations. CJS offers its proprietary products directly to oil and gas clients and is fully vertically integrated for ease of product purchase and accountability to our customers. CJS - We are a private company with offices in Calgary, Lloydminster and Granbury Texas. Manufacturing occurs in Lloydminster. We are a company that provides alternative solutions for challenged well artificial lift. Our solutions are designed to optimize revenue and minimize operating costs. We are an owner of intellectual property including five primary solutions.. CJS FlatPak umbilical, ArmorPak umbilical, JetVak, HydraPak PCP, HydraPak HSP & ArmorPak ESP which are all patented or patent pending technologies We cater to conventional and unconventional well completions Over the past several years since 2008 we have landed over 160 systems running over 600,000 feet of umbilical We are vertically integrated providing the entire solution to our customers with job accountability at competitive pricing

CJS Solution “One Product – Two Applications” In 2008, CJS was approached by Global Energy of Calgary with a hydraulic pump that Global had developed and successfully field trialed. This pump had been developed to deal with the inadequacies of traditional artificial lift systems in mature low pressure and deviated or horizontal wells. Global had a hydraulic pump that worked but that lacked a safe and cost efficient method of deployment. CJS identified and developed a unique coiled tubing (“CT”) umbilical to concurrently pump hydraulic fluid to a downhole pump while receiving production fluids to surface through the umbilical. The result of CJS efforts was the development of an industry unique umbilical used for the dual purpose permanent artificial lift and performing well cleanout operations. During product development, intellectual property applications were filed by CJS on all of its main products. To date CJS has sold over 160 artificial lift solutions to over two dozen client corporations including top tier Conoco, Shell, Devon, Cenovus, Husky. Global Hydraulic Pump CJS FlatPak Umbilical The umbilical solution was conceived by one of our founders, Collin Morris to provide a convenient, cost effective and safe installation option for the global hydraulic pump. Prior to the development of FlatPak, Global had been attempting to convey their pumps with three separate tubes and it was extremely expensive, provided minimal well control and was painfully slow. This dilemma caused Collin to seek another method tied to coiled tubing being Collin’s, Joe’s and Scott’s (CJS) expertise. The CT unit offered live well, quick and cheap installation, and eliminated any concerns about intertwining of the separate tubes which had been a big issue historically. Following the development and successful testing of FlatPak in 2009, the system was further challenged to provide well bore cleanouts using a novel specialized jet pump developed by CJS and its partners and this well cleanout system quickly picked up into an entire business in Quantum Downhole out of Calgary. CJS is now delivering this option independently to ensure the system is delivered cost effectively. During the development the company applied for intellectual property on many aspects of all of its systems developed over the past 7 years

Typical Traditional Pumping Styles Conventional Service Rig for Pump Deployment Discuss the current primary methods of artificial lift including pump jacks, pcp’s and Esp’s Reciprocating Rod Drive Pump Progressive Cavity Rotary Rod Drive Pump Submersible Tubing Deployed Electric Drive Pump

CJS Pumping Alternatives – Application 1 ArmorPak Electric Umbilical FlatPak Hydraulic Umbilical Coiled Tubing Unit for Pump Deployment FlatPak / ArmorPak Umbilical ArmorPak Electric Umbilical ArmorPak Hydraulic Umbilical Compare our methods of achieving the same result only bringing in live well, rig-less and rod-less options FlatPak / ArmorPak Umbilical Submersible “Live Well” ArmorPak Deployed Electric Drive Pump (1rst Unit Trial) Reciprocating Hydraulic Drive Pump (Over 100 Units Sold) Progressive Cavity Hydraulic Drive Pump (9 Units Sold)

