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Confidential
Combined Miscible Drive (CMD)
“Recovering the Unrecoverable Barrel”
September 12, 2011 2011 University of Wyoming EORI Conference
Jackson Hole, Wyoming
2
Corporate Summary
2
• Public Company Listed in Toronto (TSX: NNN)
• Q2 Production Exit Rate – 1,200 BOEPD
• Reserves – 17.4 MMBOE Proved; 28.6 MMBOE Proved + Probable
• Acquire producing oil and gas properties with substantial
conventional and enhanced oil recovery development
• Technical staff has specific expertise in evaluation, acquisition, re-
development and Enhanced Oil Recovery (EOR) technologies.
3
High Quality Asset Portfolio
3
PORTFOLIO SUMMARY
PLEITO CREEK OIL FIELD
San Joaquin Basin, CA
KROTZ SPRINGS FIELD
St. Landry Parish, LA
FERGUSON RANCH, HUNT,
SHEEP POINT, WILLOW DRAW OIL FIELDS
Big Horn Basin, WY
Concentrated portfolio of oil and gas properties with an attractive reserve
base leveraged 98% to crude oil.
4 4
History of In-Situ Combustion
• In-situ combustion technology has existed for over 100 years - what’s
old is new again.
• In the US there have been 228 in-situ combustion projects ~ 60% failed: Poor Reservoir Characterization
Unanticipated Operational Challenges
Management Commitment
• All projects that utilized oxygen enriched air were technical successes
but uneconomic due to declining oil prices.
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Combined Miscible Drive – CMD
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Oxygen, Carbon Dioxide, and Steam
Combustion Zone
Oil
Water
A patented in-situ combustion
process in which foamed oxygen
is injected at the top of an oil
reservoir to generate CO2, heat and steam.
CMD Process Elements
6
• Foamed O2 is used to generate CO2
and steam in-situ
• Steam heats and displaces oil toward
the production wells
• CO2 and light oil form a miscible layer
in front of the steam
• CO2 saturates the oil ahead of the
miscible light oil layer
• The process is unique because the
benefits of a CO2 flood, gravity
drainage, and a steam flood are
combined to enhance production.
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CMD Project Screening Parameters
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• Reservoir Depth – 2,000 to 5,000 ft
• Porosity > 22%
• Initial Oil Saturation > 50%
• API Oil Gravity < 32˚
• Reservoir Oil Viscosity < 500 cp
• Sloping Structure for Top Down Injection
8 8
NiMin California Property
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Pleito Creek Field – Santa Margarita Reservoir
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• OOIP = 38.7 million bbl
• Reservoir & Crude Oil Properties Depth = 3,600 to 4,600 ft
Avg. k = 90 md
Avg. Ф = 28%
SOR = 65%
16˚ API Crude & 185 cp @ 105˚ F
Temperature = 105˚ F
Avg. net pay = 115 feet
• Current production 300 BOPD
• CMD response in 3 horizontal wells
• Primary expected recovery up to 12%
• CMD expected recovery up to 60%
H2
H3 H4
H1 I
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20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
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-20
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-20
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-20
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01
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04
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07
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10
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Oil
Rat
e -
bo
pd
H2 Production Plot
Actual Production
Historical Decline
CMD Initiation
Ran Inner Liner
Gravel Pack Failure
-
5.0
10.0
15.0
20.0
25.0
30.0
01
-20
08
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Oil
Rat
e -
bo
pd
H3 Production Plot
Actual Production
Historical Decline
CMD Initiation
-
20.0
40.0
60.0
80.0
100.0
120.0
01
-20
08
04
-20
08
07
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04
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07
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10
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Oil
Rat
e -
bo
pd
H1 Production Plot
Actual Production
