1. An inexpensive product to: Improve Production Reduce Drilling Time

2. The presence of microfractures is now recognized as a common cause of severe wellbore instability, particularly in ultra-low permeability rocks such as shales and some limestones.

3.  An additive must be present in the mud system at all times so that microfractures are contacted immediately the drill bit exposes to them.  They will not be effective if used as a pill treatment to stabilize a formation that has already begin to fail.

4. High Porosity Carbonate Shale

5. Carbonate Unconsolidated Sand API Filter Paper Microscopic Image 100 Mag. Sand Stone

6. Carbonate Unconsolidated Sand Microscopic Image 100 Mag. Sand Stone20/40 Gravelpack Sand

7. WITH FLOW BARRIER WITHOUT FLOW BARRIER Drilling Mud Infiltration Drilling Mud Unconsolidated Sand Formation Minimum Drilling Mud Infiltration Drilling Mud with FRACSEAL Unconsolidated Sand Formation FRACSEAL Filter cake

8. Drilling Mud Without Effective Flow Barrier ( Permeable Filtercake ) Permeable Filtercake 20/40 Gravelpack Sand

9. Fracseal Filtercake 20/40 Gravelpack Sand

10. Filtercake Comparison Test Mica and NutplugFracseal Penetration of Fine Solid No Penetration of Fine Solid Soft and Permeable Filtercake Tough and Impermeable Filtercake 20/40 Gravelpack Sand

11. FRACSEAL Filtercake Solid Particles Trap by Fracseal CSIRO Perth at Ambient Temperature

12. FRACSEAL Filtercake CSIRO Perth Trapped Fine Solids by FRACSEAL Fitercake After 24 Hours Hot Rolling at 350 F

13. WALLNUT Medium GRAPHITE MediumMARBLE Medium MICA Medium Pore Characteristics of Common LCM Microscopic Image 100 Mag.

14. BeforeAfter Temperature Resistance Test of FRACSEAL Microscopic Image 40 Mag. For 24 Hours at 350 O F CSIRO Perth Microscopic Image 400 Mag. Microscopic Image 40 Mag.

15. PSD of FRACSEAL (Medium) before and after 24 hrs hot rolling at 350 F

16. Return Permeability to Oil as a function of differential pressure Dynamic Circulation Method SampleIDPorosity ( % ) (Swi)(%)Ko (at Swi) (mD) 10 PSI DIFFERENTIAL 50 PSI DIFFERENTIAL 100 PSI DIFFERENTIAL 250 PSI DIFFERENTIAL 500 PSI DIFFERENTIAL ReturnPerm.(mD)Ko(%)ReturnPerm.(mD)Ko(%)ReturnPerm.(mD)Ko(%)ReturnPerm.(mD)Ko(%)ReturnPerm.(mD)Ko(%) Oil Base Mud 17A 20.5 15.5 545 343 62.9 384 70.5 419 76.9 431 79.1 444 81.5 Oil Base Mud + Fracseal 17B 21.6 14.0 632 443 70.1 529 83.7 542 85.8 546 86.4 559 88.5 PERCENTAGE GAIN IN PERMEABILITY 11.4% 18.7% 11.6% 9.2% 8.6% Average Gain in Permeability with FRACSEAL = 11.9 % File : CORELAB

17. Source: CORELAB

18. OIL BASE MUD + FRACSEAL OIL BASE MUD

19. Rheology at 120 F Base FluidBase fluid + 10 ppb Fracseal Mud Weight, ppg11.7 Viscosity reading @ 120 F : 6 rpm1518 3 rpm1316 PV5666 YP2834 Gels 10 Second15/2818/28 HTHP @300F, 500 psi,cc/30 min11

20.  Increased production  Better hole stability  Unconsolidated Sand  Shales  Coal  Gumbo  Reduced torque and drag  Reduced potential for differential sticking  Reduced seepage loss  Reduced whole mud loss