Well Cleanout Alternative – Application 2 Typical Foam Cleanout Operation Tempress HydroPull cleanout Operation No hydrostatic push back into the reservoir when putting the well back on pump (cleanout is non invasive) Cleanout the horizontal liner of plugged emulsion causing blockades into the wellbore (soap only lightens the in wellbore sediments which can result in them settling to bottom. JetVak pulls them into the umbilical and producers them to surface) Tools such as the the spin cat (www.youtube.com/watch?v=WcfVxrND4pE) or the Tempress HydroPull cleanout and stimulation tool can be deployed and activated on CJS Umbilicals CJS Non-Invasive JetVak Operation (Over 600 successful jobs to date)

Technology Scope and Reach CJS Systems are relevant in the following circumstances Light and heavy oil wells Natural gas wells Enhanced oil & gas recovery fields / SAGD Wells from 4.5” outside diameter and greater casing sizes Wells to total depth equal to current coiled tubing limits Wells producing low to medium fluid rates (0 – hundreds of BFPD) Permanent pumping or well cleanout applications Discuss the wide range of wells we can help. Light, heavy oil wells… natural gas wells, thermal recovery wells, casing sizes down to 4.5 inch, depth equal to tubing limits and a wide range of production volumes

CJS FlatPak / ArmorPak Umbilical Is ... Conveyed using conventional coiled tubing units in a “live well” environment A coiled tubing umbilical system containing tubes to convey and actuate electric or hydraulic downhole pumps and receive production from the pump to surface. A system that can include components to inject chemicals and receive downhole data. Used to facilitate low maintenance artificial lift from conventional, deviated and horizontal wells Robust and versatile enabling the umbilical to convey pumps for permanent artificial lift or perform wellbore cleanouts Patented and patent pending technology Our umbilical is installed in a live well operation. For permanent hydraulic lifting, our umbilical will have three tubes, 2 for hydraulic power and one for production. For electric systems we have two tubes and pre install the custom cable package into the ArmorPak. Our systems can include jewelry such as chem injection tubes and electrics for data reporting Our systems are used to facilitate low maintenance pumping from all well configurations Both FlatPak and ArmorPak umbilicals are built for multicycling

ArmorPakTM All metal banded umbilical for deeper well depths and thermal well applications Fatigue and stress testing evidences ArmorPak extends umbilical life eliminating potential for wear on the outer thermoplastic jacket Manufacturing is performed in Canada facilitating improved delivery time frames ArmorPak was field validated in 2014. It is our “all metal” solution which perfects our delivery in thermal and deep applications ArmorPak extends pipe life as historically the pipe had been lasting longer than the outer jacket All manufacturing for ArmorPak is performed in Lloydminster

ArmorPak - BOP Testing June 2014 Discuss the BOP testing we have done with ArmorPak

FlatPak is Conveyed With ... Conventional coiled tubing units Modified arch rollers and injector components Specialized snubbing & blowout prevention systems CT unit modifications to permit fluid pumping operation Modified wellhead apparatus including modified tubing hanger Talk about the different running gear we use

Typical Completion Stack Discuss the typical completion stack

FlatPak / ArmorPak Field Service Operations Peoples Republic of China North Central Alberta Our umbilical can be run on any and all coiled tubing units but is most cost effective when the truck is built to receive wooden drums for completion strings Texas, USA Arkansas, USA

FlatPak / ArmorPak Supports ... Permanent Pumping Applications Hydraulic Submersible Piston Pumps- HydraPak HSP – Over 100 systems installed with multi year run lives – field proven technology Hydraulic Progressive Cavity Pumps – HydraPak PCP – Testing in Chops and CBM wells prove reliability and reasonable run life – 9 wells total to date – field proven technology Electric Submersible Pumps – HydraPak ESP – First trial to take place Spring 2015. System to be field proven spring 2015 Hydraulic Piston Pumps… the Global Pump, has been run in well over 100 wells and has seen run lives up to seven years Hydraulic PCP’s – A total of 9 wells only have been equipped with our G1 system and G2 (just completed) now permits a wide range of torque permitting us to move forward with this technology The first A-Pak ESP will be installed for Conoco this spring Well Cleanout Applications JetVak – 600 applications - proven technology

