1. Tarblaster Technology Day
Planning Document
04/12/08
Chris Dudgeon, OTM Consulting Ltd

2. Objectives of Technology Day
Engage interest of end-users
Start the rumour-mill going
Understand end-user perceptions
Make sure we’re in good shape to go forward with the technology
Verify in front of the right crowd who won’t throw rocks too soon
Agree key activities
Identify end-user preferences to access the technology
Explore potential business models
Start to look for other investors
Gain initial commitment

3. Tarblaster Key Messages
CAPEX reduced by ~80%
I think this may be more important than 6 months ago, now that Shell and StatoilHydro have each shelved CAPEX plans, with lower oil price. We may want to strengthen this proposition?
Yes, I agree.
Low energy consumption
Self-sustained with energy by combustion of about 12% of the recovered oil. low value energy (the most heavy part of the oil)
CO2 emissions reduced by 20-30%
Clean dry sand emitted – no wet tailings
No water consumption
Extraction and upgrading oil sand in one operation
Output oil directly to refinery
Easy to scale up
Increased value of oil by:
Increased API from 8 to 25 (need to confirm latest data…) Agree.
Reduced sulphur (50-60%) and metal (90-95%) content

4. Key Challenges for Mining-Based Operations
Cost of operations, maintenance
Overall recovery
Quality of extracted bitumen and market acceptability
Water use
Energy use and natural gas dependence
Air emissions
Environmental footprint
Let us see my calculations when we meet.
Source - Oil Sands Technology Roadmap, Alberta Chamber of Resources, Jan 2004

5. Tarblaster Introductory Text
Tarblaster is a process for the simultaneous extraction and upgrading of oil from oil sand, oil shale and other particle-oil mixes (e.g. sludge) in one operation, without the use of water or steam.
The basic process can be described in 5 key steps:
Oil sand is injected into a low high-temperature reactor, heated by partial combustion of the oil in the injected sand. Within the reactor, oil is stripped off the sand, and partial cracking also takes place.
The sand is then conveyed pneumatically into a riser by the hot gases, and routed to a cyclone.
Within the cyclone, the sand is separated from the stream and is returned to the reactor, and the solid-free gases are transported to a condensation system.
The condensation system is a dual procedure, avoiding formation of emulsions, and resulting in two streams of liquid oil and water.
The sand from the reactor is discharged continuously into a steam boiler which extracts the heat in the sand for steam generation, prior to final discharge of clean, dry sand.
A test rig has been operating at SINTEF, Norway since July 2008
Oil sand oil with an initial grade of 10 API has been extracted at 350C and upgraded to 25 API oil, at a production rate of 2 barrels/ day
15 hours of operation have been completed

6. Tarblaster a/s Technology developed by Tarblaster a/s
Norwegian company
CEO - Olav Ellingsen
Investors include energy-sector VC
Tarblaster will develop, refine and commercialize this revolutionary and highly beneficial technology, which offers substantial economic benefits to clients engaged in the extraction of oil from oil sand and oil shale.

7. Tarblaster Commercialisation Options
License revenue (per barrel) from licensors
Sale of IP to operator or contractor
Own operation

8. Operating Principles

10. Established incumbents, with committed technology/ infrastructure (and environmentally challenged)
New entrants, thinking about what to do
Contractors (eg Lurgi, Bantrell (Bechtel))
Government
Universities, PTAC?
Invitees

11. Format of Day Wednesday 21st January 2009 Calgary 10.00am-3.00pm
See draft ‘flow of the day’ overleaf
Venue possibilities
Hotel – convenient, smart, neutral
Oil company offices, is any friendly to Tarblaster yet (eg StatoilHydro?) – credibility, endorsement, but could be seen as biased OUR NEW CONTACTS WITHIN StatoilHydro may be friendly.
University – a bit utilitarian, emphasises techie credentials, any universities (particularly Uni of Calgary) engaged with Tarblaster yet? NO
Research Institute (e.g. Alberta Research Council, in Edmonton and Calgary) – decent facilities, fairly neutral, may help to initiate local network
Plus:
One-day trip to a materials handling plant on Tuesday
Potential meetings with Govt officials on Thursday

12. Draft Flow of the Day Where will the technology be best suited?????
10.00 Welcome and introduction
10.15 Presentation of Tarblaster technology
10.45 Q&A
11.15 Identification of perceived strengths of technology
12.00 Sandwich lunch
12.45 Roadmapping 1: Identification of key challenges, possible solutions, and timeline
13.45 Roadmapping 2: Gauging interest in specific initiatives, such as co-funding development, hosting a pilot plant, etc
14.30 Conclusions and action plan
Presentation of sample boxes
15.00 End
Where will the technology be best suited?????

13. Workshop Materials Presentation slides
Video/ pan-and-tilt look-around test rig
Or live video-link to test rig in Trondheim?
Process/ templates/ materials for facilitated roadmapping
Takeaways
Bottles of tar sand, produced oil, sand
Professional brochure

14. Supporting Material

15. Probably need to revise economic model, with latest oil-prices YES
Economics (1)
Probably need to revise economic model, with latest oil-prices YES
Synenco (2)
TarBlaster
Investments (3):
USD
Investments (4):
Capacity pr day
Barrels
50 000
Capacity pr year
Oil price API 45 72
Oil price API 25 50
Blending price
-14
Net sale price 58
Gross cash flow pr year
Gross year of payback
3,5
Years
0,4
(1) On a gross level meaning not included operational- and financial cost or tax
(2) Source: presentation on Synenco.com
(3) Reduce with USD 2,3 billion in assumed payment of land lease
(4) Included investment in fuel trucks and front loaders (USD 100 mill)

16. Economics (2) – Tarblaster 50
Probably need to revise economic model, with latest oil-prices YES
Investments (1):
USD
Capacity pr day
50 000
Barrels
Capacity pr year
Oil price API 25 50
Cost pr barrel (2)
-20
Tax 25%
-7,5
Net sale price
22,5
Net cash flow pr year
Net year of payback
0,9
Years
Included investment in fuel trucks and front loaders (USD 100 mill)
Included USD 1,25 pr barrel in license fee to Tarblaster AS and USD 2 pr barrel in land lease

17. Economics (3) – Tarblaster 10 (add-on)
Probably need to revise economic model, with latest oil-prices YES
Investments (1):
USD
Capacity pr day
10 000
Barrels
Capacity pr year
Oil price API 25 50
Cost pr barrel (2)
-10
Tax 25%
Net sale price 30
Net cash flow pr year
Net year of payback
0,4
Years