Thermo-Gaso-ChemicalEnhanced Hydrocarbon Recovery

(TGC-EHR) Method

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TGC-EHR – ResultsProduction yields increasedincreased (↑)(↑)

consistently by a factor of 3x3x to 10x10x ++

Continuous stable/sustainableContinuous stable/sustainable flow of increased oil & gas production for long

period (years)++

In specific cases the production yields increasedincreased (↑)(↑) by a factor of 30x30x

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TGC-EHR – Sample Field TreatmentsField Year Type Pre-Treatment Post-Treatment Gain Status

E. Poltavskoye Ukraine 1997 Gas 2 wells plugged/inactive since 1976 due to very low output

Well #9 - 35,845m3, 4,532m3 of condensate Well #14 - 22,320m3, 2,840m3 of condensate

35,845m3

22,320m3

Continuous until re-plugged 2001

Perm AreaRussia

1998 Oil 4.7 m3 water free oil/day

14.1m3 water free oil/day (three fold increase)

9.4m3/day 8 years of sustained production

Bugrevatovskoye Ukraine

1998 Oil 2.6m3/day with 80% water content/cut

26m3/day with 20% water content/cut (10 fold increase)

23.4m3/day At present 15m3/day

LevintzovskyUkraine

1999 Gas 12,000m3/day 120,000m3/day (10 fold increase)

108,000m3 /day

90,000m3/day

KorobochkinskoyeUkraine

2001 Gas 5,000m3/day 160,000m3/day (30 folds+ increase)

155,000m3/ day

8 years sustained production

OklahomaUSA

2004 Gas& Oil

3 Oil and 1 Gas well 5-6m3/day

Asked to do more wells Immediate Pressure/Gusher

Continuous

Daquing Oil FieldChina

2009 Oil 2.6m3/day – 1st well 5.4m3/day – 2nd well

10.6m3/day – 1st well 17.6m3/day – 2nd well

8m3/day 12.2m3/day

Continuous as of June 2010

Barsy GelmesTurkmenistan

2010 Oil 0.0m3/day – 1st well 12 m3/day – 2nd well8 m3/day – 3d well

13.5m3/day – 1st well 37m3/day – 2nd well28m3/day – 3d well

13.5m3/day 25m3/day20m3/day

Continuous as of March 2011

Commonly Adopted EHR Methods Thermal Recovery (Temperature)Decreasing (↓) the VISCOSITY of oil to improve outflow

Gas Injection (Gas + Pressure)Increasing (↑) the FORMATION PRESSURE + Decreasing (↓ ) the VISCOSITY of the oil

Water Chemical Injection (Chemical + Pressure)Decreasing (↓) the VISCOSITY of oil, Increasing (↑) the VISCOSITY of water (e.g. by increasing salt concentration) or Decreasing (↓) the CAPILLARY PRESSURE of oil

Hydraulic Fracturing (Pressure)Forming fracture in the formation, hence Increasing (↑) the PERMEABILITY of the rock

Acidization (Chemical)Increasing POROSITY and PREMEABILITY of the formation

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TGC-EHR – The Method

Thermo-Gaso-Chemical Enhanced Hydrocarbon Recovery (TGC-EHR)

The TGC-EHR method synergistically combines the key effects of previously adopted methods as well as the novel

ones, never applied before

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TGC-EHR – Multifunctional Effects

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1) Temperature2) H, H2

3) Prop. IP4) Prop. IP

20 in-situ sustained reactions

• Existing (Common)• Modified Existing• New

* Combines multiple chemical and physical effects. Some are similar to those of other treatments and others unique to TGC-EHR

Minutes to Hours

Months

Years(Self Sustained)

- Cracking- Pyrolysis- Hydro-cracking

TGC-EHR - Key Effects (Existing)

1. Pressure

2. Temperature

3. Gas

4. Fractures

5. Chemical/Acidization

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TGC-EHR - Key Effects (New)

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1. Combustion Gases Disruption of Clathrates

2. Hot Hydrogen (Atomic & Molecular) In-situ Cracking

3. Hot Hydrogen (Atomic &Molecular) In-situ Pyrolysis

4. Combustion Gases Micro-fracturing

5. Combustion Gases Hot Acidization

6. Combined Effects Water Cut Reduction

Much More Complete Recovery Much More Complete Recovery (Complete Recovery in Lab, One Promising Field Test)(Complete Recovery in Lab, One Promising Field Test)

TGC-EHR – Water Cut Reduction In well #68 in Bugrevatovskoye oil field (Ukraine),

water cut decreased from 80% to 20%80% to 20% and oil recovery increased 10 fold.

Through: Increased oil output resulting from unplugging

pores containing oil, reducing oil viscosity and other mechanisms.

Water reacts with treatment mix to release hydrogen and other gases, which, in turn, block some of the pores in the rock containing water.

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TGC-EHR – Water Cut Reduction

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Oil - water contact

BO +H2O -> B2O3 + H + QBO +H2O -> B2O3 + H + Q

Combustion Gases

Paraffin Cracking & PyrolysisParaffin Cracking & PyrolysisBO +H2O -> B2O3 + H + QBO +H2O -> B2O3 + H + Q +

⃝6 ⃝6 ⃝6 ⃝6

Study of the effects of atomic hydrogen on the reservoir rock

Study of the effects of hydrogen on permeability and diffusion properties of reservoir rock

Study of the combustion of metal-based fuel components

Study of kinetics of hydro-reactive mixtures reacting with water at pressures up to 60 MPa

Experimental modeling of hydro-cracking and cracking-pyrolysis of heavy hydrocarbons treated with the combustion gases of hydro-reactive and combustive-oxidative mixtures.

Study of heat and gas release from hydro-reactive samples (rod-shaped in cylindrical chamber)

TGC-EHR – Research Experiments

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Outlet for gas chromatography sample

Specimen

Pressure gauge

Seal

Isolation

Thermal cable

Argon

Temperature gauge

Generator of model gases

CO2

H2

Hydrogen gas generator

Т=80 ºС

Hydrogen affects permeability and diffusion properties of reservoir formation

TGC-EHR – Custom Test System

TGC-EHR – Hot Hydrogen Impact

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Untreated SampleSample treated by Hot Molecular Hydrogen

Sample treated by Hot Atomic Hydrogen

Results after mechanical stress

TGC-EHR – Hydro-cracking Study

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Of heavy hydrocarbons treated by Combustion Gases

Asphalt-Paraffin Treated By Combustion Gases

TGC-EHR –

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Infrared spectrum of Parrafin before and after treatment by Combustion Gases

TGC-EHR – Key Advantage

Simplicity of executionSimplicity of executionOperational Requirement

• Pump Unit (500 hhp would be sufficient)

• High Pressure Iron

• Batch Mixer (100 bbls capacity)

• Coiled Tubing Unit (if required in horizontal wells)16

TGC-EHR - Process

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Step I1.Fill well with water (well is suppressed via hydrostatic pressure)

2.Extend pump tubing down to the bottom hole

3.With wellhead closed, pump. Reagent Mixture 1 (a solution with specific gravity 1.2 – 1.3 grams per cubic centimeter).

* All chemical reactions take place within the well bore or in the reservoir and require no external pressure or heat sources making it a very economical and effective EHR method.

TGC-EHR - Process

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Step II1.Lift tubing slightly above perforated zone (20 meters above the uppermost perforations).

2.Pump Reagent Mixture 2, which contains hydro-reactive compositions (HRC) and combustible oxidizing mixtures (COM) in a buffered solution with specific gravity 1.6 – 1.62 grams per cubic centimeter.

Make sure that all of Reagent Mixture 2 exits the tubing into perforation zone.

TGC-EHR - Process

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Step III1.Lift tubing slightly above perforated zone (20 meters above the uppermost perforations).

2.Pump Reagent Mixture 2, which contains hydro-reactive compositions (HRC) and combustible oxidizing mixtures (COM) in a buffered solution with specific gravity 1.6 – 1.62 grams per cubic centimeter.

Make sure that all of Reagent Mixture 2 exits the tubing into perforation zone.

TGC-EHR - Process

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Step IV1.Tubing is extended down to the upper the boundary of perforated zone.

2.Reagent Mixture 3 is pumped and injected in the formation by displacing it with water.

Reagent Mixture 3 neutralizes and clears colloidal systems that form after treatment.

TGC-EHR – HSE (Health, Safety, & Environment)• Environment Research Study conducted in 2001 by Ministry of Education and Science of Ukraine.

• US oil experts conducted an assessment of the chemicals used in the TGC-EHR in 2004. As a result, we were granted permission and performed oil well treatment in US.

• Chinese oil industry experts conducted an experimental study of the environmental impact using a model system in 2009. The study included sampling and analysis of chemical intermediates and end products of the technology. As a result, we were granted permission and performed oil well treatments in China.

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TGC-EHR – HSE (Health, Safety, & Environment)a) Combustive reactions can only occur after the chemicals have been delivered to

the productive zone of the well.

b) Standard safety procedures for handling chemicals.

c) No chemicals detrimental to the environment are used.

d) The amounts of chemicals are relatively small. Therefore significant release into environment cannot occur even in the event of mishandling.

e) Gases released during combustion (hydrogen, nitrogen, nitrogen oxides, carbon oxides) are also common in natural geochemical processes and are inherent in geological fluids such as ground/underground water, natural gas and oil.

f) Non-gaseous reaction products (aluminates, lithium borates, aluminum borates) are salts that are readily hydrolyzed and washed out, which is safer than hydrochloric and hydrofluoric acids widely used in conventional well treatments.

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TGC-EHR – Well Info. Needed• Well history, geology/geophysics survey data.• Well design/type data (borehole/casing diameters, etc.).• Productive horizon depth.• Well depth, current well bottom location.• Perforation interval (filters).• Perforation density.• Well production/output history.• Chemical composition of the hydrocarbons, water and rocks in the horizon.• Porosity/permeability of the strata (overall data for the oil field would suffice if necessary); pressure and temperature data.• Daily output of fluid (oil, gas, condensate).• Proximity of ground water.

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TGC-EHR – Adapting to Reservoir

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Crack Forming Regime (recommended for hard, low permeability reservoir formations)

•Most of the chemical energy is released in the borehole, generating high pressure and temperature: up to 105.0 MPa and temperature up to 820°C.

•The gases are released in pulses, in 3 consecutive reactions, over 1 – 120 seconds. Rock fracturing is possible. (Depending on the condition of the well casing and cementing, the temperature and pressure can be significantly reduced if needed)

TGC-EHR – Adapting to Reservoir

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Regime for removalof heavy asphalts-tars-paraffins, cracking-pyrolysis of long-chain hydrocarbons, breakdown of carbon-carbon bonds,

hydrocracking

•Gases are released in 4 phases, forming incomplete oxidation products. Most of the chemical energy is released in the formation, where breakdown of heavy hydrocarbons leads to release of methane, ethane, propane and other light fractions.

•Under such conditions, carbon participates in reaction that release hydrogen. There are indications that chain reactions are involved and the process may be self-sustaining and continue for several years.

TGC-EHR – Adapting to Reservoir

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Regime for short-term combustion inside reservoir formation

•Reactions proceed sequentially, without abrupt spikes in pressure and temperature. In the presence of strong oxidizers, combustion in the reservoir proceeds via forming of coke, whose presence largely determines the dynamics of combustion.

•The duration of this short-term combustion phase depends on the amount of oxidizers used and, on average, is 48 hours.

TGC-EHR – Adapting to Reservoir

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Regime of non-combustive oxidation and hot acid/alkaline treatment

(recommended for formations with high permeability and high water content)

•Involves injection of combustive-oxidizing mixtures and hydro-reactive mixtures into formation.

•The reactions occur inside the formation at relatively low temperatures (at or slightly above the formation’s temperature).

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TGC-EHR – Sample Field TreatmentsField Year Type Pre-Treatment Post-Treatment Gain Status

E. Poltavskoye Ukraine 1997 Gas 2 wells plugged/inactive since 1976 due to very low output

Well #9 - 35,845m3, 4,532m3 of condensate Well #14 - 22,320m3, 2,840m3 of condensate

35,845m3

22,320m3

Continuous until re-plugged 2001

Perm AreaRussia

1998 Oil 4.7 m3 water free oil/day

14.1m3 water free oil/day (three fold increase)

9.4m3/day 8 years of sustained production

Bugrevatovskoye Ukraine

1998 Oil 2.6m3/day with 80% water content/cut

26m3/day with 20% water content/cut (10 fold increase)

23.4m3/day At present 15m3/day

LevintzovskyUkraine

1999 Gas 12,000m3/day 120,000m3/day (10 fold increase)

108,000m3 /day

90,000m3/day

KorobochkinskoyeUkraine

2001 Gas 5,000m3/day 160,000m3/day (30 folds+ increase)

155,000m3/ day

8 years sustained production

OklahomaUSA

2004 Gas& Oil

3 Oil and 1 Gas well 5-6m3/day

Asked to do more wells Immediate Pressure/Gusher

Continuous

Daquing Oil FieldChina

2009 Oil 2.6m3/day – 1st well 5.4m3/day – 2nd well

10.6m3/day – 1st well 17.6m3/day – 2nd well

8m3/day 12.2m3/day

Continuous as of June 2010

Barsy GelmesTurkmenistan

2010 Oil 0.0m3/day – 1st well 12 m3/day – 2nd well8 m3/day – 3d well

13.5m3/day – 1st well 37m3/day – 2nd well28m3/day – 3d well

13.5m3/day 25m3/day20m3/day

Continuous as of March 2011

Thank you for your attention

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