CJS Production Technologies Inc. Committed to Production Solutions - PowerPoint PPT Presentation

CJS Production Technologies Inc. � “Committed to Production Solutions for the Energy Industry” � Innovative Energy Technology 
 August 2013 �

CJS FlatPak / ArmorPak Umbilical Is ... � — An umbilical system containing tubes to convey, actuate and receive production from downhole electric and hydraulic submersible pumps. � — A system that can optionally include components to inject chemicals and receive downhole data. � — Used to facilitate low maintenance artificial lift from conventional, deviated and horizontal wells � — Robust and versatile enabling it to convey artificial lift systems for permanent production and/or to perform wellbore cleanouts � — Conveyed using conventional coiled tubing units � — Patent pending technolog y �

FlatPak is Conveyed With ... � — Conventional coiled tubing units � — Modified arch rollers & injector chain blocks � — Specialized snubbing & blowout prevention systems � — CT unit modifications to permit fluid pumping operation � — Modified hanging apparatus including modified tubing hanger and wellhead �

New Product Line 
 ArmorPak TM � — New all metal banded umbilical for deeper well depths and thermal well applications � — Fatigue and stress testing evidences ArmorPak will extend umbilical life eliminating potential for wear on the outer thermoplastic jacket � — Manufacturing is performed in Canada facilitating improved delivery time frames �

FlatPak / ArmorPak Field Service Operations �

FlatPak Application History � • Canada - multiple 3200ft hydraulic reciprocating pump installations “HSP Installations” � • Canada - multiple 3500 ft jet pump installations � • Canada – downhole hydraulic drive progressive cavity pump “HSPCP” installations � • Canada – hundreds of 2500ft - 8500ft vertical & horizontal well Jet Pump cleanouts � • Montana - 5600 ft single point gas lift and chemical injection � • Alaska – 2000 foot injection umbilical � • Arkansas – multiple 3000 foot hydraulic pump installations � • New Mexico – multiple horizontal well Jet Pump wellbore cleanouts � • Oklahoma - multiple 3000 ft hydraulic pump installations � • Oklahoma - multiple 4500 ft horizontal well Jet Pump cleanouts � • Texas - multiple 7000 ft Barnett & Fayetteville shale hydraulic pump installations � • China - HSPCP “HydraPak” pump landings � • Oman - JetVak cleanouts to take place in 2013 �

FlatPak / ArmorPak Supports ... � — Hydraulic Submersible Piston Pumps � — Modified Jet Pumps � — Electric Submersible Pumps � — Hydraulic Progressive Cavity Pump s �

Technological Advantages of HSP � — Operates in horizontal (90 degrees) and deviated environments; � — Easily operates between 0.1 to 24 m ³ /day [0.5 to 150bbl/day] � — Operates in pumped-off state � — Handles sand formation fines (utilizing sand screen) � — Effective heat tracing system for surface piping � — Reduced environmental footprint �

HSP Specifications � — Flow rate � � 1 to 150bbl/day � — Landing Depths � � Up to 2000 m (6500 ft) to date � � — � 3.60 ” (fits in 4.5 ” , 5.5 ” , and 7 ” casing) � OD � � — Power Source � � Electricity, Propane, Field gas, Wind/Solar � — FlatPak / ArmorPak Deployment � � �

HSP Applications � Gas Well Dewatering � — Vertical or Deviated Wells � — Condensate production enhancing Gas flow � � Unconventional Gas Well Dewatering � — Manville CBM � — Horseshoe Canyon � — San Juan Basin � — Commingled CBM � — Barnett Shale and other Shale plays � � Oil Wells � • Deviated/Horizontal Wells � • Gassy Oil, Land below perforation �

HSP Pumping Rate vs. Depth � Max Flow Rate vs. Depth 30 25 20 Flow rate (m^3/day) 15 10 5 0 0 500 1000 1500 2000 2500 3000 Depth of well (m)


 HydraPak HSP Case Study 
 Alberta Shallow Gas Well �

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Example HSP Application � Cavalier 04-21 � — 3 Year Run Life � — Comingled Glauconitic, Manville and Viking Gas � — Top Viking at 1318 m, Base Glauconitic at 1540 m � — Installed September 2008, Landed at 1548 m � — Second install September 2009 � — Initial Gas Production = 15 e3m3d (SCADA metered) � — Initial Water Production = 2.0 m3pd (Tank estimated) � — Hydraulic pump cycle time is 62 seconds �

