ZFA Technologies Inc.

2015.09

www.zfatech.com

BERO™Application on Oil Field Enhanced Oil Recovery

Mission: Using Biotechnology to sustainably and efficiently

recover billions of barrels of oil unrecoverable by traditional

methods

CONTENT

• Introduction to BERO™

• Application of BERO™

• Technology of BERO™

• Physical and Chemical Properties

• Reaction Mechanism

• Case Study

• Technology Comparison

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Well Problems :

• Plugged reservoir result from paraffinic wax and asphaltene precipitation.

• High water cut due to near well preferential flow.• Low pressure due to near wellbore deposit.

Production Well

Causing loss of potential oil production !

Producing Well Problems

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• Bio-surfactant Enzyme for Recovery of Oil (BERO™) is a biological-liquid

enzyme.

• Protein based non-living catalyst derived from special strain of microbes.

• Catalyst to biological reaction, but do not participate in the reaction.

• Does not react with crude oil and create secondary pollution.

• Spin off benefit from puff action to tubular and production line.

• Safe, non-corrosive, inflammable, non toxic & non hazardous.

(Environmental Friendly)

Introduction to BERO™

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Biosurfactant Enzyme for Recovery of Oil (BEROTM) is one

of the leading worldwide products for MEOR. It is a bio-

enzyme with non-activity preparation and water soluble.

It has strong powerful ability in releasing the

hydrocarbon (oil) on the surface of reservoir rock

particles.

It quickly peel off the crystal substances, paraffin, asphaltenes on the rock particles after injected into the reservoir.

The reaction of BEROTM is a biological reaction; it’s

different than the effects of chemical and bacterial.

It will be directly effective to the pollutants, but it

won’t change the characters of the crude oil. It can

absorb on surface of the rock tightly and keep humid

of rock surface. Therefore, the BEROTM Enzyme has

high stability, congenital advantage adaptability for

a long time. Theoretically, it would not be depleted.

Introduction to BERO™

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BERO™ biosurfactant is currently the world-leading

product used for MEOR (microbial enhanced oil

recovery) and it is a kind of non-active enzyme

preparation using microorganism as matrix.

1. In the original oilfield, the original formation pressure of the oilfield is formed through millions of years and presses crude oil to the ground, and only about 20% of original oil reserves can be recovered by mainly relying on natural energy.

2. During the production of a production well, if crude oil cannot be recovered due to the decrease of original formation pressure, high-pressure injected water (i.e. water injection method) is used to flood the oil. This method can increase production of crude oil by 10%-15% when applied in sandstone or crystalline carbonate pores.

Technology of BERO™

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8 years research and development；

Included11 OilFields；

200wells for BERO treatment；

succeed rate with 90% above；

Avg marginal wells with more than 1000

bbls production increases;

Avg well production increases with 120%；

Effective period12 mths above；

Karamay Oilfield #34166 Well；

Effective for 12 mths；

Total increases 14177 bbls；

Production increases with 700%。

Technology of BERO™

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• Production Enhancement - Oil Displacement• Reservoir plugging removal - waxy, asphalt material• Applied on oil well tubular column cleaning (work over)• Pipeline & Ground Storage Tank cleaning

Application of BERO™

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• PH Value: 5-7, Biodegradable, it does not corrode and pollute to

pipeline or surrounding area.

• Rating of temperature: ≤ 220 ℃, Boiling Point: 100℃, Density: 1 g/cm³.

• Safe, non-toxic, non-flammable, non-explosive, Meet the oilfield HSE

standards.

• Water Soluble: Oil insoluble. Can be compatible with any water salinity

• Restore the relative permeability and change the wettability to be

more water-wet.

Physical and Chemical Properties

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Reaction Mechanism

BERO™’s Functional Mechanism on Pollutants

Adsorb pollutant together enzyme and oil complexes

Enzyme complexes decompose Intermediate Compounds between Enzyme and Oil (ICEO) release solid particles

ICEO decompose independent oil and independent BERO™recover the original condition of BERO™.

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• Crude oil is trapped in porous sandstone, water driving force could not drive out the crude oil retained between the pores of formation.

• BERO™ will surround around the outer membrane of oil drop and cause oil drop to deform, split and released from the tight pores.

