ILMASONIC -SCIENCE LLC, 2016

1. Reducing the flow rate of oil wells.

0102030405060

1 2 3 4 5 6 7

50,242,6 42,4

38,7 36,844,1

34,437,2 35,3 32,9

21,4 19,7 19 18,2

Проектный КИН Достигнутый КИН

Oil Recovery factor (ORF)

Achieved ORF

3. Rising energy consumption and decrease in profitability of oil production.

0,00 1,00 2,00

2000 г

2012 г

1,00

1,67

Cost of Oil Production

2

2. Reduced effectiveness of enhanced oil recovery methods (ORM) & the intensification of oil production (IOPM)

4. Lack of technologies for cleaning horizontal wells.

Projected ORF1. Samarskoye, 2. Bashkortostan, 3. Tatarstan,4. Permsky, 5. KhMAD, 6. Orenburgskaya,7. Udmurtskaya

Geophysical downhole device (GPhDD)

Downhole acoustic device (DAD) Power and control module (P&CM)

Decision: the creation of fundamentally new equipment and technologies for

intensification of oil production based on the use of the latest achievements in the field

of ultrasound and information technology.

Product: Complex ultrasonic influence on the oil reservoir (USIOR Complex)

Received a patent for the invention of AWLT №2521094, priority from 10.04.13

The USIOR technology provides:

efficient cleaning of the bottom hole area throughdestruction of stable links at the border of pores andfluid;

change of fluid rheology;

destruction of mineral scale;

dewaxing.

P&CM GPHT

Tubing

DAD

GPhDD

The procedure of tripping operations whenprocessing vertical wells similar to the procedurewhen geophysical research.

1. Geophysical downhole device;2. The ultrasonic emitter; 3. Productive oil formation;4. Feeding the coiled tubing;5. Coiled tubing;6. A well logging truck hoist type PKS-5G-T;

6

3

4

5

1 2

The emitters are connected by a special design that

provides greater flexibility DAD, allowing it to be wound

on a drum similar to the coiled tubing may thus be

made of long length (up to 100m).

The most relevant is the use of

horizontal wells in shale oil

production. There is an application

from North Dakota (USA) to clean

some 3,000 wells.

Target market segment: services for enhanced recovery of oil cleaning of bottom-hole vertical and horizontal wells.

The main consumers of technology: oil and gas companies

ORM and IOPM , billion USD:

(Visiongain)

19,32

28,32

44,54

0 10 20 30 40 50

2012 г.

2017 г.

2022 г.

Annual commercial potential for the USIOR technology:90 000 jobs a year in Russia, equivalent to 1,3 billion USD.900 000 jobs a year in the world, equivalent to 11,0 billion USD.

Parameter Analogues Project Solution

The efficiency of the radiation in the radial direction 30-50% 85%

The special design of the emitter (know-how)The radiation power in the radial direction

/ depth of the impact in W/cm2 / m3 /

0,5-1,010 /

1,5-2,5

The possibility of creating a downhole tool of any length No Yes Rubber-plastic connection of

the emitters

Correction modes of processing in real time No Yes The use of special

geophysical instrument

Openness and transparency technologies and deliverables for the customer

No Yes The remote monitoring system (cloud computing)

Project

00

0,1

10

Wt/s

m2

meters1 2

Calculation formula:Z1=ρ1*c1Z2=ρ2*c2

β=4*Z1*Z2/(Z1+Z2)2

I2=I1*βI3=I2*e-2δh

1,00,2

10

51,5 Analogues

Wave propagation

Power minimum

I1 I2 I3

I – radiant power, Wt/sm2

0,0

0,5

1,0

1,5

УЗВП Прочие технологии

The costs of processing bottom-hole zone of the customer

95%

75%

0%10%20%30%40%50%60%70%80%90%

100%

УЗВП Прочие технологии

The success of the treatment

USIORUSIOROther technologies Other technologies

In addition:

openness and transparency of the process and deliverables for the customer;

high environmental friendliness.

Confirmation of readiness to apply the USIOR technology received fromAganneftegasgeologiya, Varyiganneftegas and Smotlorneftegas

ILMASONIC-SERVICE LLC

Oil field service company

ILMASONIC-SCIENCE LLC

Designer and producer of the

equipment

Service consumers

Lease of theUTF

complexes

Service, training,

development of the equipment

Services for intensification

of oil production

Geophysical information

services

Commercialization: providing services to oil-producing companies

Promotion: Exhibitions, seminars and conferences;Publications in mass media;Speaking at the customers’ technical and scientific seminars;Propaganda in specialized Scientific-Research institutes and educational institutions;Participation in technology platforms.

Implementation: Cooperation with customer’s top-management and specialists;Collaboration with major oil field service companies;Partnership with highly specialized oil field service companies;Pilot testing.

The access to foreign markets through partners, working abroad(PetrosoundTechnologies and other)

Ф.И.О. Образование, ключевой опыт работы Роль в проекте

Saltykov Alexander,

PhD in Technical Sciences

Establishment of the oil field service company from scratch, marketing research, development and implementation of the UTF equipment and technologies.

General DirectorProject manager, marketing

Saltykov Yury Opening of branches, pilot testing USIOR. Over 25 years experience in oil companies.

Deputy General DirectorCommercialization of the project

Zhuykov Yury,PhD in Technical

Sciences

Development and implementation of the ultrasonicwaves complex on the territory of Russia, USA and China. Over 40 years experience in the Scientific Research institute on the subject matter of the project.

Chief technologistDevelopment of technology USIOR

Key activity Development USIOR Implementation

Lead time2016 2017

2018 2019 2020 2021 2022III IV II III

Research and development

1. Preparation of laboratory facilities for manufacture and testing of the layout of emitters DAD

˅

2. Production and testing of maquettes of the emitter for the acoustic well logging device ˅

3. Creation of testing and production facilities for prototype ˅

4. Development, production and testing of the developmentprototype of the USIOR complex ˅

5. Pilot testing of the USIOR complex ˅

Marketing and implementation

1. Establishment of the oil field service company ˅

2. Opening of branches of the oil field service company ˅ ˅ ˅

3. Entry to the foreign market – establishment of affiliate oil field service companies ˅ ˅

Financing, mln. RUR 7,0 16,6 12 11

1st stage. Development of emitter DAD – 7.0 mln. RUR / 6 months.2nd stage. The prototype creation USIOR – 16.6 mln. RUR / 6 months.

Commercialization of the project – 23 mln. RUR.(creation and equipment of oil services company).

14

Financial indicators of the project

‐100 000 000,0

0,0

100 000 000,0

200 000 000,0

300 000 000,0

400 000 000,0

500 000 000,0

600 000 000,0

700 000 000,0

800 000 000,0

2016 2017 2018 2019 2020 2021

ЧДЧДД

NV

NPV

(Discount 40%)

Offer to investor: share in IMS-SCIENCE LLC to 30 %

Sale of shares

The technology if of interest to oil service companies such as Weatherford, Integra, Oil drilling service, etc. that are ready to become our strategic partners

Common e‐mail ilmasonic12@gmail.com

Saltykov AlexanderDirector GeneralILMASONIC‐SCIENCE LLC

saa.ilmasonic@gmail.com+7 926 577 51 55Skype: saaims12

Saltykov YuryDeputy Director GeneralILMASONIC‐SCIENCE LLC

sua.ilmasonic@gmail.com+7 925 180 52 12Skype: yurij1961

Address1st Soviet Lane, 25Shelkovo, Moscow Region141100