Ecosphere Energy ServicesTotal Frac Water Management

Presented By:

Dennis McGuire & Aaron Horn

Manage & Extend The Life Cycle Of Frac Water

EcosFrac™ Tank (EF-600)

Chemical free method to destroy aerobic and anaerobic bacteria on the 'fly' at the frac site

EcosBrine™ and EcosFrac™

Processed EcosBrine™, used to frac a shale contains non reactive cations and bacteria free water,

which eliminates down hole scaling and corrosion

Flowback

EcosBrine™ System (EB-600)

Oxidizes heavy metals, oil sheens, organics, and

neutralizes cations to accept compatible friction reducers.

EcosBrine™

Processed EcosBrine™ with a negative scaling index is

blended at the frac site with bacteria free water

from EcosFrac™

Completion Frac Fluids

Ecosphere Ozonix™ EcosFrac™ Tank (EF-600)

• Remote monitoring from single location• Water holding capacity of 500 Bbls• Processes 600 Bbls/Hr (10 Bbls/min)• Onboard 60 KW generator for 24/7 operation

• Ecosphere Ozonix™ EcosFrac™ Process:• Destroys aerobic and anaerobic bacteria “on the fly”• Eliminates biocide and anti-scalant chemicals• Ecosphere Ozonix™ Reactor uses ozone, ultrasound,and electrodes for advanced oxidation• Set of 10 EF-600’s processes 100 Bbls/min

Anaerobic Bacteria

SRB – Sulfate Reducing BacteriaProduces Hydrogen Sulfide (sour gas)and has the potential to shut down a well.

APB – Acid Producing BacteriaGrows on metal and secretes acidproducing corrosion.

Aerobic Bacteria

GAB – General Aerobic BacteriaOften called slime-forming bacteria, producesPolysaccharide biofilm that often adheresto the shale and inhibits the flow of gasses.

EcosFrac™ Eliminates Bacteria

Ecosphere Ozonix™ EcosBrine™ System (EB-600)

• Reduced hauling and disposal costs• Recycling vital water resources• Fully automated Ecosphere Ozonix™ process• Onboard generator for 24/7 operation

• Ecosphere Ozonix™ EcosBrine™ Process:• Processes Flowback and Produced waters atthe well site - 600 Bbls/Hr. (10 Bbls/Min.)• Produces a conditioned flowback with a negativescaling index to be reused for next frac job

Ecosphere Ozonix™ EcosBrine™ Capabilities

• Oxidization of contaminants:• Organic• Inorganic

• Disinfection of:• Microbiological organisms• Including sulfur reducing bacteria

• Neutralizes all divalent cationsand turns sulfates andcarbonates into a colloidal form

• Passive filtration up to 25 micron

Ecosphere Ozonix™ EcosBrine™ (EB-600) Result*

• The EcosBrine™ EB-600 processes allflowback waters to produce a bacteriafree negative scaling fracturing fluid tobe reused to fracture other wells

• The Ecosphere Ozonix EB-600 systemreduces the costs of hauling anddisposal of flowback and producedwaters as well as the amount of freshwater use

Ecosphere Ozonix™ Reactor

• Combines ozone, ultrasound and electro-precipitation in a reaction vessel• Provisional U.S. Patent filed Aug. 2007 / U.S. patent filed Sept. 2008• U.S. Patent Filing #’s: 60/953,584 ; 12/184,716 ; 12/399,481• Generation of OH Radicals at an exponential rate enabling the oxidation of

contaminants in the shortest duration.

Ecosphere Ozonix™ Nano-bubble Technology• In the presence of an ultrasonic cavitation field, ozone decomposes into two

hydroxyl radicals and oxygen gas. The hydroxyl radical will oxidize all knownorganic compounds in nano-seconds.

• Nano-cavitation bubbles imploding provide the liquid-gas interface that isinstantaneously heated to approx. 900 degrees F, which in turn oxidizes allknown organic compounds in 35-100 pico-seconds (pico-second is one millionof one millionth of a second). This phenomenon is known as“sonoluminescence”.

Ecosphere Ozonix™ Reactor

• Ultrasonic transducers initiate the dissolvedgas flotation of oils and suspended solidsand the conversion of ozone to hydroxyl (OH)radicals.

• After primary oxidation using ozone, effluentsaturated oxygen is converted into OHRadicals with the help of DC electrodes. TheOH Radicals help break down allcontaminants and turn them into an inertform.

• DC electrodes help to precipitate hardnesssalts to turn them into a colloidal/inert form.The effluent has a negative scaling index anddoes not produce scale.

