Providing Optimum Value through Innovative Solutions & Operational Excellence!

1. Providing Optimum Value through Innovative Solutions & Operational Excellence!

2. About Pentagon… Pentagon Optimization provides a diverse range of oil and gas services designed to help you maximize your well production. Providing in-house engineering and design services allows us to approach each client individually, addressing your unique needs with cost effective and innovative solutions that work for you. Utilizing an experienced team of industry professionals, we step in when you need us, employing the best equipment in the industry to get your job done. As a proud Canadian company, we stand behind our work with a strong local presence, giving you support when - and where - you need it. “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

3. Why Choose Pentagon?  Management team boasts over 140 years of oil and gas well optimization experience  We are committed to workplace safety and environmental preservation  We employ a dedicated team of industry specialists with a diverse range of expertise  We stand behind our equipment, which is the best in the industry and designed and manufactured in-house specifically to withstand our harsh Canadian climate  We offer excellent service and continued support after project completion  We have a solid reputation built on client trust  ISO 9001:2008 Certified – March, 2011 “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

4. Why do I need well optimization? Please visit our website for a complete listing of Products & Services www.pentagonoptimization.com At some point, every well experiences a drop in efficiency resulting in decreased production. When well productivity goes down, so do your profits. A proactive approach to well optimization reduces this risk. As experts in oil and gas well optimization, Pentagon can step in and discover the potential for increased production and/or decreased costs in your well, determine if your well could benefit from intervention and establish the best approach to do the job. “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

5. Here’s what we can do for you...  Gas and Oil Well Optimization Including Plunger Lift System Design, Installation & Service, Dynamometer Acquisition & Analysis, Fluid Levels/Depression Testing and Automated Acoustic Build Ups – plus much more…  ERCB Compliance Testing Surface Casing Vent, Gas Migration/Segregation, Packer Isolation Inline Testing. GOR Proving, and Lease Inspections  Engineering Analysis & Design Services Full PTA Analysis, Acoustic Pressure Calculations and PAS file Submission Oil and Gas Well Engineering  Field Work Servicing, Installation and Troubleshooting of all oil & gas optimization equipment  Design &Manufacturing “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

6. Plunger Lift Equipment Sales & Service… Field Work Complete field reviews including servicing, installation, and troubleshooting of Pentagon’s or competitor’s equipment. Tubing Plunger Equipment Coil • 52.4 mm • 60.3 mm • 73.0 mm • 88.9 mm Downhole Equipment Plungers - Conventional . Solid Ring . Dual Pad Penta-Seal . Brush . Quick Trip Plungers - Continuous . Solid Ring Penta-Cycle Steel . Solid Ring Penta-Cycle Titanium . Single Pad Penta-Cycle Bottom Hole Assemblies . Bumper Spring with Hardened Fish Neck . Cup Seat Assembly with Ball Check . Collar Stop Assembly . A-Stop Assembly . Sealing Assembly with Ball Check INDUSTRY LEADING ONE PIECE INTEGRAL LOW TEMP LUBRICATOR Plunger Lift Equipment Casing Plunger Equipment • 114.3 mm • 139.7 mm Surface Equipment  Lubricators . Dual Port Regular-Temperature . Dual Port Low-Temperature . Flanged Dual Port Low Temperature . Flanged Dual Port Low Temperature NACE . Site Specific / Specialty Lubricators  Controllers . On/Off Controllers . Self-Optimizing Controllers . Communication Ready  Plunger Lift Sensors  2” Control Valves (1 ¼” Flow Area) “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

7. Gas & Oil Well Optimization Services… Dynamometer Analysis Complete analysis of entire pumping unit and pump performance including conclusions and recommendations. Dynamometer Field Work Complete mechanical checks of prime mover, gear box, rod string loading, connected horsepower, and valve checks. On-site surface dynos for equipment loading and pump card presentation. Acoustic Build Up – Reservoir Parameter Determination Meets ERCB requirements. Automated monitoring of liquid level and pressure. Surface Pressure Logging Automated monitoring of pressures. Annular Fluid Depression Testing Fluid level  Producing pressure calculation  Data supplied in graphical format Annular fluid column gradient calculation Fluid Levels  Pas files  Field reports  Static calculations PENTA-LIFT CASING PLUNGER LUBRICATOR - PERFORMING A DYNAMOMETER “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

