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The Future of Renewable Energy

Single-Well Engineered Geothermal System™ (SWEGS™)

“GTherm Green Boiler”for

GTherm Enhanced Oil Recovery

Power Plant Design:Lehr Consulting Int’l, NY

Heat Pipes:Aavid Corp., NH

Turbines/Generators:TAS Energy, TX

EPC:

Security and Control: Tangible Software, VA

Accounting Logistics:IFS, IL

Drilling:Baker Hughes, TX

Drilling:Nabors Industries, Bermuda

Engineeringand

Equipment

Drillingand

Tools

Logisticsand

Controls

2

The GTherm Team

R & DModeling:Dartmouth

Geology:Lehigh University

Optimization:US DOE

Research:EPRI

Tax & Audit:NYC

Legal:NYC

• 12 patents filed

HeatNestTM

GTherm Green Boiler

• 17.5” (0.45m) diameter well drilled to region of hot rock

• Lateral holes drilled out into hot rock

• Heat pipes grouted into lateral holes to harvest heat and bring it to central well

• Heat exchanger transfers heat into closed loop

• Closed loop brings heat to surface

• Heat pumped to heat/production reservoir wells

Thermal Energy

SWEGS

3

87.7°C°

87.7°C°

Heat

Heat Heat

Heat

Heat

Heat

Heat

HeatHea

tH

eatH

eatHeat

Heat

Heat

Cool Water is Pumped In

Hot Water is Pumped Out

Geothermal EnergyReplenishes Itself

How a GTherm HeatNest Works

HeatNestTM

4

GTherm HeatNest Appendages

5

• Depth of well

• Length of the heat exchanger

• Start of the heat zone

• Number of appendages

• Length of the appendages

• Heat equilibrium determination

• Pump rate (gpm)

GTherm Heat Extraction Design Flexibility

6

GTherm SWEGS is a Closed-Loop System

Constant and Continuous Heating•The water coming from the HeatNest to the pump is continuously recycled (i.e. No Waste Water)•No groundwater contamination

•The only thing removed by this system is continuously replenishing geothermal

energy / heat. •The GTherm SWEGS is designed to pull heat from earth at 20% less than the refresh rate•The heat resource is constantly replenished and never consumed

Environmentally Safe•No fossil fuels•No greenhouse gas (GHGs) or other emissions•No chemicals required for extraction•Eliminates aquifer and surface water contamination

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GTherm Green Boiler Applications

Electricity

Enhanced OilRecovery

Data Centers

DesalinationFish FarmingGreenhousesMiningHVACDryingEtc.8

Why it Works• SWEGS is modeled after heat pumps • There are millions of heat pumps installed and operating

worldwideSmall Commercial Heat Pump SWEGS

Heat Pump SWEGSLength (meters ) 23 - 150 1,000 - 5,000

Diameter (inches) 6.0 17.5Length (meters ) 80 - 110 1,000

Diameter (inches) 2 - 3 13.510 / 16 95 / 31512,000 34,000,000

Well

Heat Exchange

Low / High Heat ° CBTU / h

9

GTherm is Not Limited to the Ring-of-Fire High-Temperature Areas

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GTherm:

•Enhanced Oil Recovery•Enhanced Oil Storage•Enhanced Oil Transport

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Global Distribution of Conventional Crude Oil and Heavy Hydrocarbons

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GTherm EOR Breakthrough Comparison

Legacy Technology

• Water flooding – Light Crude

• CO2 flooding – Light Crude

• Polymer flooding – Light Crude

• Steam flooding – Heavy Crude

• Fire flooding – Heavy Crude

GTherm EOR

• No fresh water

• No gases or chemicals

• No burning fossil fuels

• No greenhouse gases (GHGs)

• Adverse environmental impact• Use of water • Huge supply & cost of:

• Water• Gas• Chemicals

• Cost of fuel• Permitting problems• Greenhouse gases

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Heating Oil Lowers Viscosity

ViscosityCrude Oils

(centipoise)

Viscous Oil

ExtraHeavy Oil

Heavy Oil

Light Oil

BitumenTar,

108

107

106

105

104

103

102

10

1

Familiar substances

Window putty

Caulk

Vegetable shortening

Peanut butter

Tomato ketchup

Molasses

Honey

Maple syrup

Corn oil

Water

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Crude Oil Composition

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Hydrocarbon Average RangeMelting / Liquification

