Closed Loop Specialist

Serving the Rockies since 1991

Check out our website at www.zeco.biz

Why Choose ZECO?

Experienced company serving the Rocky Mountain Area with Quality Equipment andSuperior Service Since 1991;

Highly trained dependable service technicians;

“Green Hat” Hands On Training Program. “Green Hats” are trained for 28 days straight to allowthem to experience the entire well process form spud to TD. All new hires spend no less than aweek at either our Vernal or North Dakota shop, learning our equipment, Safety Program andField Procedures. A “Green Hat” accompanies two certified technicians on location at noadditional charge to the Operator;

High performance equipment that is both durable and reliable;

Additional services offered include trucking, disposal and drying agent to eliminateadditional invoices and time spent by the operator in regard to these services. We inturn work for the operator to get the best trucking and disposal cost we can to helplower over all costs. Once the cuttings come off the rig, they are ZECO’s responsibilityand the operator does not have to think about them again;

Competitive pricing; and

Our On-Site Technicians as well as our Service Technicians work a two week on/twoweek off schedule that is staggered in such a way that only one technician leaves fordays off per week in order to ensure that there is always someone on the rig who is upto date and has an understanding of what is happening on location rather than havingtwo fresh technicians arriving as the other two leave.

Cost Savings and Benefits:

Eliminate costly reserve pits;

Reduce well pad size;

Environmentally friendly;

Significant savings in VCD fluid recovery;

Greatly reduce mud costs;

Reduce water consumption;

Reduce fluid hauling and disposal;

Solids are efficiently removed thus saving mud pump down time;

Solids are dried to maximum efficiency;

Eliminate soil contamination;

All inclusive package that includes solids and pressure control, drying agent, trucking and disposal for a flat rate; and

Reduce your companies liability.

Benefits of ZECO’s Turnkey Package

Responsibility is on the ZECO team to notonly keep the cost down, but also to ensurethe efficient use of drying agent in order tokeep it to a minimum;

Our customers can eliminate severalinvoices and the time spent processingthose invoices as they will get one invoiceinstead of four;

A total overall cost saving by turnkeyingthe job;

Company men are no longer required todevote any time reviewing or signingtickets from the truck drivers that arehauling to disposal;

Competitive rates for trucking, disposaland drying agent due to ZECO’srelationships with these third partyproviders;

Our ZECO team maintains precise records ofall materials hauled off of location todisposal facilities;

ZECO uses a Vertical Cutting Dryer (VCD) onOBM, our invert savings is an average of 20barrels per tower, or 200 barrels in anintermediate section, resulting in anestimated $35,000.00 per well;

ZECO recycles the VCD cuttings and usesthem in place of drying agent, saving theOperator over-all costs;

The ZECO team has dedicated VCDTechnicians, trained to handle all issuesthat may occur at any time throughout thejob; and

Our package has proven to be both cost-effective as well as convenient.

Work History… Since January of 2012, ZECO has successfully operated solids control systems on over 170

complete wells across Western North Dakota, Eastern Montana, Colorado, Wyoming and

Utah for Operators including Whiting Petroleum, American Eagle Resources, XTO Energy,

Liberty Resources, Kodiak Oil & Gas and Enduro Operating.

ZECO has operated full solids control packages on over 40 surface sections for Operators

including Triangle, Slawson, Enerplus and Fidelity.

While on Frontier 14 for Whiting Petroleum and upon completion of both surfaces during

a 2 well batch drilling job, no vac load trucks were needed.

At ZECO we take pride in our work

and as a result, our team is not only

known for our high quality service

but also our equipment. ZECO’s top

notch dewatering units along with

our highly trained technicians have

proven that our clients are able to

haul off clean water for reuse on

additional jobs.

Past Work Performance…

Customer Performance Evaluations:

“Efficient with using fly ash. No spills. They take care of their camps and make

their equipment and work area look good. They are willing to help with whatever

you ask. Can’t say enough about them.”

~ American Eagle (see full Performance Evaluation on following slides)

“They do what it takes to make the operation work. The best people and

equipment.”

~ XTO Energy (see full Performance Evaluation on following slides)

Nabors B08 batch drilled three surfaces, once our hands finished dewatering after they

completed the third surface the company man had the water hauled up the road to another

XTO rig for additional surface drilling.

“ZECO hands make the difference.”

