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SNAP RING JOINT Combining innovation and world class engineering Flexible Hydraulic Applications Information Memorandum March 2017

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Page 1: SNAP RING JOINT

SNAP RING JOINTCombining innovation and world class engineering

Flexible Hydraulic ApplicationsInformation MemorandumMarch 2017

Page 2: SNAP RING JOINT

Snap Ring Joint (“SRJ”) is committed to providing analternative coupling for long wall mining operations; toimprove safety, downtime and throughput. After extensivedevelopment and testing, we now have a commercially viableproduct that meets the project brief – the SRJ HYDRAULICQUAD WIRE COUPLING.

Prior to the finalisation of any commercial agreement with anOEM there are additional opportunities to consider as a resultof recent developments. Whilst working on the above projectSRJ signed an international collaboration agreement withEnerMech for global distribution, installation and maintenanceof the SRJ products, focussing on the oil and gas market.

Such collaboration provides a clear opportunity to identify andexploit both revenue generating and cost saving projects forthe mutual benefit of all parties. This document seeks toidentify typical initial applications where the SRJ/EnerMechrelationship can be aligned with an OEM for such mutualbenefit.

Once reviewed we would like to arrange a meeting with allparties to seek an appropriate approach to future businessopportunities.

1

Alexander WoodCEO - SRJ Technologies Ltd

SRJ Technologies Ltd: Registered Office: 9 The Esplanade, St. Helier, Jersey JE2 3QA

March 2017

Page 3: SNAP RING JOINT

THE SRJ HYDRAULIC QUAD WIRE COUPLING WAS SPECIFICALLY DESIGNED AS AN ALTERNATIVE SOLUTION FOR PARKER HANNIFIN TO IMPROVE SAFETY, DOWNTIME AND THROUGHPUT IN MINING

APPLICATIONS.

Having evaluated current marketofferings, we applied our technology todesign, construct and test a morereliable, fatigue resistant and costeffective solution. This innovation inhydraulic coupling technology is asuperior solution for high impulseapplications such as drag line, high wallsurface, conventional underground orlong wall mine applications. These areall examples of mining where cyclicloading places enormous stress oncouplings. Having been designed tocope with these high stressenvironments the coupling can also beeasily dismantled and assembled withlimited tooling.

HYDRAULIC QUAD WIRE COUPLING

The current market solution, theStaplelock, is cumbersome, oftenunreliable and requires forcefuldisassembly and replacement every 3months due to pin failures costingmining companies up to $125,000/hrduring downtime.

SRJ’s solution is not only easier toinstall but lasts twice as long in the field.By guaranteeing a life length of 6months (approx. 1 million impulsecycles) the SRJ can reduce a miningcompany’s downtime by half over ayear, generating a significant costsaving.

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Male(24 V6 insert)

Female DN 30(6A 24 flange)

Quad wire

Hose swaging section

Page 4: SNAP RING JOINT

OUR ENERMECH PARTNERSHIP

HAVING SIGNED AN INTERNATIONAL COLLABORATION AGREEEMENT WITH ENERMECH, THEIR IN-COUNTRY PRESENCE IN THE MAJOR OIL AND GAS PRODUCING HUBS WILL OFFER MUTUAL BENEFITS TO

CLIENTS OF BOTH COMPANIES AS IT ROLLS OUT SRJ COUPLINGS IN AUSTRALIA, CANADA, EUROPE, MEXICO, SOUTH KOREA, UAE AND USA.

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EnerMech’s hydraulics division hasover four decades’ experience inproviding custom built solutions and aquality service to our internationalcustomer base. We provide a diverserange of full turnkey packages to a widerange of clients.

From hydraulic engineering to hydraulicproducts and hose integritymanagement, our multi-skilledtechnicians and engineers aresupported by an unrivalled technicalproject management team. Theirhydraulics business can be divided intothe following categories:-

1.Hydraulic Products – their hydraulicproducts team supply a wide range ofhydraulic components, filtration andhoses & fittings, as well as providingonshore and offshore site support.

2.Hydraulic Services – they are one ofthe most widely recognised names inhydraulics and fluid power services.

3.Hose Integrity Management System -Their approach allows enhancedvisibility of integrity data through webconnectivity as well as offering superiorcriticality assessments leading tooptimised inspection programmes.

Page 5: SNAP RING JOINT

THE SRJ HYDRAULIC QUAD WIRE COUPLING WAS SPECIFICALLY DESIGNED TO IMPROVE SAFETY, DOWNTIME AND THROUGHPUT IN MINING APPLICATIONS.

