AXE Corporate Summary May 2017 - Acceleware Ltd.€¦ · §Production levels of SAGD ... RF XL vs. SAGD Simulation SAGD: 1,150,000 GJ 726K barrels RF XL ... AXE Corporate Summary

Corporate Presentation

May 2017

Forward Looking StatementsCertain statements in this Acceleware presentation, other than statements of historical fact, may include forward-lookinginformation that involves various risks and uncertainties. These may include, without limitation, statements based oncurrent expectations involving a number of risks and uncertainties related to all aspects of the oil and gas technologyindustry. These risks and uncertainties include, but are not restricted to, ability of the Corporation to fund its researchand development (R&D) activities, the timing of such R&D, the likelihood that the patent applications filed by theCorporation will be granted, continued increased demand for the Corporation's products, the Corporation's ability tomaintain its technological leadership in the fields of seismic imaging, radio frequency of heavy oil and electromagneticsimulations, the Corporation's ability to attract and retain key employees, defend itself against any future patentinfringement claims, and the availability of key components.

These uncertainties may cause actual results to differ from information contained herein. There can be no assurancethat such statements will prove to be accurate. Actual results and future events could differ materially from thoseanticipated in such statements. These and all subsequent written and oral forward-looking statements are based on theestimates and opinions of management on the dates they are made and expressly qualified in their entirety by thisnotice. The Corporation assumes no obligation to update forward-looking statements should circumstances ormanagement's estimates or opinions change except as required by law.

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What Does Innovation Mean?

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Acceleware’sRFXLdeliversalowerbreak-evenpoint,

ANDsustainablyhighermargins.

What Does Innovation Mean?

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LowerGHGsNoexternalwaterNosolvents

RFXLaddressesenvironmentalchallenges

What is Radio Frequency (RF) Heating?§ Functionslikeaninside-outmicrowaveoven§ Canbedeployedhorizontallyorvertically§ ProductionlevelsofSAGD,usinglessthanhalftheenergy

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RF XL Offers simplicity

§ Nosteamplant§ No(orminimal)

watertreatment

§ Minimalon-sitelabourtooperateandmaintain

§ Lesslanduse§ Nowater

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SAGDPlant

RF XL Offers Simplicity

§ LowerCAPEX§ MobileCAPEX§ LowerOPEX§ Lesstoreclaim§ LessGHG

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RFXLPlant

Efficiency : Energy to Useful HeatSAGD§ Heatlossesat

steamplant§ Heatlossesfrom

planttowellpad§ Heatlosses

downtoformation

§ Heatlossesfromproducedwater

7.5-9GJ/m38

RFXL§ PowertoRFat98%-

99%efficiency§ RFtoformationat

>95%efficiency§ RFpenetratesthe

formationheatingwatervolumetrically

§ Farlesswaterisproduced

3-3.5GJ/m3

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OPEX Cost Advantage

43%Impact: OPEX ($/bbl)

$- $2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

SAGD($14.42)RFXL($8.25)

CarbonTaxOtherMaint.SupplyStaffFuelElectricity

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76%Impact: CAPEX ($000s/fbbl)

0

5

10

15

20

25

30

SAGD($30K/fbbl)RFXL($7.3K/fbbl)

$13.0

$3.0

$17.0

$4.3

Facilities

RFSystem

SteamPlant

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Impact: GHG Reductions

0102030405060708090

SAGD 2016Grid CCGT 2030Grid Renewable

C02Emissions(kg/bbl)

23% 49% 56% 100%

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Impact: Other Key Benefits

§ Scalability– viableonewellatatime§ Firstoilindays– notmonths§ Mobile– easytore-deploycapital§ Highermargin– avoidsservicecostinflation§ Broadtargetmarket

§ Bitumen&Heavyoil§ Thin-payheavyoil§ Potentialforcarbonates,shaleoil,shallow,deep

RF Heating Timeline§ 1948:UnionOilCo.- InitialpatentfiledonRFHeating§ 1969:Russia:63kWpowerat650mdepth§ 1980s:Russiantestat20-30kW,multipletests(Bridges),andtestsinUtah,ABandSK

§ 1990s:Bakersfield,20kWtest§ 2000s:Interestbuilding,patents,paperspublished§ 2010:Moreinterest– Accelewarebeginsworkingwithasupermajorandotheroilcompanies

§ 2014-2018:newfieldtests(Acceleware,others)§ 2020:Commercialsolutionsavailable…13

Our Discoveries

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RFcanwork,but:

§ Efficiencytoolow;

§ CAPEX/watttoohigh;

§ well-boredimensionslimitpower;

§ difficulttodeploy;and

§ welllengthislimited.

Our Innovation

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Re-designedfromtheground-upwith:§ GEpartnershipfor

high-efficiency,lowercostperwatt;

§ newtransmission&deliverymethodsforlowlosses,easydeployment;and

§ antennadesignthatsupportslongwells.

