Tom Swanson Locus Bio-Energy Solutions

1. Copyright © 2022 Locus Bio-EnergySolutions

2. 2
The Great Saltwater Flood in the Permian basin
World Oil, July 2022
• Each disposal well is approved with a maximum
injection capacity
• BBL/day injection rate
• Maximum allowable injection pressure
• Maximum pressure reached before maximum
injection capacity
• Volume injected <<< volume permitted
• Under-utilization of disposal wells during a time of
growing disposal needs
Why?
2,200,000
Midland Basin
bbl/month
2,500,000
Delaware Basin
bbl/month

3. 3
Saltwater Disposal Challenges
Ineffective Current Offerings
• Cost-effective chemical solutions traditionally deployed do not address all challenges.
• Incomplete chemical solutions must be coupled with expensive physical/mechanical solutions to
achieve maximum injectivity.
1. Increasing Back Pressure
• Produced saltwater contains solids that plate out on the reservoir surface preventing water injection
into the rock, resulting in rapid increase in pressure.
• Even without solids deposition, overcoming high capillary pressure is a challenge to effectively inject
water into the rock.
Emulsions from Hydrocarbon Carryover
• Small amounts of hydrocarbon present in the saltwater creates emulsions in the wellbore,
reducing injectable volume.
2.
3.
Combined with rising ESG pressure and budget limitations

4. Biosurfactant-Based Additives
The Opportunity
Use sustainable oilfield technology
developed in the US to immediately boost
produced water handling.
Biosurfactant-based additives can reduce
OPEX and maintain CAPEX integrity in the
produced water and midstream markets.
60-day trials 1,000,000 Barrels
of Water Day
Benefits
Increase in use of biosurfactant-based
technologies will:
SWD’s are under increasing scrutiny due
to higher seismicity which restricts
operations.
Improve the quality of
recovered crude
Skim oil challenges due to organic and
inorganic sludging require reprocessing
which adds to costs and environmental
impact on a barrel recovered basis.
Higher demand will require an increase
in in disposal volumes. Due to limits on
injection pressure, water volumes in
some cases must be transported.
Reduce injection pressures
Reduce Transportation Costs
4
Currently Conducting:

5. 5
Solution:
Biosurfactant-Based
Injectivity Aids
Better
penetration
into matrix
Maintain lower
pressure
Maximum
water volume
injection
Reduced overall
disposal costs
Biosurfactants can outperform
industry-leading chemical
solutions at a fraction of the
dosage rate and cost

6. Neutralization
Filtration Oxidation
Hydrocarbon Schmoo
Dispersion Destabilization
Scale
TSS Constituent Descriptor and Offset Costs to the Operator
Gravel Plugging inert substrate Remediation (not typically chemically addressed)
Sand Plugging inert substrate High injection pressures and remediation
Silt Swellable substrate High injection pressures and remediation
Clay Swellable substrate High injection pressures and remediation
Algae – Bacteria Organic insoluble matter High injection rates and remediation, fouling of water, poor separation
Hydrocarbon Insoluble liquid substrate High injection pressures
Schmoo Emulsification accelerator High injection pressures, non-sellable crude, & remediation
Scale Seeding accelerated particulate High injection pressures, flowline blocks, & acid remediation
6
Water Treatment Overview
Biosurfactant additives can address a wide range of produced water challenges

7. SWD Management: Areas of Opportunities
• Scale
• Physical evidence of iron scale existence
• Barium and strontium scale
• High pH
• Systems where the water pH is above 5.8
• Oxidation Processes
• Pre-and post THPS treatments
• Pre-existing oxidative environments (dissolved or atmospheric oxygen)
• Corrosion
• Lower corrosion rate requirements
• Tanks
• Oil pads in crude oil skim tanks
• ESG
• Reduction in physical hazards of process chemicals is required
• When interest is focused on ESG reduction
Biosurfactant-based additives outperform surfactants where gaps exist today
7

8. Reducing Backpressure - Enhancing Saltwater Injection Rates
77% increase in water
filterability rate on high solids
Permian SW Disposal Water
Biosurfactant-BasedSaltwater Disposal Injectivity Aids
Disposal Water
Sample
Solids retained on
a 45 micron Filter
• 7.5 barrels of salt water are produced for every
barrel of crude oil, 260 barrels of water for every
million cubic feet of natural gas in the USA1.
• This water contains solids, grease and even
naturally occurring radioactive materials and
needs to be safely disposed via the 150,000 to
170,000 water injection wells
• Enhancing Salt Water Disposal well injection
efficiency is a $200 million+ / year chemical additive
market in the US
Locus’ biosurfactant-based treatments
outperform traditional injectivity aids to reduce
costs and increase the efficiency of Saltwater
Disposal Wells
1 https://www.reuters.com/article/us-usa-shale-water-kemp/water-is-the-biggest-output-of-u-s-oil-and-gas-wells-kemp-idUSKCN0J223P20141118
FloBoost™
8

