Wet eig new technologies presentation january2010

PRESENTATIONfor

(insert audience specifics)

introducing new technologiesfor

increasing revenue from existing production

January (insert specific date) 2010

(insert presenter(s) name – and position(s))

WET/EIG

Oil Ionizer recovers fresh & weathered crude

increased market value $k’s/day

Proven New Technologies

Water Ionizerenhances water floodscleans produced water

increased production value $k’s/day

PetroSonicupgrades heavy crude

increased market value $3-$14per/BBL

Enhanced Oil Recovery (EOR)Microbe enhanced oil recovery

treats tar sandstargets sustained 77% increased well production

Strata concrete containment

creates sellable product from hydrocarbon waste

WET/EIG

Exit

Terra-Kleen and InfraSonicsoil remediation

PCB disposal


Environmental solutions

WET/EIG

Oil Ionizer treats and recovers fresh & weathered crude


Using only the ionizer in upstream oil production increases APIExample: Before 12° After 18° (typical)

@100,000BOPD and 10c per API° = $6000 per/day increased revenue, orExample: Before 16° After 23° (typical)

@100,000BOPD and 10c per API° = $2,555,000 per/year increased revenue

Using the Ionizer in produced water reduces oil content to <1%Example: 30,000BWPD at 4%oil content recovers = 900BOPD

@ $70 per/BBL = $63000 per/day increased revenue@ $70 per/BBL = $22,995,000 per/year increased revenue

Operating cost = Ionizer lease, settling area and low pressure pump

WET/EIG

Oil Ionizer treats and recovers weathered crudeincreasing revenue from existing production

Developed over 15 yearsUsed throughout Northern America

Internationally tested in Qatar, Kuwait and OmanMillions of barrels oil/water emulsions processed

Modular Easy to install

Low operating pressure (3-6Bar) and temperature (ambient)

20 molecule standard water reduced to 3-5

molecules=

Better injection rates and better oil separation

No chemicals used in the oilOnly biodegradables for remediation

Environmentally friendlyRecovers oil from:1. Produced

water2. Tank bottoms3. Vessel tanks4. Oil lakes5. Sludge

WET/EIG

Oil Ionizer results and potential Company: Oilwell Technologies & Enhancement CorpPresident: David MeltonDate: 29th September 1995Location: Santa Maria, CaliforniaPurpose: Install Ionizer at oil well for the purpose of upgrading the specific gravity of the crudeResults: Lab tests reflected a 30% increase in the specific gravity (9.5-12.2) from the oil produced from the UCB #1. At the time this company received an additional 15 cents per gravity point increase.

Company: Sctek IncPresident: Paul Downey

Date: 19th June 2003Purpose: Financial potential of the Ionizer

Assumptions:Oil producers are willing to pay $1 per incremental BBL

40% increase in daily production expected from most reservoirsExample: Saudi Aramco, 6 million BOPD

the Ionizer will increase production by 2.4 million BOPDAnnual revenue of $860,000,000 for technology owner and $21.5 billion

additional revenue for Saudi Aramco at $25 per bbl

Oil & Water Ionizer Operation – Hydrodynamic CavitationFluid is pumped into the Ionizer via a perforated rotating cylinder

Fluid exits the perforations creating a reduced pressure and reacting with the Ionizer internal wall......

...bubbles form in the low pressure region and grow to an unstable size......

...and implode causing HT/HP reaction. Electron discharges may also occur. The collapsing bubbles also form shock waves through the fluid...........

Laboratory observed phenomena can be classified as:1.Hot spot chemistry2.Surfactant generation3.Electrical discharges and catalytic chemistry4.Propagation of acoustical waves

2000

°C

100B

ar

WET/EIG

Oil Ionizer increasing revenue from existing production

Results1. Water is thinned (from 20 to 3-5 molecules)2. Emulsions break 3. Oil separates easily4. Metals drop out of suspension

Capacity (m3/day)

32 155 1,360 4,540 9,100

Length (meters)

1 2.5 2.5 5 13

Diameter (cm) 5 10 15 51 92

•Tank bottom mixed with fresh crude or diesel

•Continuous or batch mode

•Knocks out all water, biomass and solidswater in crude <1%

•Upgrades the blendincreases API beyond conventional mixing

Typical examples (dependent on feedstock)

4° sludge + 20° crude + Ionization = 16°API blend5° tank bottoms + diesel + Ionization = 30°API blend

WET/EIG

Oil Ionizer Cleaning tank bottoms/vessels

Oil sampling while

operational

Creates a homogenous blend that can be fed into current production train

About to sign new contracts for lake oil recovery in AlbaniaIn planning phase for demonstrating Ionizer in Turkmenistan

WET/EIG

Oil Ionizer – the way forward

WET/EIG would welcome the opportunity to work with (insert specifics) in the following manner:

1.WET/EIG visit (insert specifics)

2.(Insert specifics) provide information to WET/EIG of the area for potential growth by use of the Oil Ionizer.