HydraPak HSP - Rod-less Artificial Lift HSP Value Proposition Rig-less, Live Well, Rod-less Technology HSP is installed with a conventional coiled tubing unit HSP operates efficiently in vertical, horizontal and deviated environment Can include downhole sensors for pressure monitoring Eliminates rod and tubing wear reducing well downtime Pumps natural gas very effectively and operates in a “pumped-off” state – no gas locking Handles sand / formation fines via sand screen Can be used to pump oil or dewater natural gas wells Scalable from .1 m3 to 25 M3 per day depth dependent Versatile OD of 3.6” Versatile Power Source Electricity, Propane, Field gas, Wind/Solar Effective heat tracing system for surface piping Discuss the function of the HSP. The lower chamber is the hydrualic actuation chamber pumped down and up using hydraulic oil while the upper chamber is a slave to push production fluid to surface. The pump is conveyed on our umbilical in a live well operation, into vertical, horizontal or slant wells, can include chem injection and data lines. The pump makes a full stroke every time so it does not gas lock. Solids are dealt with via a screen on the end of the BHA. This pump is a water pump for gas wells or generally best also in light oil. It can run to 1500 meters and pump dry without concern with rates from .1 to 25 M3/d.

HydraPak HSP - Rod-less Artificial Lift The HSP surface unit supplies the hydraulic power to the submersible pump and is comprised of: Prime Mover (Natural gas engine, Electric motor, Solar Power) Hydraulic pump coupled to prime mover WandFlu valve for alternately energizing the hydraulic oil lines Hydraulic Oil Storage Tank Electronic Controls General purpose classification meaning that the surface unit is placed more than 7-m radial distance from the wellhead We manufacture and sell the special surface pump including a pressure sensitive wanfu switch to activate alternate pumping. This surface pump can be powered with NG, diesel or solar (.5 HP systems).

Alberta Shallow Gas Well Case Study HydraPak HSP Alberta Shallow Gas Well Case Study Discuss this single well gas case result. Many wells have taken advantage of this system running from 2 to 7 years run lives. The pump volume is depth dependent with shallow wells seeing up to 25 M3/d and deeper 1500 meter wells around 12 M3/d

HydraPak Rod-less PCP

HydraPak PCP Rod-less Artificial Lift Advantages Rig-less, Live Well, Rod-less Technology Pump installed using a conventional coiled tubing unit Operates efficiently in vertical, horizontal and deviated environments Eliminates rod and tubing wear and well downtime Creates a greater variety of well service options to deal with solids production etc. (ie: pump can be reversed to flush solids) Can include downhole pressure monitoring sensors to eliminate well “pump off” and protect the pump Can include chemical injection at the pump intake treating torque, scale, wax, H2S and corrosion Can be used pump oil and dewater natural gas wells Discuss the function of the PCP. Hydraulic oil is pumped from surface across a downhole hydraulic motor which spins to function the pump. The pump is conveyed on our umbilical in a live well operation, into vertical, horizontal or slant wells, can include chem injection and data lines. The pump can uniquely be spun backwards as it is torque neutral hanging free from the wellhead. This pump is a water pump for gas wells and generally best also in CHOPS. G2 can run to the several thousand feet deep to marry up with any PCP on the market. Torques range from 400 to 1200 foot pounds continuous. The system is rig-less, rod-less, and installed for a fraction of the cost of comparable traditional systems. (1/3 to ½). This is a live well operation should one be concerned about well damage from the well kill. CJS G2 HSPCP

HydraPak PCP Technology Overview System developed by CJS Q4 2010 System incorporates CJS FlatPak / ArmorPak and downhole hydraulic motor delivering 400 ft/lbs of continuous torque; 800 Ft/lbs intermittent torque First systems run in Canada into 800 meter CHOPS wells near Lloydminster System proves a minimum 9 months runtime equal to pump life System can accommodate down to 5.5” OD casings with future designs for 4.5” OD casings New G2 1200 ft/lb torque motor now available for field testing The initial system was developed and installed in Q4 2010 incorporating an orbital style, low RPM, medium torque motor. We ran this system in several wells with up to 9 months continuous run time. It has been installed in 5.5” and larger casings to date.

