NEW INDEPENDENT TEST RESULTS FOR … · their early stage investigation in LWP ceramic proppants....

18
LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane Qld 4000 ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.Lwptech.com NEW INDEPENDENT TEST RESULTS FOR POTENTIAL US LICENSEE FURTHER VALIDATE LWP’S FLY-ASH PROPPANTS Independent tests commissioned by a potential US licensee/JV Partner validate LWP’s low-cost fly-ash ceramic proppants capability to compete with frac sand Conductivity and permeability performance tests compared white and brown sands against LWP low-cost fly-ash ceramic proppants Test results confirm LWP’s low-cost fly-ash ceramic proppants significantly outperform frac sands Negotiations with potential US partner and other potential parties are ongoing Solid progress being made in India with Pune plant upgrade ASX ANNOUNCEMENT 2 November 2016 Energy technology company LWP Technologies Limited (ASX:LWP) (“LWP” “the Company”) is pleased to provide the attached independent expert testing report of LWP’s low-cost fly-ash based ceramic proppants, which are used in the hydraulic fracturing of unconventional oil & gas wells. The report clearly demonstrates the superior performance of LWP low-cost fly-ash based ceramic proppants over mined frac sands. Previous conductivity test results compared the performance of LWP high-strength ceramic proppants with high strength ceramic proppants made from bauxite and/or kaolin clay. However, depressed oil and gas prices have seen almost all oil and gas producers opting for low-cost mined frac sand proppants due to the high costs of high-strength ceramic proppants, often together with expensive transport and logistics costs. To LWP’s great advantage, LWP has been able to redesign its ceramic proppants to minimise manufacturing costs, so that LWP low-cost ceramic proppants can potentially compete with mined frac sand on price. The test report shows that compressive strength of LWP low-cost ceramic proppants is significantly higher than comparable mined frac sand. For personal use only

Transcript of NEW INDEPENDENT TEST RESULTS FOR … · their early stage investigation in LWP ceramic proppants....

Page 1: NEW INDEPENDENT TEST RESULTS FOR … · their early stage investigation in LWP ceramic proppants. ... LWP’s Chairman Siegfried Konig added, “LWP’s complete focus is on advancing

LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane Qld 4000

ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.Lwptech.com LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane

ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699

NEW INDEPENDENT TEST RESULTS FOR POTENTIAL US

LICENSEE FURTHER VALIDATE LWP’S FLY-ASH PROPPANTS

Independent tests commissioned by a potential US licensee/JV Partner validate LWP’s low-cost fly-ash ceramic proppants capability to compete with frac sand

Conductivity and permeability performance tests compared white and brown

sands against LWP low-cost fly-ash ceramic proppants

Test results confirm LWP’s low-cost fly-ash ceramic proppants significantly outperform frac sands

Negotiations with potential US partner and other potential parties are ongoing Solid progress being made in India with Pune plant upgrade

ASX ANNOUNCEMENT 2 November 2016 Energy technology company LWP Technologies Limited (ASX:LWP) (“LWP” “the Company”) is pleased to provide the attached independent expert testing report of LWP’s low-cost fly-ash based ceramic proppants, which are used in the hydraulic fracturing of unconventional oil & gas wells. The report clearly demonstrates the superior performance of LWP low-cost fly-ash based ceramic proppants over mined frac sands. Previous conductivity test results compared the performance of LWP high-strength ceramic proppants with high strength ceramic proppants made from bauxite and/or kaolin clay. However, depressed oil and gas prices have seen almost all oil and gas producers opting for low-cost mined frac sand proppants due to the high costs of high-strength ceramic proppants, often together with expensive transport and logistics costs. To LWP’s great advantage, LWP has been able to redesign its ceramic proppants to minimise manufacturing costs, so that LWP low-cost ceramic proppants can potentially compete with mined frac sand on price. The test report shows that compressive strength of LWP low-cost ceramic proppants is significantly higher than comparable mined frac sand.

