Hydrocarbon Dynamics Limited · ASX:HCD
Hydrocarbon Dynamics — Shareholder Meeting (May 2020)
31 slides from Hydrocarbon Dynamics's shareholder meeting presentation, May 29, 2020
Slide 1: Advancing Crude Oil Mobility - AGM Presentation May 2020
Advancing Crude Oil Mobility AGM Presentation May 2020
Slide 2: Disclaimer, Forward Looking Statements and Competent Person Statement
Disclaimer Page 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 contains forward-look
Slide 3: Corporate Summary
Corporate Summary ASX listed - Energy focused Board & Management Shareholder Summary Stephen Mitchell Non-Executive Chairman S Mitchell 10.8% Bill Tarantino CEO- Chemical Division S McGregor Super Fund 9.2% Nick Castellano Executive Director Lowell Resources Fund 4.2% Ray Shorrocks Non-Executive Dir
Slide 4: Year in Review
Year in Review ➢ Strengthened board and management with the appointment of Bill Tarantino CEO- chemical division (Ex Baker Hughes) and non-executive director, Andrew Seaton (Ex Santos CFO) ➢ Undertook a strategic review which led to new sales strategy and new product mix and branding ➢ Modest produc
Slide 5: HCD Technology
HCD Technology 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 heavy crude oils. Fewe
Slide 6: Technology Used from Well bore to Refinery
Technology Used from Well bore to Refinery ➢ 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 e ➢ Provides flow assurance for onshore and
Slide 7: Value Creation Strategy
Value Creation Strategy The value creation strategy for Hydrocarbon Dynamics is twofold: 1 Sell HCD Products and Technology to the Oil Industry Targeting oil producers, pipeline operators, tank cleaners and refiners ➢ Developed marketing team in North America with representatives in Texas and Albert
Slide 8: Testing Implications on Dosage Rates
Testing Implications on Dosage Rates ➢ 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 heavy, extra heavy and vi
Slide 9: Reducing Diluent Needs in Heavy Oils
Reducing Diluent Needs in Heavy Oils ➢ In the Canadian oil sands industry, approximately 1.8 million bbls/day of viscous oil production requires significant dilution to produce and transport. “Diluents” are used to do so at ratios of 30% and up to 50% of oil production ➢ In recent independent tests
Slide 10: Trial Successes/Lab Results
Advancing Crude Oil Mobility Trial Successes/Lab Results
Slide 11: Field Successes
Field Successes PROJECT PURPOSE DOSAGE RATE IN FIELD RESULTS/STATUS Petralis(Texas) Increase Production in 3 wells 5 drums of MF/1 drums SR 7 lbs 5-month avg oil production increase 186% /Gas 10 well potential MicroPhase per Well increase of 316% Oil India (India) Increase Well Production Rates 10 d
Slide 12: Lab & Bench-Top Success- Seeking Field Trials
Lab & Bench-Top Success- Seeking Field Trials PROJECT LAB RESULT STATUS Gulf of Mexico USA # 1 Oils showed large reduction in viscosity and Postponed offshore trial in 3 undersea flowline wells API increase (1300BOPD) at MF feed rate of 250-2000 ppm (40 drum trial) Gulf of Mexico USA # 2 As above Tr
Slide 13: Lab & Bench-Top Success- Seeking Field Trials
Lab & Bench-Top Success- Seeking Field Trials PROJECT LAB RESULT STATUS Colombia (SELVA)– oil from 10 wells tested & Many tests on many fields/wells and tanks API Awaiting Colombian distributor 1 tank tested increase in all at least at least 1.2 API units ADOC 45,000 bopd pipeline, Abu Dhabi Liquefi
Slide 14: Strategic Direction and Current Priorities
Advancing Crude Oil Mobility Strategic Direction and Current Priorities Bill Tarantino- CEO HCD Chemicals
Slide 15: HCD's New CEO – Bill Tarantino
HCD’s New CEO – Bill Tarantino ➢ On January 2nd HCD appointed US based Bill Tarantino as CEO - Chemical Division ➢ Mr Tarantino is a very experienced energy executive with a strong background in oilfield chemical sales, operations and marketing ➢ Prior to joining HCD he was a senior executive with B
Slide 16: Strategic Review
Strategic Review The first months of 2020 were devoted to the development of a Strategic Plan that was subsequently approved by the board. It is essentially a roadmap for transforming the organization. It followed a thorough review of Hydrocarbon Dynamics’ structure, markets and its method of doing
Slide 17: Strategic Review - Execute on our Strategic Plan
Strategic Review - Execute on our Strategic Plan Implement new Marketing Pricing and market Supplement business model investment intelligence product offerings HCD • focus on delivering • most profitable • enhance program • wholesale, non- the tools needed to markets to focus on performance for serv
Slide 18: Strategic Review-New Product Line and Branding