8. Energy Resources Conservation Board (ERCB) Testing… Surface Casing Vent Testing (SCVT) Complete test of surface casing leak including bubble test, flow rate, and build up. All results recorded and completed on ERCB forms. Gas Migration Testing Test of surface gas migrations completed on ERCB forms. Segregation Testing Test to determine if cross flow between two zones exists. Pentagon pressure unit and pressure gauge are used. Packer Isolation Testing Test to check integrity of packer. Pentagon pressure unit and electronic pressure gauge are used. Lease Inspections Lease Inspections can be completed to ensure that the owner/operator of the well is compliant with ERCB regulations. Pentagon has a variety of lease inspection services that can be tailored to meet customer requirements. Flow Prover Testing Test can be completed to test draw down on producing well or test gas rates on new or suspended wells. Gas-Oil Ratio Testing (GOR) Test to verify gas rates being vented off oil wells. Tests are completed with positive displacement meters, turbine meters, or flow provers. PACKER ISOLATION TESTING UNIT CVIP INSPECTED & TDG COMPLIANT “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

9. Engineering Services… Pressure / Rate Transient Analysis • PTA / RTA - Buildups, Falloffs, Draw Downs, DSTs via conventional methods and simulation using Fekete and Associated Software • Analysis using acoustic determination of fluid level coupled with surface pressure data or downhole gauge data Determination of reservoir pressure, oil well productivity, gas well AOF and deliverability, fluid flow characteristics, completion effectiveness and boundaries Material Balance and Volumetric Calculations (assess reservoir extent and limits before tie-in) Pas File Creation and Submission Acoustic Pressure Surveys (AWS surveys) • Gauge Data • Surface Casing Vent Testing • Packer Isolation Testing Acoustic Pressure Calculations • Single Shot Pressure Calculations • Multi Shot Pressure Calculations for static and flowing pressures Oil Well Optimization Engineering • Complete field analysis focusing on production optimization and extending equipment life • Dynamometer analysis for evaluating rod pumping systems • Depression calculation and determination • IPR (In flow performance relationship recommendations) • Rod Pumping system design & recommendation – LUFKIN SROD Gas Well Optimization Engineering • Complete plunger lift analysis for Conventional and Free-Cycle Tubing Plunger Lift systems and Casing Plunger system analysis • Wellbore Optimization including Wellbore Modeling, Sandface Deliverability, Static Pressure Profiling, Reservoir Modeling and Downhole Choke Sizing • Analysis for liquid loading determination • Coil Tubing and Tubing Designs (Tubing Performance Curves) ENGINEERING SERVICES - PTA CONVENTIONAL ANALYSIS “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

10. The ANGEL Downhole Pump… • Pentagon Optimization has developed a low-cost, effective method to producing pressure depleted gas wells, high GLR oil wells and even the “non-pumpable” horizontal plays such as the Cardium and Bakken. The new ANGEL pump is capable of pumping from various depths, pressures, temperatures and environments with the ability to pump a variety of fluids (oil, water, gas, LNG) at rates varying up to 30.0 m3 per day. The ANGEL pump has the capability to be durable with low maintenance and can produce both liquids and gas without gas locking. • ANGEL PUMP Milestones: • ANGEL Pumps have been installed in 12 plus wellbores in our R&D project since November 2008 • Well Depths = 1,155 - 2,286 mKB • Well Deviation = Vertical - 83 Degrees Deviated • Surface Stroke = 74” - 168” • Highest GOR = 2,675 m3/m3 • Total Cycles to Date = 8.0 Million Plus & Counting • Longest Run Life to Date = 16 months & Counting • Maximum Speed = 5.0 SPM • Maximum Plunger Speed = 21.6” per second • Zones Producing From = CARDIUM, Belly River, Glauconite, Bluesky, Mannville and more • Maximum Production = 20 - 25 m3 per day • Producing in CBM, High GOR Oil Wells, Liquid Loaded Gas Wells INSTALLATION OF ANGEL DOWNHOLE PUMP “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

11. The ANGEL Downhole Pump cont’d… Pentagon Optimization Services is very pleased to announce that they have received the two (2) patents filed in the United States for the ANGEL Pump on September 24, 2010and the first of two (2) filed in Canada. Pentagon has pursued the development and R&D process to bring the ANGEL Pump to the industry as being the only pump that is truly a downhole compressor and a positive displacement machine capable of pumping either liquids or gas and not gas locking. Other benefits of this new technology allow the rod string to remain in tension on the downstroke, and can be run in deviated wells, etc. The Patent process is never an easy one and involves time, money and patience to satisfy all the legal parameters involved to fully meet the criteria to be granted a Patent. For these reasons, we are extremely pleased with this result and are awaiting further success on the second Patent Pending application in Canada. This announcement is a milestone for Pentagon and we look forward to bringing this product to commercial realization in North America. For further information about the ANGEL Pump, please refer to the Pentagon website at (www.pentagonoptimization.com) or contact: Reg Prostebby, RET rprostebby@pentagonoptimization.com “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

