ByThrottle Energy Inc.

Powering Africa with Virtual Pipeline

Technology

2

Vision StatementProvide solution to Electricity needs in

Africa and monetize Flared Natural Gas.

The solution utilizes Patented Virtual Pipeline

Technology (VPT) that will provide cost effective

Clean Natural Gas (CNG) which will be used to Power

Modular Power Plants and provide the cheapest

delivered energy (power, heat, fuel) solution

(compared to Petrol, Diesel, LNG) to end users.

3

ProposalUtilize currently Flared gas and Gas from existing gas

facilities (for example NGC) to generate Electricity

using a combination of modular clean gas processing

facility and Modular Power Plant.

This proposal includes Gas Gathering, Processing, Storage, Transportation

and Distribution to end users in pipeline disconnected places including

existing and modular Power Plants (proposed as a full package), Airport,

Hospitals, manufacturing industries, state and federal offices, homes in the

community and other power demanding establishments, etc.

4

Well Head Gas Capture and Processing

5

Flare Gas Capture and Processing

TEI Flare Capture solution entails capturing the entire flare stream and delivering it for centralized processing resulting in a solution that:Eliminates the greatest amount of flare of any competitive offering,Captures the highest % of NGLs of any competitive offeringMonetizes the residue gas stream rather than flaring it.

Currently - Flaring

TEI Technology

6

Gas Conditioning – Monetizing By-Product

Process all flare capture without flaring condensates

and other by-products of Associated Gas

Propane/butane mix is extracted from gas stream

into sales condition for the local/regional market

Condensate stream (C5+) can be blended with Crude

for sales and monetization or as gasoline blendstock

7

Solid Gas Separation Plant Technology

Technical Advantages Higher gas quality

Reduced C2+ content Only solution that can greatly reduce

ethane content in fuel gas, up to 95% Enables liquid NGL recovery (2x vs J-T

Economic Advantages Lower monthly costs

Process works at 35psig, low compression Higher diesel replacement due to clean gas Enables use of high efficiency power

generators that require clean gas (>80% methane) to operate

Less maintenance of equipment required

8

GasTransportation - VPT

9

Results of Patented Technology

Existing/Conventional Filling

ending temperature >180F 65% full

Patented Chill Fill* Technology Applied to CNG Trailers

ending temperature @ 59F 100% full

TEI compared to Existing Technology

>200% Capacity growth due to materials innovations - Cost dynamics improving due to carbon fiber economics

220mscf (II)

165mscf (I)

550mscf+ (IV) - 2015

CNG Requires Fast Trailer Turnaround

CNG transportation capacity Increased due to changes in materialsFor transportation equipment

CNG transportation is more cost effective

Existing in Nigeria

CNG Applications in the Field

11

10 Pump Frac Fleet

1,500hp Drilling Rig

5MMSCFD Flare GasGas Lift

12

Key Cost Elements of VPTPressure at Source of Gas

Determinant of cost of compression

Distance of gas source to End User Determines how much transportation is needed Transportation is biggest project cost

13

Advantages of VPTHigher efficiencyVery attractive EconomicsLess initial Capex compared to competing

Technology Can be <10% of an LNG project Compression is very cheap Less distance makes project more attractive

Quickly achievable Typical project is in operation in less than a year Less commissioning and specialized expertise

needed for ongoing plant operations

14

Distributed versus Centralized Power GenerationDistributed generation is much cheaper (in some cases 50%

cheaper) than centralized generation Cost per KW generated is much cheaper Modular construction (1.5MW in a fully packaged ISO 40’ container) Enables CHP (Combined Heat and Power) with efficiencies >70% @

1.5MW Centralized station combined cycle turbines <60% @ 500MW scale

Complexity in Distributed generation is much less No need to plan transmission lines and guard against electricity line theft

Distributed generation is built faster than centralized generation Faster return on investment Modular construction delivers energy where needed most, with fast install

