CJS FLATpakTM & HSPCP - Revolutionary Artificial Lift Technologies

Scott Kiser - Business Development Advisor

CJS Coiled Tubing Supply Ltd.

Calgary / Lloydminster

March 2011

What is FLATpakTM

FLATpakTM is a uniquely designed multiple conduit bundle that:

• CONVEYS hydraulic and electric subsurface pumps

• POWERS these pumps

• Receives PRODUCTION from these pumps

• Is installed by conventional coiled tubing units

• Utilizes complete Canadian class 1+2 “safe operating” practices

Why Was the FLATpakTM Developed

The FLATpakTM was developed to …

•  Efficiently & safely convey hydraulic based pumps in a live

well environment

•  Replace jointed production tubing and rods

•  Eliminate the “Conventional Rig” for installation

•  Combine multiple services into one & reduce surface

footprint

•  Provide flexibility in design and function

•  Permit temporary well intervention with artificial lift systems

FLATpakTM Component Specifications

•  Carbon Steel Coiled Tubing •  High strength 70/80k grade, various gauges •  High tensile strength •  Outstanding cycle life •  Well understood mechanical and chemical properties •  External FBE coatings enable use in mild H2S/CO2 environments for closed

hydraulic systems

•  Alternative Tubular Materials

•  304 SS, 316-L SS

•  Lean duplex alloy 19D & LD2304

•  Alternative “hi temp” acid resistant injection molded thermo plastic tube - polyphenylene sulfide (RytonTM)

•  Carbon steel capillary tubes

Encapsulation Specifications

•  Material

•  Vulcanized thermoplastic (PP/EPDM)

•  TPV temperature rating (+135C)

•  Alternative hi temp materials – MPH340G (+170C)

& MPH400G (+200C) under development

•  Abrasion resistant, chemical resistance to oilfield

solvents, chemicals and brine

•  Field tested by CJS in gas wells, heavy oil wells

and liquids rich gas applications

•  Has been used for “eons” for capillary tubing

protection and SCSSV installations

How is FLATpakTM Manufactured

Industrial plastic extrusion line used for encapsulating multiple tubes

Extrusion die delivers formed matrix with uniform dimensions as designed

Finished product spools uniformly onto standard drums

Dimensions for HSP Umbilicals

Weight lbs/ ft

1.52

3.45

3.95

1.0” x 1.0” x 1.75” plus .25” cap + .25”

single conductor wire

4.90” x 2.00” 5.11

Cross Section Umbilical Configuration

1” x 1” x 1” 3.45” x 1.25”

1.5” x !” x !” x 1.25” 4.575” x 1.73”

Description Dimensions

0.75” x .075” 1.81” x 0.90”

How is FLATpakTM Installed

•  FLATpakTM is installed with conventional coiled tubing units

•  Specialized injector chains, BOPs, hanging

and pulling equipment is manufactured and supplied by CJS to facilitate FLATpakTM

operations. Specialized Injectors are used for heavier FLATpakTM strings

•  New system developed by CJS fourth quarter 2010 to

combat high maintenance costs and difficulty in operating rod driven progressive cavity pumps on a horizontal axis

•  Rigorous bench testing evidences no wear on internal components of hydraulic driver following several weeks of testing

•  First two systems run in February 2011 into 800 meter CHOPS wells near Lloydminster

•  Driver delivers 0 – 690 ft/lbs of torque @ 50 – 200 RPM. Testing shows 380 ft/lbs of torque at 100 RPM required to pump 90 bopd of 10,000 centipoise oil from 1400 meters depth

•  Future plans to reduce OD of pump from current 5.75” to support lower duty jobs in tighter casing environments

CJS HSPCP

•  PC Pump landings in heal of horizontal and deviated wells to optimize production rates without rod and tubing wear

•  Chemical injection at the pump intake via a capillary included in the FlatPak

•  Well optimization and prevention of well “pump-off” via data systems and sensor wire included in the FlatPak

•  Elimination of space out error as the rotor is pre-installed in the correct position prior to pump installation

•  Provision for reversing the pump to self-flush

•  Standard coiled tubing cleanouts to the top of the rotor and standard side entry cleanouts

•  The running of multiple conduits and electrical cable deployed in a single operation with a conventional coiled tubing unit

•  Elimination of the drive head and stuffing box minimizing moving parts and assuring minimal environmental impact

