1PPTN O V A SNOVAS
NOVAS PLASMA-PULSE TECHNOLOGY (PPT)
INCREASING OIL WELL PRODUCTION & PRODUCTION RATES
THROUGH STIMULATION BY:
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ABOUT THE COMPANY
Privately owned company founded in 2007 Oil related services using innovative technologies Holds 6 patents for Novas PPT* & proprietary equipment Treatment & stimulation of over 150 vertical wells in Russia, China & Kazakhstan Positive results achieved in 87% of wells using Novas PPT Our customers include:
* Novas PPT Well Treatment & Stimulation Inexpensive, mobile, environmentally friendly technology deployed for well productivity stimulation; increases rock and sediment permeability and cleans or removes impurities and other contamination from well bottomhole (manifold system)
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How it works
The producing formation or zone is exposed to hundreds of powerful discharges generating dense plasma. The elastic waves clean the bottomhole zone and propagate deep into the formation.
What happens
Selective cleaning of the bottomhole zone increases formations permeability and reduces the hydrocarbon viscosity
NOVASPLASMA-PULSETECHNOLOGY
Novas PPT was developed by a group of scientists from the St. Petersburg State Mining Institute and the St.Petersburg Scientific Research Institute for Electrophysical Apparatus
The technology has been successfully applied since 2007 $ 7,000,000 of investments in R&D over 4 years
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Following the treatment, the flowing level increased considerably, indicating a more substantial potential of the well
PERFORMANCE & RESULTS
Treatment
59,25 64,5 64,0
120127,5 133,5 127,5 127,5 127,5
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER
Formation: Yu1/1Reservoir: Tight SandWork purpose: Oil production stimulationTreatment date: 13.03.2011
Production increase of almost 100%Increased production persisted more than 11 months
BOPD VFPD, m3 WC, %
Fluid lvl, m0
2500
500
1000
1500
2000
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ECONOMIC ANALYSIS
Three (3) Wells Received
Novas PPT Treatment in
Siberia in the Spring 2011
Total Production Rate of Three (3) Wells Before Treatment:149 Barrels/Day
Results of Novas PPT Treatment
On the Three (3) Wells
Total Production Rateof Three (3) Wells After Treatment:262 Barrels/Day
Average increase over 11 months:
113 Barrels/Day
Well AVFPD 11 m3
BOPD 64WC % 19,4
Well BVFPD 13,5 m3
BOPD 67WC % 26,6
WellVFPD 8 m3
BOPD 18WC % 57,5
Before After
Well AVFPD 16 m3
BOPD 95WC % 7
Well BVFPD 26 m3
BOPD 124WC % 18
WellVFPD 8 m3
BOPD 43WC % 20
Total Customers expenses $110,000Payback period 70 days (including all taxes and costs)Almost 2x increase in production
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A pilot equipment unit for horisontal wells is being developed to be ready late 2012
OUR RESEARCH AND DEVELOPMENT
While possessing proven plasma-pulse technology for vertical wells, Novas Energy began to adapt the technology for application for increasing the gas/oil recoverability rate in horizontally completed oil and shale-gas wells
Directional and horisontal wells Environmental safety excellence Technological safety Higher productivity Energy efficiency
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The Novas PPT will make it possible to uniformly decolmatate the entire producing interval of the horizontal well without large expense and time
ADDITIONAL OPPORTUNITIES
Issues Solutions
Application of the traditional methods to treat the horizontal well bottomhole zone is often ineffective due to the horizontal position and the length of the well productive interval
For wells located in close proximity to aquifers, the potential for the migration of chemicals or hydrocarbons into groundwater often creates substantial risks, which frequently limits the application of traditional well treatment and stimulation methods
Horizontal well boreholes often contain uneven fluid influx profiles with alternating high and low influx zones; it is not uncommon for a substantial part of a horizontal well borehole to not operate at all
The Novas PPT is absolutely safe for the environment, using no chemical agents, and will not disturb the integrity of the reservoir
