Hydrocarbon Dynamics Limited · ASX:HCD
Hydrocarbon Dynamics — Shareholder Meeting (May 2021)
35 slides from Hydrocarbon Dynamics's shareholder meeting presentation, May 26, 2021
Slide 1: Advancing Crude Oil Mobility
Advancing Crude Oil Mobility For personal use only AGM Presentation May 2021
Slide 2: Disclaimer, Forward Looking Statements and Competent Person Statement
Disclaimer Page For personal use only Disclaimer, Forward Looking Statements and Competent Person Statement This presentation has been prepared by Hydrocarbon Dynamics Limited ("HCD"). It should not be considered as an offer or invitation to subscribe for or purchase shares in HCD. This presentation
Slide 3: Corporate Summary
Corporate Summary For personal use only ASX listed - Energy focused Board & Management Shareholder Summary Stephen Mitchell Non-Executive Chairman S Mitchell 10.2% Bill Tarantino CEO- Chemical Division S McGregor Super Fund 8.8% Nick Castellano Executive Director Lowell Resources Fund 4.0% Ray Shorr
Slide 4: 2020 - Year in Review
2020 - Year in Review For personal use only ➢ Commenced with the appointment of Bill Tarantino as CEO- chemical division (Ex Baker Hughes) and non-executive director, Andrew Seaton (Ex Santos CFO) ➢ After a strategic review the board adopted a new sales strategy that included: ➢ New product mix and
Slide 5: HCD Technology
HCD Technology For personal use only HCD PhaseShift suite of chemistries utilize small, specially engineered carbon-based molecules that reduce the Van der Waals attractive forces between like molecules in order to reliquefy large agglomerations of wax and asphaltene deposits naturally occurring in
Slide 6: Technology Used from Well bore to Refinery
Technology Used from Well bore to Refinery For personal use only ➢ Improves oil production onshore and offshore by reducing viscosity and mitigating paraffin and asphaltene depositions in production equipment ➢ Reduces reliance on, and costs of, diluents and chemical treatments ➢ Provides flow assur
Slide 7: Value Creation Strategy
Value Creation Strategy For personal use only The value creation strategy for Hydrocarbon Dynamics is now threefold: 1. Sell HCD Products and Technology to the Oil Industry Targeting oil producers, pipeline operators, tank cleaners and refiners. Established agents & distributors in the USA, Canada,
Slide 8: Strategic Direction and Current Priorities
Advancing Crude Oil Mobility For personal use only Strategic Direction and Current Priorities Bill Tarantino - CEO HCD Chemicals
Slide 9: Strategic Plan – Roadmap for Success
Strategic Plan – Roadmap for Success For personal use only The development of a new Strategic Plan, a roadmap for transforming the organization, was the top priority in the first half of 2020. It followed a thorough review of Hydrocarbon Dynamics’ structure, markets and its method of doing business
Slide 10: Executing on Initiatives – Marketing Tools
Executing on Initiatives – Marketing Tools For personal use only Sales Tools for Developed a common New company marketing Distributors language and consistent brochure messaging Rebranded HCD product Updated and revised Updated videos and line case histories, technical company website papers, and pr
Slide 11: PhaseShift Technology Platform Solutions
PHASESHIFT™ TECHNOLOGY PLATFORM SOLUTIONS COLD CLIMATE VA
Slide 12: Executing on Initiatives – Distributors and Agents
Executing on Initiatives – Distributors and Agents For personal use only New Distributors in 2020 North America 1 Global 1 APAC 7 New Distributors • 4 US based • India based • Malaysia based • 3 Canada based • Initial focus – • Initial focus – India and South Malaysia and America Indonesia North Ame
Slide 13: New Distributor Highlights
New Distributor Highlights For personal use only Two new key Distributors with substantial reach can be a game changer for HCD ➢ Imperative Chemical Partners Imperative was formed by combining WadeCo, Impact, and Flocap and is a major player in the Permian Basin with significant operations in the Ba
Slide 14: Sample of HCD Partner Initiatives
Sample of HCD Partner Initiatives For personal use only Examples of some of the initiatives HCD’s partners are working on include: ➢ Canada – one of our Canadian Distributors is focusing on waxy crudes is currently working on multiple opportunities for HCD Multi-Flow that we expect to materialize ov
Slide 15: Sample of HCD Partner Initiatives
Sample of HCD Partner Initiatives For personal use only Examples of some of the initiatives HCD’s partners are working on include: ➢ India – our Agent and new Distributor are working on three important opportunities in India with large companies. ➢ Colombia – heavy oil viscosity reduction with HCD t
Slide 16: Evaluation Testing Breakthrough
Evaluation Testing Breakthrough For personal use only Challenging the Status Quo HCD Multi-Flow is a unique technology that challenges conventional thinking. Laboratory testing remains a continuing and critical part of HCD’s product development and marketing. ➢ Contemporary laboratory analysis used
Slide 17: Current Priorities – Australia
Current Priorities – Australia For personal use only Australian Paraffin Pilot Test ➢ Paraffinic crude is produced in Australia’s Cooper Basin and is therefore a target area for HCD technology. ➢ A 6-month pilot was recently started utilizing HCD Multi-Flow to control paraffin deposition in flowline
Slide 18: Current Priorities – Canada
Current Priorities – Canada For personal use only Paraffinic Crude Oil Region: The COVID 19 pandemic caused serious delays in Canadian opportunities. We anticipate increased activity as restrictions are eased. ➢ One of HCD’s Canadian distributors is positioned to start trials in the Montney and Card
Slide 19: Current Priorities – Canada
Current Priorities – Canada For personal use only Oil Sands & Heavy Oil Sector: HCD activity in the sector has been hampered by COVID 19 ➢ Our chemical technology reduces heavy oil viscosity and seeks to replace significant volumes of “diluents” that are used to produce, transport & store heavy oil.
