Last MileTM Fueling Solution

Phil Fusacchia, Program Manager

June 15 - 17, 2015 / EFI Gas Flare Reduction & Monetization Forum

What is Last MileTM

US CNG Partnership - Last MileTM Fueling Solution 50/50 Joint Venture-Operated by Ferus

Energy services, expertise in supply and delivery of natural gas products (CNG/LNG)

Natural gas expertise and solutions, capital and commercial investment

Reliable, fully-integrated natural gas fueling solution for E&P

Fueling the future of E&P operations Last MileTM Fueling Solution

1

2

3

1. Flare Gas Capture

Gas Treatment Gas Transport Gas Supply

• ~1-2 MMSCFD • 4 – 12 month

period

• >1500 1150 BTU • 500-1,100 MCFD

available for CNG • 2-4 GPM NGL’s

• Rig & Frac fuel • Gas Lift primer • 3rd Party Sales

• NGL Storage & Transport

• Locally marketed product

Eliminated

NGL

CNG

Sales Gas

1 2 3

Last Mile™ Flare to Fueling Turnkey gas capture service (Example)

2. Natural Gas Fueling

Natural Gas Rig Fueling

CNG Fueling Site Setup

9

2. Pressure

Reduction Unit

1. Space for 2

Tube Trailers

3. Gas

Distribution Unit

Gas Supply Line

CNG Fueling for Completions – Basic Equipment

• Equipment 1: Tube Trailers

• Equipment 2: Pressure Reduction Unit

• Equipment 3: Natural Gas Manifold

1

2 3

3. Natural Gas Networks

CNG Dual Use Station

Localized Natural Gas Networks

Point-to-Point

Developing Phase: Limited infrastructure and less

developed institutions

Hub and Spoke Integrated

Growth Phase: Anchoring networks around

large scale supply and demand

Mature Phase: Extensive networks, overlapping

networks

Benefits of using Last MileTM

Historical Diesel vs. Natural Gas

15

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

US

D $

/BB

L

$/G

allo

n

Historical 2007 - 2015

Henry Hub vs. Brent

Henry Hub Spot Brent Spot

Commodity Component of CNG

Last Mile Flare to Fueling Emission Benefits

0

20000

40000

60000

80000

100000

GHG (Mass CO2)

CO2 Emissions

0

5000

10000

15000

20000

Smog (Mass O3)

Smog Emissions

0

1

2

3

4

5

Respiratory (Mass PM2.5)

Particulate Matter

55% reduction

98% reduction

97% reduction

Because the Last Mile approach to flare gas mitigation captures nearly all of the natural gas and natural gas liquids (NGL),

there are significant emissions reductions related to a standard NGL stripping unit and diesel fuel used for rig/frac activity:

Case Study

Flare gas capture site handles 2mmscfd, 30% of

volume becomes NGL, 5% of volume powers

system, 65% of volume becomes fuel or flared

(Comparison includes emissions for the equivalent fuel for 10 rigs or 2 frac fleets)

NGL stripping only & diesel for fuel

NGL stripping & natural gas for fuel

Three Things to Remember About the Last MileTM

• Eliminate Waste – Flare Gas

• Reliable Supply

• Economic & Environmental Benefit