1.5MW will power about 1,500 homes in a rural area Less in Urban homes with Air conditioning and other high power homes

Less interruption Station interruption doesn’t mean complete outage in the city Much easier maintenance

15

Gas Storage

16

Gas Storage System ExampleStorage Assembly Spec

- Footprint 105’ (W) x 105’ (L) x 50’ (H)- Can be expanded by 7.5MMSCF modules- Individual storage units are in ISO containers- Can be transformed to chassis/wheeled units- Vessels inside are designed with corrosion-

proof composites + stainless steel

VPT Storage System Advantages - Operability

• Service/part replacement – No cryogenic/special parts in the system• Refilling of storage can be achieved immediately from excess

pipeline pressure

- Lower operating expense (OPEX)• CNG storage consumes <0.5% of the energy input as compared to

other fuel gas technologies like LNG (>15%)

- Lower initial Investment (CAPEX)• Especially in cases <65MMSCF, • Substantially lower than other fuel gas - CAPEX of the compression

plant is <10% of an equivalent LNG liquefier

- High degree of safety in proximity• Requires <50’ to other fuels and locations - LNG requires >150’

sometimes >200’ in extreme cases to prevent pool fire and thermal radiation

VPT Storage System Advantages - Redeployment of equipment possible

• Can be deployed in remote locations with very high reliability

• Enables later extension of the System via VPT

• CNG can be constructed modularly

• Building blocks of 7.5mmscf possible

- Better uptime

• Simple compression system

• Fuel storage is stable (no boiloff) means fuel is always ready to consume

- Faster construction time

• End to end (engineering, manufacture, and build) can be achieved in <9mths

- Compared to LNG/Pipeline with 3+yrs, assuming no construction delays and upfront engineering and financing are fully secured

Power Generation

Modular 1.5MW Power Generation Unit

Site Installation – Plug and Play

Site installation example – Power generation can start within 24 hours of arrival

One Power Plant – 1.5MW Capacity

Multiple Power Plants installed

Simple secured fuel connectionFinal Installation – 7.5MW Total Capacity

1 2

3 4

Advantages of Modular UnitReliable Source of Power – engines can be repaired locallyCheaper than current Power generating Plants and IPPsDistributed Power generation is made possibleDurable – Can be utilized in remote locationsQuick mobility – Can be moved from place to placeQuick installation – Can start generating power quicklyQuick commissioning – < 24 hours of commissioningContinuous power for base loadPeak shaving and stand-by operationPower generation and cogeneration (steam and hot water)Scalable - Can be combined to generate higher power Higher Efficiency than central plants when using CHP

23

Comparism to Existing

Technologies

24

Pipeline versus VPT Assumptions

• Cost of Pipeline (todays cost) = ~$1.5M/km• VPT cost of project at 200km delivery point –

Economics actually better at <200km distance (gas source to end user)

• Volume of gas delivered per project is 40MMSCF/D• Cost Price of gas calculated at $3 for both projects• Comparism done for 25km, 100km and200km

Pipeline• Operating cost for pipeline assumed to be 5%

25

Return on Investment on Pipeline vs VPT for Gas Delivery

25KM Pipeline 100KM Pipeline 200KM Pipeline VPT0.00

10.00

20.00

30.00

40.00

50.00

60.00

Year 1 ROI in USD at 40MMSCF/D gas delivery

Cost of Gas Per 1MCF

$3

Cost of Diesel per Gallon

$4 1 gal = 4 litres. 1 litre = $1

Power Plant Capacity (MW)

Gas Requirement (MMSCF/D)

Cost of Gas ($)Diesel

Required (Gallon/D)

Diesel Cost

5 1 $3,000 7,367 $29,468 10 2 $6,000 14,734 $58,936 50 10 $40,000 73,670 $294,680

