Flex Leasing Power and Service Introduction Presentation 2015-12-09

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General IntroductionDecember 2015

FLEX LEASING POWER & SERVICE: GAS TURBINE GENERATORSHigh uptime modular power solutions for the oil and gas industry

Technology development by Ingersoll-Rand for broad distributed power market

1990s Ingersoll-Rand established R&D team to evaluate use of automotive turbomachinery in small gas turbines

2001 - 2004 Formed Energy Systems business and released 70kW turbine in 2001, followed by 250kW turbine in 2004 based heavily on very successful Dresser Rand KG2

2004-2011 Over 300 units of 70kW and 250kW units operating in field with over three million hours of operation in the full distributed power market (luxury hotels, hospitals, landfills, waste water treatment plants, local and remote oil fields

CORPORATE HISTORY

High uptime modular power solutions for the oil & gas industry

FlexEnergy: Shift to oil and gas focus

2011-2012 FlexEnergy acquired the IR Energy Systems business. Focus of business was on waste gas to energy green power initiatives.

2012 FlexEnergy identified oil and gas prime power market as best fit for the technology.

2013 Targeted technology application and business on oil and gas remote power providing reliable, low emissions electricity from well head and flare gas Artificial lift (ESP, rod lift) Gas production facilities Compressor stations LNG facilities Offshore platforms

Continues to manufacture reliable, efficient small gas turbines

Continues to manufacture reliable, efficient250 kW and 333 kW gas turbines

FlexEnergy Headquarters, Portsmouth, NH

CORPORATE HISTORY


Corporate History

Skid Mounted 250 kW Gas Turbine

Flex Leasing Power and Service

• Late 2012 Independent company formed

• Offer both direct-purchase and leasing programs for oil producers that needed reliable remote turbine power for site operations

• Package FlexEnergy turbines on skids and trailers

• Engineer harsh conditions solutions: fuel scrubbing, inlet air hoods, electrical interconnects systems

• Monitor, service and maintain systems in the field

• 2015 Turbine fleet grown to over 60 turbines on lease

• U.S. facilities in Colorado (HQ), North Dakota and Texas

• Canadian facility in Grande Prairie

• Turbine fleet availability of over 98.7%

Current product offering covers power capacity needs from 250 kW to 10 MW +


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2. PRODUCT / TECHNICAL OVERVIEW

Durable Turbine EngineBack-to-back rotating components and proven oil-lubricated bearings. Once a year scheduled maintenance

Built for Oil and Gas Based on multi-decade, operationally proven KG2 engine design Remote or grid connected in outdoor harsh environments

Patented CombustorDry low NOx easily meets and exceeds the most stringent regulations.

FLEX TURBINE™ GT250S & GT333S


Simple Synchronous GeneratorSame technology used by utilities. Delivers high starting kVA to start 100+ HP motors. Clean three phase power to operate ESP’s, inverters, motors and controls.

Fuel TolerantWide fuel gas range, including high Btu gas compositions with ethane, butanes, hexanes and higher compounds

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MT250/333 Cycle Diagram

1800 rpm

45400 rpm

• 480 Volts• 60 Hz• 3 Phase

256ºC/493ºF Typical

Up to913ºC/1675°F4 atm (60 psia)

6 atm (88 psia)


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Wide Gas ToleranceExamples of Gas Compositions Supported


Examples of Acceptable Gas Mixtures*Component Mole Fraction

Nitrogen 2.23% 1.10% 1.30% 8.91% 0.61% 0.04%H2S 0.00% 0.10% 0.00% 0.00% 0.00% 0.00%

Oxygen 0.30% 0.00% 0.00% 2.00% 0.00% 0.00%CO2 79.05% 35.80% 0.23% 1.81% 1.11% 0.00%

Methane 7.97% 63.00% 88.86% 42.65% 17.36% 0.11%Ethane 1.91% 0.00% 4.88% 13.59% 24.55% 0.67%

Propane 2.90% 0.00% 2.22% 15.38% 21.98% 54.00%Butane 2.52% 0.00% 1.17% 8.71% 31.99% 45.13%Pentane 2.04% 0.00% 0.56% 4.54% 2.41% 0.06%Hexane 0.83% 0.00% 0.30% 1.70% 0.01% 0.00%Heptane 0.17% 0.00% 0.49% 0.54% 0.00% 0.00%Octane 0.08% 0.00% 0.00% 0.17% 0.00% 0.00%

LHV Btu/scf 373 574 1032 1505 2115 2620Combustor Type SW ST SM SM SM SM

*gas analysis required to verify hydrocarbon dewpoint and confirm delivery conditions to the turbine

Standard system operates on a wide range of hydrocarbon mixtures

H2S tolerance up to 6500 ppmv with 80 psig fuel

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Emission Levels to Meet the Latest Stringent Standards


U.S. Federal Tier IV reductions require costly & maintenance intensive exhaust catalyst

U.S. Federal Stationary Reciprocating Engine rules (at site 12 months or longer) require certification and testing

U.S. Federal gas turbine rules (<50 MMbtu/hr fuel input)

Comparison to other technologies on pipeline natural gasNo exhaust catalyst or chemicals needed

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Simple Rugged Rotating Generator