• Chemicals in frac water contribute to scaling and corrosion problems-Metals: divalent cations interfere with FR performance and encourage scaling

-Alkalinity: carbonates and sulfates in typical water build up scale-closing micro-pores-Bacteria: SRB eats away gel, providing poor transportation of sand to destination-Chemical Additives: interfere with each other and produce catastrophic results

Scaling And Corrosion – The Facts

Providing Clean Paths For GasTo Flow Back To The Wellbore

• Processed EcosBrine™ with a negative scaling index does not allow bacteria re-growth• EcosBrine™ is compatible with most generic friction reducers in the market• Using less chemicals with EcosBrine™ helps to keep the fracturing fluid cleaner,

producing a better performing fracturing fluid• No bacteria means efficient transfer of proppant with gel to its destination• Efficient transportation of proppant to its destination helps to keep micro pores open,

which increases gas production

Ecosphere Ozonix™EcosBrine™ (EB-600) Result*

*Ecosphere - Newfield Test Results - 7/1/09 - Test conducted by Technical Services Group.

Raw Water Sample After Ozonix™Sample

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Ecosphere Ozonix™ EcosStim™ Completions Fluid

EcosStim™ is an eco-friendly completions fluid that uses EcosBrine™ pairedwith a compatible friction reducer for the shale play that it is being used in

+Compatible Friction Reducer

= EcosStim™Eco-Friendly Completions Fluid

EcosBrine™

• EcosFracTM significantly reduces the amount of biocides (100%), scale inhibitors(100%), and friction reducers (50%) needed*

• EcosBrineTM eliminates the need to purchase expensive potassium chloridepowders to mix with completion fluids, HCW is an optimal completions fluid *

• Using EcosBrineTM as an environmental completions fluid increases wellproductivity over using non-treated flowback as a completions fluid*

• Ecosphere OzonixTM reduces the overall carbon footprint by reducing the amount oftrucks traveling from each well completed *

• Recycling flowback as EcosBrineTM will prove cheaper than trucking and disposal inmost plays *

Ecosphere Total Frac Water Treatment Benefits

* Source: SPE - 121104-PP White Paper Titled: Breakthrough Mobile Water Treatment Converts 75% ofFracturing Flowback Fluid to Fresh Water and Lowers Co2 Emissions By: Aaron D. Horn, Completions Engineer,Newfield Exploration Mid-Continent. Paper presented at the 2009 SPEAmerica’s E&P Environmental & SafetyConference in San Antonio Texas. March 23-25.

Frac Site Set Up Using the EcosFrac™ and EcosBrine™ Process

1) Pond Water2) EcosFrac™ Tank Chemical free method to destroy aerobic and anerobic bacteria on the ‘fly’ at thefrac site3) EcosBrine™ Non reactive cation free water is blendedat the frac site with bacteria free water fromEcosFrac™to eliminate down hole scaling4) Pump Trucks5) Well Heads

Recycling Frac Flowback At The Well SiteWith The Ecosphere Ozonix™ Process

1) Well Heads2) EcosFrac™ Tanks3) Ecosphere Ozonix™ EcosBrine (EB-600) Unit Oxidizes heavy metals, oil sheens,organics, and neutralizescations to accept compatible friction reducers4) EcosBrine™ Frac Tanks5) Pond Water6) Ecosphere Ozonix™ Cone • Oxidizes soluble and insoluble organics from effluent and suspended solids to less than 1 ppm • Oxidizes bio slimes, oil sheens and heavy metals • Decomposes dissolved ammonia • Neutralizes divalent cations

Working To Preserve Natural Resources

Current Method• Costly Biocides• Chemicals deteriorate

in shale• Heavy metals, bacteria,

and chemicalcontaminates can causescale and reduceefficiency of wellproduction

Ecosphere Total Frac Water Management• Chemical Free – No Biocide• EcosFrac™ process destroys bacteria “on the fly”• Ecosphere Ozonix™ EcosBrine™ process oxidizes

heavy metals, oil sheens, organic compounds,hardness salts and cations in produced and flowbackwaters to blend with fresh clean water for the next frac

• Flowback water is treated on-site or at an off siteprocessing facility

• EcosStim™, a more environmentally friendlycompletions fluid free of biocide and scale inhibitorincreases well productivity and reserves over usingnon treated flowback completions fluids

Total Frac Water Resource Management

Eco-Fracturing™ To create an Eco-friendly Total Water Management System that is capable of cost-effectively reclaiming water for maximum reuse and minimal waste.

EcosFrac™ Tank EF-600 EcosBrine™ EB-600

Serving The Natural Gas IndustryWith Clean Water For Clean Energy