Electro-treatment is a new enhanced oil recovery method that uses electrical pulses to open new pathways for oil to flow out of aging wells. It requires portable, low-cost equipment and little energy. Initial treatments show increased oil production of 10-30% over the next 2-5 years, compared to other expensive EOR methods. The technology was developed in Russia and has been successfully tested on hundreds of wells in Russia and other countries. It works by using micro-explosions caused by the electrical pulses to break up tight spaces in the reservoir and allow more oil to flow through.

1. Enhanced Oil RecoveryThrough Electro-TreatmentGrant BearssAdvanced Oil Recovery Technologies Ltd.

2. PEAK OILThere is an on-going debate about the point where oil discovery and production will peak and begin to decline. New finds of oil have just not been able to keep up with demand - so the only resolve is to adapt technology to extend this peak and move from an exploration solution to an exploitation solution.Chevron estimates that the world consumes two barrels of oil for every one that is discovered. Enhanced Oil Recovery [EOR] is the adaptation of technology to recover more oil from aging wells with declining production. Typically this involves huge costs including tremendous amounts of infrastructure, huge energy uses (sometimes equal to or greater than the benefits), and time.Our proven technology involves a low cost portable treatment that requires no outside infrastructure and very little energy usage. A single treatment of 24 to 48 hours immediately shows increasing benefits for the following 2 to 5 years equal to or greater than competing EOR methods. Increased production is typically 10 to 30%, and at today’s price of crude oil, this equates to large dollar figures and a happy customer

3. IntroductionAdvanced Oil Recovery Technologies Ltd.Incorporated in Canada in March 2006Developed to be a global pioneer in Enhanced Oil Recovery and UpgradingTechnological know-how is based on 40 years of R&D by leading scientists from the Petroleum Institute of the former USSR Current staff include several of these former scientistsTechnologies are patented or patent pending Focus on Electro Treatment for Enhanced Oil Recovery and Upgrading & Recovery of Heavy Oil/Oil SandsAll processes have low energy consumption and are environmentally sound

4. IntroductionAdvanced Oil Recovery Technologies Ltd.Oil well treatment through Electro Treatment increases the output of aging oil fields while decreasing the water-cutMajor breakthroughs in utilization of Electro Treatment in the oil field occurred 17 years ago and have been perfected by our partner in RussiaMr. Alexander Rybakov (presently a team member and researcher for Advanced Oil Recovery Technologies) was the lead pioneer of this technologyHundreds of field tests have occurred including throughout Russia, Kazakhstan, India and former Soviet states

5. Electro Treatment TheoryThe Electro Treatment technology is based on the effects of changing the cavitated spatial pattern within the soil of a reservoir and spacious structure of two-phase liquid filtration (oil & water) in the reservoir as a result of repeated cycles of electric pulses

6. Electro Treatment TheoryUtilizing the existing production casings from two well points as “antennae” electrical waves are modulated directly into the reservoir at both high and low frequency Treatment is portable, short term and has relatively no infrastructure cost.

7. EquipmentEquipment isoff road truck mounted to access difficult sites

8. EquipmentThe equipment is powered by tapping into the power grid (if available) or by large generator

9. EquipmentEquipment consists of large powerful capacitors

10. Equipment…specialty control systems

11. Equipment…specialty control systems

12. EquipmentAnother successful treatment!

13. Max 2 kmMax 3 kmTreatment continued 24-30 hours

14. TheoryR1If the capillary sections radii ratio R1 / R2 = 3.2 then the energy emissiondensity ratio E2 / E1 = 100R2

15. Soil StructureOil reservoir soil particles consist of a hard skeleton with a low electric conductivity which is covered by a less firm component with a double electric layer (with better electric conductivity), which together with clay, partially covers rock particles

16. Micro ExplosionsDue to the electric pulse, the energy emission in the narrow capillaries significantly increases local temperature and intensifies all processes (creating micro explosions)

17. EffectWhen the temperature reaches the threshold value, the mechanical destruction of the surface component and mud occurs in the narrow pore passages and new oilpaths are opened

18. Technical PrincipleOil mixed with water is located in small spaces between soil particles

19. Technical PrincipleIn the oil field, the oil-water mixture moves through the corridors between soil particles towards the well where it is pumped to the surface

20. Technical PrincipleDue to electricity conducted by the soil, micro explosions are causedThese explosions take place in the narrowest places between the soil particlesNew routes for oil are generated

21. Technical PrincipleSecondly, the treatment generates gas and steam, particularly where water is present (since water conducts electricity much better than oil)Gas and steam create “plugs” in between particlesThe plugs prevent water from moving between soil particles

22. Technical PrincipleGenerally: The treatment opens channels for oil and closes channels for waterAs a result the oil output increases and water-cut decreases

23. Oil production, t / dayAfter TreatmentAdditional oilTimePrognosis on outputTechnical EffectsOil production of oil well increasesElectro TreatmentUsually increase 2000-5000 t per year

24. PrognosedAfter ETTechnical EffectsWater content in oil-water mixture decreasesWater-cut, %Usually water-cut decreases 10-20 % (best results 80 %)Electro TreatmentTime

25. 100806040200Water-cut, %Water-cut before Electro TreatmentResults 4 months after TreatmentKazakhstan, June 1998Results 4 months after Electro Treatment1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Oil well

28. Selection of Wells for TreatmentMore than 50 parameters are used for selecting suitable oil wells for treatment

29. Always need a pair of wells

30. If a well suitable for treatment is not close enough, any well (even “empty”) is selected even though no positive results are expected Additional FactsIt is possible to work both on-shore or off-shore

31. It is also possible to treat gas fields and fresh water wells

32. Electro Treatment is 100 % harmless for the oil field and oil field equipmentContinuing R&D leads to even greater resultsWhat Can Be Done:Approximately 20 % of all oil wells world wide can be treated

33. Positive results in more than 90 % of cases

34. No risk of harming well

35. First results of Treatment can be measured and confirmed within 1-2 months after treatment

36. What Can Be Done:Electro Treatment positively affects 2-5 years of production