Industry standard synchronous generator technology used by utilities

Clean power to run site inverters such as ESPs

“Y” connected, 3 phase PMG exciter 4 Pole, 1500 or 1800 rpm design

Rated for 340kW and 511 Amps continuous at 480V (0.8 PF)

1080 locked rotor skVA available Capable of starting large motor DOL

100 HP motor with GT250S 125 HP motor with GT333S

Easily paralleled as multiple units


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Turbines Paralleled as Multiple UnitsFor Larger, Variable and Peak Loads


Two Turbine Site Three Turbine Site

Six Turbine Site

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Load Following Oil Field Generator Braking Resistor

• Rugged oil field ready GBR• Tubular elements• Solid state relays• Silicon controlled rectifier for fine

tuning• Quick connect cables• Designed for load variations typical

of pump jack applications

Ruggedized Oil Field–Ready Generator Braking Resistor


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Following Variable, Cyclical Loads (Pump Jacks)

• Advantages of synchronous generator are• Capable of Large motor starting

• 333 kW – 125 hp • Simple, clean output to run site inverter based

equipment such as ESPs• Synchronous generators operate at fixed speed (1800 rpm

for 60 Hz electricity)• Generator braking resistor advantage

• Maintain minimum load on generator• Automatically switches elements off/on to follow fast

changing electric load• Generator speed is maintained to produce 60 Hz

electricity


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Load Following Grid Isolated System

System Controls Tuned to Maintain Consistent, Reliable Power Output


Generator Braking Resistor

Site Load Connection

Generator Output and Speed maintained by system control

Reserve Power sent to & delivered from GBR by system controls

Actual Power delivered to site loads

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3. VALUE OF TURBINE GENERATOR

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Increased Uptime Through Lower Maintenance

Scheduled service comparison with reciprocating engine

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• Replace filters• Inspect engine, enclosures, batteries, switches• Replace ignitor• Replace coolants and filters• Lubricate generator bearings

GT250S/GT333S Run Hours

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• Lube linkages• Check batteries• Inspect belts• Clean engine• Change oil & filter• Spark plug

check/replace• Clean radiator

• Clean start lube bowl• Analyze coolant• Inspect timing sensor,

generator, speed sensor, starting motor, water pump, alternator

• Lube bearings

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• Lube bearings





• Lube bearings



375 kW Reciprocating Engine Generator Run Hours

• Test insulation• Check rectifier• Inspect turbocharger


Top end overhaul #1





GT250S & GT333SGas Turbine Advantages Over Competition


Comparison to Competitors: Flex Gas Turbines

Diesel Gensets

Gas-Fired Recip Engine

Low annual maintenance (Very few “Touches”) Ability to consistently absorb and shed large power loads Robust oil lubricated bearings Rugged synchronous generator can start 100 HP (GT250S) & 125 HP (GT333S) loads Utilizes resistive load bank to manage highly transient loads associated with artificial lift sites Use of field gas vs. need to import more expensive fuel (Diesel, LNG + transportation) AND eliminates expensive and difficult fuel logistics in locations that have well/pipeline gas

Low emissions allows for easier permitting and ensures emissions limits are not exceeded

1.Increased production

• Low maintenance equals more uptime

• Better load handling means consistently higher uptime in real world applications

2.Decreased operating costs

• Eliminates need to buy expensive diesel fuel

• Fewer touches and less scheduled downtime than any recip engine

• Remote connectivity and monitoring enables data logging and diagnostics to be done offsite

3. Reduced emissions

• Reduce / eliminate flaring

• Patented, ultra-lean combustion system that produces low emissions and enables use in non-attainment areas

Benefits of Turbines on Artificial Lift Sites


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Power from problem gas (tank vapors)

Flex Turbine gas tolerance allows sites to use tank vapors as fuel


1) Existing VRU outlet becomes gas supply for Flex Turbine

2) VRU gas pressure regulated to ~550 kPa(g)

3) VRU gas used directly by Flex Turbine

4) Other site gas used as supplemental fuel to ensure continuous gas supply

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Power from problem gas (tank vapors)

Flex Turbine gas tolerance allows sites to use tank vapors with process compressor


1) Tank vapors scrubbed and piped to process compressor

2) Process compressor (FLPS or client supplied) delivers 550 kPa(g)

3) Tank vapors used directly by Flex Turbine

4) Other site gas used as supplemental fuel to ensure continuous gas supply

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Automatic Fuel Switching (casing gas to propane)

Flex Turbine gas tolerance allows sites to switch from field gas to propane


2) Propane is set up as back up when primary fuel shuts down

3) Primary gas pressure decrease to low level triggers switch to propane

1) Primary fuel is wellhead, casing, or other problem gas

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5. SUMMARY

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Site Information Needed

Name & Location Gas Analysis

Composition including H2S level Pressure and Flow Rate

Electric Load Data Equipment Type and Rating Planned changes or expansion

Current Electric Supply Generator rating – including diesel or natural gas? Utility (if applicable) – include full set of utility bills

Delivery Date


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MATCHING TECHNOLOGY TO APPLICATION

Gas Turbines “Oil & Gas Ready” for Remote Applications


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6400 S Fiddlers Green CircleSte. 450

Greenwood Village, CO 80111USA

CANADA INFO:TEL. (403) 837 - 0650

[email protected]

www.flexleasingpower.com


mailto:[email protected]

Documents

Flex Leasing Power and Service Introduction Presentation 2015-12-09