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LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane Qld 4000

ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.Lwptech.com LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane

ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699

Enhanced conductivity and permeability directly contribute to maximizing the productivity of unconventional oil and gas wells. A website link to an article from the SPE provides an overview of conductivity in layman’s terms. http://petrowiki.org/Propping_agents_and_fracture_conductivity The development of LWP’s low-cost fly-ash ceramic proppant has allowed discussions with potential licensees that had been discontinued due to the decline in oil and gas prices, to recommence. LWP commenced early stage discussions 6 weeks ago with a US-based company that expressed interest in a potential license or Joint Venture partner in North America, to commercialise and manufacture LWP’s low-cost flyash ceramic proppants. The potential licensee/JV partner, who must remain confidential at this time due to non-disclosure arrangements, commissioned this latest conductivity/permeability test as part of their early stage investigation in LWP ceramic proppants. PropTester Inc, a highly-regarded independent expert laboratory located in Houston Texas that specialises in the research and testing of products used in the hydraulic fracturing and cement operations, completed the test work. The PropTester tests were designed to replicate accelerated downhole operations of a typical hydraulic fracturing operation, and tested the comparative performance of mined white frac sand, mined brown frac sand and LWP low-cost fly-ash ceramic proppant samples for conductivity and permeability. The complete test results that accompany this ASX filing which show that LWP proppants display superior conductivity and permeability compared to the mined frac sand proppants tested using identical testing regimen. (see tables on page 14) LWP’s Dr. David Henson commented: “These latest results continue to validate the superior performance of our low-cost fly-ash based ceramic proppants. The review of these results marks the next step in negotiations with a potential US-based licensee/JV partner that is closely assessing our technology.” “With oil & gas markets stabilising, we are witnessing growing levels of inquiry from a number of parties about our technology, and these latest results support our discussions and negotiations with all parties.” LWP’s Chairman Siegfried Konig added, “LWP’s complete focus is on advancing with the commercialisation and manufacture of our fly-ash ceramic proppants, and we are pleased to see increasing activity across a number of markets. The results of the tests in the United States are most encouraging. Also, progress in India with our JV partner Hallmark on the plant upgrade in Pune is ongoing, with clean-up and upgrade operations at the plant progressing.” “We look forward to updating shareholders on our progress across the business in the months to come.”

– ENDS – For further information please contact:

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LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane Qld 4000

ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699 | E [email protected] | W www.Lwptech.com LWP Technologies Limited, Suite 29 Level 54 111 Eagle Street Brisbane

ABN 80 112 379 503 │T +61 (0)7 3122 2233 │F +61 (0)7 3012 6699

Siegfried Konig Chairman LWP Technologies Limited Phone: 0411 111 193 Email: [email protected] For Media & Investors please contact: Ben Jarvis, Six Degrees Investor Relations +61 (0) 413 150 448

About LWP Technologies

LWP Technologies Limited (LWP) is an Australian oil and gas technology company focused on commercialising next generation, fly-ash based, proppants for use in hydraulic fracturing of oil and gas wells globally. LWP is seeking to commercialise its proppants as a cost effective, superior alternative to bauxite and clay based ceramic proppants, typically used in hydraulic fracturing operations currently. The Company commenced proppant production from its pilot scale proppant manufacturing plant in Queensland, Australia, in Q3, 2015. LWP is seeking joint venture partners and/or licensees to commercialise its proppant product, and deliver significant returns to shareholders. About Proppants

Proppants are a sand-like commodity used to ‘prop’ open fractures in shale rocks which allows oil and gas to flow. Proppants are often the single largest cost item in the fracking process and represent a multi-billion dollar global market annually. Traditional ceramic proppants are made from clay and/or bauxite. LWP Technologies ceramic proppants are majority manufactured from fly-ash, a by‐product of coal fired power plants. The Company is of the view that its unique proppant product has the potential to lead the industry due to:

the widespread abundant availability of fly-ash, often near to oil and gas shale resources;

the ultra-light weight of LWP fly-ash proppants; and

the ability of LWP proppants to withstand the very high pressures and heat of deep wells. LWP proppants have been certified by Independent Experts to meet or exceed both the American Petroleum Institute standards and the ISO standards.

