Forward Looking Statement Advisory
Except for historical information contained herein, this presentation contains forward looking statements including but not
limited to comments regarding Twin Hills Resources Inc. and Envirotech Green Inc. (“the Companies”) plans to and projections
regarding (i) the commercial success of the proprietary process; (ii) the CAPEX or cost to build a plant; (iii) the cost per barrel to
produce and the targeted netback per barrel; (iv) the breakeven amount per barrel; (v) the timing of the potential plant payback;
(vi) the future growth potential and whether it will be funded by cash flow; (vii) the amount of land to be acquired in the next 12
months; (vii) the potential amount of oil in place; (ix) the timing of the commencement of production; (x) the target production
per process unit or barrel; (xi) the daily gross profit per unit or per barrel; (xii) the gross profit per annum per unit; (xiii) the
Company’s growth targets; and (xiv) the operating costs, transportation costs, and production capacity. These forward-looking
statements involve risks, uncertainties and assumptions and are based on management’s current expectations and assumptions.
Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result
of risks and uncertainties, which include, without limitation: general economic conditions and the current economic uncertainty in
the global markets; whether the proprietary technology successfully functions and functions at a commercially viable level; the
Companies’ continued right to use the proprietary processes and technology; the Companies’ ability to acquire property with
commercially viable levels of bitumen; the continued price and demand for oil; the Companies’ ability to raise the capital
necessary to build one or more plants; the Companies’ ability to hire and retain personnel necessary to successfully operate its
business; the speculative nature of natural resource exploration activities; changes in the operating costs; changes in economic
conditions and conditions in the resource, foreign exchange and other financial markets; changes in the investments and
exploration expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments
in areas in which the Companies operates; technological, mechanical and operational difficulties encountered in connection with
the Companies’ activities. You are urged to consider these factors carefully in evaluating the forward-looking statements
contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their
entirety by these cautionary statements. These forward-looking statements are made as of the date hereof disclaims any intent or
obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or
otherwise. © 2013 Twin Hills Resources Inc. and Envirotech Green Inc. All rights reserved. Copyright. All materials displayed or
otherwise accessible through this Presentation (collectively, the "Content") are protected by copyright law, and are owned by the
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including modification, transmission, presentation, distribution, republication, or other exploitation of the Presentation or of its
Content, whether in whole or in part, is prohibited without the express prior written consent of the Companies.
A Unique Business Opportunity
Disruptive
Bitumen/Heavy Oil
Extraction and
Upgrading
Technology
The Companies
• Twin Hills Resources CA, a privately held Canadian company
representing the interest of Twin Hills Resources US
- has been established to search for, evaluate, acquire an equity
stake in and market new generation technologies to the oil and
gas industry.
• Envirotech Green Inc. a privately held Canadian company
incorporated under the laws of Ontario.
- has developed a patented Cavitation technology for
Extraction of heavy oil from oil sands and the upgrading heavy
oil and black wax.
Challenges - Economic
Industry and
governments
are constantly
put to task in
attempts to
manage the
economic,
social and
environmental
costs
associated with
oil production.
• Cost of Diluent
• CAPEX/OPEX diluent handling and
storage
• Price Differential
• Green House Gas (GHG) Emissions
• Transportation
• Water Availability
• Global Reputation
Challenges - Environmental
Increasing
public pressure
to “green” the
energy future.
Investors
grading
companies on
environmental
performance
and associated
financial risks.
•
•
•
•
•
•
Air Quality
Land Use and Reclamation
Water Consumption & Quality
Wildlife and Fauna Biodiversity
Mature Fine Tailings
Tailing Ponds
Government, Industry & Academia Initiatives
• Canada’s Oil Sands Innovation Alliance (COSIA)
–
To date, COSIA member companies have shared 560 distinct technologies
and innovations that cost over $900 million to develop.
• Alberta Innovates and Academia
–
Alberta Innovates work with key innovation support agencies, publicly
funded post-secondary institutions, industry and government to further
research and innovation in the province and make Alberta more competitive
in the global economy.
– Significant investments in renewable energy projects have resulted in more
than $1 billion dollars worth of activity.
Extraction Results
Removes 99.7% of oil from oil sands
No direct GHG emissions
Recaptures tailings
Requires no hot water or steam
Operates at standard temperature and pressure
Extraction Results
• Only external energy is electricity 1.6 to 1.7 Kwh/Bbl.
• Residence time in the Extraction Chamber is 7- 15 minutes in
batch process
• Separation of sand and clay from bitumen is within standard
oil plant separation parameters
Upgrading Scope
Eliminate the need for diluent
No direct GHG emissions
Simple & Minimal Energy Process
Upgrading Scope
Operates at <
100o C
Temperature
and Standard
Pressure
Does not use
Solvents or
other
consumables
Non-complex
operating
system
Continuous
closed loop
process
Upgrading Results to Date
• Heavy Residue ( 977o F+) reduced by 20%
• Diluent Requirements reduced by 55 % to meet pipeline specifications
– Continued pilot plant runs expected to produce lower viscosity
reducing the need for any diluent
• Only external energy costs are for electricity 1.6 – 1.7 kWh/bbl.
• Cavitation energy produces heat to raise temperature from above pour
point to the range of 75o to 90o C
Achievements to Date
• 40 bbl./day Extraction Tests
Extraction Technical Readiness Scale 6
Upgrading
• 350 bbl./day Partial
Upgrading Tests
Technical Readiness Scale 6
Technical Information
Larry Saidakovsky
Extraction Technology
• Separation of mixture of bitumen (and residual diluent), water,
sand and clay.
