Infinitely Variable Transmissions for Engine-Driven Wells

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Driving Efficiency at the Wellhead

Team

John Bode, MS ME, Founder, Chairman and EVPChairman and founder, Bode Aviation, Inc.. Formerly: Assoc. Director Sandia National Laboratories, VP General Manager BDM Corporation, Member USAF Scientific Advisory Board, Colonel USAF (Ret).

Charles Call, BS ChE, PhD ME, President Dr. Charles “Chuck” Call has been retained to drive the commercialization of the IVT technology. He has 20 years of commercialization experience as an inventor, entrepreneur, start-up leader and investor.

A. Keith Miller, PhD ME, Founder, Chief Technology OfficerDr. Keith Miller, has a 31-year history of successful product development and technical program management. He has had responsibility for the program management of large and technically challenging programs within Sandia National Laboratories.

Robert Sachs, BS ME, MBA, Founder, Head of Manufacturing Mr. Robert (Bob) Sachs is owner, President & CEO of TEAM Technologies Inc. Mr. Sachs has 30 years experience developing and managing R&D and production companies and projects and 13 years leading TEAM Technologies.

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Proven Increased Efficiency with Variable-Speed Drives

DC

AC

VariableSpeedDrives

Mechanical

Electrical

maximumefficiency

Full speedmotor =

• Across all industries, savings of 30% up to 60% were observed with installed ASD systems

• As much as 25% of industrial motor applications could save energy with ASD control

• Only 4% of potential ASD applications are currently under variable speed control

Source: United States Industrial Electric Motor Systems Market Opportunities Assessment Executive Summary, US DOE Office of Industrial Technologies, January 2000 3

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Variable Speed Drives (VFDs) Equally Effective in Petroleum

Production

• Similar 30 to 40% electrical savings as measured for other industries

• Increased pumping efficiency

• Reduced work-over – no pump off

• VeriTran’s Infinitely Variable Transmissions (IVTs) provide all of the same benefits to gas-powered wells.

Driving Efficiency at the Wellhead

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Opportunity: Infinitely Variable Mechanical Transmission for Rod Pump

Control

Reduced Incidence of Pump Off

Increased Production Rate

Driving Efficiency at the Wellhead

Qualified Natural Gas WellsPowered by Combustion Engines

> 13,000

States West of Mississippi

> 70,000

Canada

> 37,000

World

>> 100,000

500,000 Combustion Engines >220,000 Qualified Wells

6Driving Efficiency at the Wellhead

Mechanical ASDs

Traction Drives• Require high steel-

on-steel interface pressures

• Use elasto-hydrodynamic fluids

• Require strict temperature control

• Rotating control surfaces

Ratchet Drives• Reasonably high

torque• Low power –

typically sub-HP• Limited speed

range• Non-rotating

control surface

Belted Drives• High speeds• Tension &

compression belts• Generally limited

speed range• Belt

wear/replacement• Rotating control

surfaces

Van Doorme push belt

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Why a Serpentine Poly-vee Belt Transmission ?EFFICIENCY !!

Poly-vee (micro-vee) belts have a long legacy in flat-belt technology. Most modern super-chargers use poly-vee flat belt technology.

Driving Efficiency at the Wellhead

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Highly Efficient 1 HP Design

Why a Serpentine Poly-vee Belt Transmission ?EFFICIENCY !!

• Serpentine belts proven highly efficient -- much, much greater than variable speed belts and v-belts

• Less temperature sensitive – little cooling required• Compact design• Non-rotating control surfaces• Simple maintenance procedures

Proven Technology Proving Technology

10Driving Efficiency at the Wellhead

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Comparative Drive Efficiencies

Source: Womack Machine Supply, Industrial Fluid Power, Volume 1, Page 504 Helical, epicyclic gear set

Serpentine poly-vee belt

VeriTran serpentine transmissions composed of only two major power transfer components:

Our Emerging Confidence in Poly-vee Belt Technology

Hutchinson Poly-vee Belts InstalledPump Jacks since 1999

Hutchinson Poly-vee Belts Installed50 Hp Granite Saw

Images used with permission from Hutchinson Belt Drive Systems12

VeriTran IVTs Use Both Sides of Poly-vee Belts

• VeriTran’s serpentine belted IVT transfers power on both sides of the belt.

Front side Back side Equivalent Bend Radii Cross-sections

30 rib J-section and 20 rib double K-section belts specially formulated for VeriTran Inc. by Hutchinson Belt Drives

J K J K J K

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The Testing Journey

Driving Efficiency at the Wellhead

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Well Worth The Drive!

First Turn: April 29, 2014Surpentine belt held, variator held, epicyclic gears perfect!

Driving Efficiency at the Wellhead

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Summary

• VeriTran’s transmission enables ICE-driven artificial lift to have the same capability as electrified systems– 30% Increase in production– Pump-off control (reduced workover) And well gas is MUCH less expensive than electricity

• VeriTran seeks collaborators for:– Integration of pumpoff control– Test sites outside of San Juan Basin– Sales and support

Driving Efficiency at the Wellhead

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Questions?

Driving Efficiency at the Wellhead