L-POD® GEN. 5 TECHNOLOGY

Best In-Class Patented Technologies:

Gen. 5 L-POD® system, completely automated, 53’ trailer mounted (Triple Axel Low Boy) for BS&W removal/cleaning crude oil to pipeline spec, with proprietary/patented Red Stag technology

• Client Benefits

- Mobile unit for easy transport & commissioning

- Latest generation of a proven technology

- Highest industry output (10,000 Barrels/Day)

- High efficiencies (time & cost savings)

Key Features of the Gen. 5 LPOD® include :

• Patented Horizontal Oil Heater Treater producing oil quality at or below 0.05 % BS&W

• Patented Plate & Frame Ultra-Efficient Electro-Static Heat Exchangers

• Non-blending & low shearing progressing cavity pumps fitted with variable frequency drives

• Dual LACT Units designed to determine inlet and outlet crude oil quality

• Automated electronic control system, for level and temperature control

• Self-generating fuel capabilities

• Remote control interface to all component parts

• Special alarm interconnect for auto-shutdown and diagnostics

GEN V L-POD® - Performance Enhancement:

• Larger 4” piping for greater throughput

• Integration of AI technology, continued optimization of the system

• Self-Managing software, monitors system for safety and performance

• Intelligent interconnect managing all functions of the system

• Remote connectivity/diagnostics—IoT

• State-of-the-Art control systems for pumps, valves, temperature alarms, auto-shutdown

GEN V L-POD® - OPERATING COSTS:

• The utility costs to operate an L-POD® Unit depend on the operating conditions.

• Operated at 100% capacity, the feed pump on each L-POD 5 Unit will consume 466 kW/day. The electrostatic transformer will consume another 100-600kW/day, averaging about 150 kW/day. The current value of one kilowatt/hour of electricity in Texas is $0.1123, so 466 + 150 kilowatts = 616 kilowatts per day times $0.1123 = $69.18 worth of electricity each day.

• Operated at 100% capacity, the single burner on each L-POD Unit will fire at full capacity. Each burner is rated for 1,250,000 BTU/hour. There are one million BTU's in every 1,000 standard cubic feet of natural gas. Gas is normally sold in until of 1,000 standard cubic feet , often referred to as 1 MCF (where "M" stands for 1,000 and "CF" stands for cubic feet). One MCF of natural gas has a current value of $4.61. So, each burner consumes 1.25 MCF per hour, or 30 MCF/day. At $4.61/MCF, 30 MCF/D will cost $138.30 each day. However, each burner is only about 50% efficient at transferring the heat it generates into the fluid inside the treater. So, we must add 50% for the inefficiency of this heat transfer, bringing the actual gas cost to $207.45/day.

• Adding the two maximum utility costs together, we get a total maximum utility operating cost of $69.18 plus $207.45, or $276.63/day.

• At today's oil recently reduced value of $100.68 per barrel, and using the maximum L-POD(r) throughput of 11,000 BOPD, each day the L-POD(r) operates it will process $1,107,480 worth of oil at a maximum cost of only $276.63, which equates to a processing cost of only $0.00024978/barrel.

•Assuming a three year capitalization on the $1.75MM purchase on one L-POD Unit, the total capital plus operating cost of an L-POD(r) Unit is $1,874.80/day when processing 11,000 BOPD, for a cost per barrel of only 17.04 cents per barrel.

GEN V L-POD® - Summary:

• Integrated state-of-the-art digital technology

• Out-performs competition by a factor of 3

• Mobil unit for ease of commissioning

• Proven technology