•  Elimination of tubing rotators

•  Elimination of no turn tools as system is torque neutral

CJS FlatPak Hydraulic PCP – “A Game Changer” Husky Energy Date: 18-Feb-10

100/15-19-48-4W4 Ticket #:

Gary Heffner CJS Rep:KB ELEV(m) GL ELEV(m) KB - THF(m) KB - GL(m) PBTD(mKB) Upper Perfs Lower Perfs

4.44 HorizontalCasing SizeCasing Wt. Primary Pressure Secondary Pressure244.5 mm 53.6 kg/m 0.00 KPA KPA

Downhole Descripton From Bottom up (Tubing String)O.D.(mm) I.D. (mm) Description Length (m) Top of mKB

825.4595.25 N/A 0.10 825.35

114.30 76.20 Slotted Chemical Injection/Intake Sub 0.35 825.00106.72 76.20 Shaved and Bevelled Coupling, 3.5 EUE X 2 7/8 NUE 0.15 824.85

73.03 N/A 5-E-18 Euro Pump Stator SN 1160 Rotor SN 10537 4.40 820.45106.72 76.20 Spacer Sub 0.48 819.97146.05 63.50 Y Production Sub 0.32 819.65

87.88 62.00 2 7/8 Pup Joint, 8 ft 3.08 816.57101.60 N/A Wiper Cone Sub 0.20 816.37101.60 N/A Seal Sub 0.16 816.21143.51 N/A Hydraulic Motor (Square 101.6 mm X 101.6 mm) Serial #001 0.69 815.52146.05 N/A Top Connector 0.10 815.42151.89 N/A Distance from Bear paw to top connector 0.20 815.22151.89 N/A Bear Paw 0.10 815.12124.53 See below Flat Pak 1"CT X1 3/4" CT X 1"CT X 1/4" Tube X 4mm wire 812.53 2.59

KB difference 2.59 0.00

1 Descripton Serial #

CJS 002

Location:Company Rep:

Well Profile

Sheldon Minish

Tubing Bottom3.5 EUE Bull Plug

Company:

Pressure operated Check Valve: Opening Pressure 10340 kPaSide Entry Wellhead 7 1/16 2000 psi X 11" 2000 psi X 2 3/8 EUE

Notes

!"#$ %% &'() *+,(-. /0)) !#!1 %% 23 !4#56

$$#7 %% &'() *+,(-. /0)) !#$1 %% #23 75#8! %%

8#7 %% 9:0(-);<<*+,(-.= /0)) #>11 %% #23 $#66 %%

$ %%?(@;

A@'B+C:('- *+,; D3E $$#7 %% 23E 75#8! %% F E$#1! %

CJS of Lloydminster introduces its “Hydraulic” Progressive Cavity Pump System which facilitates:

•  Deployed with 25.4 mm Hydraulic lines.

•  44.45 mm Coil as Production String

•  Can Clean out on Back Side.

•  Reverse Pump and Clean out up Tubing.

•  800 ft-lbs of torque at tool.

•  Do not need to use the rig.

•  No surface drive head require.

•  Reduced downhole equipment

Deploying HSPC Pump/with FLATpak

Pressure Drop and Viscosity versus Tempurature for Lloydminster Heavy Crude at 800 m of 44.4 mm Coil Tubing at 15 m^3/day

HSPCP FLATPakTM Umbilical

THIS DRAWING CONTAINS CONFIDENTIALAND PROPRIETARY INFORMATION AND ISPROTECTED BY COPYRIGHT. IT MAY NOTBE REPRODUCED, TRANSFERRED, ORUSED TO CONSTRUCT ANY ITEM OTHERTHAN THAT FOR WHICH IT WAS ISSUEDWITHOUT PRIOR WRITTEN CONSENTFROM HAYES INDUSTRIES, LTD.

REV.DRAWINGNUMBER

PARTNUMBER

SHEET

SIZE SCALE

DWN.BY

DATE:

CLIENT:

WORKORDER

TOLERANCES(EXCEPT AS NOTED)

DECIMAL.XXX ± .03.XX ± .03

CONCENTRIC: ± .002ANGULAR: ± .25 °

!"#$%&'()*%+,'$%-&.+)/

4.903

2.00

.125

.125

TUBE2 PLCS.

1

TUBE1-3/4 TUBE1/4

.104 PLCS.

