DUE DILIGENCE PRESENTATION SECONDARY...

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SECONDARY and This presentation is for informational and educational purposes only DUE DILIGENCE PRESENTATION This presentation is for educational purposes only.

Transcript of DUE DILIGENCE PRESENTATION SECONDARY...

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SECONDARY and

This presentation is for informational and educational purposes only

DUE DILIGENCE PRESENTATION

This presentation is for educational purposes only.

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Before viewing this presentation:

Please go to www.trimeteor.com and on the home page select

“EOR Information”, then select “Resources”.

First, please view the Chevron Steam Flood, Kern River Field video before proceeding with this

presentation

After Chevron’s 3 minute video please view the 2 minute video by Reef Oil and Gas titled Permian Basin

Oil Reservoir Life Cycle

Enjoy these videos and then proceed with our Presentation.

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AGENDA

THE MARKET FOR ENHANCED OIL RECOVERY

TRIMETEOR OIL AND GAS CORPORATION TODAY HISTORY FUTURE

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ENHANCED OIL RECOVERY MARKET

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OIL DEMAND

• Nearly two-thirds of the world’s energy comes from oil and natural gas.

• Oil and natural gas account for “virtually all transportation fuel in the United States”, and civilized world.

• The world has taken the availability of oil and natural gas for granted, and expects them to be affordable.

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FUTURE DEMANDS

THE DILEMMA:

HOW TO PRODUCE ENOUGH OIL TO MEET GROWING DEMANDS?

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GLOBAL OIL DEMAND

Oil and gas market ripe for breakthrough of an enhanced oil recovery solution: World oil consumption rate at 88 million barrels

per day, production 87–89 million barrels There must be a 1/3 production increase over the

next 15 years to meet projected demands Market stability requires $85B annual investment

to 2025 Oil is produced faster, less expensive and with

less disturbance to environment from existing wells

EOR can prolong life of oil fields up to 30 years when employed on “proven” reserves

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IMPORTANCE OF HEAVY OIL

More than 6 trillion barrels of oil in place have been attributed to the heaviest hydrocarbons

This is more than three times the amount

of combined world reserves of conventional oil and gas

(Dusseault, 2010)

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HEAVY OIL: A WORLDWIDE OPPORTUNITY

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ENHANCED OIL RECOVERY Predicted Largest Growth of Oil Recovery

Oil analysts predict from 2012 to 2030 EOR Technologies will be the largest growth segment of oil recovery and production

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377 Billion bbls @ $80+ a bbl

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HEAVY OIL RESERVES AND PRODUCTION

Resources

• U.S. heavy oil resource approaches 150 billion + barrels of original oil in-place (OOIP).

• Resource is concentrated in 248 large reservoirs, holding 100 billion barrels of OOIP, primarily located in California, Alaska and Wyoming. • Numerous other states, such as Arkansas, Louisiana, Mississippi, Kansas, Utah, Oklahoma and Texas, contain significant volumes.

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UNDERSTANDING EOR

Enhanced Oil Recovery techniques can prolong the life of an oil field by as much as 25 to 30 years.

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PRIMARY PRODUCTION the natural pressure of the reservoir

• 10-15% Oil recovery

SECONDARY PRODUCTION uses water flooding and gas re-injection

• 10-30% Oil recovery

TERTIARY OR ENHANCED OIL RECOVERY By injecting steam or other gases and liquids this restores formation pressure and improves oil displacement or fluid flow in the reservoir

• 10-15% Oil Recovery

OIL STILL IN PLACE (OOIP) 40-70%

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POST PRIMARY OIL RECOVERY METHODS

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HEAVY OIL TECHNOLOGY

There are 5 main technologies currently used for the development of traditional heavy oil, with varying cost and efficiencies and recoverability factors: • Steam Assisted Gravity Drainage (SAGD) • Cyclic Steam Stimulation (CCS) • Cold Heavy Oil Production with Sand (CHOPS) • Mining • Vapor Extraction (VAPEX) • Other development stage technologies: In situ combustion and electricity and microwave heating.