HydraPak PCP Field Installations Various pics of the HydraPak PCP installation and operation

“G2” HydraPak PCP Pumping Chart 400 Foot Pounds of Continuous Torque up to 200 RPM G1 pump performance

“G2” HydraPak PCP Pumping Chart 1200 Foot Pounds of Continuous Torque up to 200 RPM G2 Pump performance

HydraPak PCP Case Study One of our test cases for Husky Energy in Lloydminster

ArmorPak Conveyed ESP ArmorPak umbilical that conveys electric submersible pumps Facilitates live well installation and subsequent service of electric pumps Substantially reduces servicing time, cost and lease footprint Eliminates requirement for service or work over rigs Eliminates cable spool unit when conveying electric pumps Reduced equipment mobilization and associated cost Eliminates tubing connections reducing corrosion points First system to be installed in Spring 2015 for Conoco in Alaska A-Pak ESP – Benefits include: ArmorPak umbilical that conveys electric submersible pumps Facilitates live well installation and subsequent service of electric pumps Substantially reduces servicing time, cost and lease footprint Eliminates requirement for service or work over rigs Eliminates cable spool unit when conveying electric pumps Reduced equipment mobilization and associated cost Eliminates tubing connections reducing corrosion points First system to be installed in Spring 2015 for Conoco in Alaska

ArmorPak ESP This is a typical stack and BHA. Go through same.

ArmorPak Conveyed ESP – Termination and Hanger The following is a typical well connector and wellhead all specially manufactured by CJS

ArmorPak Conveyed ESP - Field Test - June 2014 The following pics are of a live well test operation conducted in Lloydminster for Conoco

“JetVak” A Hydraulic Wellbore Cleanout System Wellbore cleanout system developed in 2009 by CJS and partners The primary function of this technology is to create a low pressure environment in the well bore to pump the fluid and/or solids to surface Hundreds of jobs performed with the JetVak cleanout system since development of this technology System methodology increases post cleanout well production via evacuation of near wellbore fluid and solids blockages. This system was first tested in central Alberta on shallow CBM gas wells. The primary purpose of the system is to create a low pressure environment inside the wellbore to permit solids and fluids to freely flow to the tool. Concurrent Jetting accommodates by the elimination of sand bridges. We have performed hundreds of jobs both in vertical and horizontal wells. The CHOPS market has not been a big user historically due to high cost. CJS’s new delivery will bring prices down in the low $20k range for 12 hours service.

Typical JetVak Cleanout Husky CHOPS Hz well cleanout with JetVak 1550 meter measured depth 0.8m3 sand Recovered 30%; 3.5m3 of fluid Here is a typical Chop’s well case study This well was 1yr old and did not produce Post cleanout the well produced at 10m3/day

FlatPak Application History Canada & United States Over 160 HydraPak HSP & HydraPak PCP pump installations to date Installations including vertical, deviated and horizontal oil and natural gas wells Pump run lives up to many years hundreds of 1,000 to 3,000 meter vertical & horizontal well JetVak cleanouts horizontal reach in horizontal leg to over 2,000 meters First live well “ArmorPak ESP” to be installed for Conoco Phillips Spring 2015 in Alaska China - HydraPak PCP pump landings in coal bed methane wells Oman - JetVak cleanouts to take place in 2015 Operations for companies such as Shell, Conoco, Devon, Total, Nexen, Suncor, Husky, Encana So… we have run over 150 total systems including HSP’s (recip pumps), PCP,s and we aim to run our first ESP in the Spring. Pump run lives have been from months to years. We have serviced from 1000 to 3000 meter deep wells primarily in Canada and the USA. We have landed all pumps into the horizontal at full TVD. We have run systems in China and this year will be doing well cleanouts in Oman.

