Marketing Presentation-Compressco July 09

Company Highlights

Compressco Inc. created in 1999 has an installed base of over 4600 units throughout North America. 350 total employees.

Compressco Annual Revenues projected to ~70 million in 2009

Compressco headquartered in Oklahoma City is a division of TETRA Technologies Inc.– Divisional offices in Calgary, Canada (established 2001), Mexico

(established 2005), Indonesia (established 2007), Ukraine (2008), Argentina (2008), Brazil (2008)

– Compressco was acquired by TETRA in 2004.

TETRA with headquarters in The Woodlands, Tx. ( Houston ) is a global mid-market NYSE listed energy services firm.

Positioned for Growth

• Leader in the niche product range for Wellhead Gas Compression technology

• Well positioned to capitalize on the growth in Natural Gas Production Enhancement in international markets. Equipment presently in 9 countries world wide and actively perusing many more international markets.

•Well diversified customer base of Major and Independent Producers

• An ideal solution for marginal well enhancement; for both natural gas and pumping oil-wells and for flare gas recovery.

Diversified cross-section of Major and Independent Producers

Compressco has +/-400 current customers.

High Quality Customer Base

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What is the GasJack?Standard Trailer Unit

Standard Skid Unit

Standard CE-Approved Design

Standard Mexico Unit

Standard Cold Weather (Canada) Unit

460 cubic inch industrial engine with: one bank of cylinders for power (48 HP) one bank of cylinders for gas compression

Patented Design of the GasJack®

U.S. Patent No. 4,961,691– claims an integral gas U.S. Patent No. 4,961,691– claims an integral gas compressor and internal combustion apparatus.compressor and internal combustion apparatus.U.S. Patent No. 5,203,680-Claims a method of U.S. Patent No. 5,203,680-Claims a method of constructing a gas compressor and transferring natural gas.constructing a gas compressor and transferring natural gas.Additional U.S. Patents: 5,189,905 5,267,843Additional U.S. Patents: 5,189,905 5,267,843Int’l Patents filed in all Oil and Gas producing countriesInt’l Patents filed in all Oil and Gas producing countries

Principles of Compression

Increase the flow of oil and gas from the reservoir into the well-bore by decreasing wellhead (and bottom-hole) pressure. Using the GasJack compressor, this lower pressure gas is then compressed to reach gathering system pressure.

Reduce liquid loading by assisting wells to achieve critical flow rates through reduced pressure and increased rate.

Decrease the Back Pressure …Increase the Flow

Reservoir products (oil, gas, water) flow from the reservoir into the well-bore because they flow from high pressure (reservoir) towards low pressure (well-bore).

The difference between these pressures provides the energy to create the flow. The greater the pressure differential, the greater the flow.

We can not control the reservoir pressure but we can control the well-bore pressure.

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Typical Well Flowing Against Line Pressure

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Line Pressure = 200 psig

Reservoir Pressure = 500 psig

Net Pressure Differential to create flow = 300 psig

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Over Time the Reservoir Pressure is Depleted

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Net Pressure Differential to create flow = 100 psig

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With less differential pressure to create flow the rate of oil and gas flowing into the well-bore is less.

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Over Time the Reservoir Pressure is Depleted

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Wellhead Pressure = 10 psig


Net Pressure Differential to create flow = 290 psigWith less wellhead pressure (back pressure) there is a greater differential pressure to create flow and the rate is increased.

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Suction Pressure 10 psig

Discharge Pressure 200 psig

Liquid Loading - Definition

“Liquid loading of a gas well is the inability of the produced gas to remove the produced liquids from the wellbore. Under this condition, produced liquid will accumulate in the wellbore leading to reduced production and shortening of the time until when the well will no longer produce” (Gas Well Deliquification: Lea, Nickens, and Wells, Gulf 2003)

Compressco Solution

The ability of gas to carry liquids is a function of pressure and velocity (flow-rate)

Over time the production of wells decline and liquids start to fall back as well produces under “critical flow”– The critical flow rate is the rate as which a gas can naturally carry a

liquid)

By reducing wellhead pressure the GasJack compressor helps wells produce at higher production rates at lower pressures … both contributing to longer well life and increased revenues.