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Increases bottom Hole pressure

SECONDARY and

This presentation is for informational and educational purposes only

900 – 1500 Degree F

Pumping while injecting

Making oil less viscous

Increases pressure in the reservoir to facilitate recovery

of oil High temperature,

low pressure, high volume

Trimeteor uses a continuous high-temperature, high-volume, low pressure super-heated steam injection utilizing a compact, reliable, portable system

with minimal EPA footprint (9x9x20, 180 square feet)

Inject superheated steam through our steam casing attached to the

production tubing

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Most Secondary and Enhanced Oil Recovery Methods PUSH water, gas, steam, solvents etc. from the Injection to the Production Well

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TRIMETEOR ENHANCED OIL RECOVERY

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Infrared interpretation of our steam flood in a production field

Our superheated steam will wick the less viscous oil in the the steam pattern (red) instead of a injection well pushing it to the production well

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TRIMETEOR TODAY

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TRIMETEOR OIL AND GAS CORPORATION Enhanced Oil Recovery

• Trimeteor Oil and Gas Corporation ("Trimeteor") utilizes its patented Enhanced Oil Recovery (EOR) technology to recover oil from existing wells. We partner with owners of oil assets to profitably employ our environmentally friendly oil recovery process. The assets must have proven wells with characteristics suitable for the Trimeteor EOR process to ensure increased production. Trimeteor's technology will revitalize existing fields and will substantially increase production on marginal wells. • We have been primarily engaged in research, development and testing, since our inception. Trimeteor has designed, built and tested fifteen generations of it’s superheated steam generators incorporating a minimum of thirty prototype design methodologies, each superceding the other in technology, automation and effectiveness. • The Company has filed five Patents. • Trimeteor has commenced Commercialization.

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TRIMETEOR OIL AND GAS CORPORATION

OVERVIEW

Our Enhanced Oil Recovery Steam Generator (“JESSE’s ARk”or “JESSE”) uses innovative design and computer-controlled technology proprietary to Trimeteor. Trimeteor’s three primary areas of focus are:

1. The enhanced recovery of heavy oil (API < 22.3) 2. Secondary recovery by increasing bottom hole reservoir

drive (mechanisms) 3. Deparaffinization

through continuous high-temperature, high-volume, low pressure, high quality steam injection utilizing a compact, reliable, portable system with minimal ecological footprint.

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TRIMETEOR OIL AND GAS CORPORATION PATENTS

Trimeteor has filed five patents 1) Utility Patent - Superheated Steam Generator With Slack

Accommodating Heating Tanks, September 2009--Patent allowed November 2012;

2) Provisional - Method and Apparatus For The Downhole Injection of Superheated Steam, filed November 2012;

3) Utility Patent - Super Heated Steam Generators, filed November 2012;

4) Utility Patent - Automated Super Heated Steam Generators, filed November 2012;

5) Utility Patent - Methods for Super Heated Steam Generation, filed November 2012.

Foreign patents were filed November 2012 for Mexico and Canada. Trimeteor has applied for and received authorization for the “Trimeteor” logo and the trademark of “JESSE’S ARk” and corresponding logo.

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INNOVATION

SMART TECHNOLOGY = EFFICIENCY machine automation controls energy and water usage

SOR – LOW COST TO BENEFIT RATIO Reduced capital and operating costs Smaller surface facilities and physical footprint Reduced water and energy use Lower air emissions, lower greenhouse gases

ENVIRONMENTAL BENEFITS No above or below ground pollutants No fracking to affect water tables

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COMPETITIVE ADVANTAGES

CONTROL SYSTEM: ○ Allows optimization of well / reservoir performance.

SUPERIOR PERFORMANCE, RELIABLE AND COMPACT: ○ 750-1500 F Superheated Steam, ASME certification, minimal footprint.

ENERGY COST: ○ 75-85% less than underperforming steam processes.

WATER USE / COST: ○ 80-90% less water use and related separation costs.

