This document summarizes a technology for monitoring hydraulic fracturing operations using microseismic surface signals. It discusses how borehole monitoring is expensive but necessary to avoid losses, while surface monitoring has been difficult due to noise. The solution presented uses Optimal Statistical Algorithms (OSA) to suppress noise and extract signals, allowing useful information to be obtained from surface monitoring at a fraction of the cost of boreholes. The technology has been developed by Microseismic Inc. and attracted over $100 million in investments. It provides economic and monitoring benefits for evaluating fracture growth and mapping during hydraulic fracturing operations.

1. Microseismic 2012-technology for
surface hydrofrac monitoring.

2. Frac without monitoring:
• $million losses of production wells
• ecological problems
Monitoring options:
• Boreholes: wells are expensive - unbeatable
• Surface: signals are buried in noise - solvable
Frac is the
only tool for
shale gas PROBLEM
production

3. Key to success:
coherent noise suppression and Solution
signal extraction
with OSA
(Optimal Statistical Algorithms) Patented
© SYNAPSE Science Center, 2010-2012 OSA-
technology
Microseismic
Monitoring
Equipment Platform Software
MMP
Field Methodology
engineering of monitoring
experience

4. World Shale Plays
Just the United States
Covering only 10% of the
conducts more than 25 000
potential monitoring market
hydrofracs for shale gas
segment in the US brings
recovery a year with
approximately $600million a
estimated frac monitoring
year.
market of $6 Billions.

5. Economic benefits:
our OSA surface jobs
vs.
borehole jobs:
Competitive cost reduction up to 20
Advantages times
.
.
Microseismic Inc.,
attracted more
than $100 million
of venture investments in
2011
Our technology
allows to excavate
substantially more
useful information
about source signal

6. Fracture Technology
and IP
Injection
well
OSA produces high
quality information
needed for higher quality
frac mapping
OUR IP: 4 patents RF, 1 patent submitted,
1 patent undergoes РСТ procedure.
Software: copyrighted

7. TEAM
A world lead expert in
seismic monitoring theory
prof. Alexander Kushnir is our
Head Scientist.
The team core
M. Rozhkov Ph.D in Geophysics, Russian and US industry, US and UK Universities
A. Epiphansky Ph.D in Geophysics, Russian industry and High School
I. Driker Ph.D in Geophysics, US industry and Universities
D. Shkarin Ph.D in Mathematics, US industry and High School (Yale University)
A. Varypaev Ms.D researcher, graduate student in stochastic theory
N. Rozhkov Ms.D researcher, data processing engineer

8. Business
model
Project
Outcomes
Tested prototype
of microseismic monitoring
platform aimed at post-processing
products (frac mapping).
Service company SYNAPSE+
jointly with our US partner and co-investor
Instrumental Software Technologies, Inc. (ISTI),
Or service company
SYNAPSE+ & CORPORATE INVESTOR:
equity, board of directors.
equity, board of directors

9. 120
100 Skolkovo
80 Investor Project
60 Budget M.Rub budget and
40 returns
20
0
2013 2014 2015 Total
Our foreign and Russian
partners and customers
invested more than
$500,000 into the project
Full investment
return in 2
quarters

10. SYNAPSE Science Center
 119526,
Russia, Moscow, Vernadskogo
ave., 101/1, suite 306
 Phone/fax +7 495 4343638
 E-mail: fomichev.synapse@yandex.ru
 www.synapse.ru