February 5, 2014

CNG Virtual Pipelines

Confidential and Proprietary to OsComp

Company Introduction

Private‐equity backed technology development and commercialization

First CNG Virtual Pipeline in North Dakota operating in summer 20112.4mmscfd capacity recovering flare gas

Delivered CNG as a service for frac fleets and drilling rigsFirst CNG‐powered dual fuel frac fleet in North America

Multiple patented and patent‐pending innovationsWet CNG decompressionTunable gas quality CNG compressionChilled filling of CNG bulk trailers

Confidential and Proprietary to OsComp

CNG for Industrial Users

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Confidential and Proprietary to OsComp

Oilfield ‐ Fracturing Fleet on CNG

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Confidential and Proprietary to OsComp

CNG Flare Gas Recovery

Confidential and Proprietary to OsComp

General Process Conditions

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Heater Treaterat 20-50psig

Compression (3,600psig+)Dehydration (0.5#/mmscf)Gas Treatment (H2S and CO2)Condensed Liquids Removal (NGLs)

CNG Trailer2,400-3,600psig

140-390mscf

Confidential and Proprietary to OsComp

System Components

Compression/Dehydration High Capacity CNG Trailers

Decompression and Heating 

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Confidential and Proprietary to OsComp

Technical Considerations

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Tuning delivered gas quality

‐ Interstage pressures and temperatures = % of condensed NGL dropout

Wellsite skid considerations

‐ Blackstart enabled for maximum portability

‐ Dessiccant dehydration using waste heat for regeneration

‐ H2S live monitoring

Decompression requirements

‐ Preheat to prevent NGL separation (>150 degree letdown temperature reduction)

Confidential and Proprietary to OsComp

Eagle Ford Flaring

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Confidential and Proprietary to OsComp

Eagle Ford

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Mmscfd of PotentialDemand

125 rigsBifuel (15)

Turbine (36)

79 frac fleetsDual Fuel (30-54)

Confidential and Proprietary to OsComp

Sample Economics

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CAPEX

$250K for 300mscfd wellsite skid

$240K ‐ $700K per CNG trailer

OPEX

~$0.40‐$1.20/mscf for O&M

~$0.80‐$2.00/mscf for 50mi

System Example

10 wellsites 300mscfd ea

Decompression system <50mi 

$9M total project CAPEX

10yr full amortization

<$4/mscf all‐in

Confidential and Proprietary to OsComp

Comparison to Other WH Gas Monetization Methods

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GTW (Gas To

Wire)

GTL (Gas To Liquids)

LNG CNG

CAPEX Intensity

GHG Emissions

Ease of Install

Economic TransportDistances >300mi

Mobility/Portability

Simple Permitting

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Thank you