1

! 2010 SEMJET Well Technologies

LLC

Enhanced Oil Recovery Solutions

Lateral Thinking. SEMJET"

Smart Solutions.

2

! 2010 SEMJET Well Technologies

LLC

Overcoming the challenges

Improved oil recovery methods are fast becoming an essential requirement for all the mature and marginal oil fields around the world. The ability to identify and unlock vast

amounts of trapped reserves has provided a niche business opportunity for companies keen to tackle and overcome many of the technical challenges posed.

This is a where SEMJET" Well Technologies and its global partners are leading the way,

by purposefully focusing on the challenges and then resolving them before they arise in the field. Over one thousand concerns, posed by industry experts, engineers and clients alike, were used during the research and development of SEMJET’s" multi-functional solutions.

The application of SEMJET’s" new technologies, now enable a client to overcome the

majority of technical challenges they may face, while vastly improving their ability to enhance exploit their reservoirs and increase production from depleted wells.

• The ability to inspect the condition of the production tubing with in-situ inspection, log the cement bond and correlate the casing collars, from its built in logging system.

• The ability to provide remedial cementing services, wherever the target zones have been identified as having poor cement integrity; to ensure suitable zonal isolation.

• The ability to create a number of underbalanced horizontal channels off any wellbore at a true 90° for the purpose of increasing the overall drainage area of a reservoir.

• The ability to create horizontal channels off any new or old wellbores that have 4.5” casing or greater; whether the wells are vertical, deviated or horizontal in design.

• The ability to enter mono-bore completions and jet lateral channels at a true 90° in

casing as small as 3.5”, using a secondary, unique coiled tubing system.

• The ability to unlock and stimulate trapped oil reserves, beyond any near wellbore damage, by displacing acid, specialty fluids or microbial products into the laterals.

• The ability to displace any stimulation fluids at the furthest end of a lateral and back towards the main wellbore, allowing for deeper formation / reservoir penetration.

• The ability to penetrate the reservoir and open up larger producing channels without using conventional perforating guns, which damage the formation and are hazardous.

• The ability to create a low pressure, high velocity circulating environment within the wellbore; to ensure cuttings removal, geological samples and efficient well cleaning.

• The ability to create a series of multi-lateral or bi-lateral channels as a pre-cursor to frac operations, in a revolutionary, single entry process; in vertical or horizontal wells.

• The ability to create by design a unique radial stacked lateral formation, which is ideal for directional flooding or the SEMJET" version known as a Radial SAGD" system.

• The ability to re-enter laterals at any time by deploying a packer secured Lateral Re-

entry Guide" primarily used to run lateral sand screens and directing gravel packs.

• The ability to run and set an internal ported casing patch, for the isolation of previous

perforations or to support the casing exit area created during lateral formations.

• The ability to run custom designed Pre-Ported Casing", allowing for lateral channels

to be created without the need for any casing exit tools or loss of casing integrity.

• The ability to track the trajectory of each lateral channel in a 3Dimensional electronic format, from surface using the latest in micro-coiled tubing technology and sensors.

• The ability work over, pull tubing, jet and stimulate any well under live conditions,

through the deployment of a stand alone snubbing unit, to eliminate killing the well.

3

! 2010 SEMJET Well Technologies

LLC

Whatever you need

In what can only be described as one of the most versatile well optimization systems ever built, SEMJET" can now perform over 12 independent services from an equipment spread

that is manufactured onto the back of just 3 tri-axle trucks*. Not forgetting that SEMJET"

requires just 4 personnel on location at anyone time to operate all components**.

For international or offshore operations, SEMJET" can also manufacture custom designed

skid mounted units, which are built to order and within the confines of standard 20ft ISO shipping containers. These skid-based systems are highly mobile, secure and also conform to lightweight field applications where crane limitations could be an issue.

