Centura Oil Inc. THE CENJET 90 A New Environmentally Cost Friendly Well Completion and Production Enhancement Technology for Today.

Centura Oil Inc.

THE CENJET 90A New Environmentally Cost Friendly

Well Completion and Production Enhancement Technology for Today

Cenjet 90

A Better Way

-Completion

-Production Enhancement

Conventional Fraccing

A SMALL FOOTPRINT

The equipment profile is compact and flexible to facilitate routine site work

The waterjet, operating at 55,000 psi accelerates 4 gallons of water and 1 pound of garnet per minute through a 0.45 inch nozzle at mach 3

The unit pictured has successfully completed well services over 3,400 feet deep

THE CUTTING EDGE

The cutting head is coupled to steel tubing and deployed via the well casing

The cutting head, is brought up to pressure at precise depths to perforate both the casing and formation

These slotted perforations can eliminate near well bore damage caused by prior work and expand the well’s area of influence

Residual Cuttings from Typical Coal Bed Enhancement

The effluent being discharged into the mud pit consists of coal cuttings, garnet and water and is discharged at a rate of 4 gallons per minute.

Success Story

• SJ 30-6 #463S

0

20

40

60

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120

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200

Sep-2004 Apr-2005 Oct-2005 May-2006 Nov-2006 Jun-2007 Jan-2008

Date

Rat

e (m

scfd

)

0

50

100

150

200

250

300

Pre

ssu

re (

psi

)Production Casing Pressure

HPWJCT

Comments: After the rig, the compressor was changed. Compressor issues continuous due to weather accessibility

Operational success San Juan 30-6 Unit #463S (11/16 – 12/7 Rig Repair)

Thick pay ~80’, good returns, surged naturally

Flow rate improves from 40 to 194MCF/D

Well Completion to Present

Well Completion to Present

• Analysis• The inserts in this brochure contain some very pertinent information. Referring to the two glossy well data

graphs titled Customer provided data sheet -SJ 30-6 #463S and #450S , please note the red line representing production using the scale on the left side of the graph.

• Cenjet 90’s “High Pressure Water Jet Cutting Technology” is abbreviated HPWJCT. This denotes when the well was reworked on the timeline at the bottom of the page.

• The blue line indicates casing pressure as measured inside the well using the scale on the right side of the graph.

• The black line is the reservoir pressure in the coal formation also using the scale on the right.

• Results• 1. The production curve shows a steep decline from the wells initial completion in 2004 and an impressive

increase after HPWCT.• 2. This increase in production occurs as the reservoir pressure continues to rapidly decline. This is a

significant fact; normally one would expect production to be negatively impacted by a drop in formation pressure.

• 3. The casing pressure is noteworthy as well; the inverse correlation between production and casing pressure can usually be explained by wellhead issues. For example, if a compressor or a water pump malfunctions, production declines and the well builds up casing pressure, this is evident on the graph. However, after HPWCT, the wells exhibit both an increase in casing pressure and production.

• The two inserts titled SJ 30-6 #450S and SJ 30-6 #463S illustrate the wells performance from completion to present. The results are very impressive considering the depleted state of the reservoir and its continuing decline.

 • Conclusion• The Cenjet 90 stimulation increases gas production and the wells have sustained this up kick for over two

years to date. This establishes new reserves which increases both the life and value of the well. This technology has proven to be beneficial in rehabilitating underperforming wells. Therefore, the process should have similar results when used for initial completion.