Wax Busters Ltd. Company Presentation

Perry Elliott, C.E.T. • 37 years experience in the oil and gas industry.

• 30 years experience in production.

• 25 year Field Foreman with Renaissance Energy and Husky

Energy.

• Wax Busters first Sales Representative.

• I used Wax Busters exclusively for the last 15 years that I

worked as a Field Foreman. I had tried and experimented with

other methods previously. I found Wax Busters treatments

superior.

• Connect with me on LinkedIn.

Bruce Rowland • The last 20 years Bruce has worked with all kinds of

paraffin removal services from formations to

refineries.

• Founder, Owner, and President of Wax Busters which

was started in August of 2006.

Wax Busters Ltd. • Is a privately owned and operated company.

• The head office is in Calgary, Alberta.

• Have 3 units based out of Calgary, Alberta. 1 out of

Carstairs, Alberta and 3 out of Red Earth Creek,

Alberta.

• Started due to the observation that typical wax

remediation practices were less than practical.

• Is committed to developing strong and healthy

relationships with all of our clients.

Paraffin Wax • Solid derivative that comes from petroleum, coal, or oil shale.

• Consists of a mixture of hydrocarbon molecules containing between 20 and 40 carbon atoms.

• Typical melting point of 46 to 68 degrees Celsius.

• Applications for paraffin wax include lubrication, electrical insulation, and candles.

• As much as 85% of the world’s oil is prone to precipitate paraffin deposits. Overtime these deposits can reduce oil flow to such a degree that production ceases altogether.

• Left untreated, paraffin build-up can drastically decrease the efficiency of the entire oil recovery and transfer system.

• Wax composition and temperature are the primary factors determining where deposition will occur, but pressure can be of major importance in partially depleted reservoirs with low bottom hole temperatures.

Different Methods for

Removing Paraffin Wax.

• Mechanical (wire line cutting tools)

• Scraping (rod string scrappers)

• Coiled Tubing

• Thermal

• Hot Oiling

• Hot Water

• Chemical (solvents, dispersants, continuous injection,

batch treatments)

• Combination Treatments

How Do We Treat Your Well • We inject up to 150 degrees Celsius steam into the wellbore annulus to melt

the wax with heat transfer through the tubing. We control all temperatures to the clients directions.

• We can pump down the tubing or annulus. We need to establish a feed rate to work optimally.

• Our pumping rate is 33 liters/minute. We can pump up to 3000 psi.

• The steam contains 1% proprietary WB34 chemical.

• The chemical is a mixture of environmentally safe detergents and surfactants.

• It is oil-soluble, water-dispersible, and permanently holds the melted wax in fine particle suspension.

• We have tested the ratio of wax to WB34 and brine to find out how much wax we can hold in permanent suspension.

• Our chemical has filming properties that inhibit further wax deposition.

Cooled Melted Wax

No WB34 & with WB34 CREATION OF WAX DISPERSION

Untreated 1% WB34

Untreated 1% WB34

Wax Busters Treatments • An average well treatment requires 1-2 cubic meters of water containing

10-20 liters of chemical injected at up to 150 degrees Celsius taking 30-60 minutes.

• The amount of treatment and frequency will depend on how waxy the well is.

• Flowlines and wellhead components are protected by injecting cooling water into the flow tee to control the desired returns temperature. We keep returns temperature below 60 degrees. It is monitored with a heat gun.

• The cooling water also contains 1% WB34 and a typical pumping rate is 3-10 Liters/minute. Wax Busters doesn’t charge for the water used to cool.

• Treating cost is $600 per one cubic meter treatment and is all-inclusive. It includes the loading and hauling of water, heating of brine, and pumping down well.

• We will load your clean sweet produced water for the treatments. If you want us to supply fresh water our charge is $20/cubic meter.

• There are no extra costs such as travel, standby, subsistence, or overtime.

Benefits Of Regular Preventative Maintenance

Treatments

• Decreased well work over frequency.

• Lower operating costs.

• Often initial treatments increase production.

• Our program eliminates the need for other programs that are not as safe or effective.

• It is non-disruptive as the well stays running as the treatment is being performed. There is no production loss.

• The chances are reduced of introducing foreign material into the well formation.

• Sales production is not used as in hot oiling or lean oil condensate injection or circulation. Some of the light ends are lost on heating so product is lost. It also may take many days to retrieve and during this time well production is lost. Most sales oil contains wax so hot oiling is re-injecting this wax into the well.

• Flow lines will see residual heat and chemical and well treatments will aid with pigging programs. You may experience less wax in vessels on turnarounds.

• The chemical used in our treatments is more environmentally friendly and

there is much less used than in typical chemical injection programs.

Hazardous chemical exposure to personnel is minimized.

• There is no expensive unsightly surface chemical storage and injection

equipment, taxes on equipment, risk of spills, equipment malfunction,

messes, maintenance, theft, and operator time, or error.

• The melted wax stays in permanent fine particle suspension in the sales

product so there are no expensive disposal costs and environmental

concern.

• With our light weight equipment used there is very little environmental foot

print left on the lease and treatments can most often be performed during

break up.

• Treatments can be done on any wells; PCP, insert pump, horizontal, plunger

lift, gas, and siphon strings. If there is a packer in the hole we have to inject

down the tubing.

• Many solvent based treatments contain toxic chemicals which increase

risks to human health and the environment.