Sure Energy Jul 10 Regent Rimbey December,06 Regent Rimbey Feb 08 Regent Med Hat Feb 08 Severo June 08 Severo June 08 Severo June 08 Penn West Oct 08 Penn West Feb 10 Northpine, Marten Hills Jan 08 Navigator (1121493 Alberta Ltd,) Husky Bruce Sept 08 Husky Jarvie Nov 08 Husky Baptiste Dec 08 Husky Sask Dec 08 Husky Redwater Jan 09 Harvest Hanna Sept, 07 Enerplus Brooks,Nov,07 Enerplus Brooks,Dec 07 Enerplus Oct 08 Enerplus Oct 08 Enerplus Nov 08 Enerplus Nov 08 HSP Historical Run Life Enerplus Nov 08 Enerplus Dec 10 Enerplus Oct 08 EnCana Bonneville March,07 EnCana Strathmore May,07 EnCana GP June,07 EnCana GP July, 07 Installed - 67 EnCana GP July,07 Encana Bonneville March,08 Encana Bonneville March,08 EnCana GP Sept,08 EnCana Oct 08 Ember Barrhead January,06 Cordero Ponoka Febuary,07 Cordero Ponoka July,07 Cordero Ponoka Feb,08 Devon Halkirk November,06 Devon Lone Pine June,07 Devon CBM July, 07 Devon Halkirk Aug 08 Devon Stettler June,07 Devon Nov 08 Devon Nov 08 Devon Nov 08 Devon Nov 08 Devon Nov 08 Devon Nov 10 Devon Mar 11 Devon Mar 11 Devon Jul 11 Cutpick Jan 10 Crescent Point Crescent Point Crescent Point CNRL Helmet, Feb 08 CNRL August 08 Apache Stettler June, 07 Apache Stettler June, 07 Apache Stettler June, 07 Apache Stettler Mar 07 Apache Nevis August 08 Advantage June 08 2300 2200 2100 2000 1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 Run Life in Days

“JetVak” A Hydraulic Wellbore Cleanout System � � JETPAK / JETVAK � � • Wellbore cleanout system developed by CJS and Source Rock Energy Partners and licensed to Quantum Downhole Systems in Canada in June 2009 � • Hundreds of jobs performed with the JetPak and JetVak tools over the past few years � • The primary function of this technology is to create a low pressure environment in the well bore to pump the fluid and/or solids to surface. � • System methodology proves increased post production cleanout performance via evacuation of near wellbore fluid suppression and solids blockages. �

Typical JetVak Cleanout � Husky CHOPS Hz well cleanout with JetVak • 1550 meter measured depth • 0.8m3 sand • Recovered 30%; 3.5m3 of fluid • This well was 1yr old and did not produce • Post cleanout the well produced at 10m3/day

FlatPak / ArmorPak Deployed Electric Submersible Pump �

ArmorPak Conveyed ESP � • Coiled Tubing Dual CJS ArmorPak Conveys ESP � • Substantially Reduces Servicing Time and Lease Footprint � • Eliminates Service Rig � • Eliminates ESP Cable Spool Unit � • Eliminates Mobilization Requirement � • Facilitates Live Well Installation and Subsequent Service � • Eliminates Tubing Connections Reducing Corrosion Points �

ArmorPak Conveyed ESP �

CJS HydraPak System � Hydraulic Drive Progressive Cavity Pumping �

HSPCP “HydraPak” Technology Overview � � � • System developed by CJS Q4 2010 � • System incorporates CJS FlatPak / ArmorPak and downhole hydraulic drive motor delivering 400 ft/lbs of continuous torque; 800 Ft/lbs intermittent torque � • First systems run in Canada into 800 meter CHOPS wells near Lloydminster � • Version 2 of HydraPak system proves a minimum 8 months runtime equivalent to pump life � � • System can accommodate down to 5.5” OD casings with future designs for 4.5” OD casings � �� New 1800 ft/lb torque motor presently in testing � • � � �

HydraPak Field Installations � �

HydraPak Field Installations � �

HydraPak Field Installations � � Production from well in central Alberta �

HydraPak Pumping Rate vs. Depth - 5M3 from 1800 meters @ � pump speeds approximating 100 to 200 rpm �

HydraPak Pumping Rate vs. Depth - 11M3 from 1800 meters @ � pump speeds approximating 70 to 180 rpm �

HydraPak Pumping Rate vs. Depth - 32M3 from 1800 meters @ � pump speeds approximating 60 to 120 rpm �

HydraPak PCP Case � HydraPak PCP 800 Meter Alberta Heavy Oil Well 7 6 5 4 3 Heavy Oil Production M3/D 2 1 0

CJS PRODUCTION TECHNOLOGIES 
 “Committed to Production Solutions for the Energy Industry” 
 � Scott Kiser – Business Development Director – Calgary, AB, Canada, scott@cjsflatpak.ca (403) 463-4740 