Point

Paraffi ns 30% 15 to 60%115°F to 155°F 46°C to 68°C

Naphthenes 49% 30 to 60%Aromatics 15% 3 to 30%

Asphaltenes 6% Remainder180°F 82°C

Composition by Weight

The oil mobility is the ratio of the effective permeability to the oil flow to its viscosity. This is given by

Viscosity is denominator

Heating the oil lowers the viscosityand significantly improves flow

Source: Argonne National Laboratory16

Crude Oil Viscosity

High Viscosity

MediumViscosity

LowViscosity

Increased Heat

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Heavy Crude Oil Viscosity/Heat in Known Fields

GTherm Target Temperature

Source: Argonne National Laboratory18

Constant Consistent Heating of the Oil Field Spreads the Heat and Increases Flow

Heat moves through conduction

Heat moves through toroidal convection of water and oil in the permeable zones

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Why GTherm for EOR?

Cost Effective

• Each SWEGS can support multiple applications, heat delivery wells and Hot Water Flooding systems

• No fossil fuel burned

• No chemicals or CO2 used for oil recovery

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GTherm EOR SystemHeat Assisted Gravity Drainage & Hot Water Flooding (Recycling)

SWEGSHeat

Extraction

Heated Oil & Water / Brine Reservoir

Oil & Water / Brine Reservoir

Oil Water / Brine

Separator

Oil

Hot Water Flooding (Recycling) Well

Cool Water/Brine

OilWater/BrineWells

Ground levelHeat Delivery Well

Hot Water / Brine

Heat Exchanger

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Green Boiler

GTherm EOR SystemSWEGS & Closed-Loop Heating System

SWEGSHeat

Extraction

Heated Oil & Water / Brine Reservoir

Oil & Water / Brine Reservoir

Ground levelHeat Delivery Well

Heat Exchanger

Cold Water is pumped into the SWEGS Heat WellThe water is then heated in the SWEGS well and circulates back to the Heat Exchanger and the Heat Delivery Well, Which heats the Reservoir.

The cooled water from the reservoir and heat exchanger is then returned to the SWEGS well where it is reheated and recycled back through the system.

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Green Boiler

Heated Oil & Water / Brine Reservoir

Oil & Water / Brine Reservoir

Oil Water / Brine

Separator

Oil

Hot Water Flooding Well

Cool Water / Brine

OilWater/BrineWells

GTherm EOR SystemHeat Assisted Gravity Drainage + Hot Water Flooding

Ground levelHot Water / Brine

Heat Exchanger

Hot Water / Brineis pumped / drainedinto the reservoir.

The heat from thebrine melts and

mobilizes theheavy crude and recirculates to theproduction wells.

The oil / waterseparator then separates

the oil from the brineand recirculates thebrine back to the heat exchanger.

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SWEGSHeat

Extraction

Heated Oil & Water / Brine Reservoir

Oil & Water / Brine Reservoir

Oil Water / Brine

Separator

Oil

Hot Water Flooding Well

Cool Water/Brine

OilWater/BrineWells

Ground levelHeat Delivery Well

Hot Water / Brine

Heat Exchanger

The Operating GTherm System Closed-Loop and Hot Water Recycling System

ALL of the Water is RecycledThe only electrical power required is to operate the pumping systemThe potential exists to complete an autonomous / independent system by adding an electrical generation system, which would allow the GTherm system to generate its own electrical power.24

Green Boiler

GTherm EOR Implications

• A depleted oil well still has over 70% of its oil in place.

• The extraction rate of the oil in an operating well is dependent on viscosity.

•The GTherm EOR method can be applied to depleted wells or to currently operating wells.

•With GTherm EOR a discovered oil field can now be booked on the balance sheet at 80+% of the oil in place (more than doubling the assets on the balance sheet).

•For depleted oil wells an asset of 55+% of the oil in place can be booked as an asset on the balance sheet.

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GTherm Heat Delivery/Production Well

GTherm Heat Delivery/ Production Well

From GTherm SWEGS Heat Extraction Well

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GTherm Heat Delivery/Production Well with Existing Production Well

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GTherm Reservoir - Design Implications

• Design to hit the high points of the pay zone with target heat delivery

• Design to adjust to the dips in the oil bearing zones

• Design the heat injection to focus on the oil flow to collection points

• Strategically place the heat delivery wells to maximize the performance of the existing wells

• For new implementations integrate the heat delivery wells with the production wells

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GTherm EOR vs. Legacy EOR Costs

GTherm cost per barrel including carbon pricing

Source: World Petroleum Council: Official Publication 201029

Ex: Alberta Oil Sands–challenges of using large volumes of water and creating GHG

1. Oil sands mining is licensed to use twice the amount of fresh water that the entire city of Calgary uses in a year. The water requirements for oil sands projects range from 2.5 to 4.0 barrels of water for each barrel of oil produced.