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Long Term Conductivity Analysis

Sample A - White Sand

Sample B - Brown Sand

Sample C - Ceramic

400-16-10-47-03

Friday, October 21, 2016

QUALIFYING FLUID & PROPPANT PERFORMANCE®

•17222 HUFFMEISTER RD. STE. B•CYPRESS, TX 77429-1643•PH: 888-756-2112•FAX: 281-256-8883•

•WWW.PROPTESTER.COM•

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RFA# 400-16-10-47-03

A. BACKGROUND 3

B. SAMPLE 3

C. EXPERIMENTAL PROCEDURES 3

D. RESULTS

Table 1 - Tabular data for Sample A - White Sand sample 5

Table 2 - Sieve analysis of Sample A - White Sand sample 5

Figure 1 - Graphic results of conductivity for Sample A - White Sand sample 6

Figure 2 - Graphic results of permeability for Sample A - White Sand sample 6

Table 3 - Tabular data for Sample B - Brown Sand sample 7

Table 4 - Sieve analysis of Sample B - Brown Sand sample 7

Figure 3 - Graphic results of conductivity for Sample B - Brown Sand sample 8

Figure 4 - Graphic results of permeability for Sample B - Brown Sand sample 8

Table 5 - Tabular data for Sample C - Ceramic sample 9

Table 6 - Sieve analysis of Sample C - Ceramic sample 9

Figure 5 - Graphic results of conductivity for Sample C - Ceramic sample 10

Figure 6 - Graphic results of permeability for Sample C - Ceramic sample 10

Figure 7 - Sample A - White Sand sample between steel cores 11

Figure 8 - Top view of Sample A - White Sand sample proppant pack 11

Figure 9 - Sample B - Brown Sand sample between steel cores 12

Figure 10 - Top view of Sample B - Brown Sand sample proppant pack 12

Figure 11 - Sample C - Ceramic sample between steel cores 13

Figure 12 - Top view of Sample C - Ceramic sample proppant pack 13

14

D.2 Photographs

D.3 Comparison Graphs

CONTENTS

D.1 Baseline Fracture Conductivity, Permeability and Width

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Background:

Sieve analysis is performed using the procedure found in ISO 13503-2:2006/ API RP-19C

"Measurements of proppants used in hydraulic fracturing and gravel pack operations ". Standard US

mesh screens are used to separate the samples by size. Based on the recommended sieve stack for a

given proppant size, not more than 0.1% should be greater than the first specified sieve and not more

than 1% should be retained in the pan. There should be at least 90% retained between the specified

screens for an ISO graded proppant.

Procedures:

International Organization for Standardization, ISO 13503-5 part 5 "Procedures for measuring the long

term conductivity of proppants" was used to obtain baseline values. Standard baseline testing is 50

hours at each stress level starting at 2000 psi.

Samples from LWP Technologies were delivered to the PropTester, Inc. laboratory in Cypress, TX. The

samples were labeled Sample A - White Sand, Sample B - Brown Sand, and Sample C - Ceramic.

Instructions were to test each sample for conductivity and permeability.

Multiple flow rates are used to verify the performance of the transducers, and to determine Darcy flow

regime at each stress; an average of the data at these flow rates is reported. The test fluid is 2% KCl

filtered to 3µm absolute. The initial conductivity, permeability and width is measured and compared to

the final conductivity, permeability, and width after each stress period. Stress is applied and maintained

using an Isco 260D. Stress is applied at 100 psi/minute.

Zero width of the proppant pack is determined by assembling the conductivity cell with shims and

without the sample proppants. The distance between the width bars that are attached to each end of the

conductivity cells are measured at each of the four corners and recorded. The cells are then

disassembled and reassembled with the proppant samples. The measurements are made again at the

beginning and ending of each stress period. Width is determined by subtracting the average of the zero

from the average of each of the width values measured at each stress loading.