3.WET/EIG build operating data and take 4 x 20litre representative samples

4.Following analysis of the operating data and samples WET/EIG will provide a business proposal to include:a) Equipment and personnel requiredb) Details of an in-line demonstrationc) A profit-sharing or lease agreement upon success of the demonstration

WET/EIG

Oil Ionizer

SUMMARY

Increasing revenue from every API° raised for every BBL oil produced

Increasing revenue via oil recovery from every BBL of produced water

Increasing revenue from salvaging settled crude in tanks/vessels/lakes

Ionizing is here now and ready to enhance existing oil production volumes

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WET/EIG

Water Ionizerincreasing revenue from existing production

Ionized water used for well injection

Increases oil production

Example: Switching to ionized water has

increased well production by 25% - sustained

due to effects of water thinning, metals removal, formation cleaning i.e.breaks up skin damage, swollen clays, and damage from acid and gel fracs.

Removes fine particles from the reservoir

WET/EIG

Water Ionizerincreasing revenue from existing production

•Significantly increases water disposal & injection ratesreduces injection pressure (see charts)

•Recovers oil from produced water prior to re-injectionOil in water after treatment is >1%

•Breaks emulsions – without chemicals

•Drops out metals and solids from suspension including barium – a major source of well scaling (see charts)

•Knocks out toxic metals – mercury, arsenic, lead etc.

•Prepares water for re-injectionHydrocarbons reduced to <1%

NOTE: A surfactant may be added to improve reaction

Results of VICR system efficiency on a water injected producing well

Examples of actual results by use of the ION collider

Tri Union Oil Company:

Ionizer installed on water injection well in Alvin, Texas. Injection pressure dropped. The volume of water injected increased.

Mission River Systems, Morgan City LA:

Ionizer cut injection pressure by 83% from 600 psi to below 100 psi. Water injection volume increased from 600 bpd to approximately 1,000 bpd.

Oil & Water Ionizer Operation – Hydrodynamic CavitationFluid is pumped into the Ionizer via a perforated rotating cylinder

Fluid exits the perforations creating a reduced pressure and reacting with the Ionizer internal wall......

...bubbles form in the low pressure region and grow to an unstable size......

...and implode causing HT/HP reaction. Electron discharges may also occur. The collapsing bubbles also form shock waves through the fluid...........

Laboratory observed phenomena can be classified as:1.Hot spot chemistry2.Surfactant generation3.Electrical discharges and catalytic chemistry4.Propagation of acoustical waves

2000

°C

100B

ar

WET/EIG

Water Ionizer

Results1. Water is thinned

(to4molecules)2. Emulsions break3. Oil separates easily4. Metals drop out of suspension

Capacity (m3/day)

32 155 1,360 4,540 9,100

Length (meters)

1 2.5 2.5 5 13

Diameter (cm) 5 10 15 51 92

AfterBefore

increasing revenue from existing productionBreaks emulsions without chemicals Drops out metals and solids from suspension

Knocks out toxic metals - mercury, arsenic, lead, etc.Prepares water for re-Injection without chemicals

Cleans produced or polluted water up to grey water standard for Industrial use

Additional equipment added after the Ionizer will create potable water

WET/EIG

Water Ionizer resultsCompany: New Tech EngineeringPresident: Regan D. WoodDate: 21st December 2001Location: Bixby, OklahomaPurpose: Ionize produced salt water in Highbaugh fieldResults: 120 bbls of salt water and 280 bbls of untreated salt water were simultaneously pumped through the Ionizer. The resulting mixture was left overnight and in the morning revealed 2 inches of oil in the tank which were not apparent before treatment. The technology is able to break oil in water emulsions to reveal two immiscible liquids (oil and water).

Occupation: Consulting GeophysicistName: Edwin K. Hiserodt

Date: 17th March 2004Purpose: Characterize details of chemical/physical changes in water caused by treatment with the Ionizer

Results: Experiment conducted using Tulsa city water pumped from a 5-gallon plastic container.Low pressure (20 psi) non-stop, 60 second run; reduced resistivity by 10%high pressure (98 psi) non-stop, 60 second run; reduced resistivity by 17%

Using the VICR #micro 6, at high pressure reduced resistivity by 57.5%Experiment conducted with salt water 7,000ppm using the Ionizer #micro 6 at low pressure

Precipitous drop in resistivity of 96%, and a 33% drop in pH for the first few minutes, before rising to original level.