How CJS Can Add Value “Live Well Solution, Production Optimization, Decreased Operations Costs” Rig-less “Live Well” Operations Servicing wells with a conventional coiled tubing unit requires less equipment and staff thereby reducing costs to the customer, lease footprint and environmental impact while improving safety and on- production turnaround time Pump installations are completed in hours with a conventional coiled tubing unit with minimal footprint at a fraction of the cost of service rig intervention “Live” well pump installations increase efficiency, reduce cost and eliminate potential reservoir damage Rod-less Technology Eliminate well downtime and service costs associated with tubing and rod failure Increased production volumes with optimum downhole pump placement Increase daily production and ultimate recovery of reserves by lowering the pump to ‘full true vertical well depth’ Improved service options Eliminate reciprocating pump gas locking with a full stroke every time Facilitate reverse spin on progressive cavity pumps to flush solids out of the pump Increase solids carrying capability using smaller diameter tubing with no additional reservoir drawdown Pull an ESP with one unit on location in hours, not days Quality Control and Competitive pricing Increase quality control and accountability with CJS delivering the entire system System price for this technology is similar to traditional artificial life pricing Go through the benefits on the slide

How CJS Can Add Value “Live Well Solution, Production Optimization, Decreased Operations Costs” Cost effective and efficient use of a coiled tubing unit Coiled tubing unit service requires less equipment and staff thereby reducing on location costs by more than 50% also mitigating lease footprint and environmental impact. Coiled tubing service increases safety and revenue from better on-production turnaround time. Live well operation CJS offers live well intervention thus eliminating the possibility of wellbore damage therefore decreasing downtime and increasing revenue and potential ultimate recoverable reserves. Elimination of rod and tubing wear CJS solutions eliminate rod and tubing wear increasing the well’s “on production time” while reducing the service costs and service visits.  Increased revenue from proper downhole pump placement A CJS pumping system differs from a conventional artificial lift system as our pumps are always placed in the optimal position in the well to maximize production and revenue.  Quality Control CJS solutions are vertically integrated offering the customer maximum operational control and accountability.  Return on Investment When considering all revenue and cost optimization, assuming certain well conditions exist, the cost of a CJS system could reasonably be recovered in one year.  

Possible Economic Value Case Pump Installation Cost Savings Typical Service Rig Pump Deployment - $20k rod pump / $50k electric pump (can take 1 to 3 days) CJS Hydraulic or Electric Pump Deploy - $8k hydraulic pump / $20k electric pump (generally takes one day) Total Pump Installation Savings = $12k to $30k Operating Cost Savings and Revenue Increases Assuming a rod string has a one year life…. and the umbilical has a multi year life then each yr: 1. Save - One rig intervention each year with no rod or tubing wear = $20k 2. Save a partial replacement of tubulars .. Assume 100 meters each of 3.5 inch EUE + co-rod strings = $5k 3. On a 25 barrel per day well at $50 per barrel save two weeks well downtime = $18k downtime savings 4, If the well is lower pressure and you drop the pump 100 true vertical meters of depth and add 20% to the daily production rate: 5 bbls/d x $50 barrel is $250/d x 365 days = about $91k in incremental production Total Operating Cost Savings and Revenue Increases = $134k TOTAL INCREMENTAL VALUE = $134K + $12K = $146k : SYSTEM COST $120K : PAYOUT = 9.9 MONTHS Walk through the economics on the slide

CJS PRODUCTION TECHNOLOGIES “Committed to Production Solutions for the Energy Industry” Scott Kiser – Business Development Director – Calgary, AB, Canada, scott@cjsflatpak.ca (403) 463-4740