UNINTERRUPTED PRODUCTION: ○ Only EOR process where concurrent production is feasible down wellbore.

NOT A FRACKING PROCESS: ○ No political, social, or environmental issues.

SAFETY AND ENVIRONMENTAL: ○ Minimal footprint, no pipelines or injection wells, no polluting surfactants, toxic solvents, greenhouse gases, etc.

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PROCESS CONTROL

HMI SCREEN

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ENGINEERED TO CODE

Pressure vessels built to ASME code. ASME certification plate.

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ER 100 AT SITE

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Dr. Dennis K. Williams, PE Combined Modes of Heat Transfer in TOG SSSS

The TOG superheated steam supply system (SSSS) employs a combination of external radiant heating sources employing the radiation heat transfer mode utilized in combination with the convection heat transfer mode on the internal surface areas of the primary and secondary vessels resulting in production of superheated steam in excess of 900°F. For comparison purposes, this degree of superheated steam is exceptional in comparison with that of both fossil and nuclear power plants whereby the degree of superheat is on the order of significantly less than 100°F (i.e., not the absolute steam temperature, but the measure of the temperature difference between the outlet steam temperature and the saturation temperature of the steam at a given coincident pressure, commonly expressed in psig).

Furthermore, the TOG superheated steam system has a coincident pressure less than 100 psig while generating the previously defined degree of superheat. For comparison purposes, the relatively low pressures associated with the TOG superheated steam system contrast significantly with that of both fossil and nuclear power plants whereby the coincident pressures are in excess of 900 psig.

In summary, the coincident relatively low internal pressure associated with the extraordinarily high degree of available superheat in the TOG SSSS distinctively differentiates this process from industry standards in the production of superheated "steam-for-use.“

The second major feature of the TOG SSSS is the absolute steam outlet temperature, which is in excess of 1200°F. The TOG SSSS outlet temperature is significantly higher than that available by normal commercial means and industry standards. For comparison purposes, the absolute steam outlet temperatures available through superheated steam systems associated with that of both fossil and nuclear power plants and steam district heating distribution systems are in general less than 650°F. The subject outlet steam temperature in the TOG SSSS additionally and distinctively differentiates this process from industry standards in the production of superheated "steam-for-use."

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TECHNOLOGY

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TECHNOLOGY

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Temperature-Enthalpy (T-h) Diagram

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Trimeteor Oil and Gas “Innovative, patented super heated steam

technology” Experienced Management

Group

Potential Customers

• Large Oil Company • Mid to Small Oil Co

• Independent Operators • Service Providers • Our Own Leases

Manufacturing • Charles Molina P&G, GE, Nikkiso

Cyro

Engineering • Dr Dennis

Williams

Supply chain • Hanson Water • Stewart Tool

• Prime Fabrication • Windustrial

• Spencer Technical Group

• Sandvik • Thermal Ceramics

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THE TECHNOLOGY DEVELOPMENT AND

DEPLOYMENT CYCLE The National Petroleum Council had clearly explained the

cycle for the introduction of new technology. Fundamental Research – primarily university’s Applied Research – done Proof of Concept – done Field Testing – done and First Sale – in process Market Penetration – future Typical Time to Market – 15 to 20 years

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PROOF OF CONCEPT “Proof of concept is typically the stage at which external funding

becomes more readily available since investors are generally more comfortable taking on market risk than technology risk.”NPC

Trimeteor has spent considerable effort and time improving the

performance of its equipment. Current equipment has been designed to meet high performance standards and be reliable. In addition it must, meet ASME pressure vessel, OSHA and other code requirements.

This current work is also being done with the idea that these

designs will be scalable in the future to meet changing customer demands.

This list of over 30 prototypes is incremental and additive.