9. 3:30 min – 100 ml 0:34 min – 100 ml
Permian Basin
Produced Water
√
9
FloBoost
Solids, grease
and scales
effectively
dispersed
Solids, grease and
scales settle and
rapidly clog the
filter
FloBoost™
Saltwater
Disposal Injectivity Aids How it Works
Stress Test
Rapid Filtration
Faster
Injection
Rate with
FloBoost!
10x

10. Boosting SWD
Injection Rates
(Saltwater Disposal Wells)
10
Improves:
• Rate of disposal water injection
• Maximizes recovery of Oil
Seconds
Blend 1 Blend 4 Blend 6 Blend 8 Blend 9
Blank Blend 2 Blend 5 Blend 7 Incumbent
Standard 100 mls @15 psi through 0.45 m Millipore
Comparison of Locus biosurfactant-based additives vs incumbent and blank
• Injection rate (Time for 100 mls of water to pass through the filter)
• 10x Faster than the Blank (no chemical)
FloBoost™

11. 127
78
25
29
40
99
50
100
31
70
0
20
40
60
80
100
120
140
Blank FloBoost 1 FloBoost 2 FloBoost 3 FloBoost 4 Incumbent
Chemistry
Incumbent
Chemistry
Incumbent
Chemistry
Incumbent
Chemistry
Incumbent
Chemistry
Throughput
seconds
Products
Delaware Basin SWD
50 ppm Treatment Rate
11
Field Study 1

12. 83
32
28
44
40
42
40
0
10
20
30
40
50
60
70
80
90
Blank FloBoost 1 FloBoost 2 Incumbent Chemistry Incumbent Chemistry Incumbent Chemistry Incumbent Chemistry
Throughput
seconds
Products
Midland Basin SWD
50 ppm Treatment Rate
12
Field Study 2

13. 86
32
28
44
40
33
0
10
20
30
40
50
60
70
80
90
100
Blank FloBoost 1 FloBoost 2 Incumbent Chemistry Incumbent Chemistry Incumbent + FloBoost
Throughput
seconds
Products
Delaware Basin SWD
50 ppm Treatment Rate
13
Field Study 3

14. HCl 1.5% HCl 1.5% + 8% xylene HCl 1.5% + 3% AcidBoost ME190
Not to be distributed without express permission from Locus Bio-Energy Solutions
Biosurfactant-based blends
are highly effective at
cleaning the rock surface
from crude oils, waxes and
other organic deposits that
can prevent water injection
into the pore space.
Increasing accessible pore
volume leads to maximizing
injection volume.
Cleaning
Applications
Why are
biosurfactant-based
products effective?
14

15. Biosurfactants: Benefits & Key Takeaways
Locus has developed
proprietary manufacturing
technology at large scale
suitable for application of
biosurfactants in the Oilfield
& Mining Industries
Unique characteristics of biosurfactants
• High potency - extremely low dosage rates
• Critical micelle concentration (CMC) <50 ppm
• Very small micelle (3.1 nm)
• Very effective at lowering interfacial tension (IFT) and
changing surface wettability
• Unique adsorption-desorption characteristics that offer
long-term performance
• Non emulsification properties
• Stability > 300° F, robust in downhole temperatures
• No Live microbes and does not support microbial growth
• Compatible with acids
• Carbon neutral
15

16. ESG
UPDATE
Locus BE
biosurfactants
are
Carbon
Neutral
• Locus BE biosurfactants
are Carbon Neutral
• Manufacturing plant is
transitioning to
renewable-backed
power
• Remaining small carbon
footprint is offset with
carbon credits to claim a
Carbon Neutral footprint
ONE HUNDRED PERCENT OF THE OPERATIONAL ENERGY USE ASSOCIATED WITH
SOLON PRODUCTION WILL BE OFFSET BY NEW ON- OR OFF-SITE RENEWABLE ENERGY.
16

17. Copyright © 2022 Locus Bio-EnergySolutions
Not to be distributed without express permission from Locus Bio-Energy Solutions