OsComp Systems
THE PARADIGM SHIFT IN COMPRESSION
SGICC
May 22, 2012
1
Problem: Marginal Production
Gathering Station
$6/MMbtu
$4/MMbtu
$4/MMbtu
2
Well Production Lifetime
2,500
2,000
Natural
Flow
WGC
Boosted
Production
Conventional
Separation
1,500
1,000
Pressure (psig)
500
0
10%
20%
30%
40%
50%
60%
70%
80%
90% 100%
Percentage of Potential Well Life
Natural Production
Pipeline Pressure
3
Single vs Multiphase Production
4
Compression Market Opportunities
Compressed
Air Energy
Storage
CNG
CO2 Enhanced
Oil Recovery
Enormous Markets with Large Emerging Opportunities
Sources: EIA, Exterran Annual Report, Dresser-Rand, Compressco (Tetra Technologies)
5
Incumbent Technology
1910 Reciprocating Compressor
2010 Reciprocating Compressor
• $220K (2010 equiv)
• $180K (2010 equiv)
• 350HP (30% eff.)
• 300HP (35% eff.)
• >500 sq. ft.
• >400 sq. ft.
• 15 Tons weight
• 10 Tons weight
6
OsComp Technology
OsComp 500hp
Prototype in Lab
Operates with
Multiphase Compression
10,000x
Heat Transfer Rate
Low-Energy Hydraulic
Atomization of Liquid Coolant
Standard droplets
Surface Area = 4.5 m2
Heat Transfer Coefficient = 0.82
Liquid Injection Cooling
Fast Rate Heat Transfer
OsComp droplets
Surface Area = 450 m2
Heat Transfer Coefficient = 82
Rate of heat transfer is affected by surface area (exponential)
7
Customer Value - North Dakota Bakken
Current
Best
OsComp
Tech
875
167
Package Efficiency
-
+32%
Skid weight (k lbs)
54
14
Total Costs ($K)
ROI for OsComp = 11 months
ROI for Exterran = 62 months
½ Cost, 32% More Gas, ¼ Weight, Attractive ROI
8
Timeline and Milestones
Development and Tests
2011
Series A
$12M+
Major Field Trials
2012
2013
3rd Party
Full Validation
1st Field Trial
PO
Commercial Scaling
2014
B
Growth
Round
$15M+
$20M Sales
Backlog
2nd Gen 300 kW
Beta Unit
9
Summary of Technology Benefits
• Near isothermal thermodynamic cycle
– Energy savings and simple packaging
• High pressure in a single stage
– Simplicity and cost reduction
• Small footprint/volume
– Small surface installation and lower cost to install
10
OsComp Investors
• OsComp is funded by top tier venture capital
technology investors in oil and gas
– Energy Ventures (dedicated to upstream technology)
• Norway, Aberdeen, and Houston
• >$750M under management
– Chevron Technology Ventures
11
Management Team
Pedro Santos – CEO/CTO
Lifetime career in compressors
US DOE Airmaster+ Expert
Founder and lead inventor
Ruben Kendrick - CFO
Lifetime career in Midstream Companies
Former CFO Valerus Compression - $750M+ capital raised
Scott Rackey – VP Business Development
Serial energy entrepreneur
Former CEO of CTP Hydrogen and CellTech Power
Jeremy Pitts – VP Engineering
Career in mechanical product development
Formerly head of engineering at Raytracker (aquired by First Solar)
R&D at Raytheon Defense
12
Strong Board of Directors
Paul Deutch
CEO/President, Foro Energy
Lifetime in oilfield technology
Former president of Flotek Artificial Lift
Leif-Andre Skare
Senior Partner, Energy Ventures
Extensive career in oil and natural gas industry
Facilitated exit of Direct Drive Systems and Fluid Devices
Kristen Lier
Investment Manager, Energy Ventures
Extensive experience in energy trading and markets
John Hanten
Venture Executive, Chevron Technology Ventures
30 years experience, primarily in upstream oilfield technology
13
OsComp Awards/Prizes/Grants
14
Company Summary
• Innovation solving shortfalls of current compression
• Enabling frontier hydrocarbon development
• Strong validation from customers and partners
• Strong team and clear milestones
15