Sample:

Sample A - White Sand

Sample B - Brown Sand

Sample C - Ceramic

Long-term fracture conductivity and permeability testing was performed on the samples at 2000-psi,

4000-psi, 6000-psi, 8000-psi, and 10000-psi closure stress levels with the sampes being cycled down to

30% of the closure stress for 1 hour at the end of each 2,000 psi stress cycle. The test was performed at

a temperature of 150°F using a 2% KCl. The cells are loaded at 2lb/ft2 between steel cores.

A 1000 psi closure stress is applied across a test unit for 12-24 hours at temperature to allow the

proppant sample bed to reach a semi-steady state condition. The stress is then increased to the target

stress and maintained for 50 hours. At the end of the 50 hours the sample is cylced down to 30% of the

target stress, allowed to stabilize for 1 hour and then the pack width, differential pressure, temperature,

and flow rates are measured again. The stress is then increased back to the origonal target stress and

final readings taken. As the fluid is forced through the proppant bed, the pack width, differential

pressure, temperature, and flow rates are measured at each stress. Proppant pack permeability and

conductivity are then calculated using Darcy equation.

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RFA# 400-16-10-47-03

Calculations

Conductivity: kW f =26.78μQ/(ΔP) ***

Permeability: k=321.4μQ/[(ΔP)W f ] ***

k is the proppant pack permeability, expressed in Darcy

kW f is the proppant pack conductivity, expressed in millidarcy-feet

μ is the viscosity of the test liquid at test temperature, expressed in centipoises

Q is the flow rate, expressed in cubic centimeters per minute

ΔP is the differential pressure, expressed in psi

W f is proppant pack width, expressed in inches

1. Lower pressure port A. Upper/lower pistons

2. Thermocouple B. Tetraseal

3. High pressure port C. Metal shim

4. Not used D. Cell body

5. Inlet E. Ohio sandstone

6. Outlet F. Proppant

G. Center piston

H. Width slots

I. Set screws

*** ISO 13503-5 :2006(E) "Procedures for measuring the long term conductivity of proppants"

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1,000 24hrs 24hrs2,000 50hrs 74hrs1,400 1hr 75hrs2,000 1hr 76hrs4,000 50hrs 126hrs2,800 1hr 127hrs4,000 1hr 128hrs6,000 50hrs 178hrs4,200 1hr 179hrs6,000 1hr 180hrs8,000 50hrs 230hrs5,600 1hr 231hrs8,000 1hr 232hrs10,000 50hrs 282hrs7,000 1hr 283hrs10,000 1hr 284hrs

2lb/ft2

, 150°F, Steel core wafers, 2% KCl.

ISO

13503-2

(mm)

1.1801.0000.850 ≤ 0.1%0.7100.6000.5000.4250.3550.3000.2500.2120.1800.1500.1250.1060.075

<0.075 ≤ 1.0%

≥ 90%

0.423 0.017 0.246 0.010

0.434 0.017 0.303 0.012

∆MPD: 0.177 46.5ISO designated sieves

20372

101

0.219

Table 1 - Tabular data for Sample A - White Sand sample

0.213347

10199

7978

4039

2020

20592029

15761554

751742

371

0.2460.245

0.2390.238

0.2260.226

0.220

0.246

(-30+50) sieves

%(-50 mesh)

94.0

Median Particle Diameter (MPD, mm) / (MPD, inches)

53.0

(-30+50) sieves

0.0

140

80

0.0

70

0.0

8.5

100.0Total 100.0

Mean Particle Diameter (mm) / (inches)

Pa

rtic

le S

ize

Dis

trib

uti

on

16

100120

In-size (%)

0.2

35

PAN 0.1 12.00.1

60

40.615.6

200 5.3

4.7

0.9

0.1

4.8

20.016.0

0.30.4

2.9

4.67.73.1

4.4

7.8

0.0

50 9.1

Pre-Sieve

0.00.00.0

Post-Sieve

4045 29.2

0.8

232222

0.2090.209

Sample A - White

Sand

1313

0.00.6

25

18

Sample A - White

SandQuick Chek

30

Table 2 - Sieve analysis of Sample A - White Sand sample

13 0.209

Mesh size

222

20

2075

Conductivity

(md-ft)

