Southern Africa

Shale Gas

Technology Transfer

Program

TBD AMERICAby

Barry Stevens, PhD

TBD America (TBD), a technology business

development company, has entered its 15th

year of providing technology services for

domestic and international energy companies.

Our work has provided clients with technical

and market research expertise dedicated to

meeting the complex needs of technology

driven enterprises, while providing close

support focusing on customer service. TBD is

inspired by the technologies developed by

industry leaders, and is proud of our work

developing and commercializing innovation

for the betterment of the global economy.

About Us

• Early stage of shale gas exploration

• 14 Tcm estimated Shale Gas reserves

• Controversy over environmental impact

• Lacks knowhow and trained operators

SituationS.A. Karoo Basin

Shale Gas

Technology Transfer (T2 )

Main Tasks Shale-Gas

completionMid-size O&G companies

•Horizontal Drilling

•Hydraulic Fracturing

•Safety

•Environmental Protection

Shale Gas Program

• Build-up China’s shale gas production capacity

• Human resource development

Objectives

T2 Program

• Best practice knowledge transfer / skills development

• Subcontracting arrangements

• Joint ventures

• Licensing of IP

• Subcontracting arrangements

• Equipment lease agreements

• Service agreements

• Others

T2 Program Structures

Horizontal drilling is the process of drilling and

completing, for production, a well that begins as a

vertical or inclined linear bore which extends from the

surface to a subsurface location just above the target oil

or gas reservoir called the "kickoff point," then bears off

on an arc to intersect the reservoir at the "entry point,"

and, thereafter, continues at a near-horizontal attitude

tangent to the arc, to substantially or entirely remain

within the reservoir until the desired bottom hole

location is reached.

Drilling Sideways Horizontal Well Technology

Drilling

METHODOLOGYo Drilling Methods and Associated

Hardwareo Trenched Horizontal Wellso Directionally Drilled Horizontal Wellso Well Materialso Short-radius Horizontal Wellso Medium-radius Horizontal Wellso Long-radius Horizontal Wellso Attainable Length of Horizontal

Displacemento Chalk Formationso Other Applicationso Source Rock Applicationso Stratigraphic Trap Applicationso Heterogeneous Reservoirso Coiled Tubing and Horizontal Drillingo Slim Hole Horizontal Drillingo The Drilling of Multiple Lateralso A Fire and Forget Drilling Systemo Well Logging and Formation Testing

TERMINOLOGY APPLICABILITY

o Contaminantso Site Conditionso Types of Horizontal Wells and

Their Application Benefitso Remediation Techniques

Adapted to Incorporate Horizontal Wells

o Groundwater Extractiono Enhanced Bioremediation of

Soils, Sediments, and Groundwater

o Soil Vapor Extractiono Air Sparging and Air

Sparging/Soil Vapor Extractiono In Situ Soil Flushingo Free Product Recoveryo Other Applicable Techniques

Drilling Transfer Activities - 1

TECHNOLOGY PERFORMANCEo Economics of Horizontal

Drillingo Cost Information

 TECHNOLOGY ADVANTAGES TECHNOLOGY LIMITATIONS

o Trenched Horizontal Wellso Trenched and Directionally

Drilled Horizontal Wells

Drilling Transfer Activities - 2

Hydraulic fracturing, or “fracking,” enables the driller to pump fracturing fluid into the wellbore at a high rate, which then raises the pressure, causing the rocks to crack and release natural gas into the boreholes which are kept open with the help of solid proppants (sand) contained within the fracturing fluid. By nature, fracking is water intensive requiring anywhere from 2 million to 4 million gallons per well. After injection most of the fracking fluid is extracted from the wellbore.

HYDRAULIC FRACTURING

FRACKINGo Open Hole Completiono Cased Completiono Boosting Recovery Factoro "Fracturing Fluids" or

"Pumping Fluids"o Fluid and Heat Injection

Applicationso Casingo Cementingo Packerso High Pressure Injectiono Wall Cleanup

Fracking Transfer Activities

The fracturing fluid is slurry composed of 98% water and sand. The fracking fluid is proprietary mixture of between 3 and 12 chemical additives, including but not limited to (next slide):

Fracking Fluid - 1

• Iron Control - Citric acid (Food additive, flavoring in food and beverages; Lemon Juice ~7% Citric Acid)

• KCI - Potassium chloride (Low sodium table salt substitute)

• Oxygen Scavenger - Ammonium bisulfite (Cosmetics, food and beverage processing, water treatment)

