1. TT99-841 Artificial Lift Utilizing CT as a Hollow Sucker Rod Humberto F. Leniek COIL TUBING AMERICAS Dr. William C. Maurer MAURER ENGINEERING INC.

2. TT99-842 Stekoll Slimhole Pumping System (1960) Flow Line Rubber Hose 1” Tee Clamp Polished Rod Liner 2 7/8” Casing 1” EUE Pumping String Traveling Barrel Insert Pump Slip-Type Hold-Down with Rubber Removed Screen Blind Cage Gas Vent Conventional Stuffing Box

3. TT99-843 Stekoll Field Well (1960)

4. TT99-844 STEKOLL Field Experience (1960) Over 1,000 Wells 3,000 to 5,000 Foot Wells 1” EUE Tubing (Hollow Sucker Rod) 2-1/2” & 2-7/8” Inch Casing 70 BOPD 40 to 50% Reduction in Tubular Costs 17% Overall Cost Savings

5. TT99-845 STEKOLL Slimhole Wells (1960) Bolton Field, Kansas (1,000 ft) - 1,000 Wells Corsicana, Texas (1,200 ft) - 300 Wells Panhandle, Texas (3,000 ft) - 20 Wells Canada (5,000 ft) - 15 Wells

6. TT99-846 STEKOLL Slimhole Operations (2-7/8”) Drilling & Logging Perforating & Squeeze Cementing Acidizing & Fracturing Fishing & Washovers Sand Bailing Dual Completions

7. TT99-847 Hollow Sucker Rod Advantage “The hollow sucker rod combines the function of the sucker rod and the tubing, so it is no longer necessary to pull both sucker rods and tubing when working over wells.” STEKOLL, 1960

8. TT99-848 STEKOLL System Limitations (1960) Limited Slimhole Logging Tools Workover Concerns Tubing Failures Resistance to Slimholes Resistance to New Technology

9. TT99-849 Leniek Pumping System (1999) Production Line 1-1/2” Hydraulic Hose Clamp Hollow Polish Rod 2-7/8” or 3-1/2” Casing (CT or Tubing) 1-1/2” Coiled Tubing Hollow Rod Pump Anchor Screen Gas Vent Stuffing Box

10. TT99-8410 Leniek CT Pumping System Conventional Surface Equipment 1,000 to 5,000 Feet 2-7/8” or 3-1/2” Casing (CT or Tubing) 1-1/2” CT (Hollow Sucker Rod) Hollow Polish Rod Hollow Rod Pump

11. TT99-8411 Leniek Surface Equipment (1999) Lubricated Stuffing Box Hollow Polish Rod Dynamometer Holder Bridel Polish Rod Clamp 1-1/2” Hydraulic Hose Production Line “U” Tube Hydraulic Connector

12. TT99-8412 Hollow Rod Pump Screen Anchor Perforations 1-1/2 Coiled Tubing 2-7/8” or 3-1/2” Casing (CT or Tubing) Gas Oil Leniek Bottomhole Assembly

13. TT99-8413 Coiled Tubing Hollow Pull Rod Pump Plunger Traveling Valve Standing Valve Hollow RodConventional Pump Barrel Pull Rod Tubing Pump Plunger Traveling Valve Conventional Seating Nipple Standing Valve Pump Barrel Sucker Rod Pumps Anchor Tubing

14. TT99-8414 Leniek System Advantages Reduce Well Construction Cost 50 Percent Eliminates Tubing Thread Failures Eliminates Tubing Anchors Reduce Lifting Costs Reduce Paraffin Problems Reduce Casing Wear Treat Wells Through CT Eliminate Rod Failures Allows Ultraslim Holes

15. TT99-8415 Initial Concerns CT Fatigue Failures CT Buckling CT Wear Casing Wear

16. TT99-8416 Argentina YPF Test (1998-1999) San Jorge Basin 2,600 Foot Well 60 BPD 2-7/8” Casing (Tubing) 1-1/2” CT 13 Months (No Failures)

17. TT99-8417 YPF Test

18. TT99-8418 YPF Test

19. TT99-8419 YPF Test

20. TT99-8420

21. TT99-8421 Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ 1.500 0.1340 3.500 9.380 100000 1 125000 8.33 1 6 74 6000 Coiled Tubing Pumping Fatigue Model CT Length (ft) 1000 1207 1414 1621 1828 2034 2241 2448 2655 2862 3069 3276 3483 3690 3897 4103 4310 4517 4724 4931 5138 5345 5552 5759 5966 6172 6379 6586 6793 7000 Years to Failure >30 >20 >10 7.61 4.64 2.87 Acceptable

