100% Frac Water Recycling - Strategy & Focus

April 13, 2011

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Agenda

• Criteria for Frac Water Recycling

• On-Site Treatment vs. Off-Site Treatment

• Case Study #1 - On-Site Treatment

• Case Study #2 - Off-Site Treatment

• Ecosphere’s Ozonix Technology

• Implications for the Operator

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• Ecosphere Has Over 15 Years of Water Treatment Experience

• Ecosphere Has Over 2 Years of Shale Gas Operating Experience

• Ecosphere Has Treated Over 15,000,000 bbl of Frac Fluid with Recycled Water

• Ecosphere Has Recycled Over 1,000,000 bbl of Produced Water

• Ecosphere’s Technology Has Been Proven By Third-Party Labs:

• Results Gathered for Over 300 Wells

• Ecosphere Has Eliminated 450,000 + Gallons of Biocide from Frac Operations

Ecosphere Facts

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Industry Concerns

• Water Resourcing and Permitting Issues

• Availability and Cost of Disposal

• Regulatory Changes

• Compatibility of Recycled Waters with Traditional Frac Systems

• Challenges of Recycling Water

• Political Pressure and Stakeholder Perception

• HSE Issues:

• Hazardous Chemicals

• Road Damage & Impact on Infrastructure

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Why Should Operators Recycle Water ?

• Less Fresh Water Consumption 

• Reduces The Need For Disposal

• Reduces Regulatory Exposure

• Reduction of Liability Exposure

• Reduces Truck Traffic and Impact On Roads

• Extends the Economic Viability of the Play

• Improves Stakeholder Perception

• Reduces The Carbon Footprint

• Risk Mitigation

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Where to Treat Water ?

On-Site

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Where to Treat Water ?

Off-Site

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Case Study #1

On-Site Treatment - Fayetteville Shale

How to Eliminate Chemicals at 120 bbl/min (5,000 gal/min) On-Site?

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• Operations Began in Nov. 2009

• 100% of Frac Fluid Treated OnSite, “On The Fly” 

• Eliminating Chemicals 

• Destroying Bacteria

• Averaging 9 Wells Per Month

• Continuous Operations (24/7) 

On-Site Treatment - Fayetteville Shale

Case Study #1

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• 15,000,000 + bbl Processed

• 1,400 + Frac Stages

• 120 + Wells Completed

• 120 bbl/min Capabilities

On-Site Treatment - Fayetteville Shale

Case Study #1

FACTS:

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11,875,000 bbl of Fresh Water 

Saved Per Year

Case Study #1

Flowback 

Water

Ground 

Water

65% 35% Recycled 

Water

81%

Fresh 

Water

19%

High of 41% Recycled Water

Approximately 500 Wells / Year

Approximately 125,000 bbl / Well

Typical Fayetteville Frac Blend

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Microbial Control

Case Study #1

On-Site Scenario:

• 3-Well Pad

• 120,000 bbl Frac’s

• 11 Stage Wells

• Treated at 100 + Bbl / Min

• Continuous Operations

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12
Case Study # 2

Off-Site Treatment - Woodford Shale

Recycling Produced Water at a Centralized Facility

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Case Study # 2

Off-Site Treatment - Woodford Shale

• Operations Began in Dec. 2008

• 100% Treated at a Central Location: 

• Recycled Produced Water 

• Flowback Water

• Ozonix Technology + Coagulation 

+ TSS Separation (1-5 !m)

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Off-Site Treatment - Woodford Shale

• 915,000 + bbl Processed

• 200 Wells Completed

• TDS Range:

• 160,000 - 180,000 mg/l

FACTS:

Case Study # 2

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Scale Inhibition

Centralized Facility Scenario:

• Dynamic Tube Blocking Test:

• Measures Scale Inhibition

• Conducted by Third Party 

(Weatherford Labs)

• 170,000 mg/l TDS

• Treated at 200 bbl/Hour

• Fluid treated at 200 barrels 

per hour

Case Study # 2

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USPTO Green Tech Fast Track Program

Approved Patents: United States Patent No. 7,699,994 United States Patent No. 7,699,988 United States Patent No. 7,785,470

Ozone

(O!)

Acoustic 

Cavitation

Hydrodynamic 

Cavitation

Electro-Chemical 

Precipitation

+ +

What is the Ecosphere Technology?

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Customer Driven Evolution

EF-10 (EF-600) EF-20 (EF-1200) EF-60 

Rated for 10 Barrels Per Minute Rated for 20 Barrels Per Minute Rated for 60 Barrels Per Minute 

The Ecosphere Evolution 

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ELIMINATE CHEMICALS RECYCLE FLUID

BENEFITS

HEALTH & SAFETY

ENVIRONMENT

POLITICAL RHETORIC

COST CONSIDERATIONS

Replace Biocides and Scale Inhibitors 

Improve Friction Reducer Compatibility Reuse Flowback Water and Produced Fluid

Eliminate Dangerous Exposure to Chemicals Reduce Truck Traffic

Keep NORM in a Closed-Loop

Eliminate Chemical Spills Reduce CO2 Emissions

Reduce Fresh Water Usage

"Injecting Chemically-Laden Fluid...." "Depleting Fresh Water Sources...."

Biocide Cost Freshwater Purchasing and Transfer

Scale Inhibitor Cost Trucking Hours

Friction Reducer Cost Injection Cost

Road Repair

Implications

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Eliminate Chemicals . Recycle Fluid

EcosFrac ®

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