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Envirolyte O&G“Nature’s Natural Biocide”

An Environmentally Friendly Alternative Biocide for the Oil & Gas Industry

tm

IMPORTANCE OF UTILIZING AN EFFECTIVE BIOCIDE

Corrosion due to Acid Producing

Bacteria (APB)

Tubing in Barnett Shale – In Operation

less than 6 months

Tubing in Hole - Waiting

Permit Approval to Produce

– 6 Months

AEROBIC BACTERIA (GAB & IRB) – Require Oxygen

General Aerobic Bacteria (GAB)

• Slime forming bacteria

• Produces polysaccharide biofilm resulting in a bulky mass

• Reduces reservoir porosity, initiates corrosion or pitting, & causes fouling

Iron Reducing Bacteria (IRB)

• Consumes soluble iron ions & oxidizes them from ferrous to ferric state

• Precipitates them as insoluble sheaths of iron hydroxide.

ANAEROBIC BACTERIA (SRB & APB) – Refuse Oxygen

Sulfate Reducing Bacteria (SRB)

• Obtains needed energy by reacting with sulfates in formation

• Reduces them into sulfides producing H2S as a by-product

• H2S H2SO4 = corrosion of tubulars & other equipment, can turn from sweet

sour

• Iron sulfide (FeS) scale can form that quickly plugs oil field tubular goods, etc.

Acid Producing Bacteria (APB)

• Under the same reductive conditions that SRB’s operate in, APB’s degrade

organics with release of short chain fatty acids corrosion

BACTERIA ARE THE ENEMY

GOT BUGS?

• H2S issues, biofilm formation & associated corrosion, & safety issues

• Impediment of success of various stimulation activities

• Reservoir souring, fouling & formation damage

• Catastrophic failure of wellbores & production facilities

• Water disposal & water flood system corrosion

• Surface pipeline, process equipment, & storage tank corrosion

• Increase downstream capital costs for H2S treatment facilities & sour crude

refineries

• Increase system downtime resulting in loss of production and increase of

maintenance costs

Cascade Effect

• Bacteria reduction in frac water

• Increase production capacity

• Reduce need for costly well interventions

• Reduce replacement costs - down-hole tubulars, surface

piping & equipment maintenance

• Reduce capital costs needed to treat for sour gas &/or

sour crude refineries

• Reduce use of H2S scavengers to control biogenic H2S

levels

Envirolyte O&GTM Mitigates Problems,

Improves Profitability & Safety

NATURE’S NATURAL BIOCIDE

Global Recognition in Medical Field as Effective Non-Toxic Disinfectant

Bacteria Cell Destroyed

HOClEnvirolyte’s

active ingredient;

concentrated ion

Ions rush in & break through cell wall = killing

of bacterial cells

Bacteria has lower ion concentration and attracts highly concentrated ions

H2ONaCl

Basic Production Envirolyte–Electrical Chemical Activation

(ECA)

Electrolytic Generator

Primarily chlorine based in form

of Hypochlorous Acid (HOCl)

pH range 5.5 - 7.0

ORP = 1,000+/-

FAC = 500+/-

HOCl = 500 ppm

Cl2 + H2O (Chlorine) (Water)

HOCl + HCl(Hypochlorous Acid) (Hydrochloric Acid)

CHEMISTRY

Ceramic or

Polymer High

Rejection

Patented semi-

permeable cell

membrane

CatholyteAnolyte

Envirolyte

Primarily sodium & hydroxide based

in form of Sodium Hypochlorite

(NaOCl)

Elimination of Sodium

Hypochlorite from Anolyte makes

disinfection possible with lower pH

CHEMISTRY

pH range = 9-13

ORP = Minus 6-900

LABORATORY KILL STUDY TEST UTILIZING

ENVIROLYTE AS THE BIOCIDE

BARNETT SHALE PRODUCTION WATER

BARNETT - LITTLE HOSS FIELD

DBI Laboratory Study Results

• Universal Bacteria Specialist gave design study to DBI Chemical Consultants to test

effectiveness of Envirolyte in Barnett Shale

• Production water samples were collected from the Little Hoss Field (Barnett

Shale)

• Production water samples were immediately subjected to API RP 38 serial dilution

method for bacterial content and complete anion & cation analysis

1-10 10-100 100-1M 1M-10M 10M-100M 100M-1MM 1-10MM 10-100MM Bacteria Colonies/MML

Sulfate Reducing Bacteria – API Serial Dilution Tests

Produced H2O

No Envirolyte

Added

Produced H2O

1350 ppm

Envirolyte

Produced H2O

1,000 ppm

Envirolyte

Produced H2O

500ppm

Envirolyte

LITTLE HOSS FIELD (BARNETT SHALE)

General Aerobic Bacteria – API Serial Dilution Tests

Produced H2O

No Envirolyte

Added

Produced H2O

1350 ppm

Envirolyte

Produced H2O

1,000 ppm

Envirolyte

Produced H2O

500 ppm

Envirolyte



Acid Producing Bacteria – API Serial Dilution Tests

Produced H2O

No Envirolyte

Added

Produced H2O

1,350 ppm

Envirolyte

Produced H2O

1,000 ppm

Envirolyte

Produced H2O

500 ppm

Envirolyte



DISCUSSION OF RESULTS

• Performed high kill rate at all concentrations of the production water tested

• Envirolyte used in this test had the following properties:

• Active HOCl: 500-1350 ppm

• ORP Reading: 1,008

• FAC: 604 ppm

• UBS now produces Envirolyte at a range of 1500‐1700 ppm active HOCl

• There was no evidence of Envirolyte product degradation

• Shelf life = 6 months

FIELD CASE STUDIES

FRAC JOB(Riecks Well - Wise County)

SQUEEZE(West Texas Water Flood)

BATTERY KILL(North Central Texas)

FRAC JOB(Rieks 1H – Wise County)

FRAC JOB INFORMATION

Well Name: RIECKS 1H

County: Wise

Location: Decatur, Texas

Depth: 7,000’ vertical & 9,500’ lateral

FRAC JOB – RIECKS 1H WELL

• 2 stage frac job

• 1.2MM gallons frac fluid pumped

• Biocide utilized: Envirolyte

• Pumping Rate: 1-2 gallons per 1,000 gallons of frac fluid (500ppm)

• Source water: Open pond

• DBI (independent lab) completed the following:

• water analysis

• bacterial content test

FRAC RESULTS & CONCLUSIONS

SAMPLING

• 1 hour into flow-back

• Two (2) weeks later after well was put online

• After One(1), Two(2), & Four(4) Months of production

CONCLUSIONS

• No “smells” like Glut, easy to handle

• Almost complete sterilization of formation when using Envirolyte

• No test bottles turned had more than 100 colonies of bacteria

• At a minimum, the results are comparable with other biocides but Envirolyte is a non-toxic

environmentally friendly & cost competitive product

• Adjacent wells with no Envirolyte added, had 100 times greater bacteria count than the

test well after 4 months of production

• No incompatibility issues with other frac chemicals

FRAC STUDY CONCLUSIONS Cont’d.

• To date, more than 100 wells have been fracked using Envirolyte

• No incompatibility, sterilization, pumping, or other issues have

developed from the use of Envirolyte

• All wells have been monitored & current data reveals high kill rates

• No additional “foot print” on the well pad is required for fracking as

Envirolyte is produced at our manufacturing location & shipped to site in

totes, drums, or chemical trailers

BAKKAN SOURCE WATER PROVIDED BY OASIS PETROLEUM

API RP 38 Serial Dilution Test – Envirolyte Biocide

BAKKAN SOURCE WATER PROVIDED BY OASIS PETROLEUM

API RP 38 Serial Dilution Tests – Envirolyte Biocide

SQUEEZE JOB (West Texas Water Flood)

SQUEEZE JOB INFORMATION

• West Texas water flood field was experiencing numerous well failures due to H2S Corrosion

Issues - Production Tanks had vapors of up to 4,000 ppm

FIELD TEST STUDY

• Implemented a test study in 2010 using Envirolyte treatment for selected wells with frequent

tubing failures

• Selected wells were squeezed with 25 gallons of Envirolyte & 100 barrels of water

• Pump Rate: 3 bbl/min @ 1,000 psi

• Well water: +40 ppm H2S prior to treatment Reduced to 2 ppm H2S during treatment

• After 60 days wells returned back to +/- 40 ppm H2S

TREATMENT PROGRAM IMPLEMENTED

• All 82 wells in field were placed on injection pumps

• +/- 1.5 gallons of Envirolyte injected for X days

• Injection stops after acceptable log reduction is achieved & restarted as needed

SQUEEZE JOB RESULTS & CONCLUSIONS

• Purpose: clean up wellbore to protect tubing from future corrosion

• Wells responded nicely to squeeze & reduction in H2S levels indicates that

Envirolyte can be used to reduce H2S in producing wells under a waterflooding

program

• The client implemented an automatic injection program for this field

• Positive results from this effort have aided in the operator’s decision to use this

squeeze method for treatment of H2S & bacteriological treatment of wells in

other fields

• Other clients have now utilized this process to “batch treat” various locations

• The squeeze data indicates that the application of Envirolyte via batch treatment,

squeeze, and continuous injection may all be viable options for the reduction of

H2S generated from microbial activity

BATTERY KILL(North Central Texas)

BATTERY KILL INFORMATION

• The North Central Texas tank battery

was chosen for initial testing because of

H2S presence & previous corrosion

issues

• The 300 bbl capacity tanks in the

battery were treated with 10 gallons of

Envirolyte in each tank

• A substantial kill was achieved in a

reduction from 100,000 to 1,000

colonies of bacteria

• Kill remained sterile in tanks for 15

days after which SRB’s began to return

Bacterial Tank Corrosion – North Texas Barnett Storage Facility

“Cut-Out” Plate Sections- In Service

Less than 6 months

• Envirolyte can be used in tank sterilization to impede both aerobic and

anaerobic bacteria strains

• Using Envirolyte shows potential to revolutionize water sterilization

BATTERY KILL RESULTS & CONCLUSIONS

WHY CHOOSE ENVIROLYTE?

• Environmentally safe & friendly (non-hazardous)

• Minimal potential risks concerning safety & health of personnel

• Biodegradable & 100% effective (bacterial kill)

• Offers 1500 ppm FAC

• Chemical residue free (food grade salt & tap water)

• Non-Toxic: Reverts back to natural state or compound

• EPA REGISTRATION #: 87636-2

• No special handling required (no hazmat required)

• Neutral pH & low dosage rate

• No disposal issues

• Cost competitive with traditional chemical biocides

THANK YOU

Michael Walet - President

Office – 832-847-4481 4709 Hwy. 36 S.#10

Mobile – 727-480-6979 Rosenberg, TX 77471

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