12. EVO II Controller – Communication Ready… The EVO I controller EVO-lves into the EVO II controller – Communication ready via SCADA, cellular or satellite… Our clients have asked us for the opportunity to communicate with the EVO I with their pre-existing SCADA packages and we have been able to achieve this goal. Now customers can install true, dedicated plunger lift algorithms and have it all at the office with the touch of a button. Through Modbus language support you can operate the EVO II just as if you were standing in front of it, have access to live readings and full control of your plunger lift wells. This is another innovative product evolution to better serve our clientele. Did You Know? The EVO series of controllers are the safest controllers on the market. Pentagon has overcome many new CSA certification standards for Class I Div I zones. The EVO line of controllers cannot be shorted-out across the battery leads due to internal circuitry in the battery. The six-watt panel allows for ample power in any northern light conditions and the battery voltage is cycled once a week at 7.5 volts to allow for cell leveling. This will give us the leading edge in rechargeable gel cell life cycles making the EVO number one in North America for safety and longevity! REMOTE COMMUNICATION SYSTEM WITH EVO II – TEMPORARY INSTALLATION “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

13. EVO I Controller – Ahead of the Times… Did You Know? Pentagon offers multiple CSA Class I Division I electronic Plunger Lift Controller retrofits to competitor’s existing plunger lift controllers that fall short of expectations in performance, longevity, user-friendliness and true optimization of the system. Do you have controllers in your field that match any of the concerns above? Pentagon offers an extremely economical solution to your concerns... EVO I Retrofit for APC 1000, FB LiquiLift III, PCS or PumpMateControllers: Pentagon Optimization has taken all the appropriate steps to engineer and manufacture a CSA Class I Division I approved retrofit package for the APC 1000, FB LiquiLift III, PCS line of controllers or the PumpMatecontroller. Due to the inherent shortfalls of these controllers that include items such as solenoid malfunctions and the need for additional solar panel connections for the northern climate, Pentagon Optimization has designed the solution to rectify all these issues. We are proud to introduce the ‘EVO I Retrofit’ for the above listed competitor controllers. Gone are the days of malfunctioning valves and the need for two, sometimes three, solar panels for the great Canadian climate. “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

14. Automated Acoustic Well Sounding (AAWS) Equipment with REMOTE Communication… Pentagon is proud to launch the AAWS system with Remote Communication: AAWS equipment determines the fluid level in the wellbore with a corresponding surface pressure.  This data is utilized for reservoir management/engineering such as Pressure Transient Analysis (PTA), production enhancement opportunities, wellbore troubleshooting, etc. • EXCITING NEWS - through Bluetooth (wireless) communication at the wellsite, the data stored in the AAWS unit is transferred to the MRL communication system.  Through satellite phone, cellular phone or radio communication (wellsite dependent), this information is transferred to a secured Pentagon website for downloading and viewing purposes.  The advantages are many and include: •  Access to the data 24 hours a day, 7 days a week from any location in the world – all that is needed is access to the internet. •  Increases turnaround time for updates to production and reservoir engineers aiding in their ability to make informed and quick decisions at the “click of a button”. •  Decreases man-time required to travel to location to download the information on a routine basis (i.e. PTA tests requires updates after 24 hours, 72 hours, 7 days and beyond).  Once the system is installed, Pentagon’s reservoir engineering department or client can access the data at any time. “Providing Optimum Value through Innovative Solutions & Operational Excellence!”

15. Contact Us Sales Office Suite 900, 505 – 3rd Street SW Calgary, AB T2P 3E6 P: 403.262.9502 F: 403.262.9088 Head Office / Operations 220, 7700 – 76 Street Close Red Deer, AB T4P 4G6 P: 403.347.6277 F: 403.314.9799 Pentagon Optimization Service Locations: Medicine Hat, Calgary, Drumheller, Olds,Red Deer, Rimbey, Drayton Valley, Edmonton, EdsonWhitecourt, Grande Prairie Pentagon Optimization Services Inc. P: 403.347.6277 Toll Free: 1.877.655.8555 F: 403.314.9799 Make sure you visit our website at pentagonoptimization.com “Providing Optimum Value through Innovative Solutions & Operational Excellence!”