Slide 20: Current Priorities – USA
Current Priorities – USA For personal use only Our new distributors are bringing numerous opportunities in the US ➢ One Distributor expects to trial HCD technology in up to three fields Texas Waxy crudes of the Permian/Delaware basin, old shelf South Texas, Eagle Ford Shale Central Texas – trial sta
Slide 21: Current Priorities – North Sea
Current Priorities – North Sea For personal use only Paraffinic North Sea crude HCD strives to help producers who struggle with the effects of hydrocarbon-based deposition that can lead to loss of production. ➢ HCD has presented its technology to a large cap producer in the North Sea who is dealing
Slide 22: Current Priorities – India
Current Priorities – India For personal use only Agent Activity ➢ Proposal submitted for two separate trials in Gujarat 1. Tri-Phase Squeeze for production enhancement 2. Pour point reduction ➢ Continues to work opportunity for a field test with a large NOC for pipeline, wellhead, and sludge in Assa
Slide 23: Current Priorities – South America
Current Priorities – South America For personal use only Ombu block in southern Colombia There is a renewed focus on heavy oilfields of Colombia and South America with a new Distributor who has operations in the region. ➢ HCD is working together on a prospective heavy oil project in the Ombu block i
Slide 24: Current Priorities – Indonesia
Current Priorities – Indonesia For personal use only Developing a new distributor model aligned with HCD’s corporate strategy. Our New Distributor is finding opportunities in the region. ➢ The initial opportunity for HCD technology is to aid an operator in Indonesia to produce heavy oil from an unpr
Slide 25: Current Priorities – China
Current Priorities – China For personal use only Previous successful pilot in CNPC’s heavy oil field in North West China where expensive diluent is used for viscosity reduction. Adding HCD Multi-Flow® gave the following results: ➢ diluent use was reduced by 40%, ➢ Viscosity was reduced by 65% ➢ Prod
Slide 26: Current Priorities – Middle East
Current Priorities – Middle East For personal use only Saudi Arabia ➢ Aramco opportunities have been affected by COVID. Recent discussions suggest we can pursue the remaining tests and reschedule the tank clean Iraq ➢ Basrah Oil Company (BOC) have restarted discussions regarding a tank clean and a p
Slide 27: Upstream Project – Utah
Upstream Project – Utah For personal use only ➢ Utah Oil Sands are estimated by the Utah Geological Survey (UGS) to contain 14-15 billion barrels of oil. ➢ Indago has leased 3,459 acres over part of Asphalt Ridge in the Uinta Basin. Independent certifiers, Netherland Sewell & Associates, have estima
Slide 28: The Year Ahead: 2021 Focus and Path Forward
The Year Ahead For personal use only 2021 Focus and Path Forward As noted earlier, the direct and indirect effects of Covid 19 caused HCD marketing to lose significant momentum. HCD anticipates that the loosening of COVID restrictions and increase in oil price will generate momentum in the coming mo
Slide 29: Thank You
For personal use only Advancing Crude Oil Mobility Thank You
Slide 30: Trial Successes/Lab Results
For personal use only Advancing Crude Oil Mobility Trial Successes/Lab Results
Slide 31: Field Successes
Field Successes For personal use only PROJECT PURPOSE DOSAGE RATE IN FIELD RESULTS/STATUS Increased oil production by an average of ~12% across all wells; Decreased OPEX costs projected to be >$0.50/ BOE (not including the production Whitecap Paraffin remediation and increase); Significantly reduced
Slide 32: Lab & Bench-Top Success- Seeking Field Trials
Lab & Bench-Top Success- Seeking Field Trials For personal use only PROJECT LAB RESULT STATUS Performing closed loop test on their current Repsol (Uk) Off Shore Performed closed loop test. Cleaned deposited wax in 30 seconds and product to compare results with those of HCD Paraffinated Crude showed
Slide 33: Dynamic Flowloop Testing
Dynamic Flowloop Testing For personal use only Customer Technology Comment: The blue line is the neat XXX crude oil with no chemical added and you can see the dp rises due to wax deposition. The red line is when HCD Multi-Flow chemical is added to the crude oil and you can see that it works as a dis
Slide 34: Colombia Heavy Oil Independent Lab Testing vs. Field Results
Colombia Heavy Oil Independent Lab testind vs. Field Results For personal use only Trial Results vs. Third Party Laboratory Analysis of HCD Multi-Flow on Heavy Colombian Crude Oil Qifa Field Qifa Field Qifa Field Qifa Field Qifa Field Qifa Field Qifa Field Qifa Field Qifa Field Colombia Qifa Field C
Slide 35: Testing Implications on Dosage Rates
Testing Implications on Dosage Rates For personal use only ➢ Tests and trials indicate dosage rates of HCD products for use in pipelines and continuous down-hole applications on viscous crudes are typically between 250 - 750 ppm ➢ Tests and trials indicate dosage rates of HCD products for use in hea
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