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MANAGEMENT ACCOMPLISHMENTS “Oil and gas technologies are often destined for hostile, hard-to-reach environments

such as the high temperature and pressure encountered at the bottom of a well. Full-scale tests must be completed before a technology can be proved and the market will accept it. As a result, commercializing technology in the oil and gas market is costly and time intensive; with an average of 16 years from concept to widespread commercial adoption” NPC

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TRIMETEOR FIELD EXPERIENCE

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FIELD TESTING

Rocky Mountain Oil testing Center, Department of Energy, Casper , WY 4 wells, 600’, 29 API 6 month test Equipment and process

testing Reservoir Drive De-paraffin Consistent results Baseline average of .2 to

.97 BOPD Increase from 5.4 to 12.2

BOPD Production decrease

when equipment removed

LAK Ranch / Newcastle, WY

2 wells, 1000’, 19 API 4 month test Down hole heat and

pressure Consistent results July 2012, oil production

increased on well 201 from a historical average of 1.15 BPOD to 9.4 BOPD(3).

Another positive outcome from the Trimeteor process was the substantial improvement of the cut on well 201 from a historical average of 9.2% for the years 2007-2012 to 27.5%

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NEW 900,000 BTU STEAM GENERATOR 2012 2012 – DELIVERS UP TO 1200 DEGREES OF SUPERHEAT

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There are 1,300 historical wellbores and 500 producing wells in nine producing reservoirs.

Teapot Dome Field, Natrona County, Wyoming, is listed in the top 100 largest fields in the United States with proven reserves of 42,515,000 bbl.

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2011 – 2012 DEPARTMENT OF ENERGY NPR3 TEAPOT DOME

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TRIMETEOR FUTURE

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EXPLORATION & PRODUCTION

Despite the enormous profits being realized by the “major oil companies”, and an estimated $150 billion spent on oil exploration and development each year, most of the money went to:

PRODUCTION FROM KNOWN RESERVES RATHER THAT SEEKING NEW ONES!

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MARKET CONDITIONS

RISKS OIL PRICING

○ Heavy oil is usually priced $7-$15/ barrel less than conventional oil

PERMITTING REFINING FINDING RIGHT JOINT VENTURE PARTNERS

AND/OR LEASES PROTECTION OF INTELLECTUAL PROPERTY

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BUSINESS STRATEGY

TRIMETEOR’S BUSINESS STRATEGY IS SIMPLE – • OWN AND OPERATE - Our priority strategy is to acquire or lease our own small to mid-sized oil assets that are at or near the end of their primary (or secondary life). The assets must have significant proved reserves with a high ratio of probable reserves and must be suitable for steam injection and/or EOR. • ALTERNATIVELY, TRIMETEOR MAY PARTNER with owners of oil assets, to profitably employ our environmentally clean and safe oil recovery process. The assets must have significant proven reserves with a high ratio of probable reserves suitable for the Trimeteor-EOR process.

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MATURE OIL FIELDS – NO DRILLING COSTS

• The Company’s focus on marginally producing small to mid-sized legacy oil assets faces minimal competition so far. Legacy fields have good production records and data that support the acquisition process and subsequent development.

SUPERIOR TECHNOLOGY

• Current steam extraction can only achieve maximum temperatures of approximately 600 degrees F. Trimeteor’s superheated steam generator can achieve temperatures of 900 to 1500 degrees F. High temperatures also improve extraction of heavy oils in surrounding wells.

COMPETITIVE ADVANTAGES

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NO EXPLORATION RISK

• The Company’s portfolio will be comprised of mature fields with proven reserves - production growth is not dependent on exploration drilling and the high degree of speculation in making new oil discoveries.

NO INTERNATIONAL OR OFFSHORE RISK

• The Company’s onshore U.S. operations are not subject to geopolitical uncertainties, dependence on foreign sources and other issues related to overseas operations. There is no safer place to own reserves than onshore U.S.

COMPETITIVE ADVANTAGES

Cont’d.

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• NO POLLUTING SURFACTANTS and no residual toxic solvents – no green-house gases generated.

• NO PIPELINES OR INJECTION WELLS needed to deliver the steam – the superheated steam is delivered

down the well bore through our proprietary tubing within the existing production casing.

• NO INSULATED PIPELINES needed to keep produced oil warm. Oil is delivered and remains

at a high temperature.