Addressable Market – bbls by type

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§ Over3trillionpotentialbarrelsforRFXL§ AXErevenuepotentialof~US$1/bbl

Play Resource OOIP(Bbbls)Athabasca OilSands Bitumen 1,600

Post-CHOPS(AB/SK) HeavyOil 250

SK Thin-Pay HeavyOil 25

OrinocoOilBelt ExtraHeavy 1,200

Middle East HeavyOil 500-900

RF XL Differentiators

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§ Simple, inexpensive, easy to deploy§ Partnership with GE for the latest low-cost, high-

efficiency technology from power industry

§ Can follow SAGD drilling & completions § Predominantly standard materials, components,

and processes§ Specifically developed for long horizontal wells

RFXLproducesmorebarrelsthanSAGDwithlessthanhalfoftheenergy

RF XL vs. SAGD Simulation

SAGD:1,150,000GJ726Kbarrels

RFXL475,000GJ1Mbarrels

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RF XL Commercialization Timeline

ü Laboratorytanktests2015- 2016ü 1/20scalefieldtestQ42016- Q12017§ Commercialscaletest2017-2018§ Multi-welltest(s)targetedfor2019/2020§ Commercialsystemsavailable2020

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RF XL 1/20 Scale Test

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RF XL 1/20 Scale Test

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1/20 Scale Test Objectives Achieved

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ü Deliver high power to the formation with scaled components;ü heat the formation as predicted by simulation; andü test and confirm proprietary system design.

0

20

40

60

80

100

0 2 4 6 8 10 12 14

MaxTe

mpe

rature(℃

)

Time(hrs)

FormationTemperature(East)

Why Will Acceleware Succeed?

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• 25+yearsleadershipinelectro-magneticsandantennadesign;

• extensivedesignandtestingworkwithsupermajors&IOCs;

• GEpartnershipforelectronics;and

• viableplantoexpandoilfieldskillsandcapabilities.

RF Heating Commercialization Plan

Technologydevelopment

Fieldtests,commercialization

AxHeat simS/W

2018201620152010- 2014 2017

DownholeRFdeliveryTanklabtest

Antennae

Reservoirresearch&feasibilities

2019 2020

Commercialscalefieldtest

Productionpilots

2021

Commercialsales

Transistorgenerators

1/20Scalefieldtest

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RF XL Commercial Scale Field Test

Siteselection,engineering,simulations

Q32017

Heatingtest

Drilling&completion

GEgeneratordesign,assembly,testing

Q42017 Q12018 Q22018 Q32018 Q42018 Q12019 Q22019

Analysis/reporting

Extendedheatingtest

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Acceleware Business Model

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• ModularandmobileRFheatingsystemstobesoldorleased• RFXLsystemswillbehousedincustomizedshippingcontainersto

meetoperator’srequirementsfornumberofwellsperwellpad• Purchasepricingbasedonpowercapacityplusannualmaintenance

andsupportfee• Remotemonitoringwillensurecontinuedoperationandminimal

downtime,rollingtrucksonlywhenneeded• Accelewarewillmonitorgridpricestomanagepowerlevelsbased

oneachoperatorsdefinedprice/powertolerancelevels• Applyingmachinelearningtobuildmorevalueovertime

• Resultingincontinuedgrowthinthevalueofouranalytics,givingoperatorsbetterresultsyearafteryear

RF Patent Portfolio

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Concept Status FilingType Est.GrantDate

LeakyWaveAntenna JointlywithChevrononpreviouswork US Granted2017

ShapedDipoleAntenna JointlywithChevrononpreviouswork US Granted2017

ModularRFSystem Filed:Oct7,2014;(Publ.April2016),Favourable Int.SearchReportissued

US,Canada,PCT,Europe

2017

TravellingWaveAntennaforEMHeating

Filed:Feb5,2015 US,Canada 2018

RFXLSystem1 FiledPCTApr10,2017,FiledasUSProvisionalApril13,2016

PCT,provisionalUS 2018

RFXLSystem2 FiledPCTApr10,2017,FiledasUSProvisionalOct17,2016

PCT,provisionalUS 2018

AntennaPatent1 Draftpatentinfinaledits,expecttofiledinJune2017

ProvisionalUS

AntennaPatent2 DraftpatentinfinaleditsexpecttofileinJune2017

ProvisionalUS

3morepatentsinpreparation Tobefiledin2017 ProvisionalUS

Seismic Imaging Software

Seismic Imaging Software§ Acceleware has a portfolio of three software

products and relationships with five distributors in this space - and blue chip customers.

§ AxRTM§ AxFWI§ AxWave

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Seismic Imaging Business Unit§ $1.4Mannualrevenue§ Cash-flowpositivebusiness§ Growthpotentialasoilpricesstabilizeandrise

§ NewproductgrowthfromAxFWIasemergingproduct§ Migrationofallproductstothecloud

§ Strongchannelrelationships

Summary§ Low-cost, low-carbon innovation for heavy oil§ Lower break-even, and higher margins long-term§ Half the CAPEX & half the OPEX vs SAGD§ No water, no solvent§ Continued innovation and development of IP§ Simple deployment will facilitate adoption§ Cash flow positive software business

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Appendix

Executive Team§ Geoff Clark – Chief Executive Officer

§ 8 years at AXE, 25 years business experience§ B.Sc. Electrical Engineering, MBA

§ Michal Okoniewski – Chief Scientific Officer§ AXE cofounder§ Ph.D. Electrical Engineering and IEEE Fellow

§ Mike Tourigny – VP, Commercialization RF Heating§ Joined AXE in 2013, 20 years business experience§ B.Comm., MBA

§ Dan Cyca – Chief Technology Officer§ 12 years at AXE§ B.Sc., M.Sc. Electrical Engineering

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Corporate Summary

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Sharesoutstanding 86 million

Fullydiluted 97million

Recentshareprice $0.18

Trading range(52weeks) $0.02- $0.43

Keyshareholders:

Management 25%

NVIDIA 5%

ResourceMerchant Capital 5%

Employees 25

2016Revenue $1,395,169

2016EBITDA ($1,961,543)

2016 R&D $1,247,000

Thank You