Take control of your proppant supply chain transform cheap readily available local resources into usable proppant.

The market for proppants is projected to be $19B by 2019. Demand for frac sand is expected to outstrip supply by 2018 resulting in price spikes, railcar shortages, and a logistics nightmare. Remember 2014?

Frac Sand: An Impending Crisis

U.S. Proppant Market Share by Type (2015)

RCP 3.4% Ceramics 3.9%

Frac Sand 92.7%

Source: The Freedonia Group

Logistics Bottleneck

33%

33%

33%

Rail TransportationTrucking to WellRaw Sand Cost

Source: WSJ

Logistics accounts for 2/3 of the wellhead cost of frac sand

Frac Sand Source & Destinations

Cost Breakdown of Frac Sand

Introducing HOPS

HOPS (left) compared with untreated brown sand (right)

HOPS enables operators to cut logistics costs by turning locallyavailable resources (brown sand, river sand, etc) into propablesand in an economically viable way.

Cost Breakdown of Frac Sand

Source: WSJ

Remove logistics costs

with HOPS33%

33%

33%

Rail TransportationTrucking to WellRaw Sand Cost

33%

33%

33%

Ganesh Arumugam, Ph.D., Senior ScientistPhD in chemistry and 10 years in developingadvanced functional nanocomposite

Glen Nakafuji, PhD Director of TechnologyDr. Nakafuji has over 20 years of experience inapplied physics including 17 years of experienceat the Los Alamos and Lawrence LivermoreNational Laboratories.

Sumil Thapa, M.S., Materials EngineerMr. Thapa’s research experience is with polymercoatings, polymer composites, electrospinning,and electrochemical coating processes.

Vinod Veedu, Ph.D., Director of StrategicInitiatives10 Years at Oceanit, Corporate Co-Developmentand commercialization lead

Matthew Sullivan, M.S., Head of ProductMr. Sullivan leads the product commercializationgroup at Oceanit where he focuses on bringingtechnologies to market. He is an AdjunctProfessor at the Stanford d.school and previouslyfounded a venture backed startup out of Stanford.

HOPS TeamOceanit Background

3rd Party Test Results:

• Maintained size 20/40• Increased sphericity• Increased strength• Increased chemical resistance• Increased conductivity

Brown SandHOPS

Local Sand

Sorting &Cleaning

HOPS Treatment

Testing & Evaluation Size Sorting Post

Treatment

HOPS Treatment & Results

Treatment Process:

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HOPS Treatment & Results

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IDEAS

RISK(Technology& Science)

PROGRAMS PROJECTS PRODUCTS

Fundamental Science& Engineering

Platform Applications

Specific Outcomes Specific Uses

BENEFIT(Humans& Society)

(L)(L)TIME

(H)(H)

Case Study: SCIN

Lab ScaleMonth 0

Small PilotMonth 8

Large PilotMonth 18

DeploymentMonth 30

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Steel Cement Interfacial Nanobondfor well integrity

Contact:

Dr. Vinod VeeduDirector of Strategic Initiatives, Oceanit

Phone: 713.357.9622 Email: vinod@oceanit.com

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