Long wall mining accounts for up to50% of underground production, asystem that incorporates a mainshearer, pan line, conveyors andhydraulic roof supports all of whichrequire the regular replacement ofhydraulic connectors.

The Staplelock system is widely usedcurrently despite only having a 300,000-cycle life. SRJ offers a solution that hassuccessfully achieved 1,000,000 cyclesand requires no tooling to install ordisassemble.

FLEXIBLE HYDRAULIC MINING APPLICATIONS

The SRJ coupling has many in seriesbenefits as well, mobile equipmentshould be inspected every 400-600hours, or every 3 months and anyabrasion, burns, burst or leaking visibleon the hoses requires immediatereplacement. The SRJ connector vastlyimproves the ease and speed of thesehydraulic line replacements, reducingdowntime while providing a couplingwith a longer life cycle.

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Open Cast mining applications variesgreatly to those used in undergroundmining. The machines used are similarto those used on construction sites.

Typical SRJ applications include: -• manifold to flexible hose

connections;• straight pipe to flexible hose

connections; and• welded pipe connections.

The advantage of the SRJ connector is particularly apparent when replacing welded pipe connections.

Page 6: SNAP RING JOINT

WHILST SPECIFICALLY DESIGNED FOR MINING APPLICATIONS THE POTENTIAL IDENTIFIED WITHIN THE OIL & GAS MARKET IS SIGNIFICANT

Cranes - Every crane has 700+ flexiblehose connections and SRJs uniquequick release system would be a hugebenefit. Of these 700 fitted hosesapprox. 10-20% are exposed whichcauses issues with environmental wearand tear. These require frequentmaintenance and renewal which take onaverage 22-24hrs to rectify. It isproposed that operators will be advisedto install SRJ’s on all external hoses toreduce the downtime to just 1 hour.

A specific area for Cranes relates to theHigh Risk areas - sections where it isdifficult to get to or where using ropeaccess is necessary. Adopting the SRJwould reduce the time spent in

FLEXIBLE HYDRAULIC OIL & GAS APPLICATIONS5

these activities and thereby reduce theassociated risk.

Another area for Cranes relates to theneed to Minimise Tooling. Wheremultiple connection areas exist on theCrane where tooling is cumbersomeand often tight, the SRJ would greatlyassist in both ease of installation andremoval.

Page 7: SNAP RING JOINT

WHILST SPECIFICALLY DESIGNED FOR MINING APPLICATIONS THE POTENTIAL IDENTIFIED WITHIN THE OIL & GAS MARKET IS SIGNIFICANT

Utility Stations – Air and Water – Presentconnections are Crowfoot connectorsand have been used for many years.These are not reliable, disconnect easily(often on their own) and are made fromcheap malleable iron. These are aconsistent supply item throughout theindustry. 100 + can be on-board at anyone time.

FLEXIBLE HYDRAULIC OIL & GAS APPLICATIONS6

Diesel Fuel Stations – Typically the hosedegrades first so has to be changedregularly. Usually flanged connectionsto main supply lines. Every asset willhave these and although there are notlarge quantities on board, the ease ofthe SRJ connection will be attractive.EnerMech currently replace about 20-30 per year and if you multiply this byevery asset and vessel it will generate ahealthy revenue stream.

Page 8: SNAP RING JOINT

WHILST SPECIFICALLY DESIGNED FOR MINING APPLICATIONS THE POTENTIAL IDENTIFIED WITHIN THE OIL & GAS MARKET IS SIGNIFICANT

Umbilical and subsea hydraulic hosebundles - A leading subseaengineering firm has shown significantinterest in this option. EnerMechpresently have a project using hose in adepth of 1300mtr. This will mean up to20 – 30 connections per line and up to5 lines (1” and 2” are the popularsizes) Hydraulic hose is used moreoften as it is cheaper than the subseaHigh Collapse Resistant hose on themarket. If they do 1 project per year for50% of our 30 locations on a 3 linesection of this length it will be 900connections per year. Another areaEnerMech are looking at is for AngolaDeepwater.

FLEXIBLE HYDRAULIC OIL & GAS APPLICATIONS7

Page 9: SNAP RING JOINT

WHILST SPECIFICALLY DESIGNED FOR MINING APPLICATIONS THE POTENTIAL IDENTIFIED WITHIN THE OIL & GAS MARKET IS SIGNIFICANT

Flushing - The flushing process requiresconnection and disconnection tovarious lines up to 20 times a day. SRJconnectors will result in considerablesavings given the speed ofconnection/disconnection compared tothe current solution. EnerMech alonehas 12-20 flushing units resulting in 400regularly replaced fittings within thisapplication alone. The opportunityexists to adopt this across the industryfor such an application given timesaving of this style of fitting.

