1. Ultra-conductive ultra-high strength proppant technology Terry Palisch, Director of Petroleum Engineering

2. 2 Develop a durable, high-strength proppant that can deliver twice the conductivity at 20,000 psi closure stresses. Developed for deep water and ultra-high stress formations Meeting todays production enhancement demands 3. 3 The result of long-term investment 2007 Customer Request 2008 - 2009 Material Selection 2009 - 2010 Process Development 2011- 2012 Build Pilot Plant 2013 Scale Up, Testing & Commercialization 4. 4 The pinnacle of proppant technology 5. More strength More durability More uniformity More sphericity More smoothness 5 Precision-engineered Actual proppant grains 6. 6 More space to flow More flow space More uniform flow paths More long-term conductivity More production, increased EUR and superior IRR 7. 7 More conductivity 100% more baseline conductivity 8. 8 More sphericity KRYPTOSPHEREBauxite 20/40 #1 9. 9 More uniformity Single mesh proppant manufactured at any size required for your well conditions 10. 10 Exceptional microstructure Chinese IDC Other bauxite CARBOHSP 11. 11 More strength Outstanding performance under pressure 12. 12 More uniform flow profile Significantly lower proppant beta factor minimizes the impacts on non-Darcy and multiphase pressure drops in the fracture At 20,000 psi 13. 13 More durability Almost four times more conductivity after cyclic loading 14. 14 More smoothness Significantly less erosion during pumping to downhole tools maximizes the volume of proppant that can be placed 15. More space to flow Retain long-term fracture integrity Maximize fracture conductivity Extend the productive life of the frac Accelerate payback on investment Maximize EUR and returns from your asset Lower finding and development costs per BOE 15 Higher production. Increased recovery. 16. Any Questions? 17. 17