~ Whiting Petroleum (see full Performance Evaluation on following slides)

American Eagle

Performance Evaluations

7

XTO Energy

Performance Evaluations

8

Whiting Petroleum

Performance Evaluations

9

ZECO SOLIDS CONTROL EQUIPMENT

- MOBILE EQUIPMENT STAND -

Features:

Trailer Mounted Packages;

Fast rig-up and rig-down;

Totally self-contained; and

No crane picks.

- CENTRIFUGES -

Simple compact design;

Efficiently remove fine solids;

Unattended operation;

Low operating cost;

Low maintenance;

High reliability;

Available models:

The ZECO I (18” x 28” bowl)

The ZECO II (18” x 48” bowl)

The ZECO II VFD (18” x 48” bowl - Variable Speed)

ZECO Decanting Centrifuges have been designed to reflect more than 75 years of research,

development and field experience in centrifuging drilling mud. Built to process unweighted,

as well as weighted mud. They are rugged user friendly machines designed for reliable

operation year after year.

- CENTRIFUGES -

Recent design upgrades:

Heavier stainless steel scroll maintains balance better and longer;

Conveyors use tungsten carbide tiles for superior wear;

Enlarged conveyor discharge ports;

Double flight conveyors greatly increases tonnage over single flight models;

Thicker heavier stainless steel bowl for better balance;

Adjustable fluid discharge ports on bowl;

Enlarged solids discharge ports;

Bowl has wall cake strips to prevent slipping (causing rotating plug);

Tungsten Carbide wiper bars for longer life;

Gearboxes use bronze bushings (no bearing) for longer life;

Gearboxes feature internal oil pumps for superior lubrication;

Designed for greater G-force 1727@2600 RPM

Timing belt drive reduces side load on bearings; and

Allen Bradley starters and controls (best on the market).

- VERTICAL CUTTINGS DRYERS -

ZECO’s Vertical Cuttings Dryers (“VCDs”) are one of the industry’s finest performing and most dependable cutting dryers. Our VCDs can reduce liquid content to less than 5% with lower maintenance costs than our competition and provides substantial reduction to the oil-in-cuttings ratio to help meet state and federal regulations for waste disposal. This is achieved while managing 40 to 60 tons per hour of high ROP drill cuttings. VCDs offer a waste management solution to effectively clean and dispose of drilling solids and maximize drilling fluid returns specific to our customer's needs. Oil-based and synthetic-based drilling fluid are expensive and recycling for reuse will lower overhead costs.

- VERTICAL CUTTINGS DRYERS - ZECO’s rugged, continuous vertical cuttings dryers are fed via screw conveyor, vacuum

system, or rotary-lobe solids pump from the flow-line shakers. Our fluid clutch provides a smooth and easy start before drill cuttings are fed into the hopper and distributed along the inner wall of the screen with the aid of the rotor. The liquid phase, or “filtrate”, passes through the screen openings while the vertical scraper with sintered tungsten carbide tiles scrape the accumulating cake solids towards the bottom of the VCD for disposal. The filtrate gravity flows into a containment tank and pumped to a high speed decanter centrifuge. Dried cuttings are then safely discharged, significantly improving liquid phase recovery, cheaper than the cost of replacement fluid and minimal waste to be transported and disposed of.

- VERTICAL CUTTINGS DRYERS SAVINGS -

$1,000.00

$2,000.00

$3,000.00

$4,000.00

$5,000.00

$6,000.00

$7,000.00

$8,000.00

$9,000.00

$10,000.00

$11,000.00

$12,000.00

$13,000.00

$14,000.00

$15,000.00

$16,000.00

$17,000.00

$18,000.00

$19,000.00

$20,000.00

$21,000.00

1/18/2019 1/20/2019 1/22/2019 1/24/2019 1/26/2019 1/28/2019 1/30/2019

0 0 0

20748

7182

3192

3990

0 0 01596

0 0

SAVINGS PER DAY

SAVINGS PER DAY IN RECOVERED DIESEL FUEL (Current Operators Saving)