As an example a complete SEMJET" surface system would comprise of:

1. Wireline logging unit including BOPs and lubricator.

2. Micro-coiled tubing unit including injector and gooseneck (1/2” or 3/4” coil)

3. High pressure injection pumps capable of up to 15,000psi at 10gpm

4. Low pressure injection pumps capable of up to 2,000psi at 10gpm

5. Nitrogen membrane unit and compressor capable of delivery 750scf/m at 2,000psi

6. 4phase production testing meter with constant electronic data monitoring

7. Surface sampling unit with low-micron sediment filters

8. Pre-Ported Casing" cutter and Wrapid Sleeve" application unit

9. Real time data acquisition console with logging, directional and test data functions

In addition to the components that make up the surface system we cannot overlook all the unique SEMJET" innovations, being their patented down-hole delivery tools and trade

marked processes:

1. MLJ-1 tool, the first generation BHA with a casing exit and 90° lateral jetting tool,

used mainly in vertical or deviated wellbores.

2. MLJ-2 tool, the second generation BHA with a casing exit, 90° lateral jetting tool and

multi-functional underbalanced / N2 circulating sub, used mainly in vertical, deviated and Hz wellbores.

3. MLJ-3 tool, the third generation BHA, which requires no casing exit tool, but still enables 90° laterals to be jetted bi-laterally off a horizontal wellbore. This tool also

incorporates the N2 circulating sub, retrievable tubing anchor and protective sleeve

for multi-staged frac operations. 4. HCC-1 tool, the Hydraulic Casing Cutter" is a unique microbotic 2” casing exit,

controlled from surface, with up to 16 orientations for precise lateral placements. 5. LRG-1 tool, the Lateral Re-entry Guide" to enable re-entry of any well, at any time

additional stimulating operations or liners to be inserted into the lateral channels. 6. Pre-Ported Casing" services for horizontal or vertical well bores. Pre-Ported

Casing" is a SEMJET" custom cut process, which is sealed onsite using a CNC

jetting cutter and Wrapid Sleeve" technology.

* Truck models & specifications vary from region to region / manufactured to order. ** The number of personnel & trucks only increase with the deployment of a stand-alone snubbing

unit and pre-ported casing unit, which are project specific.

4

! 2010 SEMJET Well Technologies

LLC

SEMJET" Multi-Lateral Jetting

The Challenge has long been the ability to reach into a reservoir, far beyond any near well-bore damage using an ultra short radius method and successfully deliver a stimulation program that can improve declining production; An important ability in today’s marginal fields.

The Issues are not only limited to the near well-bore damage caused by incompatible drilling fluids or conventional over-balanced drilling. As studies have also shown damage is also caused when perforating, shattering the casing cement and plugging off the very holes it was intended to create. In addition, sand migration and ground sloughing around the

producing areas, will also impair the wells production over time.

Traditional Solutions are plentiful although they all come with inherent problems of their own. Re-perforating, acid stimulation and fracs are commonly used methods, applied to re-open the depleted zones again, but without really addressing the underlying problems. These traditional work-over methods can be very short-term and very costly solutions.

• Perforating creates the desired penetrations but they’re usually short in distance, they also create thermal glazing problems, issues of gun-debris and the effect of breaking down yet more of the very cement that is required to maintain the well integrity and zone isolations. .

• Acid squeezes often follow and are designed to clean the perforations as well as penetrating the formation, although the majority of acid used is ‘spent’ just a few meters out of the wellbore or soaks into fractures before they’ve had any effect.

• Fracs are usually more successful in comparison, but also have similar issues, following the path of least resistance, into fractures, or filling up the void’s left where the wellbore cement integrity was lost

previously.

The SEMJET" Solutions offer a range of

integrated services that can assess and repair a wellbore, prior to jetting and stimulation, the directing a frac or steam-flooding program.

1. Initial in-situ tubing inspection and CBL logs will determine the condition of an

existing well, prior to operations starting.

2. Any cement integrity issues can be reviewed onsite and a SEMSeal"

remedial cement job performed.

3. Once the target zones are logged, the SEMJET" BHA is then run in hole.

4. Upon exiting the casing, using either a mill in an existing well, or the SEMJET"

PPC technology in a new well, a series of horizontal channels will be jetted at 90° from the main wellbore.

5. The channel created will be a predetermined length from 1m to 100m and monitored from surface using the SEMTrack" 3D trajectory system.

6. By design, the high-pressure jetting nozzle will initially create a 1” pilot channel out to the extent of the lateral. A stimulation fluid is then displaced through the micro-coil and the channel is then cut up to 3” using a method similar to back-reaming.

