Introducing the next generation of Cathodic Protection (CP ...

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Introducing the next generation of Cathodic Protection (CP) systems:

TAG Synergy Systems ™

2REVOLUTIONARY INNOVATIONS IN CATHODIC PROTECTION

• Company formed in 2003 under affiliated companies of AAP and GCI

to provide safe products for water/wastewater industry.

• AEP turned its attention to oil & gas industry in 2006 with development

of corrosion protection/CP products and processes.

• AEP has an international patent pending on its core product and

related processes that are considered as “replacement technology.”

• Scope of AEP’s market is worldwide in energy, maritime, telecom, road

& bridge, aviation and city utility sectors with emphasis on the U.S.

first.

HISTORY OF AEP

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TAG Synergy Systems™

Totally Integrated Automatic Digital Control Green Cathodic Protection

HIGH PERFORMANCE,

COST-EFFECTIVE,

GREEN,

Impressed Current Cathodic Protection

(ICCP)

REVOLUTIONARY INNOVATIONS IN CATHODIC PROTECTION

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• Unmatched performance

– Advanced properties far exceed the performance of any other currently fielded CP system

• Unmatched longevity / sustainability

– Advanced properties virtually eliminate anode degradation from heat and external environmental influences such as soil/seawater chemicals



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• Green properties of TAG™ Anode (patent pending) and proprietary “R”-Breeze™:

– Comply with RoHS* standards

– Pose minimal environmental impact by virtually eliminating heavy metal contamination

– Reduce electrical power requirements

– Contribute to the long-term sustainability of the protected asset and CP system

– Include recycled waste by-products produced by other manufacturers* European directive which stands for “restriction on the use of certain

hazardous substances in electrical and electronic equipment.”



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PERFORMANCE

• TAG™ Anodes achieve as much as 10 times or more the efficiency of traditional anodes currently in use.

• TAG™ Anodes are engineered with advanced materials to not break down under normal conditions experienced in subsurface geological or maritime applications.

• TAG™ Anodes do NOT “sacrifice” heavy metals into the environment.

• TAG™ Anodes require less power demand to achieve same or better results.

• TAG™ Anodes are built under UL/CUL Certification within AEP to ensure high quality control.


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PERFORMANCEReal-World Example A:

• Depleted CP bed in highly-resistive rocky soil in Wyoming for Oil &

Gas Exploration Company.

• 10 Traditional anodes requiring 49 Volts to produce 0.87 Amps

• Replaced by 2 TAG™ Anodes requiring 9 Volts to produce 3.2 Amps


TAG™(A)

TRADITIONAL(B)

EFFICIENCY(C)

No. Anodes 2 10 80% Increase

Volts Required 9 49 82% Increase

Amps Produced 3.2 .87 268% Increase

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PERFORMANCEReal-World Example B:

• Depleted CP bed in Wyoming for Oil & Gas Exploration Co.

• 20 Traditional anodes requiring 106 Volts to produce 36 Amps.

• Replaced by 2 TAG™ Anodes and 1 graphite test anode (at

customer’s request)* requiring 17 Volts to produce 39 Amps.

* Additional graphite test anode placed in bed at request of customer.


TAG™(A)

TRADITIONAL(B)

EFFICIENCY(C)

No. Anodes 2* 20 90% Increase*

Volts Required 17 106 84% Increase

Amps Produced 39 36 8% Increase

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PERFORMANCEReal-World Example C:

• AEP won bid in North Texas from Oil & Gas Exploration Co.

to install 4 TAG™ Anodes in 1 bore hole to protect 7 well bores.

• Competitor’s bid to achieve comparable system performance required 75 traditional anodes, requiring up to 7 bore holes to protect 7 well bores.

In addition to the enormous cost savings from only drilling 1 anode bore hole versus 7 (about $150,000), consider the profound positive impact on the

environment and in preserving limited resources that AEP’s TAG™ Anodes provide all stakeholders.


TAG™(A)

TRADITIONAL(B)

EFFICIENCY(C)

No. Anodes 4 in 1 hole 75 in 7 holes 95% Increase

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EFFICIENCY

• Existing ICCP technology is unpredictable and costsmore to operate over time as “old technology” anodes degrade, requiring increased electrical demand, up to system failure.

• AEP anodes do not degradeappreciably over time, and use considerably less electrical energy to achieve not only equivalent, but better performance.


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 5 10 15

Anode Performance

AEP Old 1 Old 2 Old 3

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ENERGY SAVINGS

• Less power demands for CP translates to more operating and capital cost savings to customer, and helps preserve the integrity of protected assets longer than “old” technology.

• Consider cumulative power and cost savings over entire inventory of protected assets


0

50

100

150

200

250

Wattage Requirement versus Years

Old 1 Old 2 AEP

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COST SAVINGS

• Based on 20 Amp system requirement; other variables will affect actual cost.

• “Industry Standard System” includes installation cost only; electrical cost (not shown) will increase costs.

• “AEP Lifetime Support” includes design, installation, warranty, and lifetime support, including monitoring.

Service agreement price fixed for first 15 years, then adjusted for inflation (3%), annually thereafter.

$-

$50

$100

$150

$200

$250

$300

$350

0 5 10 15 20 25 30 35 40 45

Th

ou

san

ds

Cumulative Cost over Time (Years)(Assumes 3% Inflation)

AEP System AEP Lifetime Support Industry Standard System

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• What is the value to Customer of preserving

valuable and limited pad site real estate for

multiple well locations or other operating

facilities in lieu of multiple CP beds?

• What are the operational savings and Public

Relations value realized by Customer for

maintaining GREEN CP beds, for pipeline safety, for

reducing energy costs, for helping protect the power grid,

for minimizing call backs for service, for using advanced

CP technology, etc.?

• What is the cost to Customer for not using TAG™ Anodes?

CONSIDER THIS


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TAG™ Synergy Systems™

• Unmatched PERFORMANCE / EFFICIENCY

• Unmatched LONGEVITY / SUSTAINABILITY

• Focused CUSTOMER SERVICE

• Cost-Effective, GREEN, SOLUTIONS

• Enhanced BOTTOM-LINE


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2502 C.R. 4421, Rhome, Texas 76078

(940) 627-7672 email: [email protected]

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