Conclusions: Using Ionizer leads to greater destruction of bacteria/alga and also reduces the number of molecules in water clusters, which will greatly reduce pressure required to drive contaminated water.

WET/EIG

Water Ionizer – the way forward

WET/EIG would welcome the opportunity to work with (insert specifics) in the following manner:

1.WET/EIG visit (Insert specifics)

2.(Insert specifics) provide information to Ionizer Middle East and CIS of the area for potential growth by use of the Oil Ionizer.

3.WET/EIG build operating data and take 4 x 20litre representative samples

4.Following analysis of the operating data and samples WET/EIG will provide a business proposal to include:a) Equipment and personnel requiredb) Details of an in-line demonstrationc) A profit-sharing or lease agreement upon success of the demonstration

WET/EIG

Water Ionizer

SUMMARY

Up to 25% increased production – sustained

Up to 85% decrease in injection pressure

Reduces oil in produced water <1% remaining

Elimination or huge reduction in damaging metals

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WET/EIG

Petrosonic – upgrading heavy crudeincreasing revenue with existing production

Petrosonic plant economics (typical international)Current Boscan Upgraded

BoscanWTI Oil Price ($/bbl) $75.00 $75.00Differential 40% $4Boscan Oil Price $45.00 $71.00Liquid Yield 100% 90%

Revenues $45.00 $63.90% Diluent/Solvent 3%Price $80.50Diluent/Solvent Cost $2.42

Upgrading Cost $5.00% of Asphalt 13%Price of Asphalt $25.00

Asphalt Revenue $3.25Netback $45.00 $59.74

Net Uplift $14.74

Current Blended Upgraded toLloydminster 28 API

Hardisty Light $70.00 $70.00Differential 25% $11.00Hardisty 21 API Oil $52.50Medium Sour Crude $59.00Liquid Yield 100% 90%

Revenues $52.50 $53.10% Diluent/Solvent 30% 5%Price $85.75 $80.50

Cost $25.73 $4.03Upgrading Charge $5.00

% of Asphalt 10%Price of Asphalt $30.00

Asphalt Revenue $3.00Netback $38.25 $47.08

Net Uplift $8.83

Increased revenue of $3-$14 PER/BBL (dependent on feedstock)

WET/EIG


Conventional catalytic crackers

Works at ±500°C

Difficult process control

High maintenance (carbonization)

Large scale economics

High cost equipment and catalysts

Sonic technology

Sound/magnetic waves at (±150°C)= lower operating cost

Faster, more uniform processing

No moving parts – low maintenance

Small modular footprint for field deployment

Lower capex (~$3m per module)Petrosonic

WET/EIG


Solvent Storage

InfraSonic Cavitation

Solvent De-asphalting

Unit

Solvent Recovery

Asphaltenes

Upgraded Oil Storage

Bio-Chemical Oxidation Unit

Heavy Oil Storage

• Electromagnetic waves create low pressure bubbles in the heavy crude

• Localized extreme conditions crack hydrocarbon and branch chains

• Asphaltenes drop out of solution capturing metals and sulphur

• Oxidization unit completes the process

• Processing 1000-10,000BBL’s.Day

• ±40% crude lightening

• Upgrades oil from 8-12° API to 24-30° API

• Increases value ($/bbl) of crude by 20-50%

• 15-20% bitumen volume to asphalt market

Infrasonic cavitation removes asphaltenes & metals

WET/EIG


Upgraded oil quality from Athabasca Canadian tar sands

Petrosonic heavy oil test results

Sonic reactor

technology results

WET/EIG


Fast integration & transportation. The process is designed to be easily applicable to the upstream and midstream constituents. As a result, business models can take on various forms:

Oil Producers: Decrease viscosity and need for diluents; improvequality; increase marketability. Typical volume is 1-10kbopdPipeline Operators: Decrease viscosity and need for diluent henceability to increase throughput. Typical size from 20-50kbopd.Storage & Blending Operators: Increase yield and quality.Typical size ranges from 20-50kbopd.Retailers: Increase yield & quality. Typical sizes ranges from2.5-20kbopd. Refiners: Increase yield and quality. De-bottleneck refinery.Typical sizes range from 30-100kbopd.Sonic will sub-license.

