NOVAS

NOVAS

PPT

INCREASING OIL WELL PRODUCTION &

PRODUCTION RATES
THROUGH STIMULATION BY:

NOVAS PLASMA-PULSE TECHNOLOGY (PPT)

NOVAS

PPT

ABOUT THE COMPANY

Privately owned company founded in 2007

Oil related services using innovative technologies
Holds 6 patents for Novas PPT* & proprietary equipment
Treatment & stimulation of over 150 vertical wells in Russia, China & Kazakhstan
Positive results achieved in 87% of wells using Novas PPT
Our customers include:

* Novas PPT Well Treatment & Stimulation Inexpensive, mobile,

environmentally friendly technology deployed for well productivity stimulation;
increases rock and sediment permeability and cleans or removes impurities
and other contamination from well bottomhole (manifold system)

NOVAS

PPT

NOVAS PLASMA-PULSE TECHNOLOGY

Novas PPT was developed by a group of scientists from the St. Petersburg State Mining Institute and the
St.Petersburg Scientific Research Institute for Electrophysical Apparatus
The technology has been successfully applied since 2007
$ 7,000,000 of investments in R&D over 4 years

How it works
The producing formation or zone is exposed
tohundreds of powerful discharges generating
dense plasma. Theelastic waves clean
thebottomhole zone andpropagate deep into
the formation.

What happens
Selective cleaning of the bottomhole zone
increases formations permeability andreduces
the hydrocarbon viscosity

NOVAS

PERFORMANCE & RESULTS

PPT

BOPD
VFPD, m3
WC, %
59,25

JANUARY

0
500
1000
1500
2000
2500

120

127,5

133,5

127,5

127,5

127,5

Treatment

64,5

FEBRUARY

64,0

MARCH

APRIL

MAY

JUNE

JULY

AUGUST SEPTEMBER

Formation: Yu1/1
Reservoir: Tight Sand
Work purpose:
Oil production
stimulation
Treatment date:
13.03.2011
Production increase of
almost 100%
Increased production
persisted more than 11
months
Fluid lvl, m
Following
thetreatment,
the flowing
level increased
considerably,
indicating a more
substantial potential
of the well

NOVAS

PPT

ECONOMIC ANALYSIS

Three (3) Wells

Received
Novas PPT Treatment
in
Siberia in the Spring
2011
Total Production Rate
of Three (3) Wells
Before Treatment:
149 Barrels/Day

Before

After

Well A
VFPD 11 m3
BOPD 64
WC % 19,4

Well A
VFPD 16 m3
BOPD 95
WC % 7

Well B
VFPD 13,5 m3
BOPD 67
WC % 26,6

Well B
VFPD 26 m3
BOPD 124
WC % 18

Well
VFPD 8 m3
BOPD 18
WC % 57,5

Well
VFPD 8 m3
BOPD 43
WC % 20

Total Customers expenses $110,000

Payback period 70 days (including all taxes and costs)
Almost 2x increase in production

Results of Novas
PPT Treatment
On the Three (3)
Wells
Total Production Rate
of Three (3) Wells
After Treatment:
262 Barrels/Day
Average increase
over 11 months:
113 Barrels/Day

NOVAS

PPT

OUR RESEARCH AND DEVELOPMENT

While possessing proven plasma-pulse technology for vertical wells, Novas Energy began toadapt
thetechnology for application for increasing the gas/oil recoverability rate in horizontally completed
oil and shale-gas wells

Directional and horisontal wells

Environmental safety excellence
Technologicalsafety
Higher productivity
Energy efficiency
A pilot equipment unit for
horisontal wells is being
developed to be ready late 2012

NOVAS

PPT

ADDITIONAL OPPORTUNITIES
Issues

Solutions

Application of the traditional methods to treat

thehorizontal well bottomhole zone is often
ineffective due to the horizontal position and the
length of the well productive interval

The Novas PPT will make itpossible to uniformly

decolmatate the entire producing interval of the
horizontal well without large expense and time

Horizontal well boreholes often contain uneven fluid

influx profiles with alternating high and low influx
zones; it is not uncommon for a substantial part of a
horizontal well borehole to not operate at all

Super-accurate selective exposure to impact

wellallow the influx profile to be adjusted
andthehorizontal well potential to be realized

