1. Patented Completion Technology Geoslicing© Enhanced Oil and Gas Recovery Technology

2. Advanced Geoslicing© Enhanced Oil and Gas Recovery Technology

3. “An Industry Disruptive Technology,” according to the National Research Council of Canada
“…a technology capable of recovering an additional
1 BCF of Gas in New York State,” NYSERTA

4. What is Geoslicing?
“Industry disruptive solution” for the recovery of oil & gas
Patented technology, environmentally-friendly technology for Eco-Safe, Enhanced Oil Recovery, 3rd Generation Tool
Uses an eco-friendly high-pressure abrasive water-sand mixture to slice the earth
Patented tool slices 1m to 6m+ feet through the casing into oil/gas formation, 2nd Generation Tool Shown in Photo
Creates an effective well-bore of 2m-12m versus 125mm
Provides a radically expanded surface area of up to 1000% greater for Oil and Gas to Flow thereby improving flows

5. Geoslicing© 5,000 psi/345 bar Gen-1 tool in action
After a one minute pre-treatment pressure test of Gen-1 Geoslicing© Technology
a 15-foot hole has been sliced into the ground.

6. What is Geoslicing? Benefits?
An Advanced Oil and Gas Recovery Technology
Improves Oil Recovery Rates 300% - 500%
Improves Gas Recovery Rates 800% %
Recovers Oil/Gas Faster and more Completely from formation
Benefits?
Enhances flows from suitable existing, new and capped wells
Improves
Internal Rate of Returns, Net Present Value and Well Value
Improves IRR by increasing flow rates
Improves NPV by accessing more oil/gas from the formation
Improves Well Value - extended life & expanded reserves accessed

7. How does a reservoir become damaged?

8. Estimating Borehole Damage
Drilling wells rocks undergo high stresses induced by the weight of the overburden
A well is an excavation into rock that follows the laws of hydrodynamics
Rocks at a depth of 3 to 5000 feet undergo stresses as high as 3500 – 5000 psi at the well-bore wall
Tectonic stresses can induce additional and usually greater stresses
Permeability of rocks under the above stresses can be significantly decreased and become near zero which decreases flows
Traditional completion methods neglect these forces/factors and therefore the well never reaches its full potential s

9. Normal Stress Regime
Formations sustain two types of mechanical stress:
vertical stress
horizontal stress
These stresses act on the formation in the vectors as indicated.
The diagram shown in this slide illustrates the mechanical stress regime within the producing formation (the rock) prior to being penetrated by a well bore.

10. Damage Caused By Drilling
The act of drilling a bore-hole
re-distributes mechanical stress.
Radial and tangent stresses arise.
Pay zone permeability can decrease by 5 to 10 times due to the effect of these stresses alone.
This slide shows how the mechanical stress in the near well-bore region is re-distributed of as a result of opening the well-bore. Opening well bore increases the radial and tangent stress’ surrounding the well bore and effectively reduces the ability of the formation fluids to flow to into the well.

11. Damage from Completion
Following conventional perforation, the zone of pressure re-distribution is expanded.
Gun debris is deposited on the inner surface of the entry “carrot” and can further damage the formation.
During a conventional perforation, pay zone is subjected to high temperature and pressure shock.
The standard gun perforator is lowered into the hole.
The following slides illustrates how conventional jet perforating completion technology further reduces the near well-bore permeability. When the guns fire an extremely high temperature stream of plasma gas is projected into the casing, cement sheath and formation. This “jet” of plasma deposits a portion of the shaped charge into the opening created by the jet and forms a “carrot” at the end of the perforation that reduces permeability. In addition the guns further stress the formation rocks which creates reduced permeability in the near well-bore region.

12. Summary of Wellbore Damage
mechanical stress disrupted
invasion of drilling fluid
accumulated formation fines
invasion of cement, and
gun debris.
The hatched area denotes the damaged zone created by conventional jet perforating technology.

13. Pressure Forms Around the Wellbore
Drilling and conventional completion technologies cause a high pressure area to form around the wellbore.

14. Result of Perforation
Lowest Permeability
Highest Permeability
Permeability Damage at Bore
Zone of Repair Above 1
away from Bore
This slide shows the reduction in permeability immediately adjacent to the well-bore.
Within the pressurized area around the wellbore (in blue), formation permeability is reduced by 500 to 1000 percent.

15. Result of Fracturing
Lowest Permeability
Highest Permeability
Zone of Repair
away from Bore
Permeability Damage Remains at Bore
This slide shows the reduction in permeability immediately adjacent to the well-bore.
Fracturing technologies impact deeper into the formation, but cannot repair the damaged near-wellbore zone (blue).

