Transcript Slide 1

1115 Waters Edge Dr., Suite 114 Granbury, TX 76048 817.573.8600 Office 817.573.8608 Fax

Sand X Flowback Process

 When the flowback enters the Sand X, the gas pressure is released into the frac tank, and the hydrocarbons, water and sand fall into the hopper  There is a screen that catches larger pieces of debris, such as plugs, etc for observation  The mixture begins to separate, and as the sand falls through the water, any hydrocarbons on the surface of the granules are displaced, and float to the top of the mixture

Sand X Flowback Process Continued

 The liquid rises to the hopper overflow and falls into the tank  The sand settles into the auger, and by the time it is pushed out of the top of the hopper, it is merely damp  According to independent test data, the hydrocarbon and chloride levels are safe enough to be incorporated into the environment, eliminating the expense of sand disposal

Sand X Flowback System

Sand X Flowback System

Gas Buster

Sand X Flowback System

Easy Loading System For Sand Removal

Sand X Flowback System

Railed Safety Ladder Entry

Sand X Flowback System

Full Safety Rail System

Sand X Flowback System

Flowback Fluid Entry Into Gas Buster (Dual Entry) Knife-Valve Manual Cleanout System (Can Turn Auger Reverse )

Sand X Flowback System

As the flowback fluids enter the gas buster, all solids and plug parts fall out the bottom and into the tray which swings out for cleaning and inspection

Sand X Flowback System

Screen Tray To Catch Drilled Plugs For Inspection

Sand X Flowback System

Auger To Remove Solids From Fluids

Sand X Flowback System

Powered By Electric Motor Overflow Wear

Sand X Flowback System

Emergency Stop System System Can Run Auger Forward or Reverse

Conventional Tank Cleaning Costs

 Average Multi-well frac cleanout is 10 days  Travel Time - $150/hr  Cleaning Time - $295/hr  Average to clean one tank $1,475.30

*Sand X is designed to clean itself and the sand so that you do not have to clean the tank.

Disposal Costs

 Travel to Disposal - $150/hr  Disposal of Sand - $1,178.30/tank (Avg.)  Average Cost of Disposal - $1,617.70

*Sand X is designed to do away with the need to dispose of the sand.

Cleaning and Disposal

 Average Cost to Clean and Dispose of Sand per tank - $3,138.00

Savings

 Avg. cost of cleaning and disposal $3,138  Avg. cost of Sand X $1,950 - $850(regular gas buster) = $1,100  Avg. Savings on 10 day frac cleanout $2,038

Test Results

 All test results are from an independent lab (Talem, Inc.) that measures Chlorides  Well name – One Bunny 1H (Parker County)  01/14/09 Day 2: Sample from top 352 ppm  Sample from bottom 1300 ppm  01/20/09 Day 8: Sand sample 260 ppm