Reaction Mechanism - at Pore Level

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AppliedCountry

Applied WellsIncrementalOil/Well, bbl

Success Ratio, %Incr. Recovery

Factor, %

Effective Lifecycle,

month

U.S.A 22 81.2 12

China 204 81.1-92.8 12

Total >200 1000 >90 120 >12

Case Studies

200 Single well Production Enhancement160 wells production increasesSuccess Ratio : 81.1%

6 Injection Well Treatments with 42 production wells39 wells production increasesSuccess Ratio : 92.8%

22 Single well Production Enhancement18 wells production increasesSuccess Ratio : 81.2%

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Case Studies - in USA

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Field NamePercent Increase

Water Decrease

Wells Period

Henan Field 237% 20% 22 12 months

Qinghai Field 100% n/a 13 14 months

Zhongyuan Field 82% 15% 37 18 months

Daqing Field 57% 26% 12 13 months

Jilin Field 38% na 19 12 months

Pucheng Field 375% 9% 25 11 months

Xinjiang Field 243% 15% 32 14 months

Yanchang Field 50% 12% 54 9months

Case Studies - in China

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Water

bbls

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Total Oil Recovery

14178 bbls in 12 months

Well Number 34166

Year Production 1988

Layer Thickness 33.5

Thickness 16.2

Viscosity 122

Depth 523

Total Oil 14964

Total Water 9154

Total days 6595.1

Qo = 7 BOPDQo = 50 BOPD

(600% oil gain)Soaking period = 5 days

initial

final

One of our best case shows in Karamay oilfield onshore well #34166, with a 1200% oil production increased, total 14,178 bbls oil recovery within 12 months.

Case Studies (1) - karamay Onshore Well

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Case Studies (2) - Henan Oilfield

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Well numberLayer

thickness(m)Treatment

date

Before AfterTotal oil（bbls）

fluid（bopd） oil（bopd） water（%） fluid（bopd） oil（bopd） water（%）

34147 25 Sep 09 30.8 15.4 51.6 84.2 77.8 8 13784

34124 30 Oct 17 9.4 6.5 30.8 32.4 29.5 7.8 10711

34166 100 Oct 17 9.4 7.2 23.1 56.2 50.4 10 14178

Total 155 - 49.6 29.1 42.4 172.8 157.7 9 38673

400% Oil Gain 350% Oil Gain 600% Oil Gain

Case Studies (3) - Xinjiang Oilfield

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Typical Acidizing Setup

“COMPLEX & HAZARDOUS”

BERO™ Equipment Setup

“SIMPLE & SAFE”

BERO™ vs Acidizing Job

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BERO™’s Advantages over Other EOR Technologies_ Acidizing, Fracturing and Polymer Flood

• BERO™, with water-wet characteristic, can be in very low concentrations (0.5%) with the same density aswater. BERO ™ is able to go further in reservoirs to form much bigger radium scopes.

• BERO ™ can absorb on rock surface tightly to keep the rock water-wet, which peels off oil and secondarysediments, and prevents wax block. As a result, reservoir permeability is improved.

• BERO ™ is a non-acid preparation, which does not cause any secondary pollution and disorders of oil-waterseparation and sewage disposal systems. Its work does not generate any new material and not cause any jamin porous medium.

• BERO ™ is biodegradable, which does not corrode and pollute pipelines, facilities and surroundingenvironment. BERO ™ is a green product since it’s harmless to human beings and animals.

• BERO ™ complies with the HSE requirements completely in the oilfield operations.

Method BERO™ Enzyme Acidizing

Material Types Liquid, non hazardous, environmental friendly Liquid, acidic, harmful to human being and reservoir

Execution Process Bull heading/Huff and Puff Bull heading, sometime coil tubing unit is needed.

Operational UnitBERO™ enzyme, High injection pump and

storage truckAcid, storage tank, Acid pumper and Coil tubing unit

etc.

Chemical Handling Easy and safe handling. Non toxicExtra cautious, dangerous to human being. Required

post treatment.