Permeability

(Darcy)

Time

(Total)

1562

747

2037

0.226

100

79

40

Stress, psi

Time

@ stress Width (in)

0.245

0.239

0.0

20.0

40.0

60.0

16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 200 PAN

Per

cen

t R

etain

ed

US Mesh

Particle Size AnalysisSample A - White Sand PreSieveSample A - White Sand PostSieve

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RFA# 400-16-10-47-03

0.249 in. 1.54 g/cm3

0

2,000 4,000 6,000 8,000 10,000 12,000 14,000

2037 1562 747 372 232 222 222

0.249 in. 2.65

2,000 4,000 6,000 8,000 10,000 12,000 14,000

100 79 40 20 13 13 13

0.245 0.239 0.226 0.219 0.209 0.209 0.209

Permeability (Darcys)

Stress, psi

Conductivity (md-ft)

Stress, psi

Zero Pack Width:

Zero Pack Width: Bulk Density:

Figure 1 - Graphic results of conductivity for Sample A - White Sand sample

Figure 2 - Graphic results of permeability for Sample A - White Sand sample

Width, (in.)

Absolute Density:

2037 2059 2029 1562 1576 1554

747 751 742372 371 347

232 222 222

10

100

1000

10000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

md

-ft

Stress, psi

Conductivity

@ 2lb/ft2, 150°F, Steel Cores, 2% KCl

100 101 9979 79 78

40 40 39

20 20 2013 13 13

1

10

100

1000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

Dar

cys

Stress, psi

Permeability

@ 2lb/ft2, 150°F, Steel Cores, 2% KCl

2,000 Final

30% Cycled

2,000 (Post Cycle)

4,000 Final

30% Cycled

4,000 (Post Cycle)

6,000 Final

30% Cycled

6,000 (Post Cycle)

8,000 Final

30% Cycled

8,000 (Post Cycle)

10,000 Final

30% Cycled

10,000 (Post Cycle)

2037 2059 2029 1562 1576 1554 747 751 742 372 371 347 232 222 222

Stress, psi

Conductivity (md-ft)

2,000 Final

30% Cycled

2,000 (Post Cycle)

4,000 Final

30% Cycled

4,000 (Post Cycle)

6,000 Final

30% Cycled

6,000 (Post Cycle)

8,000 Final

30% Cycled

8,000 (Post Cycle)

10,000 Final

30% Cycled

10,000 (Post Cycle)

100 101 99 79 79 78 40 40 39 20 20 20 13 13 13

0.245 0.246 0.245 0.239 0.239 0.238 0.226 0.226 0.226 0.219 0.220 0.213 0.209 0.209 0.209

Stress, psi

Permeability (Darcys)

Width, (in.)

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RFA# 400-16-10-47-03

1,000 24hrs 24hrs2,000 50hrs 74hrs1,400 1hr 75hrs2,000 1hr 76hrs4,000 50hrs 126hrs2,800 1hr 127hrs4,000 1hr 128hrs6,000 50hrs 178hrs4,200 1hr 179hrs6,000 1hr 180hrs8,000 50hrs 230hrs5,600 1hr 231hrs8,000 1hr 232hrs10,000 50hrs 282hrs7,000 1hr 283hrs10,000 1hr 284hrs

2lb/ft2

, 150°F, Steel core wafers, 2% KCl.

ISO

13503-2

(mm)1.1801.0000.850 ≤ 0.1%0.7100.6000.5000.4250.3550.3000.2500.2120.1800.1500.1250.1060.075

<0.075 ≤ 1.0%

≥ 90%

0.431 0.017 0.237 0.009

0.443 0.017 0.296 0.012

∆MPD: 0.193 49.4ISO designated sieves

Pa

rtic

le S

ize

Dis

trib

uti

on

80 0.4

45 26.7

0.0

0.1

18 0.0 0.00.0

93.6 50.0In-size (%) (-30+50) sieves

3.34.7

50 8.3 9.0

Table 3 - Tabular data for Sample B - Brown Sand sample

0.257

Time

(Total)

