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Unconventional Reservoirs

Shale Plays Development

By Dr. Vladimir Ingerman, President

2015

AMROS Corporationwww.amros.us

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Company

Problem

• 95% of oil from shale plays is left in the ground

• Two thirds of hydraulic fracturing stages don’t produce oil

• Traditional interpretation of well log is not applicable for formation evaluation in shale plays

Amros Technology Solves This Problem

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Amros Guiding Shale Development

Where to frack Where to drill horizontal well

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Technology

Proprietary formula to calculate permeability and well production from open hole log data

• Based on analysis of hundreds of hydrodynamic or

pressure build-up well tests

• Successfully applied for conventional deposits in Russia, USA, Kazakhstan, Mexico, and Canada

• Validated by test results in Marcellus shale and more than 100 wells in Permian Basin

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Amros Value Proposition

• In Permian Basin vertical wells, Amros technology can achieve higher production with five fracking stages than conventional practices achieve with ten stages

• Precise targeting of intervals with the highest recoverable oil increase well production by at least 20% and decrease cost of fracturing up to 50%

• Optimized location for horizontal wells with significant increase in production and ultimate recovery

• Lower environmental impact

Amros Technology Fully Developed, Available NOW

Example – Permian Basin

Example – Permian Basin

Production from cutting analysis, takes a few months

Production from Amros interpretation, takes a day

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Example: Applying the Technology

Pick the formation and entry point for horizontal well

Two main candidates:

• Wolfcamp A

• Cline

0 BOPD

33 BOPD

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Example: Applying the Technology

• Actual: 2,652 ft. hydraulic fracking produced 36 bbl/day production

• Amros calculation: fracking 484 ft. would have produced 50 bbl/day

Increased oil production

$1,380,000

Fracking cost savings $650,000

Total opportunity cost $2,030,000

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Selecting location of horizontal wells

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The accuracy of production prediction

0.00 5.00 10.00 15.00 20.000.00

5.00

10.00

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25.00

f(x) = 0.873622092574826 x + 0.393097498185766R² = 0.86968251635391

Production Prediction from log data

bbl/day per 100 ft..

Actual Production

Calculated Production

The technology has been verified in 100 Permian basin wells

Great predictive power

Understanding reservoir

Calculated and average production per well, bbl / day per 100 ft.

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Well Production Comparison

Increased Production in the wells that used Amros Production Profile (green) for locating fracking stages

27% 17% 143% 20% 31%

Average Production increased for five group with 22 wells is 48%

Amr. Hist.0

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4232

Amr. Hist.0

102030405060

6050

Amr. Hist.0

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80

100

102

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Amr. Hist.0

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6858

Amr. Hist.0

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5140

33

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Market

• Every year more than 200,000 wells are drilled in

shale-oil deposits worldwide and the number of wells keeps growing

• Technology can also be applied in old wells

• Our primary goal is the Permian Basin with 10,000 new wells per year

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Technology Applications

• Field Development Optimization based on 3D model of recoverable hydrocarbons

 • Unconventional Resource Evaluation to identify real potential

Value for operators, land acquisition experts, mineral resource groups

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Management Team

Vladimir Ingerman - President and FounderM.S., PhD., Doctor of Technical Science, VP of the largest oil service company in the former Soviet Union. Also Halliburton, Schlumberger, Amoco, Shell

Stephen Sims - Energy Advisor Houston Technology Center, President of startup, General MethanolCareer with major oil: Exxon, Citgo, ConocoPhillips

Bill Stevenson - Energy and IT Advisor Houston Technology Center and Rice Alliance, President of startup, HK Stevenson, Career with: Citicorp, Compaq

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Summary

• Amros technology shows operators where to frack vertical wells and where to drill horizontal wells

• Eliminates unnecessary fracking stages to reduce costs and environmental impact

• Provides data to optimize field development that could drive dramatic improvement in recovery efficiency and total production

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After Summary

The technology is fully developed and we are looking for new customers and partners

We are ready to do pilot projects, group well analysis or big field study projects

AMROS Corporation

www.amros.us

Thank You