12°

00022321 of 100022320.750A

CUTSHEETEXTRUSION - 4.905 x 2.00 FLATPACKSANT.,MT(1)1 3/4",(2)1",(1)1/4",(1) 2 CON. ELEC. 11/02/10

TSB

ENCAPSULATION MATERIAL: SANTOPRENEPROFILE: 4.905 x 2COLOR: BLACKWEIGHT:.1.30 lb/ft 1" TUBING (2) 1" O.D. x .? WALLWEIGHT: .? lbs./ft 1 3/4" TUBING (1) 1 3/4" O.D. x ? WALLWEIGHT: ? lbs./ft 1/4" TUBING(1) 1/4" O.D. x .? WALLWEIGHT: .? lbs./ft 2 CONDUCTOR ELECTRICAL (APPROX. 1/4") (1) 1/4" O.D.WEIGHT: .? lbs./ft TOTAL WEIGHT: ? lbs/ft

SCALE 0.500

2 CONDUCTOR ELECTRICAL APPROX. 1/4"

First Field Applications

First Field Applications

First Field Applications

First Field Applications Husky Energy Date: 18-Feb-10

100/15-19-48-4W4 Ticket #:

Gary Heffner CJS Rep:KB ELEV(m) GL ELEV(m) KB - THF(m) KB - GL(m) PBTD(mKB) Upper Perfs Lower Perfs

4.44 HorizontalCasing SizeCasing Wt. Primary Pressure Secondary Pressure244.5 mm 53.6 kg/m 0.00 KPA KPA

Downhole Descripton From Bottom up (Tubing String)O.D.(mm) I.D. (mm) Description Length (m) Top of mKB

825.4595.25 N/A 0.10 825.35

114.30 76.20 Slotted Chemical Injection/Intake Sub 0.35 825.00106.72 76.20 Shaved and Bevelled Coupling, 3.5 EUE X 2 7/8 NUE 0.15 824.85

73.03 N/A 5-E-18 Euro Pump Stator SN 1160 Rotor SN 10537 4.40 820.45106.72 76.20 Spacer Sub 0.48 819.97146.05 63.50 Y Production Sub 0.32 819.65

87.88 62.00 2 7/8 Pup Joint, 8 ft 3.08 816.57101.60 N/A Wiper Cone Sub 0.20 816.37101.60 N/A Seal Sub 0.16 816.21143.51 N/A Hydraulic Motor (Square 101.6 mm X 101.6 mm) Serial #001 0.69 815.52146.05 N/A Top Connector 0.10 815.42151.89 N/A Distance from Bear paw to top connector 0.20 815.22151.89 N/A Bear Paw 0.10 815.12124.53 See below Flat Pak 1"CT X1 3/4" CT X 1"CT X 1/4" Tube X 4mm wire 812.53 2.59

KB difference 2.59 0.00

1 Descripton Serial #

CJS 002

Location:Company Rep:

Well Profile

Sheldon Minish

Tubing Bottom3.5 EUE Bull Plug

Company:

Pressure operated Check Valve: Opening Pressure 10340 kPaSide Entry Wellhead 7 1/16 2000 psi X 11" 2000 psi X 2 3/8 EUE

Notes

!"#$ %% &'() *+,(-. /0)) !#!1 %% 23 !4#56

$$#7 %% &'() *+,(-. /0)) !#$1 %% #23 75#8! %%

8#7 %% 9:0(-);<<*+,(-.= /0)) #>11 %% #23 $#66 %%

$ %%?(@;

A@'B+C:('- *+,; D3E $$#7 %% 23E 75#8! %% F E$#1! %

First Field Applications

Crude Viscosity: 22,000 Centipoise Average Daily Production: 4.5 M3

Operating Speed: 100 RPM Torque: Approximately 150 ft/lbs

Maximum Motor Torque: 640 ft/lbs Maximum Speed: 200 RPM

First Field Applications

Crude Viscosity: 22,000 Centipoise Average Daily Production: 9.0 M3

Operating Speed: 80 RPM Torque: Approximately 185 ft/lbs

Maximum Motor Torque: 640 ft/lbs Maximum Speed: 200 RPM

CJS COILED TUBING SUPPLY LTD.

Scott Kiser – Business Development – Calgary, AB, Canada, scott@cjsflatpak.ca (403) 463-4740