LOW VOLUME SUBMERSIBLE Pump Technology

1. MAY 2013 LOW VOLUME SUBMERSIBLEPump Technology

2. Hygr Fluid System – Principal Components • Positive Displacement Pump • Operated by hydraulic pressure pulse from surface • Prototypes for SAGD developed • Umbilical – Current design employs two lengths of coiled tubing or standard oilfield tubing • One connects pump to surface pressure source • One connects pump discharge to wellhead • Surface Hydraulic Drive Unit • Applies hydraulic pressure intermittently through a closed umbilical line to the pump • Single or dual acting depending on surface configuration

3. Performance (Single-Acting) 0.55 litres (0.09 gal) /stroke 5,000 psi - Seals (safe operating) 8,500 psi - Metal (absolute) >400 °F available 0.33 litres (0.09 gal) /stroke 5,800 psi - Seals (safe operating) 17,000 psi - Metal (absolute) >400 °F available

4. Capabilities – Casing Pump Proven and developed capability to lift up to 45 bpd and operate at depths to 4,000 feet. Probable capability to lift up to 150 bpd and operate at depths up to 6,000 feet with development effort. Possible capability to lift 50 to 100 bpd and operate at depths up to 10,000 feet with development effort Through casing pump ready for commercial prototyping

5. Pump Operation

6. Casing Pump Design

7. Casing Pump Detail • Features split-piston design to eliminate high rate of premature seal failure due to installation damage • Industry-leading sealing solutions company developed custom seals kit with purposely formulated elastomer • Hydraulic braking and max 0.005” pump concentricity for minimal internal operating stress

8. System Summary • Requires low horsepower to operate and can even be powered by solar energy for very low volume intermittent requirements. • No sucker rod or tubing wear since there are no sucker rods, and no moving parts in the tubing, resulting in fewer and less costly service jobs. • Proprietary advancements in seal and elastomer design • Significant efficiencies realized in installation and service methodologies • PRICE COMPETITIVE

9. Expected Differentiation - Gas

10. Expected Differentiation - Oil

11. CURRENT STATUS

12. Testing Highlights – Casing Pump • Pilot gas well programs underway (Canada) • Devon, Apache, Husky, Trident • Chevron – Pilot candidates being sourced • 2 SAGD systems delivered • Installation & Service infrastructure established (Alberta, Canada and TX/OK/KA/NM) • Industry sponsored lab testing for gas well dewatering consortium completed • Field evaluation & data collection June 2013 to validate our production estimates

13. Deployment: Trochu, Alberta (July 2012) – CBM Dewatering History: Low declining production and pressure, clear signs of liquid loading, required frequent swabbing (limited access during much of year) Pilot Status: Production 10X and increasing, pressure increasing, additional pilot candidates selected for 2013

15. Next Steps • Seeking funding and/or pilot commitments to support the final development &field testing of through-tubing pump. This pump will build on proven advancements in seal/elastomer design and gas handling capabilities • Seeking US industry support with commitments for pilot installations for both gas and oil applications to enable: • Completion of algorithms used for automated pump-off detection • Completion of back-flush system