• All your treatments and costs are tracked. We supply a monthly spreadsheet

that includes a job description and cost. Each year has a new tab so you

will have all our treatments and costs. This aids in fine tuning the treatment

amount and frequency. It works well for tracking costs and budgeting.

• Your costs are more fixed than with other wax removal methods. When you

are on a preventative maintenance program you know exactly what your

costs are.

• We can do a much better job than mechanical wireline knives or gauge

rings. Wax will be removed from the well unlike the mechanical method.

• If you are on a treatment schedule we will guarantee our work. If the well

has a wax related issue between treatments we repair at no charge. We will

work with you to get the proper treatment amount and frequency.

Hung Up Pump Jack Rods

• We have great success freeing hung up pump jack rods. We often free even

after a hot oiler has been unsuccessful.

• This can save you an expensive work over, lost production, and revenue.

• We set a maximum 6 cubic meter charge of $3600. We can bring out 2 units

to get twice the thermal energy into the well in the same time frame. We

sometimes pump up to 20 m3 to free the rods and get your well pumping.

• We promise to give it our best effort to get your well back producing.

• We most often lose money with this reactive service. We do it to prove how

effective our service is. We aim to gain your confidence and have you

commit to our proactive preventative maintenance program. This is where

we can best serve you and save you money.

Waxed Off Flowlines • We can unplug waxed off flowlines and retrieve stuck pigs.

• You depressurize your flowline and we install a threaded 2 inch flow tee. A

vacuum truck sucks on the flow tee while we are snaking into the other

flow tee orifice. We snake upstream of the stuck pig.

• Our 3/8 inch snake hose will reach out 1000 feet. The nozzle has 3/64 inch

spray holes. One spray hole sprays forward and the other 8 spray holes

spray 45 degrees backwards.

• If we can’t get through the plug at this distance we can spot our WB-WSS

chemical with our snake at the plug. This is an environmentally friendly

water soluble solvent. The plug can be pressured up, the other end de-

pressurized, and our chemical will work on the plug. It may save you

having to dig up the line for us to snake it again.

Snake Hose & Nozzle

Our nozzle and hose. Example spray pattern.

Well Workovers • We can clean your well for your well work over. We do

many wells where the service rig will unseat the insert pump and we will pump 1-5 cubic meters into the tubing. We usually pump the tubing volume. Our chemical will mix with the melted wax so the wax will not re-solidify.

Wax Analysis • If you provide us with a wax sample we will send it to

a independent lab to determine the cloud point and see how well our chemical holds the melted wax in particle permanent suspension. You will be provided with the report.

Production Optimization • WB-WSS (water soluble solvent) is a bio-based, non-carcinogenic,

non-toxic product. It is blended with ingredients that allow it to be mixed with hot water while it is being delivered.

• The specific gravity of the straight product is 0.87. It blends well with water as the gravities are close. It allows us to deliver the product to the required zone.

• Once WB-WSS emulsifies and encapsulates the paraffin molecules the paraffin product mixture is oil soluble and water dispersible

• We recommend letting our WB-WSS soak for 24-48 hours for best results.

• The cost of our WB-WSS is $1450/barrel.

Safety • We are registered and in good standing with both ISN

and Complyworks.

• Safety is a priority.

• All workers are trained and provided with a safety

manual.

• Regular safety and tailgate meetings are done to ensure

safety is maintained to the highest standard possible.

• We are committed to safety and the company has a

current SECOR certification.

Client List • Arc Resources

• Ascent Energy

• Baccalieu Energy

• Barrick Energy

• Baytex Energy

• Bellatrix

• Blackspur Oil Corp

• Bonavista

• Boulder Energy

• Canadian Coyote

• CNRL

• Cenovus

• Chance Oilfield

• Clearbrook Resources

• Coastal Resources

• Coda Petroleum

• Concerto Resources

• Connacher Oil and Gas

• ConocoPhillips

• Corithian

• CQ Energy/Centrica/Direct Energy

• Crew

• DeeThree Exploration

• Devon Canada

• Encana

• Edge

• Firenze Energy

• Forent Energy

• Freehold Royalties

• Harvest

• Husky

• In Play Oil (Kingsmere)

• Journey

• Just Free Hold

• Kanex

• Legacy Oil and Gas

• Lightstream (Petrobakken)

• Lone Pine Resources

• Long Term Asset Management

• Manitok

• Marquee

• MEC

• NAL

• NEO

• NuVista

• Omers

• Owl River

• Paramount Resources

• Pengrowth

• Penn West

• Perpetual Energy

• Predator

• Progress

• Quattro

• Regent Resources

• Response

• Rife Resources

• Scollard Energy

• Signalta Daylight

• Sinopec Daylight

• Spartan Energy Corp

• Spyglass Resources

• Success Resources

• Summerland Energy

• Surge

• Taqa North

• Teine

• Terivita Corp

• Torc Oil and Gas

• Traverse

• Vault Energy

• Velvet Energy

• Vermillion

• Virginia Hills

• White Cap Resources

• White Ram

• Yangarra

SUMMARY Wax Busters treatments are:

More effective

More cost efficient

More environmentally friendly

Easier

Safer

Than other wax removal methods!

Who Ya Gonna Call?

WAX

BUSTERS Perry Elliott, C.E.T.

403-793-7003