22. TT99-8422 CT Fatigue Life vs Stroke Rate

23. TT99-8423 Leniek Potential Applications Marginal Oilfields Shallow Wells Low Production Wells (<300 BOPD) Close Well Spacing In Fill Drilling Drill New Wells With Smaller Drilling Rigs

24. TT99-8424 Leniek Marketing Options Start Service Company Form Alliances with Service Companies License Patent Rights to Service Company Sell Territorial Rights to Operators Form Partnership With Major Independent Drill Slimholes Free For Oil Participation Purchase Shallow Fields and Become Operator

25. TT99-8425

26. TT99-8426 Installation & Workover Requirements CT Rig New CT Good Supervision

27. TT99-8427 Future Requirements CT Centralizers Low Cost CT Pulling Units Trained Personnel Industry Acceptance Service Company Supplier

28. TT99-8428 Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ 1.500 0.1340 2.875 5.059 80000 1 105000 8.33 1 6 74 4000 Coiled Tubing Pumping Fatigue Model CT Length (ft) 1000 1207 1414 1621 1828 2034 2241 2448 2655 2862 3069 3276 3483 3690 3897 4103 4310 4517 4724 4931 5138 5345 5552 5759 5966 6172 6379 6586 6793 7000 Years to Failure >30 >20 >10 6.66 3.82 2.25 1.35 0.83 0.52 0.33 0.22 0.14 0.09 0.06 0.04 0.03 0.02 Acceptable

29. TT99-8429 Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ 1.500 0.1340 3.500 9.380 80000 1 105000 8.33 1 6 74 4000 Coiled Tubing Pumping Fatigue Model CT Length (ft) 1000 1207 1414 1621 1828 2034 2241 2448 2655 2862 3069 3276 3483 3690 3897 4103 4310 4517 4724 4931 5138 5345 5552 5759 5966 6172 6379 6586 6793 7000 Years to Failure >30 >10 8.55 4.48 2.43 1.35 0.78 0.46 0.27 0.17 0.11 0.07 0.04 0.03 0.02 0.01 0.00 Unacceptable

30. TT99-8430 Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ 1.500 0.1340 3.500 9.380 90000 1 115000 8.33 1 6 74 4000 Coiled Tubing Pumping Fatigue Model CT Length (ft) 1000 1207 1414 1621 1828 2034 2241 2448 2655 2862 3069 3276 3483 3690 3897 4103 4310 4517 4724 4931 5138 5345 5552 5759 5966 6172 6379 6586 6793 7000 Years to Failure >30 >20 >10 8.53 4.88 2.85 1.70 1.03 0.64 0.40 0.26 0.17 0.11 0.07 Acceptable

31. TT99-8431 Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ 1.750 0.1560 5.500 14.500 100000 1 125000 8.33 1 4 74 6000 Coiled Tubing Pumping Fatigue Model CT Length (ft) 1000 1207 1414 1621 1828 2034 2241 2448 2655 2862 3069 3276 3483 3690 3897 4103 4310 4517 4724 4931 5138 5345 5552 5759 5966 6172 6379 6586 6793 7000 Years to Failure >30 >10 7.70 3.88 2.01 1.07 0.58 0.33 0.19 0.11 0.06 0.04 0.02 0.01 Unacceptable

32. TT99-8432 Project Name: Well Name: CT OD (in): CT Wall Thickness (in): Casing Pipe OD (in): Casing Pipe Weight (lb/ft): CT Yield Strength (psi): CT Weld Reduction Factor: Stress Concentration Factor: Fatigue Strength Coefficient: Pumping Fluid Density (ppg): CT Job Corrosion Factor: Stroke Rate (stk/min): Pumping Stroke Length (in): CT Length (ft): CTPS XYZ 1.750 0.1560 5.500 14.500 100000 1 125000 8.33 1 6 74 4000 Coiled Tubing Pumping Fatigue Model CT Length (ft) 1000 1207 1414 1621 1828 2034 2241 2448 2655 2862 3069 3276 3483 3690 3897 4103 4310 4517 4724 4931 5138 5345 5552 5759 5966 6172 6379 6586 6793 7000 Years to Failure >30 >10 7.57 3.70 1.87 0.97 0.52 0.28 0.16 0.09 0.05 0.03 0.02 0.01 Acceptable

33. TT99-8433 Conventional Stuffing Box Production Tee 2-7/8” J-55 Non Upset Seamless Tubing Set As Casing Flexible Rubber Hose to Oil Lead Line Hollow Polish Rod Gas Vent 1” J-55 External Upset Seamless Tubing Used as Sucker Rods 1” J-55 External Upset Seamless Tubing Used as Sucker Rods

34. TT99-8434

35. TT99-8435 Sucker Rod Pump in Horizontal Well 100-200 ft. Pump (30 O inclination) Pump Jack Oil Pump (90 O inclination)