DrilSmooth-SilicateShale Inhibitor Project Update Background Project # Lab Tests XRD-Minerology HOU-0092 HOU-0103 Shale Control TT-27Z Cuttings Additives for MMO HOU-0109 Gasplus Cuttings ✓ ✓ CST Linear Swelling Clay Recovery Bulk Hardness ✓ ✓ ✓ ✓ HOU-0107 Shale Inhibition Using Silicate Fluids ✓ On-going ✓ ✓ ✓ 2 TT-27Z Cuttings 3 Gasplus Cuttings SHEWSHAW-2A well in Tanjero SH-2A well in Kolosh 4 Mineralogy: TT-27Z Well in Kolosh T3 5 Mineralogy: SHEWSHAW-2A Well in Tanjero 6 Mineralogy: SHEWSHAW-2A Well in Tanjero 7 Mineralogy: SH-2A Well in Kolosh 8 Mineralogy Formation0 Well Depth (m) NON-CLAYS Quartz Feldspar Plagioclase Calcite Dolomite Siderite Halite Pyrite Total non-clays CLAYS Kaolinite Smectite Illite Chlorite Muscovite Total clays TOTAL Kolosh T3 TT-27Z Tanjero SHEWSHAW-2A 1800237523851805 2380 2390 13641370 14001405 Kolosh SH-2A 17451800 17801785 17851790 Sample #1 Sample #2 2.2 7.3 5.9 9.3 4.4 1.9 0.1 0.9 32.1 0.1 6.8 7.5 5.5 2.6 2.2 0.0 1.1 25.8 0.8 12.3 8.5 5.8 2.9 2.8 1.4 1.5 35.9 2.6 7.3 9.6 9.9 3.1 2.2 1.9 1.3 37.8 2.8 8.2 11.0 9.3 3.1 1.7 2.2 1.3 39.7 1.6 8.1 10.2 3.8 3.1 2.2 2.1 1.4 32.6 4.2 7.7 11.6 6.9 3.6 1.7 0.9 1.5 38.1 0.9 6.9 15.7 3.3 2.7 1.8 0.9 1.2 33.4 1.6 6.4 10.5 3.2 2.7 2.2 1.0 1.3 28.9 1.3 8.1 14.2 3.0 2.2 1.7 0.9 1.4 32.9 3.2 15.5 7.0 40.5 1.6 67.9 100.0 5.6 17.1 11.0 40.6 0.0 74.2 100.0 4.9 20.1 3.5 35.6 0.0 64.1 100.0 3.5 13.5 1.3 40.6 3.2 62.2 100.0 3.2 13.6 1.8 40.8 0.9 60.3 100.0 4.0 19.5 3.8 40.1 0.0 67.4 100.0 3.9 14.0 2.0 42.0 0.0 61.9 100.0 4.8 16.3 3.9 41.7 0.0 66.6 100.0 5.0 20.4 2.8 42.9 0.0 71.1 100.0 4.8 20.1 3.0 39.3 0.0 67.1 100.0 9 Bulk Hardness: TT-27Z Fluid Bulk hardness, in-lb Unexposed DI Water MMO 3% MMO-AS 3% Glymax 4 1 1 1 2 10 CST: Gasplus Cuttings Sample Tanjero Kolosh Fluid CST #1 (s) CST #2 (s) CST #3 (s) Avg. CST (s) DI water 73.9 57.0 84.1 71.7 MMO + 1 lb/bbl MMO-AS 2734.7 2973.3 >3000 >3000 1 lb/bbl MMO-AS in DI water 21.6 21.3 21.1 21.3 2 wt% QmaxDrill 17.8 18.2 18.8 18.3 55 lb/bbl sodium silicate 127 153.8 134.2 138.3 DI water 32.8 35.4 37.2 35.1 MMO + 1 lb/bbl MMO-AS 3187.3 3146.5 >3000 >3000 1 lb/bbl MMO-AS in DI water 15.0 16.1 15.8 15.6 2 wt% QmaxDrill 15.7 15.8 13.4 15.0 55 lb/bbl sodium silicate 54.7 64.9 49.2 56.3 11 Linear Swelling: Gasplus Cuttings SH-2A well in Kolosh SHEWSHAW-2A well in Tanjero 12 MMO+3% MMO-AS MMO+1 lb/bbl MMO-AS MMO+3% KCl MMO+3% Glymax MMO+3% Liquid Gilsonite 0.9899 0.9899 0.9899 0.9899 0.9899 0.9899 Bentonite, lb 5.5 5.5 5.5 5.5 5.5 5.5 Soda Ash, lb 0.5 0.5 0.5 0.5 0.5 0.5 2 2 2 2 2 2 PRIMO MMO-D, lb 0.55 0.55 0.55 0.55 0.55 0.55 PRIMO MMO-AS, lb ----- 10.8 1 ----- ----- ----- KCl, lb ----- ----- ----- 10.8 ----- ----- Glymax, lb ----- ----- ----- ----- 10.8 ----- Liquid Gilsonite, lb ----- ----- ----- ----- ----- 10.8 Mud weight, lb/gal 8.46 8.46 8.46 8.46 8.46 31/25 22/18 11/11 6 19 12 11 12 62/49 42/34 20/20 13 36 20 21 20 35/33 32/30 17/16 2 31 15 14 16 20/21 20/16 3/2 -1 22 2 1 1 Fluid MMO Fluid Rehology Water, bbl PAL FC, lb θ 600 / θ 300 @ 120°F θ 200 / θ 100 θ6/θ3 Plastic viscosity, cP Yield point, lb/100 ft² 10-sec Gel, lb/100 ft² 10-min Gel, lb/100 ft² 30-min Gel, lb/100 ft² 8.46 Rheology 23/16 14/12 6/6 7 9 7 8 10 22/18 17/14 6/3 4 14 3 3 4 Clay Recovery Test Fluid DI Water MMO MMO+3% MMO-AS MMO+1 lb/bbl MMO-AS MMO+3% KCl MMO+3% Glymax MMO+3% Liquid Gilsonite 55 lb/bbl Na silicate 55 lb/bbl Na silicate+3% K2CO3 55 lb/bbl Na silicate+0.5 lb/bbl IDCAP Original weigh, g 20.87 21.05 20.55 20.23 20.49 20.64 20.38 20.99 20.1 20.44 Recovered weight, g <0.01 <0.01 8.45 0.03 5.78 1.01 <0.01 13.53 10.56 16.66 Amount recovered <0.05 wt% <MMO+0.05 wt% 41.1 wt% 0.15 wt% 28.2 wt% 4.9 wt% <0.05 wt% 64.5 wt% 52.5 wt% 81.5 wt% MMO-based Silicate-based 14 Linear Swelling: Bentonite Pellets