Oil & Gas Production

Artificial Lift

Profit CenterESP & PCP

Manufacturing Technology

Processes

Repair

Testing Services

Ray Johnson

David DavidsonCopyright 2011, All Rights Reserved – LiftStar Capital Resources

www.LiftStar.net www.LiftStar.org

Objectives

• Brief bio of partners, Ray Johnson and

David Davidson.

• Introduce / overview of fixed assets and

mfg processes for regional market specific

ESP mfg & service facility.

• Brief on sourcing / engineering /

applications are included in this

presentation.

• Market & distribution plan and investment

criteria NOT included in this presentation.Copyright 2011, All Rights Reserved – LiftStar Capital Resources

RAY JOHNSON

Founded & Operated – Five (5) ESP related companies

1977 - SOS I, ESP Services Co. Introduced Flame spray corrosion coating, first commercial

VFD to ESP industry. (sold to Centrilift in 1980)

1983 - ESP, ESP Manufacturer & Service Co. (sold to WG in1990, now WGESPi)

1993 - Pioneered ESP’s early sales and efforts in Russia; Repair, Test and light Manuf. agreement

2003 – STP/SOS, Supplier of ESP technology, testing equip. & ESP parts to

end-users and manufacturers on a global basis.

2004 - SOS-Russia, (JV with Borets)

2004 – SOS II, ESP manufacturer & service co., (sold to Weatherford in 2005)

Has worked for all five major US ESP providers, Schlumberger Reda, Baker Hughes Centrilift, Wood

Group ESPI and Weatherford SOS, Global Artificial Lift. All in senior management roles. Founder of two.

Introduced key technology to lower operating costs, expand the number of ESP operating

around the world. Corrosion coating, VFD, Horizontal testing of used equip. Low cost motor

Dry out, Well test, Leasing, quality service technical improvements. With ESP we provided a way for the

API to introduce API standards for the ESP industry.

Experience in all major oil producing regions including; US, Canada, Russia, China

ME-NA, South America, Indonesia

Has initiated and implemented three (3) transfers of ESP manufacturing technology

Expertise in all facets of ESP business; sales, service, testing, manufacturing, management

Copyright 2011, LiftStar Capital Resources , All Rights Reserved

DAVID P DAVIDSON

Artificial Lift and Business / Marketing Specialist

• Global Oil & Gas Marketing / Distribution – particularly in the Middle East GCC.

• Artificial Lift ESP applications and training specialist for major oil & gas service company

• Acquisitions & Mergers -> Noble / Transworld / Bawden / PP&E & market analysis – Simmons

Extensive experience in electric submersible pump system applications and well optimization.

In addition, surface power systems, controllers, and ancillaries – onshore and offshore.

Specialist in surface ESP water injection and disposal systems.

Significant experience in the Middle East GCC and North Africa.

Systems specialist for enterprise mfg and market distribution. Managed the development of flow through

factory manufacturing process modeling for entire ESP system assembly – tubing, stages, press, lams,

rotors, CNC functionals, motor epoxy, winding, coating, seal assembly, and performance sump and bench

testing.

Experience in all major oil producing regions including; US, Canada, Russia, China, Caspian, ME-NA,

South America, and Indonesia

Expertise in ESP business; sales, service, manufacturing, and management.

Bachelor of Science, Mechanical Engineering, Tulane University, 1982.

Partners and Group - ESP Technology Partial Project List:

Snapshot

SOS I - Midland, Tx, (1977), Development of ESP VSD & Testing Technology , and development of coating

technology to ESP business

ESP – Midland, Tx, (1983) ESP testing Technology, Computerized horizontal pump testing 1983-Horizontal

computerized motor testing 1985, low cost motor dry out 1986, computerized seal testing 1988, Computerized

cable testing 1989, technology to clean out and test used equipment (Acid, other chemicals) 1983.

WGESPi,-Hawtah Project, Saudi Arabia (1992) – 1st ESPs and ESP Tech. to Kingdom of Saudi Arabia.

Oil Pump - Kogalym, W. Siberia (1995) – 1st. „Western” ESP facility in Russia, involved Technology Transfer

Temtex – Tianjin China, (1994) – 1st., “Western” China/US ESP Manufacturing, TT, transfer,

Borets – Moscow, (1996), Technology upgrade and manufacturing expansion,

Temtex –Tianjin, China, (1997), “Western” Motor Winding Technlogy TT to China,

STP/Borets - Moscow (2000), Transfer of “Western” Motor Winding to Borets,

SOS - Russia – Moscow/Midland, (2004), „Western” TT to Borets,

SOS - Weatherford – Midland/Shanghai (2005-06) “Western” ESP Technology to WF Shanghai from SOS.

Technology Development & Transfers implemented by members of group resulted in over 650MM USD in

quantifiable ESP related revenue in 2005.

In addition, to technology, members of the group have been directly involved in ESP market development in every

major oil producing region the World. This includes several market “firsts” ,the first ESPs in Saudi Arabia, first

Western ESPs in Former Soviet Union, First WGESPi, ESPs in Oman and Kuwait, and the first WFT ESP units in

Venezuela, Columbia, Ecuador, Trinidad and Brazil.