100 20 $60,000 147,340 $589,360 200 40 $120,000 294,680 $1,178,720

CONVERSION UNITS1 gal 134CF1000 gal of diesel 139MMBTU1SCF of gas 1,025BTU1MCF 7.4 Gal of diesel1 gal of diesel 138,690 BTU1MW 3,412,000BTU

Distance (KM) Typical Cost of Pipeline($M)

20 30100 150200 300300 450

Power Generation – Gas versus Diesel

27

Fuel cost graph – Gas versus Diesel

5MW 10MW 50MW 100MW 200MW$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Diesel ($)Cost of Gas ($)

Design Plant Capacity (MW)

Fuel Cost ($)

Conclusion

29

Future Outlook Flared Gas processed and supplied to Power Plants for Electricity

supply. Health hazards from gas flare pollution will be greatly reduced. Technology ensures the realization of Government’s intention to

increase the national electricity generation and enhance economic activities.

Technology helps meet Power requirements in the country - Prepare country for future investment

Make Africa more attractive to major investors in the world Market Income generation - Take for instance, if 6MMscf/d of gas flared in

an oil field gathered and utilized. This will yield additional yearly revenue of $5.4 M (Five Million Four Hundred thousand US dollars) at gas price of $2.5 per 1Mscf

Monetizing high GOR wells - Instead of closing in high Gas-Oil-Ratio wells, Produced Hydrocarbon gas and stranded gas can easily be transferred to power plants to supply needed electricity

Volume of gas Transportable - Flexible Transportation medium helps break

the barrier of volume restriction. We can now transport higher volumes of

clean processed Natural gas over longer distances (either by barges/rail)

Efficiency - Provides higher efficiency of about 35% than other competing

providers in the market with the use of the Patented ChillFill technology

Flexibility – Can serve multiple users using the Cascade Delivery Technology

also patented. Minimal changes needed to existing Power generating plants

to convert to Dual Fuel. Plant retain Diesel capabilities as a back up

Scalability - This technology is completely scalable. We design to the need of

users. Technology can process NGL Streams to produce LPG also

Advantages of VPT over other Providers

31

SummaryTHROTTLE ENERGY:

Shall assist the Nigerian Government enhance available power output from their current and future IPP projects

Supply and maintain steady gas from gas fields to Power Plants over a period agreed to by the Nigerian government.

Build gas storage for contingency supply for power Plants

Reduce cost of laying pipelines and other Oil and Gas Infrastructure

Guarantees start of operations within 12 months from procuring all approvals and consents required for the Project.

To capture flare gas and monetize it by direct supply to local and remote consumers, for electricity and other uses

Extend similar projects to supply electricity to neighboring countries

Prepare Africa for future investment and make Africa more attractive for major investments

Current Operating Sites

High Capacity Compression Stations in Texas

34

Business Target in AfricaGenerate Power using Modular Power Plants

Mobile unit - Power Plant can be moved from one place to another

Scalable - Cogeneration is possible (for instance, we can build from 1.5MW to 200MW)

Fuel - Can be built to pull from Gas storage facilities as back-up

Localized Power generation is made possible with this solution

Faster return on investment on Gas to Power projects

Significantly cheaper initial capital investment Equipment fabrication, delivery and commissioning is less

than 1 year Significant savings in operating cost (40-70%)

35

Business Target in AfricaStop Gas Flaring in Africa

Provide Gas storage for remote locations and Users Capture Produced Hydrocarbon gas Monetize Flared gas for producers

Efficient and flexible Logistics Mobile unit Gas Compression and Power Plant

combination Lowest delivery fuel cost to end users Deliver Natural Gas to end users at requested

conditions Storage capacity provides uninterrupted supply of Gas

to produce power

Throttle Energy Inc.Houston, TX 77095

Email: info@throttleenergy.comPhone: +1.832.643.5111, +1.832.298.8400,

+1.281.415.1238 (USA)+234.809.037.9222, +234.816.668.1997,

+234.809.037.2222 (Nigeria)www.throttleenergy.com