10 0.218

16

60

22.6

200

25 0.232

280

5.1100 0.3 4.6120

3.2 8.3

10

Quick Chek

0.6

0.2

Table 4 - Sieve analysis of Sample B - Brown Sand sample

0.217

100.0

184

Mean Particle Diameter (mm) / (inches)

140

(-30+50) sieves

Sample B - Brown

Sand

Mesh size

0.223

184

Time

@ stress

Conductivity

(md-ft)

Permeability

(Darcy)

2237 104

0.247

Width (in)2524 117 0.259

631289

15

Stress, psi

16.8

25 0.0 0.0

70 0.8 4.7

3536.0

492

Sample B - Brown

Sand

10 0.218178

Total

20 0.0 0.0

14.240

0.1 5.5

Median Particle Diameter (MPD, mm) / (MPD, inches)

%(-50 mesh)

PAN 0.1 13.3

10.030 1.2

22552202

12801278

472476

265257

105

25

100.0

Pre-Sieve Post-Sieve

0.257103 0.257

62 0.24862 0.247

24 0.2320.232

14 0.22314 0.223

0.0

10.0

20.0

30.0

40.0

16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 200 PAN

Per

cen

t R

etain

ed

US Mesh

Particle Size AnalysisSample B - BrownSand Pre SieveSample B - BrownSand Post Sieve

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0.260 in. 1.49 g/cm3

2,000 4,000 6,000 8,000 10,000 12,000 14,000

2237 1289 492 280 184 178 184

0.260 in. 2.65

2,000 4,000 6,000 8,000 10,000 12,000 14,000

104 63 25 15 10 10 10

0.257 0.247 0.232 0.223 0.218 0.218 0.217

Stress, psi

Conductivity (md-ft)

Zero Pack Width:

Permeability (Darcys)

Stress, psi

Width, (in.)

Figure 4 - Graphic results of permeability for Sample B - Brown Sand sample

Bulk Density:Zero Pack Width:

Figure 3 - Graphic results of conductivity for Sample B - Brown Sand sample

Absolute Density:

2237 2255 22021289 1280 1278

492 472 476280 265 257

184 178 184

10

100

1000

10000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

md

-ft

Stress, psi

Conductivity

@ 2lb/ft2, 150°F, Steel Cores, 2% KCl

104 105 10363 62 62

25 24 2515 14 14

10 10 10

1

10

100

1000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

Dar

cys

Stress, psi

Permeability

@ 2lb/ft2, 150°F, Steel Cores, 2% KCl

2,000 Final

30% Cycled

2,000 (Post Cycle)

4,000 Final

30% Cycled

4,000 (Post Cycle)

6,000 Final

30% Cycled

6,000 (Post Cycle)

8,000 Final

30% Cycled

8,000 (Post Cycle)

10,000 Final

30% Cycled

10,000 (Post Cycle)

2237 2255 2202 1289 1280 1278 492 472 476 280 265 257 184 178 184

Stress, psi

Conductivity (md-ft)

2,000 Final

30% Cycled

2,000 (Post Cycle)

4,000 Final

30% Cycled

4,000 (Post Cycle)

6,000 Final

30% Cycled

6,000 (Post Cycle)

8,000 Final

30% Cycled

8,000 (Post Cycle)

10,000 Final

30% Cycled

10,000 (Post Cycle)

104 105 103 63 62 62 25 24 25 15 14 14 10 10 10

0.257 0.257 0.257 0.247 0.248 0.247 0.232 0.232 0.232 0.223 0.223 0.223 0.218 0.218 0.217

Stress, psi

Permeability (Darcys)

Width, (in.)

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RFA# 400-16-10-47-03

1,000 24hrs 24hrs2,000 50hrs 74hrs1,400 1hr 75hrs2,000 1hr 76hrs4,000 50hrs 126hrs2,800 1hr 127hrs4,000 1hr 128hrs6,000 50hrs 178hrs4,200 1hr 179hrs6,000 1hr 180hrs8,000 50hrs 230hrs5,600 1hr 231hrs8,000 1hr 232hrs10,000 50hrs 282hrs7,000 1hr 283hrs10,000 1hr 284hrs

2lb/ft2

, 150°F, Steel core wafers, 2% KCl.

