RENK LLC

01.05.2023

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A Piezoelectric Downhole Pump Unit for Hard-to-Extract Oil Production

Oil Recovery Problems

Lack of short and thin pumping units for hard-to-extract oil recovery:

for small diameter wells, with liners and patches

for highly curved wells

for wells with viscous and heavy oil

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Solution for Industry

The compact and powerful piezoelectric linear stepper motor to drive the downhole piston pump has been developed and patented

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1 - Casing2 - Extender piezoelectric section3 - Rear clamping section4 - Front clamping section5 - Piston6 - Protector (bellows)

Piezoelectric Pump Unit according to the USA Patent №9273676

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Patent Protection

Territory of the patent protection: Russia, USA and Canada

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No restrictions from patents of other entities for pump unit design and the components design

Patenting in USA and Canada based on Russian patents will be continued

Patent application of Russia for cylinder design and methods of pumping. Further patenting in other countries is possible

Patent application of Russia for various connections between piston and piezoelectric sections

Patent of Russia and patent application of USA for long extender section for future development of the product (large capacity)

International patent application for internal cooling of the piezoelectric stack. Further patenting in other countries is possible

Basic patent of Russia, patent of USA, patent application of Canada

Patent application for magnetostrictive pump unit based on similar physic effect has been filed to Russia and USA

01.05.2023

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Piezoelectric Stepping Motor

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Technical Feasibility

Engineering calculations and prototype testing confirmed the achievement of target parameters: - flow of 60 bpd; - head of 2500 m; - the total length of 4.5 m

Total Addressable Market

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TAM in USA: $4 B yearly TAM in Russia: $700 M yearly

Comparison with Analogues

Model Stage Efficiency

Supply Head Dameter Price

Sucker Rod PumpШГН 25-125 THM 

In the market

60% up to 300 bpd

2000 m(depth)

50 mm 40000(with pumping unit)

Centrifugal ESPУЭЦН ВНН3-40

In the market

24% from 200 bpd

2500 m 81 mm 100000

Progressive Cavity Pump ЭВН5-16-1500

In the market

50% up to 125 bpd

1500 m 92 mm 30000

Twin-Screw Pump CAN-K

In the market

70% from 150 bpd

2500 m 93,4 mm 180000

Piezoelectric Pumping Unit

Developing 60% up to 60 bpd

2500 m 86 mm 20000

Benefits from Introduction

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Previously Idle Wells: additional oil

Instead of Centrifugal ESP: increase of the operated wells number avoiding the occasional use of well facilitating round-lift operations

Instead of Sucker Rod Pumps: decrease in metal

content and requirements for device mounting pads

increase of the operated wells number

better working of the pump valves and filling of the pump cylinder

energy savings

Instead of Progressive Cavity Pumps:(lower and upper drive): versatility increase of the operated

wells number

Business Model : Technology Licensing

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Sale of technology to 4 producers of oil machinery. The license price = 7% of the pump unit sale price. Profit: $24M up to 2022 year at $3M of investments for all rounds. This is 8X, in addition to the investor's share of capitalization.

Pilot production site: up to 200 pump units a year And:

Pump Units ProducedYear 1st factory 2nd factory 3rd factory 4th factory

2019 1250

2020 1750 1250

2021 2250 1750 1250

2022 2500 2250 1750 1250

Project Team

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Andrey Kuznetsov, Ph.D.Director of RENK LLCBackground: Mechanical and hydraulic engineering. R&D management for submersible oil pumps and other innovative products. Marketing and sales. Administrating of team of up to 100 persons

Vladimir Patrashov Responsible for Electronic Control Station Background: Developing, manufacture of electronic, instrumentation equipment and piezoceramic devices

Andrey Ruhman, Ph.D Responsible for Piezomotor Design and Calculations Background: Development of ultrasonic piezoelectric equipment and technologies

Contact with customers

TNK-BP oil producing company interested in the introduction (letter of 2012 year)

Rosneft oil producing company interested in the introduction (Samaraneftegaz and SamaraNIPIneft divisions) (Protocol of 2015 year)

Bashneft oil producing company interested in the introduction (Protocol of 2015 year)

Timeline

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Small size prototype of the pump unit development. fulfilled

February…December, 2016. Full size prototype and a control unit are designed, produced and tested in an oil well. Round need: $0,5M; Investment need: $0,25M

January…December, 2017. Pilot lot of the pump units is designed, produced and tested in oil wells. Round need: $1M; Investment need: $0,5M

January…June, 2018. Assembly production line is arranged. Round need: $1,5M; Investment $1,1M

July 2018. 100 pump units are sold for $2M of income

Possible Strategic Investors

Shlumberger Baker HughesWeatherford

Russian Oil Mashinery Companies: Izhneftemash, Alnas (Rimera Industrial Group) Novomet Perm Livgidromash (GMS Industrial Group) Kubanneftemash Perm Oil Machinery Engineering Company Bugulma Electric Pumps Factory (Runako Industrial Group)

Possible Synergy15

Also the pump unit may be introduced as a dosing pump for viscous and aggressive fluids

A fundamentally new linear stepping piezomotor may be used in the industrial machinery instead of a hydraulic cylinder

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CONTACTS of RENK LLC:Russia, City of Moscow,Andrey Kuznetsov, C.E.O. of RENK LLC

Phone: +7 (985) 411-29-63Email: akuznet@orc.ru

ooorank@mail.ruMail: POB 322, 125493, Moscow, Russia