Effective cost Low Higher than BERO™

Technology Comparison

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Comparisons with other Enzyme technologies:

Enzyme 1(US company)

Enzyme 2(Norway)

BERO™

Success Rate 80% 90% 90%up

Oil Gain % 50% 20% ≥120%

Effective period 3-6 months 12 months 12 months up

Stability No Yes Yes

Application IFT ReductionIFT ReductionReservoir PluggingRemoval

IFT ReductionReservoir PluggingRemoval

Max Temperature 70°C 180°C 220°C

Technology Comparison

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Comparisons with other MERO technologies:

Two groups technologies of Microbial Enhanced Oil Recovery (MEOR) : External biological recovery (bacteria method) and Biological enzyme recovery.

• External biological recovery technology utilizes bacterial reaction to oil recovery, which has to include bacterial

selection, survival, flexibility, reproduction, reaction, degeneration, and etc. These complex processes make tons of

imperfection and low effectiveness.

• On the other hand, BERO™ technology has its biological enzyme directly work on reservoir rock and fluids.

Enzyme is a worldwide recognized microorganism with stabilization, moderation and constancy, which

facilitates to a reaction without any change on itself. It brings high efficiency with mild reaction

conditions, low energy consumption, no pollution and easy control.

• The experiments show BERO™ can drop the oil content in mud to 0.20% in 60 seconds. Moreover, the

adaptability of BERO is high, it is not affected by any changes of temperature, pressure, acid and water is

salinity. BERO™’s work lasts longer than other MEOR technologies. • Besides, external biological recovery technology needs a lot of analysis and researches before operations and has

to be monitored and studied after operations, which makes it difficult to be understood by the field personnel.

• While, with little manpower request, BERO™ only needs some current information of the oil wells without

such analysis and researches before operations and no surveillance is needed during or after operations.

In a word, BERO™ is one of the best technologies in the world in terms of enhanced oil recovery and environment protection which could bring a revolutionary progress for EOR.

Technology Comparison

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Bacterial

Screening

Bacterial

Compoun

d

Bacterial

Inoculum

Bacterial

Culture

Enzym

atic

Enzyme

Isolated

Enzyme

Deactiv

ation

Enzyme

ComplexPurification

BERO™

Storage

Tank

• BERO™: Unique microbial enzyme complex and

advanced fermentation process to produce.

• After ten years of research and development of

continuous improvement, we have accumulated

a wealth of experience in the development and

production and we have the ability to replicate

the scale.

• Used of raw materials sourced from the Nature

Earth with high-quality microbial-based

production and the process do not produce

polluting emissions.

• Currently we have a lab in Suzhou, China, with a

50 tons per month product line.

• Future plan to build an annual with more than

8000 tons production line, in order to meet the

market development needs.

How BERO™ produces

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Factory in Shanxi, China Lab in Suzhou, China

Production workshop

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Variables BERO™ Enzyme Acidizing

Material TypesLiquid, non hazardous, environmental friendly

Liquid, acidic, harmful to human being and reservoir

Execution Process Bullheading/Huff and PuffBullheading, sometime coil tubing unit is needed.

Operational UnitBERO™ enzyme, High injection pump and dosage pump.

Acid, storage tank, Acid pumper and Coil tubing unit

Chemical Handling Easy and safe handling. Non toxicExtra cautious, dangerous to human being. Required post treatment.

Effective cost Low Higher than BERO™

Water Injection

PumpBERO™

Injection Dosing Pump

Wellhead

Offshore platform BERO™ vs Acidizing Job

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BERO™ Treatment in Karamay 2011

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BERO™ Treatment in Wyoming 2014

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Founder Mr Hao Duan

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• Otain well data

• Analysis, Feasible

plan

• Confirm

plan, Sign

Contract

Step 1

• Raw material

purchase

• Produce BERO™

• Transportation

Step 2 • Out-source

Injection team

• BERO™ Treatment

• Treatment

Acceptance

Step 3

• Well shut-in 5-7

days for

biodegradation

• Production

Increase 12-18 mo

• Tech support

Step 4

The first three steps usually take about 1-2 months. BERO™ production cycle is 4 days, transportation period is 30 days, treatment time is 4 hrs/well.

BERO ™ Treatment Operating Process

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THANK YOU！UNITED STATES

12212 Ashling Dr Stafford, TX, 77477

Tel: +1 713 893 4784

CHINA

Nanopolis Suzhou: NW02, Room 110, 99 Jinji Lake

Avenue, Jiangsu Province, P.R. China.

Tel: +86 512-6999 5236

Fax: +86 512-6999 5237

E-mail:contact@zfatech.com

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