Strategic Review-New Product Line and Branding PhaseShift™️ technology suite of products Driving value for crude oil production, transmission and storage Chemical Product Line designed to advance crude oil mobility: HCD Multi-Flow® technology for cleanout of wells and associated equipment Multi-Flow
Slide 19: Strategic Distributor and Agent Model
Strategic Distributor and Agent Model ➢ Although HCD’s structure hasn’t profoundly changed, and HCD remains a non-service, wholesale company marketing its products through a network of distributors, a vital change was made to the type of distributor representing the organization ➢ HCD will market it
Slide 20: Current Priorities – Agent and Distributor Progress
Current Priorities – Agent and Distributor Progress Company Name Brief Description Comments: W. Canada oilfield chemical co. with a primarty focus on bitumen viscosity and W. Canadian Distributor #1 diluent reduction currently active W. Canada oilfield chemical co. with a primarty focus on well reme
Slide 21: Current Priorities – Canada
Current Priorities – Canada ➢ HCD has been pursuing opportunities in the Oil Sands, Mature Fines Tailings and heavy Canadian oil sector ➢ In the oil sands industry HCD is seeking to replace significant quantities of “diluents” that are used to produce, transport & store heavy oil. Testing oil sample
Slide 22: Current Priorities – Canada
Current Priorities – Canada Production system cleanouts & squeeze jobs distributor activity ➢ Active areas: Montney shale basin, Duvernay Shale, Cardium, Belly River, Mannville Group & Viking ➢ Received paraffin samples from numerous locations in Western Canada – all testing with Multi-Flow has been
Slide 23: Current Priorities – Gulf of Mexico
Current Priorities – Gulf of Mexico ➢ HCD test for a large independent that produces in excess of 50,000 in the Gulf of Mexico- postponed and be rescheduled once wells are back online and evaluated ➢ Test to be on two to three wells on separate platforms where oil production is ~850 bopd. Purpose is
Slide 24: Current Priorities – Utah, Trinidad & Ukraine
Current Priorities – Utah, Trinidad & Ukraine Utah’s Uinta Basin ➢ Opportunity reducing Pour Point (PP) of very waxy Uinta crude with a PP in excess of 130F. Testing in progress. ➢ Successful bench test on yellow and black wax liquification with Multi-Flow. ➢ Heavy oil viscosity reduction ----------
Slide 25: Current Priorities – Permian & California
Current Priorities – Permian & California Permian & Delaware Basin Waxy crudes in the Delaware basin, old shelf ➢ Paraffin issues throughout Midland Basin as well as asphaltenes --------------------------------------- California Newly targeting heavy oil asphaltenes and viscosity work ➢ Cat Canyon (
Slide 26: Major Initiatives in India
Major Initiatives in India Mangala Development Pipeline ➢ Hydrocarbon Dynamics proposed a two phase trial of HCD Multi- Flow on a 6,000 bopd recirculation line associated with Mangala Pipeline (~175,000 bopd) at the Bhogat terminal after successful lab results ➢ Purpose of testing was to reduce the
Slide 27: Opportunities with CNPC in China
Opportunities with CNPC in China Last year saw successful results from single well field trials in CNPC’s Heavy Oil field in North West China where expensive diluent is used for viscosity reduction, and by adding Multi- Flow CNPC’s Heavy ➢ Diluent use was reduced by 40%, Oilfield ➢ Viscosity was red
Slide 28: Proposed Trial in Greater Burgan Field, Kuwait
Proposed Trial in Greater Burgan Field, Kuwait ➢ HCD’s distributor GCD has reported that the Kuwait Oil Company performed a well test in the Greater Burgan oilfield and they anticipate receiving confirmation of a successful result ➢ The Greater Burgan field is the largest sandstone reservoir ever di
Slide 29: Other Priorities in the Middle East
Other Priorities in the Middle East Saudi Arabia ➢ Aramco have provided the data for a pilot tank for clean-up, HCD have submitted a proposal and engaged with local tank contractors and Aramco have done some initial lab testing. After COVID restrictions ease again we can pursue the remaining tests a
Slide 30: Upstream Project – Utah
Upstream Project – Utah ➢ 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 estimated an OOIP of 141.7 m
Slide 31: The Year Ahead
The Year Ahead ➢ It is not possible for HCD to predict when the oil industry will return to pre-oil price collapse and pre- COVID 19 levels ➢ After significant momentum last year, HCD’s activity has been curtailed as our customers and potential customers cut deep into their budgets with many shuttin
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