ISO13503-2

(mm)1.1801.0000.850 ≤ 0.1%0.7100.6000.5000.4250.3550.3000.2500.2120.1800.1500.1250.1060.075

<0.075 ≤ 1.0%

≥ 90%0.428 0.017 0.354 0.0140.436 0.017 0.385 0.015

∆MPD: 0.074 18.7ISO designated sieves

Mesh size

120

97.6

Total 200.0 195.2

Pa

rtic

le S

ize

Dis

trib

uti

on

2592

Time

(Total)

113

Stress, psi

3043 129

0.018 0.0

60

200

20 0.0

0.1

%(-50 mesh)

81.2

25

17.6

0.0

0.0 1.4

18.4

30.7 23.6

0.0

0.3

100.0

2.3100

0.00.0

140

PAN

0.9

0.080

Quick Chek

Sample C -

Ceramic

Permeability

(Darcy)

33300.283

Conductivity

(md-ft)

Time

@ stress

Table 5 - Tabular data for Sample C - Ceramic sample

1.92.0

Median Particle Diameter (MPD, mm) / (MPD, inches)

139 0.288

1448 67

0.276

2210 99 0.269

Table 6 - Sieve analysis of Sample C - Ceramic sample

0.247

Sample C -

Ceramic

0.259

46 0.248940

Pre-Seive Post-Sieve

914

0.0

5.1

44

0.0 0.0

0.0

45 0.249947

Mean Particle Diameter (mm) / (inches)

(-30+50) sieves 99.4

Width (in)

In-size (%)

2.670

0.2840.283

16

28.3 23.545

30 0.3 0.135 22.0 16.640

50

1313015 128

(-30+50) sieves

1465 68 0.2601402 65 0.258

2207 98 0.2702165 96 0.269

2631 114 0.2772567 112 0.276

3089

0.0

20.0

40.0

16 18 20 25 30 35 40 45 50 60 70 80 100 120 140 200 PAN

Per

cen

t

Ret

ain

ed

US Mesh

Particle Size Analysis

Sample C - CeramicPre SieveSample C - CeramicPost Sieve

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RFA# 400-16-10-47-03

0.291 in. 1.31 g/cm3

2,000 4,000 6,000 8,000 10,000 12,000 14,000

3043 2592 2210 1448 947 940 914

0.291 in. 2.52

2,000 4,000 6,000 8,000 10,000 12,000 14,000

129 113 99 67 46 45 44

0.283 0.276 0.269 0.259 0.248 0.249 0.247Width, (in.)

Stress, psi

Bulk Density:Zero Pack Width:

Stress, psi

Figure 5 - Graphic results of conductivity for Sample C - Ceramic sample

Figure 6 - Graphic results of permeability for Sample C - Ceramic sample

Zero Pack Width:

Permeability (Darcys)

Absolute Density:

Conductivity (md-ft)

129 131 128 113 114 112 99 98 9667 68 65

46 45 44

1

10

100

1000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

Dar

cys

Stress, psi

Permeability

@ 2lb/ft2, 150°F, Steel Cores, 2% KCl

3043 3089 3015 2592 2631 2567 2210 2207 21651448 1465 1402

947 940 914

10

100

1000

10000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

md

-ft

Stress, psi

Conductivity

@ 2lb/ft2, 150°F, Steel Cores, 2% KCl

2,000 Final

30% Cycled

2,000 (Post Cycle)

4,000 Final

30% Cycled

4,000 (Post Cycle)

6,000 Final

30% Cycled

6,000 (Post Cycle)

8,000 Final

30% Cycled

8,000 (Post Cycle)

10,000 Final

30% Cycled

10,000 (Post Cycle)

3043 3089 3015 2592 2631 2567 2210 2207 2165 1448 1465 1402 947 940 914

Stress, psi

Conductivity (md-ft)