FLEXIBLE HYDRAULIC OIL & GAS APPLICATIONS

Fracking - one of the key systemsinvolved in this process is the pumpingand circulation system. Where single ormulti port circulation equipmentsuitable for high volume/pressure fluidtransfer is required, SRJ provides aunique solution. It negates the risksassociated with hammer unionmisalignment whilst providing a designwhich cannot be dismantled whilstunder pressure thereby increasingsafety. SRJ is currently in talks with GE.

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Page 10: SNAP RING JOINT

ENERMECHS HYDRAULIC BUSINESS

THE TABLE BELOW PROVIDES AN OVERVIEW OF THE VOLUMES ACHIEVED BY ENERMECH WITHIN EACH APPLICATION ALONGSIDE THE GLOBAL MARKET POTENTIAL OF EACH.

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APPLICATION ENERMECH FITTINGS VOLUME (ANNUALLY)

GLOBAL FITTINGS MARKET (ANNUALLY)

MINING n/a OEM to provide

OIL & GAS

1. CRANES

A) HIGH RISK AREAS 2,400 529,000

B) MINIMISING TOOLING 3,600 794,000

2. UTILITY STATIONS 4,800 1,058,000

3. DIESEL FUEL STATIONS 50 368,000

4. UMBILICAL AND SUBSEA HYDRAULIC HOSE BUNDLES

900 450,000

5. FRACKING n/a Not known but anticipated to be significant

11,750 3,199,000

Page 11: SNAP RING JOINT

Mining

ExtractionTransport Power

SRJ MINING APPLICATIONS

AS WITH OIL & GAS, THE APPLICATIONS FOR USE IN THE MINING CHAIN ARE CONSIDERABLE WITH NUMEROUS OPPORTUNITIES TO EMBED THE SNAP RING JOINT INTO THE PROCESSES.

Longwall

Hydraulics

Shipping

Open Cast

Continuous

Hydraulics

Hydraulics

Hydraulics

Water ExtractionPipeline

Generators

Pumping

10

Page 12: SNAP RING JOINT

SRJ OIL & GAS APPLICATIONS

FOR OIL & GAS, THE JOURNEY FROM EXTRACTION TO FINISHED PRODUCT IS LONG AND COMPLEX. SNAP RING JOINT HAS A ROLE THROUGHOUT THE CHAIN WHETHER IN THE PROCESSES THEMSELVES OR

IN THE TRANSPORT BETWEEN THEM.

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Drilling

Production

Transport

Power

Refining & Petrochemicals

Storage

Fracking

Page 13: SNAP RING JOINT

THE SRJ PRODUCT FAMILY

COMPOSITE CONNECTOR

VALVE CONNECTOR NON-METALLIC CONNECTOR

PIPE TO FLANGE SMART COUPLING

TEE CONNECTION HYDRAULIC MININGCONNECTOR

PIPE TO PIPE

Our weldless connection systems are means of pipeconnection that offers a full pressure and diameterrange capability which reduces risk and cost of weldingwhilst minimising the weight and size envelope.

The completion of our metal seal product forapplications where an elastomeric solution isn't suitable( i.e. subsea) allow us to provide a complete solutionthat is unmatched in the market place.

Our SMART Coupling provides the capability tomonitor process flow whilst the Hydraulic connector iscapable of withstanding high pressures but stillmaintains the simplicity of our product solution. Theconnection technology also allows for use withcomposite materials such as graphene and HPDE.

Our products can be adapted to be configured intoOEM products such as valves. Our High pressure ratingis up to ANSI 2500 lb and API 10k

SRJ COUPLING

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TRIPLE SHELL REPAIR CLAMP

Page 14: SNAP RING JOINT

Snap Ring Joint Limited9 The Esplanade

St HelierJersey JE2 3QA

Tel: +44 1534 626818Email: [email protected]

www.srj-technologies.com

Snap Ring Joint Limited registered address is 1st Floor, 9 The Esplanade, St.Helier, Jersey JE2 3QA. Jersey Company Number 107377. Private and Confidential. All Rights Reserved. Not for Distribution. Copyright 2017 Snap Ring Joint Limited