7. The speed of the return cut, the rate and the pressure of fluid being injected will determine the channel size and overall penetration of the stimulation fluid. Stimulation will be effective from the furthest extent of lateral back into the main wellbore.

8. Constant hole-cleaning and cuttings removal is possible with the SEMCirc" system.

5

! 2010 SEMJET Well Technologies

LLC

SEMCirc" Underbalanced Wellbore Cleanouts

The Challenge was to reduce the amount of hydrostatic pressure being exerted on the

formation during the jetting and circulating process; in addition to ensuring that all the cuttings are removed from the wellbore and the lateral channels, enabling a successful single entry, multi-lateral jetting operation.

Due to the speed at which the laterals are cut, higher velocities are required down-hole and a gas-lift circulating tool was needed as an integral component to the existing SEMJET"

BHA. This ultimately ensures that all formation cuttings and fluids, created during the

jetting process of each lateral channel are removed and collected at surface.

The Issues in not being able to clean out the wellbore during the jetting of each lateral channel would result in a limited amount of laterals in any one well and an overall limit on the distance that each lateral can be jetted.

• Due to the amount of cuttings created during the jetting process, multiple runs would have to be made in and out of the well with the BHA and swabbing operations required to clean out the well bore and sump, adding increased time and unnecessary cost to the project.

• More concerning though, is the potential effect of fines migration, the smaller cuttings being forced by the hydrostatic head of fluid in the well-bore back down the previously jetted lateral channels, which could ultimately cause skin damage, blockages and result in non-productive flow. Something our competitors face in all their projects.

Traditional Solutions are available in the from of a service rig and swabbing process, or the additional cost of calling out a conventional coiled-tubing system. Days would be added to the overall project in the case of a swabbing operation and even then not all the residual cuttings would be retrieved from the wellbore in an effective manner.

Using conventional coiled tubing and nitrogen offers better results in cleaning the well, but

drastically increases the overall project cost.

The SEMJET" Solution allows for the use of a gas

lift method, with nitrogen being injected down to the

SEMJET" BHA. The nitrogen exits through

specifically designed circulating sub and creates a stream of nitrified fluid that rapidly rises to the surface.

1. A low pressure, high velocity condition is created in the main wellbore using nitrified bubble stream to carry cuttings and fines to surface.

2. At surface the cuttings are directed in to a

vented storage tank via a bypass in the SEMCap" surface sampling system. At any

point in the operations some cuttings flow can be diverted through a sample pot for capture and geo-logical analysis.

3. By SEMCirc" creating what is essentially an

underbalanced condition in the main wellbore and having a balanced condition in the laterals while they are being created, aids in the rapid evacuation of the cuttings to ensure no build up around the jetting hose.

4. SEMCirc" has the ability to work in all well

types, with an emphasis on being more applicable and more effective in the deeper horizontal wells.

5. Depending on the density of the returns in any particular well, a compatible foaming agent would be injected also. Nitrified foam is proven to have a far greater ability in carrying the cuttings to surface.

6

! 2010 SEMJET Well Technologies

LLC

Management Team & Contacts

Thomas Jenkins Dale Joseph President Vice President

Contact: + 66 8989 46840 Contact: + 1 281 9739024 Email: thomas@semjet.ca Email: dale@semjet.ca

Paul Campling Brian Lunan

VP Operations VP Engineering

Contact: + 44 7899 715202 Contact: + 1 403 3512176 Email: paul@semjet.ca Email: brian@semjet.ca

__________________________________

SEMJET Well Technologies LLC SEMJET Well Technologies (Asia) Registered Office Branch Office 114 Blackrock Road C/o Maple Group (Thailand) Ltd.

Houston, Texas 1401 Q-House Asoke Building 77044, USA 66 Sukhumvit Road, Soi 21 Bangkok 10110, Thailand Tel: + 1 281 9739024 Tel: + 66 2664 3171 Fax: + 1 281 9739024 Fax: + 66 2664 3170 Web: www.semjet.ca Web: www.maplegroupintl.com

__________________________________

For more information on the complete range of SEMJET" Products, Tools &

Processes; or Exclusive Licenses please contact us via email or website.