16. How does Geoslicing© Repair Wellbore Damage?
Geoslicing © cuts through the compacted and low permeable near-wellbore zone
Does not burn, scar, or “cook” the formation
In carbonates, dislodges clay particles and fines
In sandstones, reduces sand mobility problems
In deep gas sands, relieves overpressure damage from mud weight systems

17. The Geoslicing© Process
Slotting treatment pressure is
< or = to formation pressure
Slotting transfers the zone of stress to the tips of the slots
This enhances productivity
Porosity & permeability are increased in the slotted area of the near well-bore zone
Slotting equalizes pressure differential between pay zone and well-bore (pressure drop is reduced within interval)
The tool is raised when the slot is complete to begin a new slotting procedure.
In this manner, the entire target interval is treated.
The abrasive slurry is aimed into the target formation at the correct pre-calculated vector.
The GeoSlicing tool is lowered down to the target formation.
AHPT technology cuts through the near well-bore damage and re-distributes the the mechanical stress due to drilling the bore hole. Natural formation permeability is restored and pressure drop is distributed across the entire area of the slot.

18. How Geoslicing© Repairs
Slotting frees near well-bore zone from disruptive effects of mechanical stress.
The highly stressed area is moved and concentrated at the tips of the slots.
The screening effect of these stresses around well-bore is eliminated.
Formation fluids can now flow more readily from pay zone to the well-bore.
Following the slotting procedure, the mechanical stressed area is limited to the end of the slots which is located from 3 to 10 feet from the well-bore. The area within the dashed line is the area of the pay zone within the unloaded stress regime.

19. Geoslicing© Re-Distributes Stress
1.15
1.25
2.50
3.75
5.00
Mechanical stress is concentrated at the tips of the slots.
An area of greater permeability forms around the slotted wellbore.
Unlike conventional jet perforating, the mechanical stress within AHPT slots is concentrated at end of the slots resulting in a very large increase in near well-bore permeability.

20. Result of Geoslicing© Geoslicing
Lowest Permeability
Highest Permeability
Highest Permeability at Well Bore
This slide shows the reduction in permeability immediately adjacent to the well-bore.
Formation permeability at the well bore is increased by several orders of magnitude.

21. Geoslicing
Comparison of Results High Permeability at Well Bore is the Objective to Enhance Oil Recovery

22. Geoslicing© vs. Perforation
Gen 3 Tool 6.5 yd
6.5
Geoslicing© vs. Perforation
Gen 2 Tool
Gen 1 Tool

23. Benefits of Geoslicing©
1. Re-distributes stresses away from near-wellbore zone
2. Porosity increases >> 4-5x; Permeability >> 15x
3. Drainage volume increases up to 24.2x greater than borehole
4. Very deep penetration (compared to perforation)> 3-6x
5. Eliminates screenouts, lamination, skin effects (all barriers to oil flow)
Creates vertical permeability that does not normally exist in nature (reaches full thickness through interbedding / layers)
Has a longer lasting effect than any other technology due to larger surface areas and structures which stay open

24. Benefits of Geoslicing© (continued)
“Managed balanced” drilling – not overbalanced
So powerful it can cut multiple casings & deep rock
Does not crack casing cement / keeps hydraulic integrity
The only technology that actually excavates rock
Accurate & controllable connection / communication with production zones and with surface
Helps direct a hydraulic fracture (even near water)
Ecologically safe / environmentally friendly
Follow-up intensification methods also show increased results due to huge drainage surface (i.e. acidization, hydro-fracturing, acoustics, etc.)

25. The Effect of Geoslicing©
Benefits (Continued)
16. Softening of problems with developing heavy oil layers by providing greater openings for flows
17. Easing of problems with opening wells with two or more strings of the casing
18. Allows for recompletion of zones with sub-adequate production in comparison to adjacent zones
19. Reliable completion of thin-laminated production zones

26. Geoslicing© Standard perforation (M is permeability) M2>>M1
After boring a well, tangential compressive stresses arise in the near-wellbore zone thereby decreasing the rock permeability
M2 Permeability M1
Well
M1<<M2
Near-Well
Zone

27. Geoslicing© Combined with Chemical Treatment
Along the well Axis in opposing directions a slice is cut the entire depth of the production layer (or for such depths as desired)
A minimum depth of penetration into the zone on either side of the well-bore of 7 to 10 well diameters is required
Wellbore Geoslice
GeoSlice

