1. Processing Possibilities for Shale Gas Plays Keith Bullin Bryan Research and Engineering October 7, 2008

2. Common Shale Gas Plays Shelby 2006

3. Types of Gas Processing Required for Shale Gas Nitrogen Removal Cryogenic Separation Carbon Dioxide Removal Amine Unit Physical Solvent

4. Types of Gas Processing (Cont.) Heavy Hydrocarbon Removal JT Unit Refrigerated JT Unit Cryogenic Separation Minor Amount of H2S H2S Scavenger

5. Barnett Shale DTEenergy.com

6. Barnett Shale Key Properties Depth (ft)6,500 – 9,200 Thickness (ft)400 - 500 Reservoir Pressure (psi)3,000 – 4,000 Initial Production Rate (MSCFD)500 – 4,000 Started Shale Gas Technology Extremely Fast Growing Urban Gas Processing

7. First Frac C. W. Slay #1 (Barnett Shale) Year Monthly Gas Production MCF

8. Second Frac C. W. Slay #1 (Barnett Shale) Year Monthly Gas Production MCF

9. Third Frac (Barnett Shale) Third Frac C. W. Slay #1 (Barnett Shale) Year Monthly Gas Production MCF

11. Barnett Shale Oil / Gas Prone Areas OilShaleGas.com

12. Hill 2007

13. Town of Flower Mound Compressor Noise Ordinance Must be no more than 3 dB over ambient noise level Must be totally enclosed Must be designed / painted to compliment the surrounding area

14. Town of Flower Mound Landscaping Ordinance Combination of shrubs, trees, etc. Within 3 years 50% of structures should be screened from public view At least 40% of the vegetation shall be evergreen

15. Town of Flower Mound Lighting Ordinance No person shall permit any lights to exceed 0.4 foot-candles at the closest public road or property line

16. Town of Flower Mound Fencing Ordinance Fence shall be 8’-10’ tall Support posts shall be in concrete Chain link fabric shall be of an approved color All pipe or ferrous parts shall be galvanized inside and outside with minimum of 1.2 ounces of zinc per square foot

17. Marcellus Shale Geology.com

18. Marcellus Shale Key Properties Depth (ft)2,000 – 8,000 Thickness (ft)300 – 1,000 Reservoir Pressure (psi)500 – 2,000 Initial Production Rate (MSCFD)500 - 4,000 Access to Water Disposal Important

20. Fayetteville Shale

21. Fayetteville Shale Key Properties Depth (ft)1,500 – 5,500 Thickness (ft)50 - 250 Reservoir Pressure (psi)NA Initial Production Rate (MSCFD) Vertical 200 - 600 Horizontal 1,000 – 3,500 Lack of Infrastructure

23. New Albany Shale

24. New Albany Shale Key Properties Depth (ft)500 – 4,900 Thickness (ft)100 - 400 Reservoir Pressure (psi)300 – 600 Initial Production Rate (MSCFD) 25-75 Vertical 2,000 Horizontal

25. Martini 2008

26. Common Shale Gas Plays Shelby 2006

27. Atrium Shale Key Properties Depth (ft)600 – 2,400 Thickness (ft)160 Reservoir Pressure (psi)400 Initial Production Rate (MCFD)50-60 Extremely Long Well Life

28. Martini 2003

29. Haynesville Shale

30. Haynesville Shale Key Properties Depth (ft)10,000 + Thickness (ft)200 Reservoir Pressure (psi)3,000 – 4,000 Initial Production Rate (MSCFD)2,500 – 10,000 350 °F Bottom Hole Temperature Extremely Large Potential May Pull Resources from other Shale Plays

32. Try to Stay Ahead of the Production Curve Install Units Which Turn Up / Down Easily Valve Trays Variable Speed Pumps Use Multiple Trains if Possible Stay as Flexible as Possible with the Process

33. Conclusions All Shale Gas is Not the Same Watch out for Nitrogen in Shale Gas Anticipate Large Increases in Processing Capacity