• pH Adjusting Agent - Sodium or potassium carbonate (Washing soda, detergents, soap, water softener, glass and ceramics)

• Proppant - Silica, quartz sand (Drinking water filtration, play sand, concrete, brick mortar)

• Scale Inhibitor- Ethylene glycol (Automotive antifreeze, household cleansers, and deicing agent)

• Surfactant – Isopropanol (Glass cleaner, antiperspirant, and hair color)

• Diluted Acid - Hydrochloric acid or muriatic acid (Swimming pool chemical)

• Biocide - Glutaraldehyde (Disinfectant; sterilize medical and dental equipment)

• Breaker - Ammonium persulfate (Bleaching agent in detergent and hair cosmetics0

• Corrosion Inhibitor - N,n-dimethyl formamide (Used in pharmaceuticals, acrylic fibers, plastics)

• Crosslinker - Borate salts (Laundry detergents, hand soaps, and cosmetics)

• Friction Reducer - Polyacrylamide (Water treatment, soil conditioner) and/or Mineral oil (Make-up remover, laxatives, and candy)

• Gel - Guar gum or hydroxyethyl cellulose (Cosmetics, toothpaste, sauces, baked goods, ice cream)

Fracking Fluid – 2Chemical Additives

Most of the chemical additives are commonly used and seem to present little of no health risk. However, several are classified as a toxic or

hazardous substance. MSDS (Material Safety and Data Sheets) for a few additives indicates:

•Glutaraldehyde - Hazardous in case of skin contact (irritant), of eye contact (irritant), of ingestion, of inhalation (lung irritant, lung sensitizer).

•Ammonium persulfate - Harmful if swallowed

•N,n-dimethyl formamide – Hazardous in case of skin contact (irritant, permeator), of eye contact (irritant), of ingestion, of inhalation.

•Guar gum or hydroxyethyl cellulose - Severe eye irritant. Harmful if swallowed or inhaled, and in contact with the skin. Laboratory experiments have shown mutagenic effects.

•Ethylene glycol - Harmful or fatal if swallowed, harmful if inhaled or absorbed through skin, may cause allergic skin reaction, may cause irritation to skin, eyes, and respiratory tract, affects central nervous system.

Fracking Fluid – 3 Chemical Additives

SAFETY ADVANCE SOUND OPERATIONS and PRACTICES. NEW or UNIQUE ENVIRONMENTAL RISKS WORKING WITH REGULATORS and LOCAL COMMUNITIES

"ENVIRONMENTAL IMPACTS  MANAGING THE IMPACTS OF SHALE DEVELOPMENT

o Groundwater Protectiono Water Useo Wastewater Managemento Air Emissionso Site Construction Impacts.

 Developing energy from shale is similar to the development of any natural resource, it doesn't occur in a vacuum it occurs in the community. In fact advances in drilling technology mean that drilling is now occurring in more populated areas that have not experienced oil and gas development in the past. For those communities there are several important things to remember: 

Challenges

• A comprehensive analytical testing program, designed to monitor the potential environmental impact to local surroundings, will reduce the risk of drilling and extraction.

• Testing of groundwater, soil, drinking water, and waste water for constituents specific to the shale gas program

• Testing regimeo Pre-drill ground water assessment o Drill fluids and cutting disposal / re-use testingo Frack and produce water testingo Soil and ground water characterization in response to spills /

releases

Shale GasAnalytical Testing Program

TBD America is:

•an experienced global technology driven strategic consulting firm specializing in shale gas technology transfer

•capable, methodical, flexible, and dedicated to our clients success and growth

•composed of a Team with proven field and operational experience with deep industry knowledge

•located in Texas on top of the Barnett Shale, the first major shale gas play in the U.S

Why TBD for Shale Gas T2

Anna Clark, LEED Keith Dackson, PhD, PE

Grant Harrell, MBA

Mark Hoy, MBAHenry KaChina & Asia

Konstantinos KlislarisEurope

Mark McHugh, BABrazil & South America

Steven Richardson, BA

Terry Roberts

Barry Stevens, PhD

Barry Stevens, PhD

President

TBD America, Inc.

2007 Thames Drive

Arlington, TX 76017

LandLine: +1 817.465.2228

Fax: +1 817.465.2228 (prior notification)

Cell: +1 817.366.4537

Skype: barrystevens58

Email: barry@tbdamericainc.com

Website: www.tbdamericainc.com

Contact Us