2. At least 90% of the fresh water used in the oil sands ends up in tailing lakes so toxic that propane cannons and floating scarecrows are used to keep migrating ducks landed on a tar sands toxic lake and dying. The toxic lakes in Northern Alberta span 50 square kilometers and can be seen from space

3. Processing the oil sands uses enough natural gas in a day to heat 3 million homes in Canada..

4. Producing a barrel of oil from the oil sands produces three times more greenhouse gas emissions than a barrel of conventional oil.

5. The oil sands operations are the fastest growing source of heat-trapping greenhouse gas in Canada. By 2020 the oil sands will release twice the amount produced currently by all the cars and trucks in Canada.

6. By 2015, the Alberta Oil Sands are expected to emit more GHG than the nation of Denmark (pop. 5.4 million).

GTherm EOR: No water, No greenhouse gases, No fossil fuels

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GTherm EOR Example – Depleted Wells

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Barrels Extracted

Barrels in Place

% with EOR Extractable

Barrels Extractable

Price per Barrel

Oil Value (000)

1,000,000 3,000,000 65% 1,950,000 $75.00 $146,250 2,000,000 6,000,000 65% 3,900,000 $75.00 $292,500 3,000,000 9,000,000 65% 5,850,000 $75.00 $438,750 4,000,000 12,000,000 65% 7,800,000 $75.00 $585,000 5,000,000 15,000,000 65% 9,750,000 $75.00 $731,250

10,000,000 30,000,000 65% 19,500,000 $75.00 $1,462,500 15,000,000 45,000,000 65% 29,250,000 $75.00 $2,193,750 20,000,000 60,000,000 65% 39,000,000 $75.00 $2,925,000 25,000,000 75,000,000 65% 48,750,000 $75.00 $3,656,250 30,000,000 90,000,000 65% 58,500,000 $75.00 $4,387,500 35,000,000 105,000,000 65% 68,250,000 $75.00 $5,118,750 40,000,000 120,000,000 65% 78,000,000 $75.00 $5,850,000 50,000,000 150,000,000 65% 97,500,000 $75.00 $7,312,500 75,000,000 225,000,000 65% 146,250,000 $75.00 $10,968,750

100,000,000 300,000,000 65% 195,000,000 $75.00 $14,625,000

GTherm Enhanced Oil StorageSludge in Storage Tanks and Sludge Pools

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Crude OIL Storage Tank or Storage Pools

SWEGS – Changes the Viscosity of Sludge in Storage Tanks & Sludge Pools to Flowing Crude

Hot WaterCooler Water

SWEGSHot Water

Cooler Water

Pumps

OIL

Sludge

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SWEGS – Changes the Viscosity of Sludge in Storage Tanks & Sludge Pools to Flowing Crude

34

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GTherm Enhanced Oil Transport

• To pump oil through a pipe line the oil need to have a low viscosity

• As heavy crude travels through a pipe over distance it cools and viscosity increases decreasing pumping performance

• To reduce viscosity companies are either:– heating the pipes by burning fossil fuel– mixing the heavy crude with lighter crude– adding solvents to the heavy crude

• GTherm uses strategically placed SWEGS to heat the pipeline and reduce the viscosity of the oil thereby increasing the efficiency to the pipe line.

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GTherm Enhanced Oil Transport Design

Colder OilWarmer Oil

SWEGS

Heating Exchanger

Cooler WaterHot Water

37

GTherm Enhanced Oil Transport DesignObjective: To Keep the Oil at Low Viscosity

Miles Miles Miles

GTherm SWEGS Heating Stations

Oil Pipeline

Energy-Food- Water Nexus“The biggest obstacle to sustainable long-term socio-economic growth” E&Y

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GTherm Structure

Shared Services

GTherm International

(US)

Legal & Finance

SWEGS Engineering

Components

GTherm, Inc.Holdings

(US)

Business Development

SWEGS Drilling

R&D IT/NOC

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The Future of: Enhanced Oil RecoveryEnhanced Oil Storage

Enhanced Oil Transport

Thank You

For More information please contactMark Henderson

Axess1 group, LLC dba A1 Green Energies678-653-5554

mark@axess1.com