Marginal Gas Well Applications

Reduce flowing tubing pressure

Increase flow rate

+ Lower the Critical Flow rate

= Eliminate Liquid Loading This all adds up to increased profits for our

customers

Cold Weather GasJack

Typical Well With Liquid Loading Issues

Compression Solution

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IND 1-96-IND-7674 - RIVERTON DOME

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IND 1-96-IND-7674-- Riverton Dome, Wyoming

GasJack Installed on 10-2003

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Frontier Reservoir

5 Year GasJack Life/ 17.7 % decline336 MMcf incremental Gp

Total NPV10 = $1,547,932

Gas

Projected w /o GJ

Sample Gas Well with Liquid Loading Issues Before and After GasJack Installation

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DAYS

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GAS FLOW(MCFD) 2 3/8 TUBING CRITICAL FLOW RATE @ 10 PSI

DAYS #1-7,GAS JACK WITHOUT BACKSIDE INJECTION

DAYS # 8-30,GAS JACK WITH BACKSIDE INJECTION

Pumping Oil-Well (Backside) ApplicationsReduced Backpressure will:

Increase reservoir productivity by reducing back pressure at the sand-face. Thus allowing more oil to flow into the well-bore.

In places where you can flare gas, companies will flare annulus gas to keep the pressure off the reservoir to ensure high oil production rates. The GasJack can duplicate this effect but provide a means to save the gas rather than flaring it.

Typical Pumping Oil well

application compressing annulus gas

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Backside Application- Osage Oklahoma

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Actual Gas Production ( Mcfd) w ith GasJack Installed

Actual Oil Production ( Bopd) w / GasJack Installed

Projected Gas w /o GJ

GasJack Installed in October 2004

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Projected Oil w /o GJ

Incremental Gas Produced = 69.6 MMcf

Incremental Oil Produced = 66.9 Mstbo

Oil

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Well produced w/ ESP

66.9 Mstbo is incremental oil produced

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Cheyenne Backside Application- Colorado

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GasJack Installed July 2004

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Actual Gas Production w / GJ Installed

Projected Gas w /o GJ

Actual Oil Production w / GJ Installed

Projected Oil w /o GJ

Incremental Gas Production = 26.9 MMcf

Incremental Oil Production = 9.5 Mstbo

Oil

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Water

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<----- GASJACK INSTALLED

OIL

OIL RATE INCREASED FROM 20 BOPD TO 150 BOPD

BACKSIDE APPLICATION ONPUMPING OIL WELL

NO GAS REPORTED

Sample Oil Well Before and After GasJack Installation

Backside Application - Osage, Oklahoma #3

Backside Application – Osage, Oklahoma #4

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<---- GASJACK INSTALLED

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OIL RATE INCREASED FROM 25 BOPD TO 130 BOPD

GAS RATE INCREASED FROM 95 MCFPD TO 120 MCFPD

BACKSIDE APPLICATION ON

OIL WELL ON ESP

VRU and Flare Gas RecoveryApplications

The GasJack can also be used to recover natural gas that may otherwise be vented or burned to the atmosphere.

Provide economic benefits as well as the obvious reduction in green house gas emissions.

VRU, Gas Jack Compressor at Semberah S-14 Plant

Flare & Smoke at Semberah S-14 at 13.00 Hrs, Nov 19, 2007

Before VRU GasJack Compressor online

NO MORE flare at Semberah S-14 at 16.15 Hrs, Nov. 19, 2007

After GasJack recovers 0.25 MMcfd ; Ps=0.5 psi ; Pd=59 psi

Compressco Value Proposition

Broad Application Range – Sweet Gas Suction Pressure from 16” Hg vacuum to 60 PSIG Discharge Pressure from 50 to 500 PSIG Up to 20 Compression Ratios

Natural Gas throughput up to 750 mcf/Day– Dependant on suction and discharge pressure. See curves.