ESP Group – Technology, “Firsts”

1977 1st. Corrosion Coating for ESP Components-Flame Spray

1978 1st. Use of Variable Frequency Drive with ESPs

1983 1st. Computerized Horizontal Pump test Bench

1983 1st. Adapters; allow different manufacturers equipment to be used

1985 1st. Computerized Horizontal Motor Test bench

1985 1st. Low Cost Motor Dry out Technology

1988 1st. Computerized Seal Test Bench

1990 1st. Computerized cable Testing

1992 1st. Well testing program utilizing ESPs

1994 1st. Leasing Program of ESPs

2004 2nd. Affordable Nickel - Stage Coating process for pump stages

“Western” ESP Product Technology - including “Specialty” Hi-end ESP

products

This includes all of the necessary manufacturing, assembly and repair drawings, (CAD) For the following

Series and Configurations of DH ESP Product:

Pumps: 400, 513 & 538 Series, (180-14,000 BPD)

Motors: 375, 456, 540 & 562 Motors, both Med. (150 C) & High Temp (+180 C)

Motor Lead Flat Cables

Seals: 375, 400 & 513 in standard and modular multi-chamber configurations, High Temp, High Load

Gas Separators and Intakes: Rotary & Vortex Separators.

Other Products could be added, when we install manufacturing; Switchboards, Transformers, Parts Reclamation, Foundry

“Western” ESP Manufacturing, Assembly, Repair, Inspection Tooling &

Corresponding manufacturing know-how.

The group will provide the necessary tooling to manufacture, repair and inspect the ESP equipment listed above as well as

tooling necessary to repair the ESP products of the primary ESP competitors. In addion the group will provide the know-how and

training to effectively manufacture and repair all ESP components.

“Western” ESP Testing Technology

The group pioneered the creation and establishment of this technology in the 1980‟s. The core group will provide the latest

technology in testing benches, software and operating know-how. Testing benches include:

Computerized Pump Testing

Computerized Motor Testing

Computerized Seal Testing

Computerized Cable Testing

What the ESP Group Brings to a ESP Repair & Testing Project

What the LiftStar ESP Group Brings to a ESP Repair & Testing Project

Established supply line of “Western” ESP parts & components

The ESP group has spent fifteen years developing a supply line of ESP parts and components.

The supply line not only involves primary ESP Parts an components, i.e. motors, pump, pump stages etc., but

more importantly the hi-end specialty parts that are critically important in supplying an ESP product that can

operate in difficult DH environements,i.e. high strength shafts, premium seals, high load bearings, high temp.

Insulating materials and elastomers. Parts reclamation technology.

This “independent” supply line will be instantly available to the project.

Sales, Service and Application Engineering Know-how.

Members of the ESP Group have established over eight (8) ESP manufacturing, testing, sales and service

companies over the past thirty years. These include efforts in the US, Canada, Indonesia, the Middle East,

Russia, China and South America. In all of these efforts the establishment of local sales, service and

application engineering infrastructure was one of the primary keys to success.

PHASE I: COMPONENT TESTING (MOTOR/PUMP/SEAL/GS/CABLE)

THE THREE PHASES OF ESP REPAIR AND TESTING

PHASE II: PHASE I WITH THE ADDITION OF COMPONENT REPAIR &

PROVIDE SUPPLY OF QUALITY PARTS

PHASE III: PHASE I AND II WITH THE ADDITION OF MOTOR WINDING

EQUIPMENT REQUIRED FOR - PHASE I

PUMP TEST BENCH

PUMP TEST TOOLS

PUMP FILTERTING SYSTEM

PUMP TEST CALIBRATION EQUIPMENT

MOTOR TEST BENCH

MOTOR TEST BENCH TOOLS

SEAL SECTION TEST BENCH

SEAL SECTION TEST BENCH TOOLS

CABLE TESTER

CABLE TESTER TOOLS

CABLE REPAIR TOOLS

MOTOR DRYOUT SYSTEM

MOTOR FLUSH & FILL EQUIPMENT

OPTIONAL : ACID CLEANING SYSTEM FOR Used PUMPS

EQUIPMENT REQUIRED FOR - PHASE II

MOTOR ASSEMBLEY & DISSASSEMBLEY TOOLING

SEAL ASSEMBLEY & DISSASSEMBLEY TOOLING

PUMP ASSENBLEY & DISSASSEMBLEY TOOLING

INSPECTION AND MEASURMENT TOOLING

PARTS CLEANER, (SOLVENT TYPE)

STEAM CLEANER (INDUSTRIAL TYPE)

MOTOR STATOR BORE CLEANER

ROTOR BAKING OVEN

SAND BLASTING CABINENT

BEARING LAPPING MACHINE

HYDRAULIC BREAKOUT WRENCH

MOTOR REPAIR BENCH

SEAL SECTION REPAIR BENCH

PUMP ASSEMBLEY BENCH

PUMP DISSASSEMBLEY BENCH

SHAFT STRAIGHTENER & other technical parts

Machinery for repairs

LAMINATION RECOVERY TOOLING

STATOR PRESS

STATOR STRAIGHTER

STATOR WINDING TOOLING

SLOT LINER INSTALLATION TOOLING

STATOR VARNISH SYSTEM

STATOR VARNISH TOOLING

Machinery required for project

EQUIPMENT REQUIRED FOR – PHASE III

TYPICAL ESP REPAIR & TESTING FACILITY - EXAMPLE A

TYPICAL ESP REPAIR & TESTING FACILITY - EXAMPLE B

ESP REPAIR

Pumps

Motors

Seals

Gas Separators & Intakes

Cable

Variable Frequency Controllers

ESP COMPONENT TESTING

Pumps

Motors

Seals

Cable

Variable Frequency Controllers

SOS ESP Group and Investors / Operating Co.

• LiftStar Capital Resources require a contract for

a negotiated period to meet plan requirements.

• Technology Transfer Agreement

• These items are required to bring in the required

technical personnel to set up and provide the

transfer of technology, training and engineering

support.