Super-accurate selective exposure to impact well allow the influx profile to be adjusted and the horizontal well potential to be realized
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Relative dynamics of drilling wells of various types in USA Sources: Baker Hughes and U.S. DOE
GLOBALHORIZONTALOILWELLMARKET
The worldwide trend toward horizontal
drilling suggests that, by 2016, the
number of horizontally completed wells
that may benefit from Novas PPT will
exceed 160,000
Distribution of the horizontal well stock among the countries
By 2016, the volume
of the market for oil rate
increase from the horizontal
wells using PPT might reach
$960,000,000 per annum with
a YOY increase of 5 to 10%
USA China Russia Other countries
Horizontal Directional Vertical
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
20%
0%
40%
60%
80%
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THE TEAM
Nikita Ageyev
Ph.D. in Economics. CEO since 2007.Attracted over $ 7,000,000 investment to the project
Valentin Streltchenko
DoctorofTechnicalSciences,Professor.ViceRectorofGubkinUniversityOil&GasUniv.Chairmanand Deputy Chairman at 6 international conferences (Horizontal Wells in 1993, 1997, and 2000, WellGeophysicalSurveys,1998,Petrophysics,2010,WellLogginginthe21stcentury,2011)
Anatoliy Moltchanov
DoctorofTechnicalSciences,ProfessoroftheGeophysics,ChairattheSt.PetersburgStateMining University. One of the plasma-pulse technology creators
Aleksandr Maksyutin
Ph.D. in Petroleum Engineering. TheLaureateofover20diplomasandcertificatesofachievementinOilandGasIndustry
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S WClearly demonstrated competency of the team Tight-money policy, no possibility of fund reallocation.
Goodunderstandingoftheconsumersandthemarketsituation
No funds for a case of immediate strategy change
High art of the Research and Advanced Development Product unknown by the market
Basing the development on the reliable, well-tried technology
Weak market participant, no international standing
Experience of introducing a new product to the market No detailed analysis of the consumer information
High art of the competition Expressed conservatism of the consumers
Price advantage Lack of experience in international legal know-how protection
O TGrowthofthehorizontalwellproductivityincreasemarket Market growth deceleration
Tightening of the ecological policy Appearance of competitive technology with similar characteristicsNeglect by the competitors Failure to achieve the project equipment characteristicsForeign market barrier lowering Hydrocarbon price reductionHydrocarbon price increase Increase of the price for services and componentsReduction of the price for services and components Opposition by competitorsAttraction of a strategic partner of the international level Failure to correctly determine the development term
PROJECT DEVELOPMENT OPPORTUNITIES
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1. Creation of a laboratory sample of equipment, which will prove possibility of manufacturing of plasma-pulse generator with the specified characteristics;
2. Creation of physical-mathematical model and software for modeling and automating processes
3. Involvement of third-party investment for pilot works and commercialization
4. Pilot work, promotional work, marketing, presentation of a new product on the market, market positioning
5. Engaging of a strategic partner with an experience and strong position in the oil market
6. Enter to US and Western Europe markets by establishing of regional centers
MAJOR AREAS FOR DEVELOPMENT
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WEARELOOKINGFORASTRATEGICPARTNERINTHEUS
Novas Strategic Partner
Joint North American (U.S. and Canada) Market Launch
Novas PPT Market Knowledge
Scientific Resources Funding
Technological Centre Scientific And Technical Support
Qualified Operating Personnel Test Facilties
Confidentiality & Shared Analysis of Well/Reservoir Profile Data and Performance Data
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CONTACTS
Moscowffice
James Hurley
20929 Ventura Blvd. Suite # 47-337 Woodland Hills, CA 91364
Tel: 1 (747) 888-6605
E-Mail: [email protected] Web: www.novas-energy.com
US Representative Offices
142784, Moscow region, Leninsky district, village Rumyantcevo,
bld 2, PO Box No 11
Tel: 7 (495) 225-6240
E-Mail: [email protected]
Web: www.novas-energy.com