For wells located in close proximity to aquifers,

the potential for the migration of chemicals or
hydrocarbons into groundwater often creates
substantial risks, which frequently limits the
application of traditional well treatment and
stimulation methods

The Novas PPT is absolutely safe for the

environment, using no chemical agents, and will
not disturb the integrity of the reservoir

NOVAS

GLOBAL HORIZONTAL OIL WELL MARKET

PPT

USA
China
Russia
Other countries

The worldwide trend toward horizontal

drilling suggests that, by 2016, the
number of horizontally completed wells
that may benefit from Novas PPT will

Distribution ofthehorizontal
well stock among thecountries

exceed 160,000
80%
60%

By 2016, the volume

40%

ofthemarket for oil rate

increase from the horizontal

20%

wells using PPT might reach

Relative dynamics of drilling wells of various types

in USA
Sources: Baker Hughes and U.S. DOE

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

0%

Horizontal
Directional
Vertical

$960,000,000 per annum with

aYOY increase of5to10%

NOVAS

PPT

THE TEAM
Nikita Ageyev
Ph.D. in Economics. CEO since 2007.
Attracted over $ 7,000,000 investment to the project
Valentin Streltchenko
Doctor of Technical Sciences, Professor. Vice Rector of Gubkin University Oil & Gas Univ. Chairman
and Deputy Chairman at 6 international conferences (Horizontal Wells in 1993, 1997, and 2000,
Well Geophysical Surveys, 1998, Petrophysics, 2010, Well Logging in the 21st century, 2011)
Anatoliy Moltchanov
Doctor of Technical Sciences, Professor of the Geophysics, Chair at the St. Petersburg State
Mining University. One of the plasma-pulse technology creators

Aleksandr Maksyutin
Ph.D. in Petroleum Engineering.
The Laureate of over 20 diplomas and certificates of achievement in Oil and Gas Industry

NOVAS

PPT

PROJECT DEVELOPMENT OPPORTUNITIES

S
Clearly demonstrated competency of the team
Good understanding of the consumers and the market
situation
High art of the Research and Advanced Development
Basing the development on the reliable, well-tried
technology
Experience of introducing a new product to the market

Tight-money policy, no possibility of fund reallocation.

High art of the competition

Expressed conservatism of the consumers

Price advantage

Lack of experience in international legal know-how

protection

O
Growth of the horizontal well productivity increase market
Tightening of the ecological policy
Neglect by the competitors
Foreign market barrier lowering
Hydrocarbon price increase
Reduction of the price for services and components
Attraction of a strategic partner of the international level

10

W
No funds for a case of immediate strategy change
Product unknown by the market
Weak market participant, no international standing
No detailed analysis of the consumer information

Market growth deceleration

Appearance of competitive technology with similar
characteristics
Failure to achieve the project equipment characteristics
Hydrocarbon price reduction
Increase of the price for services and components
Opposition by competitors
Failure to correctly determine the development term

NOVAS

PPT

MAJOR AREAS FOR DEVELOPMENT

1. Creation of a laboratory sample of equipment, which will prove possibility of manufacturing of plasmapulse generator with the specified characteristics;
2. Creation of physical-mathematical model and software for modeling and automating processes
3. Involvement of third-party investment for pilot works and commercialization
4. Pilot work, promotional work, marketing, presentation of a new product on the market, market positioning
5. Engaging of a strategic partner with an experience and strong position in the oil market
6. Enter to US and Western Europe markets by establishing of regional centers

11

NOVAS

PPT

WE ARE LOOKING FOR A STRATEGIC PARTNER IN THE US

Novas

Strategic Partner

Novas PPT

Market Knowledge

Scientific Resources

Funding

Technological Centre

Scientific And Technical Support

Qualified Operating Personnel

Test Facilties

Confidentiality & Shared Analysis of Well/Reservoir Profile Data and Performance Data

Joint North American (U.S.

and Canada) Market Launch
12

NOVAS

PPT

CONTACTS

US Representative Offices
James Hurley
20929 Ventura Blvd. Suite # 47-337 Woodland Hills, CA 91364
Tel:

1 (747) 888-6605

E-Mail:
Web:

jdhurley@novas-energy.ru
www.novas-energy.com

Moscow ffice
142784, Moscow region, Leninsky district, village Rumyantcevo,
bld 2, PO Box No 11

13

Tel:

7 (495) 225-6240

E-Mail:

info@novas-energy.ru

Web:

www.novas-energy.com