PowerPoint Presentation

ThermalDrive TECHNOLOGY

BEHIND THE NEXT GENERATION OF SUBMERSIBLE PUMP SYSTEMS

1

GEOTEK ENERGY, LLCThese materials are presented on a confidential basis and may not be used for any other purpose without the prior written approval of GeoTek Energy LLC. These materials were developed from information supplied by numerous industry sources and other research without independent verification by the company.

The accuracy or achievability of any valuations, projections, estimates or assumptions, all of which may be preliminary, are presented without warranty and subject to further analysis or discussion. Actual results may vary from such valuations, projections, estimates and assumptions, and such variations may be material.GEOTEK ENERGY LLC, 6170 RESEARCH RD, SUITE 217, FRISCO, TX, 750332

GEOTEKS BUSINESSAPPLYING RENEWABLE TECHNOLOGY TO HYDROCARBON PRODUCTION

GeoTek is finalizing development of a unique, highly efficient geothermal-based technology, called ThermalDriveTMThermalDriveTM is a motor driven by thermal energy and replaces an electric motor that powers a submersible pump systemPrimarily focused on sales/licensing within the oil & gas (O&G) industry serving on shore and offshore applications Secondary focus on sales /licensing within geothermal power industry, especially EGS3

GEOTEKS TECHNOLOGY APPROACHBased on the thermodynamic cycle and performing work as defined by the Carnot cycle, GeoTeks patented and patent pending technology is an innovative application of the geothermal binary cycle (Organic Rankin Cycle) which uses a working fluid to change heat to energy to work.

Derived from GeoTeks patented gravity head energy system (GHES), it is a geothermal production technology that minimizes or eliminates parasitic loads (& electric costs) associated with pumping of production wells and the secondary working fluid (also eliminates problematic electrical components)

The technology includes three GeoTek innovations: a gravity driven thermo-syphon loop for the working fluid; a downhole expander / pump system to perform work; and, performance evaluation / well design software

GeoTeks thermo-syphon loop relies on gravity to circulate the working fluid (as it gains heat [energy] from the produced fluid) from the surface equipment to the downhole pump without the use of electrically driven pumps

GeoTeks system uses energy from the working fluid to power the expander, called ThermalDriveTM, which drives the pump and moves the wells produced fluid. This also eliminates the need for an electric driven pump

4

THE TECHNOLOGY

TECHNOLOGY BASICS CARNOT ENGINE HEAT TO WORKTo pump fluid from a well using geothermal energy requires a heat engine a mechanism that changes heat (energy) to work.Geoteks thermal motor, the ThermalDrive, is a Carnot (heat) engineA working fluid, following the Carnot cycle shown to the right, gains heat from the produced fluid as it travels down into the wellArriving at the ThermalDrive as a supercritical fluid, it enters, expanding into a lighter vapor and giving up the heat (energy) during expansion which drives the pumpFrom the ThermalDrive, the vapor now travels up the well, enters the condenser on the surface, is cooled to become a liquid, and thenn repeats the cycle

5

THE TECHNOLOGYWF TRAVELS THRU EPUWF TRAVELS THRU CONDENSORWF TRAVELS UP TO SURFACEWF TRAVELS DOWN TO EPURepresentation of Cycle Only

TECHNOLOGY BASICS THERMO-SYPHON LOOPTo power standard surface generators, geothermal binary systems use a refrigerant (working fluid or WF), that is typically moved through the closed loop system by electric pumpsIn the GeoTek system, during the descent down the well, the working fluid WF (dark blue) increases in pressure due to gravity and head.After passing through the crossover, the WF now under high pressure flows downward around the produced fluid tubing (center-pink) where it is heated by the produced fluid being pumped to the surface by the ThermalDrive pumping unitThe energy to drive the GeoTek system for power generation or pumping is derived from the heat in produced fluid (center-pink) that has been transferred to the WF (lite blue) as it is drawn further down the well by gravityThe WF converts into a supercritical fluid as it enters and drives the the ThermalDrive pump system, pumping the produced fluid to the surface. Exiting the ThermalDrive as a lighter vapor, the WF travels back to the surface where it is condensed to a (heavier) liquid which is then again driven by gravity downward, repeating the loop.

