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upgrades heavy crude Conventional catalytic crackers Works at ±500°C Difficult process control High maintenance (carbonization) Large scale economics High cost equipment and catalysts Sonic technology Sound/magnetic waves at (±150°C) = lower operating cost Faster, more uniform processing No moving parts – low maintenance Small modular footprint for field deployment Lower capex (~$3m per module) Petrosonic PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION Petrosonic principle of operation : Infrasonic cavitation removes asphaltenes & metals Solven t Storag e InfraSo nic Cavitat ion Solvent De- asphalt ing Unit Solvent Recover y Asphalt enes Upgrade d Oil Storage Bio- Chemica l Oxidati on Unit Heavy Oil Storage Electromagnetic waves create low pressure bubbles the heavy crude Localized extreme conditions crack hydrocarbon and branch chains Asphaltenes drop out of solution capturing metals and sulphur Oxidization unit completes the process Processing 1000-10,000BBL’s.Day ±40% crude lightening Upgrades oil from 8-12° API to 24-30° API Increases value ($/bbl) of crude by 20-50%
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Page 1: Petrosonic presentation

upgrades heavy crude

Conventional catalytic crackers

Works at ±500°CDifficult process controlHigh maintenance (carbonization)Large scale economicsHigh cost equipment and catalysts

Sonic technology

Sound/magnetic waves at (±150°C)= lower operating costFaster, more uniform processingNo moving parts – low maintenanceSmall modular footprint for field deploymentLower capex (~$3m per module)

Petrosonic

PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION

Petrosonic principle of operation : Infrasonic cavitation removes asphaltenes & metals

Solvent Storage

InfraSonic CavitationSolvent

De-asphalting

Unit

Solvent Recovery

Asphaltenes

Upgraded Oil Storage

Bio-Chemical Oxidation

Unit

Heavy Oil Storage

Electromagnetic waves create low pressure bubbles the heavy crudeLocalized extreme conditions crack hydrocarbon and branch chainsAsphaltenes drop out of solution capturing metals and sulphurOxidization unit completes the processProcessing 1000-10,000BBL’s.Day±40% crude lighteningUpgrades oil from 8-12° API to 24-30° APIIncreases value ($/bbl) of crude by 20-50%15-20% bitumen volume to asphalt market

Page 2: Petrosonic presentation

upgrades heavy crudePETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION

Current Boscan UpgradedBoscan

WTI Oil Price ($/bbl) $75.00 $75.00Differential 40% $4Boscan Oil Price $45.00 $71.00Liquid Yield 100% 90%

Revenues $45.00 $63.90% Diluent/Solvent 3%Price $80.50Diluent/Solvent Cost $2.42

Upgrading Cost $5.00% of Asphalt 13%Price of Asphalt $25.00

Asphalt Revenue $3.25Netback $45.00 $59.74

Net Uplift $14.74

Current Blended Upgraded toLloydminster 28 API

Hardisty Light $70.00 $70.00Differential 25% $11.00Hardisty 21 API Oil $52.50Medium Sour Crude $59.00Liquid Yield 100% 90%

Revenues $52.50 $53.10% Diluent/Solvent 30% 5%Price $85.75 $80.50

Cost $25.73 $4.03Upgrading Charge $5.00

% of Asphalt 10%Price of Asphalt $30.00

Asphalt Revenue $3.00Netback $38.25 $47.08

Net Uplift $8.83

Petrosonic plant economics (typical international)

Upgraded oil quality from Athabasca Canadian tar sands Petrosonic heavy oil test results