Historical Decline
CMD Initiation
-
10.0
20.0
30.0
40.0
50.0
60.0
01
-20
08
04
-20
08
07
-20
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10
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01
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04
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07
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10
-20
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Oil
Rat
e -
bo
pd
H4 Production Plot
Actual Production
Historical Decline
CMD Initiation
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Pleito Creek Injection Facility
14
1. Produced Water
Treating
2. Liquid O2 Storage & Pumping
3. O2 Vaporization
4. Water & O2 Mixed to O2 Foam
5. Injection Well Design
6. Safety System
1 2
3 4
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• Top Down Injection
• Gravity Stable
• Reservoir Temperature = 105° F
• Injection Pressure = 1,700 psi
• Significant CO2 Absorption
Pleito Creek Conditions for CMD
16
Pleito Creek - CO2 Density @105o
F
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0 500 1000 1500 2000
Spe
cifi
c G
ravi
ty
Pressure, psi
Simple Gas Region
Liquid Phase Region
Supercritical Gas Region Current Crestal Reservoir Pressure
17
Pleito Creek - Oil Swelling @105o
F
1
1.05
1.1
1.15
1.2
1.25
1.3
1.35
0 500 1000 1500 2000
Bo
, rb
/stb
Pressure, psi
CO2-105
CO2-225
CH4-105
N2-105
Liquid Phase
Supercritical Region
Gas Region
18
Pleito Creek - Gas Saturated Oil Viscosity @105o
F
0
50
100
150
200
250
0 500 1000 1500 2000 2500 3000
Vis
cosi
ty, c
p
Pressure, psi
N2
CH4
CO2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
5.0
10.0
15.0
20.0
25.0
30.0
01
-20
08
04
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10
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CO
2 C
on
cen
trat
ion
Oil
Rat
e -
bo
pd
H3 Production Plot
CO2 Concentraion
Actual Production
CMD Initiation
20
• Supercritical CO2 properties of gas and liquid
• Significant absorption of CO2
• Oil swells up to 34%
• Oil viscosity reduction up to 91% (100 to 10 cp)
Benefits of CO2 Generation
21
Top-down Burn, Oil Recovery Factor
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Oil
Re
cove
ry -
% o
f O
il at
Sta
rt L
ess
Fu
el
Volume Burned - %
Initial Gas Saturation
40%
50%
30%
20% 10%
0%
Probable Reserves
Possible Reserves
Pleito Creek - Audited Reserves
22
Without CMD (Ultimate Recovery 12%)
With CMD (Ultimate Recovery 36%)
2.5 MMBO
$50.0 MM PV10
11.8 MMBO
$225.9 MM PV10
Primary
+
CMD
Recovery
30%
Primary
Recovery
6%
* NiMin reserves from Huddleston & Co, Inc. NI 51-101 reserve report effective January 1, 2011. All reserve volumes net to company working interest unless stated otherwise.
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Pleito Creek – Development Plan
• Continue primary development - 15 drilling locations
• Increase oxygen injection rate
• On-site oxygen plant
• Re-inject carbon dioxide rich produced gas
24
Enhanced Oil Recovery – Cost Comparison
Co
st -
$U
S/b
bl
0
5
10
15
20
Steam Assisted
Gravity Drainage**
Cyclic Steam
Stimulation**
Pleito Creek
CMD
Operating Expenses
Capital
Developed CMD Cost • Lease Operating Expense $12/BBL • Capital Costs $4/BBL • Total Development Costs $16/BBL
*Limited to existing facilities and 1500 BOPD; Ultimate 36% recovery OOIP; Unrisked
**Alberta Energy and Utilities Board (2009)
25 25
CMD Summary
• CMD process allows for the efficient recovery of oil at greater
depths than steam methods
• CMD process generates only 10-15% of the greenhouse gases
as in conventional steam generation and no local footprint
• In the US, there are approximately 165 heavy oil fields with 14
billion barrels OOIP that could benefit from this process
• In the US, there are approximately 276 light oil fields with 32
billion barrels OOIP that could benefit from this process
Contact Information
Address: 1160 Eugenia Place,
Suite 100
Carpinteria, CA 93013
Office: (805) 566-2900
Fax: (805) 566-2917
Website: www.niminenergy.com
Sven Hagen, PhD
President
shagen@niminenergy.com
Scott Dobson
Chief Operating Officer
sdobson@niminenergy.com
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