Standard 36 Bbl/Day capacity blow case separator – 1.5 Bbl/Hr slugging up to 1 Bbl– Can double capacity with slight modifications to liquid-dump line

Optional Gravity Feed Vessel (GFE) increases liquid handling to +/- 6 BPH.

Compressco Value Proposition Increased gas production leading to increased revenues

and reserves

Low Fuel Gas consumption due to high performance design of 48 HP engine.

– 7-10 mcfd depending on compressor load

Integrated power and reciprocating compressor design leads to increased efficiency and ease of maintenance

Over 60MM hours of field proven up-time experience since 1999

Threaded connection fatigue life of 34 years – AP Dynamics study for BP Canada, May 2005

Environmental Protection Low emissions, efficient fuel gas usage

– If you burn less gas, then you create fewer emissions

Quiet operation: <65 dBA @ 100 meters for “open” designs< 42dBA at 100 meters for “enclosed” designs

All fluid spills containable within skid rail

Small physical footprint – 5.5’x12’ for standard design7’2” x 17’ for European enclosed design

Lower oil consumption Vs other compression technologies – specialty compressor oil is not required

Selecting Gas Well Candidates for Test

1. Pressure- Look for wells that are producing into pipeline with pressure

from 40 to 400 psig

2. Rate- Look for current rate or test rates less than 1 mmcfd. Each compressor will produce about 0.5 MMcfd at 15 psig suction. We can use multiple GasJacks if well produces more gas.- to improve chances of success we should pick wells which make less than 50 bbls/day if possible.

3. Tubing Size- Smaller is better! Critical flow values are lower in smaller tubing so the smaller the tubing is the easier we can keep the well flowing above critical flow. 2 3/8” is great.

Selecting Oil Well Candidates for Test1. Pressure

- Look for oil wells where the casing gas is being produced into pipelines with pressure from 40 to 400 psig. This pressure translates to extra pressure down-hole on the reservoir

- Oil wells where the casing gas is currently being flared to atmosphere, but now you must stop flaring

2. Rate- Look for natural gas rate of less than 1 mmcfd. We can use

multiple GasJacks if well produces more gas than 1 unit can handle.

- Oil production rates can be any amount. If back-pressure on the reservoir is lowering oil production, then compression can probably help.

3. Gas Quality- BTU 750-1500. H2S<50 ppm

Production Enhancement with GasJackSummary

•Lowers the flowing tubing pressure

•Lowers the flowing bottomhole pressure

•Supports well in achieving the “Critical Rate”

•Increases the production rate (revenue)

•Extends the reservoir life

•Flexible Operating range

•Extensive domestic and international track record

Contact

Kevin Book, P.Eng, Vice President – International Operations

Office: (405) 677-0221Cellular: (405) 397-6551

Email: [email protected]

Web Page

www.compressco.com

Indonesia/Ukrainian Design

GasJack mounted on trailer

This example is not typical but makes for a very interesting picture. Most applications require only one or two GasJack Compressors. This picture also illustrates how the GasJack can be used in a “modular” fashion; adding and removing GasJacks as needed.

Performance Curves

FIMP ModelMedium Pressure Unit

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Suction Pressure (psig)

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Legend CodesM = model MPC 1st Number = number of valves which are

loaded. 2nd Number = number of spacers

Elevation = 3500 ftActual capacity will vary depending on gas characteristics


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Discharge = 125 psig (M-3-0) Discharge = 125 psig (M-3-1) - NA Discharge = 125 psig (M-3-2) - NA









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Discharge = 400 psig (M-4-0) Discharge = 400 psig (M-4-1) - NA Discharge = 400 psig (M-4-2)












Documents

Marketing Presentation-Compressco July 09