2,000 Final

30% Cycled

2,000 (Post Cycle)

4,000 Final

30% Cycled

4,000 (Post Cycle)

6,000 Final

30% Cycled

6,000 (Post Cycle)

8,000 Final

30% Cycled

8,000 (Post Cycle)

10,000 Final

30% Cycled

10,000 (Post Cycle)

129 131 128 113 114 112 99 98 96 67 68 65 46 45 44

0.283 0.284 0.283 0.276 0.277 0.276 0.269 0.270 0.269 0.259 0.260 0.258 0.248 0.249 0.247

Stress, psi

Permeability (Darcys)

Width, (in.)

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RFA# 400-16-10-47-03

Photographs

Figure 7 - Sample A - White Sand sample between steel cores

Figure 8 - Top view of Sample A - White Sand sample proppant pack

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RFA# 400-16-10-47-03

Figure 9 - Sample B - Brown Sand sample between steel cores

Figure 10 - Top view of Sample B - Brown Sand sample proppant pack

Photographs - con't

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RFA# 400-16-10-47-03

Figure 11 - Sample C - Ceramic sample between steel cores

Figure 12 - Top view of Sample C - Ceramic sample proppant pack

Photographs - con't

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RFA# 400-16-10-47-03

Comparison Graphs

1

10

100

1000

10000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

md

-ft

Stress, psi

Conductivity Comparison @ 2lb/ft2, 150°F, Steel Cores

Sample A - White Sand Sample B - Brown Sand Sample C - Ceramic

1

10

100

1000

2,000Final

30%Cycled

2,000(PostCycle)

4,000Final

30%Cycled

4,000(PostCycle)

6,000Final

30%Cycled

6,000(PostCycle)

8,000Final

30%Cycled

8,000(PostCycle)

10,000Final

30%Cycled

10,000(PostCycle)

Dar

cys

Stress, psi

Permeability Comparison @ 2lb/ft2, 150°F, Steel Cores

Sample A - White Sand Sample B - Brown Sand Sample C - Ceramic

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RFA# 400-16-10-47-03

KBW

PropTester, Inc. ● 17222 B Huffmeister Rd ● Cypress, TX 77429 ● Customer Service: 888-756-2112 ● Fax: 281-256-8883

PROPTESTER MAKES NO WARRANTY OR REPRESENTATION (EXPRESS OR IMPLIED) CONCERNING THE PRODUCT, ITS MERCHANTABILITY, ITS

FITNESS FOR ANY PURPOSE OR USE, OR FOR ACCURACY OR COMPLETENESS OF ANY INFORMATION BY THE SELLER OR MANUFACTURER.  IT IS

THE RESPONSIBILITY OF THE USER OF THE PRODUCT TO INVESTIGATE AND UNDERSTAND ALL PERTINENT SOURCES OF INFORMATION AND TO

COMPLY WITH ALL LAWS, REGULATIONS AND PROCEDURES APPLICABLE TO THE SAFE HANDLING, USE AND DISPOSAL OF THE PRODUCT AND

TO DETERMINE THE SUITABILITY OF THE PRODUCT FOR ITS INTENDED USE.  THIS REPORT IS LIMITED TO ONLY THOSE TESTS REQUESTED AND

PERFORMED ON THE INDICATED SAMPLE.  NO CLAIM OF DAMAGES OF ANY KIND, WHETHER AS TO PRODUCT DELIVERED, FOR NON-DELIVERY

OF PRODUCT OR USE OF PRODUCT AND WHETHER BASED ON CONTRACT, BREACH OF WARRANTY, BREACH OF REPRESENTATIONS,

NEGLIGENCE, STATUTES OR OTHERWISE SHALL BE GREATER THAN THE COST OF THE TEST, PROCEDURES, OR ANALYSIS COVERED BY THIS

REPORT.  IN NO EVENT SHALL PROPTESTER BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF THE CLAIM IS BASED ON

CONTRACT, BREACH OF WARRANTY REPRESENTATION, NEGLIGENCE, STATUES OR OTHERWISE.

DISCLAIMER

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