• MINIMAL SEPARATION TECHNIQUES not needed – the oil contains minimal water(unless field previously

water flooded), solvents or sand.

COMPETITIVE ADVANTAGES Cont’d.

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• RESERVE OWNERS / LESSEES / LESSORS

• PRIVATE AND BUSINESS INVESTORS

• GLOBAL ENERGY FIRMS

• OIL REFINERS

• PIPELINE FIRMS

• MINING AND ENGINEERING FIRMS

• OIL SERVICE FIRMS

TARGET MARKETS

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WHAT THIS PROCESS IS NOT

THE PROCESS IS NOT A STEAM FLOOD. IT DOES NOT PUSH STEAM TO THE PRODUCTION WELL. Our method wicks it to the wellbore.

IT IS NOT A CYCLICAL STEAM / HUFF PUFF. Our

method allows continuous production. IT DOES NOT INVOLVE CHEMICAL OR GAS INJECTION.

It does involve injection of high temperature, low pressure, superheated steam (99% quality).

NOT HYDRAULIC FRACKING. Our process is low

pressure pure steam.

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STEAMFLOOD OPERATIONS

California represents the greatest operations with almost 20,000 wells producing heavy oils.

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KERN RIVER FIELD: BAKERSFIELD CA

10 to 15 degrees API density

500 to 10,000 cp viscosity OOIP: 4 billion barrels Peak cold production:

~40,000 B/D in the early 1900s

By 1973, 75% of production from steam injection projects

(Kopper, et al., 2002)

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THE SOLUTION

ENHANCED OIL RECOVERY

IS THE MEANS TO MEET DEMAND!

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SOLUTION PROVIDER

WE ARE A SOLUTION PROVIDER

Not Just A Recovery

(EOR) Process

What The Market Is Telling Us

Our Own Field

Testing

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SOLUTION PROVIDER

• Infrastructure

Costs

• Water Usage and Electrical Usage

• Environmental

Issues

• Environmental,

Political and Social Issues

Not a Fracking Process

Minimal Footprint (9X9X20) Aesthetics

No Insulated Pipelines, Injection Wells or

Mega Steam Generators

75% less Water and 80% less Electrical

usage

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SOLUTION PROVIDER TRIMETEOR SUPERHEATED STEAM SUPPLY SYSTEM

“STEAM-FOR-USE”

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REVENUE STREAMS OF THE SOLUTION

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SUMMARY

In review, the following factors will enable Trimeteor Oil and Gas to quickly and effectively capitalize on secondary and EOR opportunities as they present themselves and become a recognizable provider in the EOR arena: • A solution provider • A strong technology with ASME certification. • Five Patents filed, with foreign patents filed in Mexico and Canada. • Extensive successful machine development phase completed. • Commercialization platform has commenced. • Ongoing research and development by industry experts. • Detailed knowledge of U.S. heavy oil reserves characteristics, ownership and ease of development. • A seasoned, industry-knowledgeable team in place.

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To become an industry leader in Superheated Steam Technology for the Enhanced Oil Recovery

Market

“Ensuring America’s energy independence through clean responsible enhanced oil recovery”

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For more information visit us at:

http://www.trimeteor.com or

http://www.trimeteorenergy.com

Thank You All!

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QUESTIONS

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SAFE–HARBOR STATEMENT Except for the historical information contained herein, the matters set forth are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The company intends that all such statements be subject to the "safe-harbor" provisions of those Acts. Many important risks, factors and conditions may cause the company's actual results to differ materially from those discussed in any such forward-looking statement. These risks include, but are not limited to, estimates or forecasts of reserves, estimates or forecasts of production, future commodity prices, exchange rates, interest rates, geological and political risks, drilling risks, product demand, transportation restrictions, the ability to obtain additional capital, and other risks and uncertainties. The historical results achieved by the company are not necessarily indicative of its future prospects. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

FORWARD LOOKING STATEMENTS This Presentation contains “forward-looking statements”. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned business development, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements.