Transcript File - Shale Gas Innovation and Commercialization Center

LaserSense, Inc.
Vision
LSI desires to be the exclusive global provider of a unique, proprietary capability
that will be used to optimize the productivity of well drilling equipment by providing
more accurate and complete information regarding the performance of drill heads
used in shale gas operations
JOHN M. ZARROLI
CO-FOUNDER
[email protected]
230 NORTH MONROE STREET
M E D I A , PA 1 9 0 6 3
w w w. L a s e r S e n s e I n c . c o m
Phone: (240) 252-0444
Mission
The mission of LaserSense is to provide well drilling companies with an advanced,
state-of-the-art system, based on accurate measurement of acoustic emissions
(AE), for monitoring wear of the drill head while also providing real-time data
regarding drill head effectiveness and rock formation composition
Introduction
Problem: Drilling rigs need to operate as efficiently as
possible:
 They are in short supply in some places
 Drill head wear reduces efficiency of drill rig operation,
 Changing / Replacing the drill head is expensive and
time-consuming
Also…
Problem: Variations in underground rock formations affect
drill rig performance
 Is the underground formation changing? How is this
affecting drill head performance and wear?
 Can we improve how we map underground fractures?
Currently, well drilling rigs use a variety of sensor systems (ie
pressure, torque) to monitor the drilling process
The Problem:
How Can Well Drillers Optimize the Drilling Process?
Can Acoustic Emissions (AE) help to optimize
the drilling process?
In 1999, Xiaoqing Sun, in a paper titled “A
study of acoustic emission in drilling
applications”, presented at the The 37th
U.S. Symposium on Rock Mechanics,
asserted that AE features can be “… used
to identify drilling situations such as the
extent of bit wear, impending bit failure
(damaged bearings) or formation changes.”
The Problem:
How Can Well Drillers Optimize the Drilling Process?
Is AE a viable method for monitoring the drilling
process?
As far back as 1992, in a paper titled “Acoustic –
Emission Monitoring During Hydraulic Fracturing”,
Lisa Stewart & B.R. Cassell asserted that “Acoustic
emissions have been used with varying degrees
of success to map hydraulic fractures in
sedimentary formations.”
But they also stressed that “the high attenuation of
seismic waves in sedimentary rock imposes
limitations in the instrumentation and acquisition
configurations that can listen to fractures.”
What does this mean?
AE can be a powerful tool for providing real-time information regarding drill
head wear and performance but current AE tools and techniques lack the
capability and robustness to be successful in this application.
A Solution:
RLI (Robust Laser Interferometer) for Measuring AE
RLI Will Enable AE to Become a Powerful New Tool
for Monitoring the Drilling Process
What is RLI?
An advanced, proprietary device, based on laser
interferometry, that can be tailored to serve as a
condition-monitoring (CM) or non-destructive testing
(NDT) tool in a wide variety of applications
What does it do?
RLI measures vibration and acoustic emissions (AE)
How is it different?
RLI relies on light whereas all competitive systems rely
on electro-mechanical sensors
RLI can be tailored to measure AE, for a wide variety of applications
Technical Overview:
What Are Conventional Methods for AE?
(They are based on electro-mechanical sensors)
Mass Accelerometer
 A mass is suspended in an electromagnetic field
and generates a current when the surface it is
attached to vibrates (accelerations are associated
with movement )
Strain Gauge
 Small, electrical elements applied to surface of
machines or structures - shortening or lengthening
generates changes in resistance of a circuit that is
associated with stress
Piezoelectric Accelerometer
 Similar to mass accelerometer but material itself,
rather than electromagnetic coil generates the
electrical signal
All have limited measurement capability, tend to be costly to install, lack
sensitivity in “noisy”, real-world settings
Technical Overview:
What is “Acoustic Emissions” (AE)?
AE refers to the generation of transient elastic waves produced by a sudden
redistribution of stress in a material. These stresses can be generated by
mechanical loading, including the type of events that a drill head experiences as
it cuts through rock formations deep underground.
What causes AE?
AE starts with stress. There are several different types of mechanical stress:
• Tensile, compressive, bending, shear, torsion
Why does this matter to us?
In response to this stress, the material changes in shape. This change in shape
can be elastic (not permanent) or plastic (permanent). We are more concerned
with plastic deformation, especially when it is caused by crack development,
fracturing etc. This cracking or fracturing process (whether it is the drill bit itself
or the surrounding rock that is fracturing) is what we attempt to measure.
A Solution:
Why is RLI Better for Measuring AE (Compared to Current
Conventional Methods)?
Superior Performance
 Bandwidth: 0 Hz to 524,000 Hz
 Dynamic Range: 180+ dB
 Improved “sensitivity”, better resolution
Lower Cost
 Non-Contact version available - no need to mount
accelerometers
 Minimal installation & calibration of sensors; quick
set-up; simple, user-friendly interface
 Substantially reduced need for ‘a priori’ information
Higher Resolution Measurements
 More accurate failure prediction
 Fewer “false alarms” (false alarms take equipment
out of service when its not necessary)
 Broader scope of conditions detected
RLI enables AE to be applied in “noisy”, real-world settings
Commercialization Plan Summary
(Completed Over 18 months)
1.
Demonstrate Feasibility of RLI for Use in Well Drilling Applications
2.
Complete Signal Analysis and Modeling of Drilling Process in
Laboratory and Field Settings
3.
Complete System Prototype
4.
Refine “Marketing & Sales Plan”
5.
Complete Manufacturing Plan
6.
Launch the New System for Well Drilling Applications
7.
Implement the LaserSense “Marketing & Sales Plan” for Well Drilling
Applications
$25,000 Shale Gas funds would be used for Steps #1 and #2 above
Manufacturing & Assembly
Current System - 4th generation:
 The combination of mechanical and electronic components is proprietary several specific components are proprietary
 System software is unique and proprietary
 Currently assembled in NC; R&D in MD, WV and FL
 Planning enhanced assembly operations in PA by early 2014
 Cost reduction in acquisition of parts & streamlined assembly
 To be led by an experienced Executive with 25+ years high level
manufacturing experience
Future Systems - 5th Generation, 6th Generation etc:
 Rapid incorporation of system enhancements and options by mid 2014
 At least 60% smaller, lighter than 4th Generation system
 Hand-held point-and-shoot capability
 Special purpose “front-ends”, processing capabilities for specific
applications
RLI can be tailored for many different applications and configurations
Management Team
Joseph Karpov: VP, Manufacturing & Engineering
 Previously served as VP - Manufacturing, for a manufacturer of sensors
 Joe will spearhead preparation and implementation of LSI Manufacturing Plan,
from his office in State College, PA.
 B.S., Mineral Economics, Penn State University
Jeremy Leahman: Consultant / Board of Advisors
 Extensive high level management & field technical experience related to
industrial & predictive maintenance and well drilling lubricants
 MBA, Darden School of Business, University of Virginia
Bruce Lewis: CEO
 Extensive small business start-up experience
 Extensive sales and marketing experience related to industrial lubrication,
predictive maintenance, non-destructive testing (NDT)
 Manages day-to-day business of LaserSense
John Zarroli: Director, Business Development / Co-Founder
 Extensive small business start-up, sales & field technical experience, related to
predictive maintenance, NDT & Reliability-Centered Maintenance
 B.S., Industrial & Management Systems Engineering, Penn State University
Non-Contact is a key driver of benefit
Financial Projections:
Shale Gas / Well Drilling Revenue & Profit
2013
Projections
2014
Projections
2015
Projections
2016
Projections
Revenue
$200,000
$850,000
$2,000,000
$4,500,000
Expenses
$240,000
$1,050,000
$1,700,000
$3,200,000
Net
($40,000)
($200,000)
$300,000
$1,300,000
Funding Plan
Capital Raised To-Date: $350,310 total
 Debt: $298,310
 Convertible Debt: $272,718
 Equity: $52,000
Capital Sought - Round 1: $750,000 by 4th qtr., 2013
 Business Development (Internet, Trade Shows & Conferences, Sales
& Marketing Training & Expenses, Market Research & Analysis)
 Strengthen IP protection strategy
Use of Funds from Shale Gas Contest: $25,000
Validate RLI as an effective tool for monitoring drilling process:
University laboratory trials (6 months): $17,000
Field trials (2 months): $3,000
Advanced Acoustic Emissions Consultant (2 months): $5,000
Non-Contact is a key driver of benefit