6

THE TECHNOLOGY

CORE TECHNOLOGY THYMOTM THE COMPUTER MODELTo ensure the ThermalDrive pump system can reach its critical efficiency, pump fluid and also generate power, computer modeling of the well is required

GeoTek partner, Blade Energy Partners, Frisco, TX, developed a thermal assurance model that would utilize more than 50 well variables

Using Blades Thermal Assurance model, Ortloff Engineers LTD, of Midland, TX, developed a more rigorous and effective computer model that accounted for additional design and downhole operating variables the model is now called THYMO

THYMO now does well performance evaluations and designs with more productivity and accuracy

7

THE TECHNOLOGY

ProductionzoneExpanderPump

Production Fluid

Working Fluid

Crossover

Condenser

CORE TECHNOLOGY THE ThermalDriveIn GeoTek systems, the turbine component of the pumping system, called ThermalDriveTM , acts as a Carnot cycle heat engine.Entering the turbine, the super critical working fluid (wf) expands into a vapor converting heat to workThe ThermalDrive, as a heat engine, is a turbine operating on the same gas expansion principle as a steam turbineThe typical turbine uses a simple turbine blade as shown to the rightThe ThermalDrive, driven by the working fluid, is coupled to a pump which then pumps the produced fluid, brine or an oil/water mixture, to the surface.

8

THE TECHNOLOGY

CORE TECHNOLOGY ThermalDriveTM Pumping SystemThe ThermalDrive or turbine is magnetically coupled to the pump as shown to the right

Unlike the turbine blade on page 9, GeoTeks ThermalDrive, shown below left, is mounted circumferentially around and outside the production tubing

The ThermalDrive is magnetically coupled through non-ferrous tubing to the pump shaft shown below right

9

THE TECHNOLOGY

THE ThermalDrive SUBMERSIBLE PUMP10

MAGNETIC COUPLINGProvides separation between produced fluid & working fluidPRODUCTION TUBINGTURBO MOTORWorking fluid in annulus, compressed by gravity & heated by production fluid, spins motor PUMP SECTIONWireline retrievable through production tubingMATING SPLINEMates with magnetic couplingThermalDrive

THE TECHNOLOGY

10

TECHNOLOGY READINESS 11

THE TECHNOLOGY

USING NASAS TRL SYSTEM -

GEOTEK IS CURRENTLY IN THE TRANSITION PHASE FROM TRL 4 TO 5 AS PROTOTYPE COMPONENTS COMPLETE DESIGN AND ARE BEING READIED FOR IN-FIELD/PILOT TESTING LATE Q2-15

TECHNOLOGY PATENTSThe United States Patent and Trademark Office issued:Patent 8,439,105 (issued 2013)Patent 8,672,026 (issued 2014)Patent Application (filed 2013) Patent Application (filed 2014) Six Patent Applications in PreparationTrademark Applications filed 2014 - ThermalDrive and ThymoTM12

THE TECHNOLOGY

TECHNOLOGY DEVELOPMENT

Grant application in 2010 and awarded in 2011 for $2,800,000. (DE-FOA-0000336)Grant Phase 1 (system and component design) was completed and submitted on 0ctober 23, 2012 and acceptedDOE authorized the execution of the next phases, 2a / 2b, with a maximum reimbursement of $2,400,000To broaden available market GeoTek made EPU design changes and received a project extension to 12/31/14 for resumption of Phase 2 (prototype/field testing) while retaining the Grant Funds13

THE TECHNOLOGYDept. of Energy Technology Grant - $2.8 million

TECHNOLOGY PARTNERSOrtloff Engineers, LTD, Midland, TX engineering consulting support including the development of Thymo

Blade Energy Partners, Frisco, TX developed the first thermal assurance models

Concepts NREC, White River JCT. NH design and manufacturer of turbine pumping unit

Geothermex, Inc, Richmond, CA research on economic advantages and potential us market for the GHES power system

Department of Energy, Geothermal Technology Office

GeoTek Energy LLC Technical AdvisorsDr. Ron Dippipo, Emeritus Professor of Mechnical Engineering, UMASS DartmouthDr. Jefferson Tester, David Croll Professor of Sustainable Energy, Cornell UniversityJill Haizlip Principal, Geologica , LLCLouis Capuano Capuano Engineering, Inc.14

THE TECHNOLOGY