28. The Effect of Geoslicing©
The GeoSlice© transforms the compressive tangential stresses into extended linear ones
M2 Permeability GeoSlice© M1
Well
Near-Well
M2>>M1 Zone
Geoslice©

29. The Effect of Geoslicing©
Enhances Reservoir Properties
The GeoSlice releases the near-wellbore zone stress and provides increasing rock permeability - dramatically enhances the reservoir properties and flows
1.0
1.05
1.0
1.05
1.25
2.5
3.75
5.0
5.0
3.75
2.5
1.25
.o.2 ,
1.05
1.0
1.05
1.0

30. The Effect of Geoslicing©
Comparison of
Geoslicing© to other completion methodologies
GeoSlicing when compared to other completion methods dramatically enhances the depth of the production layer opening and the drainage surface area

31. The Effect of Geoslicing©
Application
The product layer consists of carbonate, terrigen or crystalline rocks
The productive layer interval is fastened with the casing column for 5” to 12” (120 to 320 mm) by the diameter, independent of the well depth
Geoslicing has been tested on production layers up to depths of 20,000 ft (6 km) with low and high formation pressures and with the bottom hole temperatures up to 140o C
GeoSlicing can be applied after drilling, during production, or after workover repairs

32. The Effect of Geoslicing©
Benefits
The efficiencies of the technology cutting processes does not change the hydrodynamics of the structure nor leave excess water in the formation
The method is effective in complex conditions and can be applied when there are various drilling complications: with enormous drilling idle times/closed wells, multi-string casings, abnormal high pressures, etc.
The method can dramatically increase oil or gas recovery involving neighboring layers with various permeability
The effects of Geoslicing persist for dramatically long times – years, while other methods produce only short term effects

33. The Effect of Geoslicing©
Benefits
Geoslicing increase the near-wellbore zone rock permeability by changing the tangential stress values and the direction of their variation
Disappearance of the ‘skin’ effect
Increases the production layer utilization by producing a continuous ‘window’ rather than a punched hole perforation
Drastically increases the production layer opening area and duration of flows
Makes low-quality reservoir rock profitable by increasing production compared to standard well casing flows

34. The Effect of Geoslicing©
Benefits
Softening of problems with developing heavy oil layers by providing greater openings for flows
Easing of problems with opening wells with two or more strings of the casing
Allows for recompletion of zones with sub-adequate production in comparison to adjacent zones
Reliable completion of thin-laminated production zones

35. Field Results of Geoslicing© Advanced Oil and Gas Retrieval Technology

36. Example A – Gas Zone Rejuvenation
Background
Name: Kinnert 1. Drilled in 1976; dead in 2000
API # S14-T30S-R7W Kansas
Problem Statement
Operator researched how to boost output, but could not find an economical well stimulation method
Solution
Gen-1 tool to stimulate depleted gas zone in March 2003
Implementation Time
1 Day, excluding planning
Costs
$35,000, because GeoSlicing© technology was in early stage of development, only 3rd party costs are included
Win/Win for operator as no cash outlay, just rewards

37. Example A – Gas Zone Rejuvenation
Initial Production after GeoSlicing©
81 mcf/d compared to 101 mcf/d in 1976
Payout
5.1 months (100% working interest)
10,500 $3.85 (inc. royalties & expenses)
Total Gas Production
98,623 mcf (March 2003 to June 2008 – still producing December 2010)
Daily Production today = 31 mcf/d
Total Revenue
$592,000 (98,623 mcf X ~$6/mcf) (inc. royalties & expenses) to June 2008 last data available

38. Example A - Historical Production
The decline rate is shallower than during original production.
Approximately 50% decline over 9 years.

39. Typical Production Curve after Geoslicing©
This example from Kansas, 2003

40. Example B – Oil Zone Rejuvenation
Background
Name: Moran 1. Drilled in 1969; dead in 2000
API # S30-T19S-R20W Kansas
Problem Statement
Operator researched how to boost output, but could not find an economical well stimulation method
Solution
Gen-1 tool to stimulate depleted oil zone in April 2003
Implementation Time
1 Day, excluding planning
Costs
$35,000, because GeoSlicing© technology was in early stage of development, only 3rd party costs are included
Win/Win for operator as no cash outlay, just rewards

41. Example B – Oil Zone Rejuvenation
Initial Production After GeoSlicing©
8 bopd
Payout
7.1 months (100% working interest)
1,200 $43.57 (inc. royalties & expenses)
Total Oil Production
7,392 bbls (March 2003 to June 2010)
Daily Production today = 8 bopd
Total Revenue
$571,560 (10,392 bbls X ~$55.00/bbl) (inc. royalties & expenses)

42. Example B - Historical Production
The zone was very depleted when GeoSliced© in 2003.
The decline rate is relatively flat.

