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Page 1: Synapse Hydrofrac Monitoring

Microseismic 2012-technology for

surface hydrofrac monitoring.

Page 2: Synapse Hydrofrac Monitoring

Frac without monitoring:

• $million losses of production wells

• ecological problems

Monitoring options:

• Boreholes: wells are expensive - unbeatable • Surface: signals are buried in noise -

PROBLEM

solvable

Frac is the only tool for shale gas production

Page 3: Synapse Hydrofrac Monitoring

Key to success:

coherent noise suppression and

signal extraction

with OSA

(Optimal Statistical Algorithms)

© SYNAPSE Science Center, 2010-2012

Methodology of monitoring

Field engineering experience

Software

Solution

Equipment

Patented OSA-

technology

Microseismic Monitoring Platform

MMP

Page 4: Synapse Hydrofrac Monitoring

Just the United States conducts more than 25 000 hydrofracs for shale gas recovery a year with estimated frac monitoring market of $6 Billions.

Covering only 10% of the

potential monitoring market

segment in the US brings

approximately $600million a

year.

World Shale Plays

Page 5: Synapse Hydrofrac Monitoring

.

.

.

.

Competitive

Advantages

Microseismic Inc.,

attracted more

than $100 million

of venture investments in

2011

Our technology

allows to excavate

substantially more

useful information

about source signal

Economic benefits:

our OSA surface jobs

vs.

borehole jobs:

cost reduction up to 20

times

Page 6: Synapse Hydrofrac Monitoring

OUR IP: 4 patents RF, 1 patent submitted, 1 patent undergoes РСТ procedure.

Software: copyrighted

Technology and IP

OSA produces high quality information

needed for higher quality frac mapping

Fracture

Injection well

Page 7: Synapse Hydrofrac Monitoring

A world lead expert in seismic monitoring theory

prof. Alexander Kushnir is our Head Scientist.

The team coreM. Rozhkov Ph.D in Geophysics, Russian and US industry, US and UK Universities

A. Epiphansky Ph.D in Geophysics, Russian industry and High School

I. Driker Ph.D in Geophysics, US industry and Universities

D. Shkarin Ph.D in Mathematics, US industry and High School (Yale University)

A. Varypaev Ms.D researcher, graduate student in stochastic theory

N. Rozhkov Ms.D researcher, data processing engineer

TEAM

Page 8: Synapse Hydrofrac Monitoring

Businessmodel

Project

Outcomes

Tested prototypeof microseismic monitoring

platform aimed at post-processing

products (frac mapping).

Service company SYNAPSE+ jointly with our US partner and co-investor

Instrumental Software Technologies, Inc. (ISTI),

Or service company

SYNAPSE+ & CORPORATE INVESTOR:

equity, board of directors.equity, board of directors

Page 9: Synapse Hydrofrac Monitoring

0

20

40

60

80

100

120

2013 2014 2015 Total

Skolkovo

Investor

Budget M.Rub

Project budget and

returns

Our foreign and Russian

partners and customers

invested more than

$500,000 into the project

Full investment return in 2 quarters

Page 10: Synapse Hydrofrac Monitoring

SYNAPSE Science Center 119526, Russia, Moscow, Vernadskogo

ave., 101/1, suite 306

Phone/fax +7 495 4343638E-mail: [email protected]