DATESTART

DEPTHFINISH DEPTH

TOTAL

FOOTAGE

TOTAL FLUID

RECOVEREDRUNNING TOTAL

1/17/2015 2240 2240 0 0 0

1/18/2015 2240 2240 0 0 0

1/19/2015 2270 5874 3604 0 0

1/20/2015 5874 7578 1704 130 130

1/21/2015 7578 8265 687 45 175

1/22/2015 8265 9160 895 20 195

1/23/2015 9160 10249 1089 25 220

1/24/2015 10249 10349 100 0220

1/25/2015 10349 10349 0 0 220

1/26/2015 10349 11004 655 0 220

1/27/2015 11004 11004 0 10 230

1/28/2015 11004 11004 0 0 0

1/29/2015 11004 11004 0 0 0

TOTAL 230

DATE

TOTAL FLUID

RECOVERED PER

DAY

TOTAL SAVINGS

PER DAY

1/17/2015 0 $0.00

1/18/2015 0 $0.00

1/19/2015 0 $0.00

1/20/2015 130 $20,748.00

1/21/2015 45 $7,182.00

1/22/2015 20 $3,192.00

1/23/2015 25 $3,990.00

1/24/2015 0 $0.00

1/25/2015 0 $0.00

1/26/2015 0 $0.00

1/27/2015 10 $1,596.00

1/28/2015 0 $0.00

1/29/2015 0 $0.00

13 DAYS 230 $36,708.00

- VERTICAL CUTTINGS DRYERS -See Video on the next slide

- DRYING SHAKERS -

Features:

Increased Flow Capacity;

Longer Screen Life;

Drier Discharge;

Rugged and Simple; and

Low Maintenance.

- MUD CLEANERS -

The ZECO Mud Cleaner uses a unique two-

stage mechanical process to remove fine drill

solids. By a combination of cycloning and

screening, the entire circulating volume is

stripped of sand without significant loss of

valuable weighting materials, chemicals or

fluids. The ZECO round Mud Cleaners can be

double screened to efficiently return LCM to

the active system.

Features:

400 GPM Capacity;

High Efficiency;

High Reliability; and

Low Maintenance.

- MUD CLEANERS -

Field Application has these proven

benefits:

Chemical treatment is reduced and

mud costs are lower;

Bit life and penetration rates are

increased;

Filter cake properties are improved

and the danger of differential

sticking is minimized;

Cementing problems are reduced;

and

Waste disposal problems are

reduced.

- Field Proven Barite Recovery Systems -

- DEWATERING UNIT -

- Trip Tanks - & - Pre-Mix Tanks -

ZECO PRESSURE CONTROL

- DRILLING CHOKES -

Features:

Hydraulic with Manual Override;

Rugged, Proven Dependability;

10,000 PSI. Working Pressure;

Unique Choke Orifice Plate Design;

Tungsten Carbide Wear Sleeves; and

Single or Dual Choke Operation.

ZECO also manufactures an adapter for Pason

electric choke actuators:

110 volt power;

Eliminates air and hydraulic lines;

Digital position indicator; and

Hand crank operation if loss of power.

- VACUUM DEGASSER -

ZECO Vacuum Degasser

ZECO degassers provide effective degassing with high throughput by means of a unique centrifugal-vacuum design. ZECO degassers are capable of handling high viscosity 20 pound mud with a 50% gas cut. They can draw up to 800 GPM and discharge as much as 400 GPM. The ZECO degassing system is totally self contained on one skid. Both suction and discharge pumps are powered by a single electric motor.

HOW IT WORKS

The mud is drawn into the degasser by a vacuum pump at a constant vacuum level and spins in the centrifugal degassing tubes at forces up to 25 g's. Mud flowing through the degassing tube inlets disperses in thin layers around the tube walls to maximize exposure of the mud surface to vacuum. As the mud spins through the tubes, the lighter, entrained gas bubbles "rise" to the surface of the mud where they burst. The heavier mud is sprayed, with considerable impact, into a turbulence hood, breaking out remaining gases. Gas is discharged through a blower to atmosphere or to a flare line. Degassed mud is returned to the mud system through a specially designed centrifugal discharge pump.

- ATMOSPHERIC DEGASSER - Field proven performance. For 30 years the

impact, plus turbulence principle of degassing has been proven successful. It employs a simple concept of degassing gas cut mud in a clean, safe and efficient manner.

The degasser consists of a submerged centrifugal pump and an elevated spray tank. Spiral ducting of the pump inlet causes the mud to form a whirlpool above the center of the impeller. Any gas that leaves the mud in the impeller moves to the whirlpool and escapes upward through the pump frame.

The gas cut mud in the impeller flows up through the riser pipe to the spray tank. A disc valve above the end of the riser pipe forms circular orifice which the mud flows through, forming a high velocity sheet. The mud sheet strikes the inside wall of the tank with enough turbulence and mixing to drive the small gas bubbles out of the mud.

- MUD/GAS SEPARATORS- & - FLARE INGITERS-