43. Example C – Halting the Grim Reaper
Background
Drilled in 1986; completed lower (high porosity) zone 7595’ – 7644’
Total production = 379,790 mcf from lower zone
Dead in 1990; well to be P&A’ed
API S18-T14N-R1E MDB&M Colusa County, CA
Problem Statement
Well was to be P&A’ed and our challenge was to show our technology would work on low porosity zone, when other technologies could not
Solution
Used Generation 2 GeoSlicing© tool in June 2005
GeoSliced© new zone 7148’ – 7163’
Implementation Time
1 day, not including planning
Costs
$70,000 (Workover costs only – PG&E tie-in costs not included)

44. Example C – Halting the Grim Reaper
Initial Production After GeoSlicing©
650 mcf/d
Payout
15 days
7,000 mcf x $9.66 (inc. royalties & expenses)
Total Gas Production
176,165 mcf (Sept 2005 to June 2008 – Still Producing)
Daily Production today = ~110 mcf/d
Total Revenue
$1,233,150 (176,165 mcf x $7.00/mcf) (inc. royalties & expenses)

45. Grizzlies 1 – Comparative Production
Again, the decline rate due to GeoSlicing© is much shallower.

46. Example D – Raising the Dead
Background
Name: Curry 1, Drilled: 1989
API Panama Quad, Chautauqua County, Blockville, NY
Problem Statement
Revive a heavily depleted barely-/non-producing Medina well utilizing GeoSlicing© and fracturing
Solution
Used Generation 3 GeoSlicing© tool to stimulate depleted gas zone in Dec 2003, 4030’ – 4105’
Implementation Time
2 Days; 1 GeoSlicing©, 1 day Fracturing excluding planning
Costs
$115,000 SDF cost only – location and R & D costs NIC, only 3rd party costs are included

47. Example D – Raising the Dead
Initial Production After GeoSlicing©
130 mcf/d compared to 2 mcf/d for 15 years and
0 mcf/d in 2008
Payout
287 days (100% interest)
28,000 mcf x $4.00 (inc. royalties & expenses)
Total Gas Production
20,150 mcf (1989 to 2010)
Daily Production today = ~100 mcf/d
Total Revenue
Revenues during first 7 months exceeded those of preceding 18 years ($319,375 in revenues in 18 months now)

48. Curry 1 – Raising the Dead Production Rates
The increase after GeoSlicing© is over 12000%!

49. Example E – Creating Star Economic Performers
Whirlpool rock (blue wells) generally surpasses Medina rock (red wells) in both gas production and gas resources, gas production results for Curry 1 (completed by GeoSlicing© in the Medina) are high, even in comparison to Whirlpool completions, considering Curry 1 draws from average gas resources.

50. What Equipment is used in Geoslicing© ?

51. Surface Equipment 1. Wellhead 2. Pulp-cleaning filter 3. Manifold unit
4. Pump set
5. Sand-mixing set 
6. Tank.

52. Surface Equipment Provided by Schlumberger
Sand
Mixing Set
(Blender)
Tank
Wellhead

53. Surface Equipment Provided by Schlumberger
Pump Set
Water Truck
Shaker
Half Tank
BOP
Wellhead

54. Geoslicing© Oil Platform Support Equipment Abu Dhabi

55. Advanced Geoslicing© Tool Gen-1
Ball trapper
Upper Seal
Compensator
Pusher
Perforator
Lower Seal
Nozzles
Circulation Ball
Bolts
Engine

56. Scientific Method of Geoslicing©

57. rP As Nozzle Diameter Increases6
Red = 3mm
Green = 4.5mm
Blue = 6mm 5 4
Rate (bbls/min) 3 2 1
100
200
300
400
Pressure (atm)

58. Calculating Working Pressure
rPR = [(D12 x rPN) – rFS] / (D22 – D12)
Where:
D1 is the ID of the pusher (mms);
D2 is the OD of the tubing (mms);
rPN is the pressure of the slurry through the nozzles (MPa)(variable); and 
rFS is the compressive force of the engine (Newtons)(variable).

59. Optimizing Working PressureII
III 6 5 4 3 2 1 9 8 7 25 20 15 10
rPN,
MPa
rPR, MPa

60. Economic Impact of Geoslicing©

61. Curry 1 – Economic Impact
Before GeoSlicing© $0 - 8/day for 15 years after $400 per day!

63. Thank you for your interest!
Please feel free to contact us:
William Azzalino, Managing Director
T: (949) E:
Thank you for your interest!