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WET/EIG


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SUMMARY

Increased revenue of $3-$14 PER/BBL by

Raising the oil API° - up to 40%

Operates at only 150°C

No moving parts = low maintenance costs

Removed bitumen sold to the asphalt market

WET/EIG

Microbe enhanced oil recoveryincreasing revenue with existing productionDOWNHOLE USE

Microbes can boost production from thousands of stripper wells worldwide where CO2 injection and other tertiary oil recovery techniques fail or are too expensive

Targets 77% sustained increase in production20% increase in porosity and permeabilityCreates surfactants to lower surface tensionTackles bitumen, tar sands, oil shaleVastly reduces energy and water requirementsEntraps heavy metals, eliminates toxinsChemically mobilizes natural system of microbesCracks heavier fractions while in the groundIncreases well head pressureEfficient & reliable solutionMore Solvent than Catalyst, so re-useableFast: increased production in 2-4 months, peak levels reached in 5-9 months

Specific microbes chosen for best efficiency on a particular type of hydrocarbonCost dependent on Microbe selection and quantity required

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WET/EIG

Strata – Concrete containment

Treat any form of oil based waste irrespective of it’s age, condition and the presence of foreign objectsTreat the waste on location after an event, or intervene on spillages in remote areasNo down time for ongoing operationsNo transport of hazardous wasteTransformation of the waste into a benign solidTotally sanitize the waste areaLandscape the terrain

Key is in simple mobile unitsBased on well known and proven consolidation process and is rapidly deployed

Mixes waste material with Sodium Silicate at 45% and normal building standard cementSodium Silicate bonds the oil much like a detergent

Cement absorbs the mixture and solidifies it into a hard composite0% volatile oil with 0% leaching oil, 0% toxicity for heavy metals and hydrocarbonsThe chemical process is already established as a recognized method of treatment.

How

WET/EIG

BioRemediation – restoring natural resources

Mud pit on an abandoned oil based mud well.The pit is 60m x 60m x 0.75m. Waste lies on a plastic liner

3000 m³ of Oil Based Mud WasteCompleted in 25 daysRaw Materials 500 m³ of Cement 18 m³ of active chemical ingredient Water

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WET/EIG

Soil remediationPCB=Polychlorinated Biphenyls – POP=Persistent Organic pollutant

Integrates Terra-Kleen extraction process with the Sonoprocess

•Terra-Kleen cleans the soil of PCB’s and POP’s•Leaves a concentrated PCB waste stream (residue) Reduces volume of contaminated material to as low as 2% of original•Sonoprocess™ destroys PCB residue

•Residue is de-chlorinated resulting in a non-toxic industrial wasteClosed, environmentally safe, treatment of soils contaminated with:•Pesticides•Dioxins and Furans (PCDD and PCDF)•PolyAromatic Hydrocarbons (PAHs)•Volatile and Semi-Volatile Organics (VOCs)•Petroleum HydrocarbonsOperates at ambient temperatureSafely treats persistent contaminantsUses proprietary blend of non-toxic solvent that quickly biodegrades

WET/EIG

Remediation – Soil remediationOperation carried out on siteIsolate inflow/pollutantTerra-Kleen removes 98% PCB’sReturn soil to groundSonic generator destroys PCB’s

Mixing of sized soil with hydrocarbon solvent.Pumped circulation of slurry through Sonic mixing chamber to de-agglomerate soil and extract PCB

Addition of sodium (ingot) to process slurrySonic micro-dispersion of sodium by circulation of the process slurry/sodium metal through the Sonic chamber

Solvent recovery by decantation and froth flotationSoil dewatering

Solvent and process water are recycled

Incineration may be used for smaller

volumes

WET/EIG

Remediation – Soil remediationTerra-Kleen Client Results

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What we need to know to initiate a project study:

• Where is the interest:1) Non-Producing wells (water injection must be possible)2) Poorly producing wells (water injection must be possible)3) Upstream of wellhead e.g. Water separation from oil system4) Upstream of wellheads e.g. Oil separation from water system5) Recovering oil from settling tanks6) Water cleaning7) Potable water making

•What volumes are to be treatedNOTE: Systems can be built for 350-100,000 BPD• Location• Comprehensive fluid data at proposed location• Current and historic statistics (for predicting treatment benefits)

1) Composition of the fluids today and previously (trend lines)2) Pressures within all systems today and previously (trend lines)3) Temperatures within all systems today and previously (trend lines)

A team of specialists can be made available to present the expected increased production rates and revenue (following approved trials and analysis)

Wet eig new technologies presentation january2010

Investor Relations

Transcript of Wet eig new technologies presentation january2010