• Additional water vigorously introduced to mixture via a high
velocity water jet stream producing a slurry.
• Interference of powerful ultrasonic waves are introduced to the
vigorously circulated slurry in the extraction chamber producing
vast arrays of imploding cavitation bubbles.
Extraction Technology – cont’d
• Amplified by the resonance the collapsing cavitation bubbles in the
extraction chamber produce the following effects
– Sand is fractured into finer particles-some as small as 5 microns
– Under adiabatic compression, temperatures at point of collapse
range 3500o to 4000o Kelvin
• Extraction process operates at 20o C temperature and atmospheric
pressure.
• Only energy source is electricity, no solvents, no external heat added.
• Settling occurs under atmospheric conditions as the clay settles with
the sand.
Extraction Process
Premix Tank
Extraction
Chamber
Mixing Oil sands
and Water
Slurry
High Energy
Extraction
Chamber
Settling
Tank
Processed Oil Sands
slurry with Bitumen
separated out flows
into a Settling Tank
Extraction Results
Oil sands
Stackable Tailings
Water,
Bitumen and
Clay/Sand
Separation
Clear Tailings Water
with Settled out Sand
and Clay 24 Hours after
Cavitation Extraction
Process
Process Water & Utah Oil
Sand
Process water from Settling
Tank with Clay and Sand
settled out and oil wet Utah
oil sands on the right
Water Usage - Extraction
Water is used to
create oil sands
slurry.
This provides
the medium for
ultrasonic shock
wave
transmission,
creating the
cavitation
effects that
separate
bitumen, water,
sand and clay.
• The tailings water settles clear
• Only trace amounts of oil remain in the
tailings sand
• The process water in the test is returned to
the feed tank
• Dissolved salts build-up in the recycled water
can be removed during water recycling using
continuous-flow ion extraction technology
Extraction Process Diagram (Mining)
Electricity
Electromechanical
Transducer
Tailings
PreMix
Tailings Pond Settled Water
Separator
Jet
Bitumen & Diluent
Extraction
Chamber
Screw Conveyors
Water Sand & Clay to Settling Ponds
Upgrading Technology
•
•
Bitumen is delivered to a Cavitation Device from a feed / recirculating tank
The feed / circulating tank provides the means to:
– feed the cavitation device through a tangential nozzle and a vortex chamber
– circulate bitumen from each end of the cavitation device through deturbulizers and flow control shutters to separate flows with different
viscosities and densities
– creates a densely whirling emulsion flow with high radial gradient of pressure
– emulsion flow is then subjected to electro-hydrodynamic (EHD) shocks
– subjects the cavitating emulsion inside the device only, to interference of
powerful sonic waves causing overwhelming volume of collapsing cavitation
bubbles while creating point of collapse temperatures of 3500o to 4000o Kelvin
for 0.1 to 1 microseconds
Upgrading Technology – cont’d
• Chemical reactions follow:
– disintegrating longer molecules to smaller molecules
– formation of free radicals and carbamides
– formation of water from free radical combination with hydrocarbons
– hydrogen attached to disintegrated molecules
– formation of hydrogen sulphide and ammonia
• Continued pilot plant runs expected to produce lower viscosity without the
need for any diluent
Upgrader
Upgraded Bitumen Distillation
1600
1400
D
e
g
r
e
e
s
977o F+ Residue
1200
1000
800
600
Feed
Sound
Sound Shock
400
F
200
0
IBP
5
10
15
20
25
30
35
40
Weight Percent
45
50
55
60
65
70
75
Bitumen Differentials
Mass Balance
Property
Flow 60 F
Bbl
Density kgm/m3
20 C
60 F
7C
API Gravity
20 C
60 F
7C
Specific Gravity
20 C
60 F
7C
Viscosity Cst
30 C
20 C
60 F
7C
Carbon wt%
Hydrogen wt %
Nitrogen wt%
Sulphur wt%
Feedstock Lb
Mass Balances for Bitumen Processing
Feedstock
Sound Processing
Spark Plus Sound Processing
1
1024.22
1026.44
1030.77
989.46
991.68
1006.91
960.49
962.71
869.89
7.1
6.7
5.8
10.0
9.7
9.0
15.6
15.2
14.4
1.0209
1.0239
1.0306
1.0000
1.0024
1.0071
0.9619
0.9646
0.9698
44000
2000
25000000
354000
8900
83.85
10.08
0.87
5.16
84.44
10.48
0.58
4.42
85.06
11.08
0.39
3.52
302.75
37.58
2.08
15.85
304.98
39.73
1.40
12.62
358000
358.54
Product Lb
Carbon
Hydrogen
Nitrogen
Sulphur
300.64
36.14
3.12
18.50
Volume Bbl
1.00
Total Lb
358.40
PerCent Increase Decrease +/-
1.021
1.061
358.25
-0.04
358.72
0.09
Upgrading Process Diagram
Electricity
Electromechanical
Transducers
Cavitation
Device
Bitumen
Feed
Tank
Feed Pump
Shutter Controls
X
Gas to Treatment
X
X
Separator
Product
Tank
Product Pump
Lower Viscosity
lower density Bitumen
SAGD Extraction Upgrading Process Diagram
Conclusion
Kevin Lee
Economics
• Extraction
• Capital US$ 3370 per stream barrel
• Operating Costs US$ 0.80 per Barrel
• Recovered bitumen/diluent( 5 % in Tailings) US$
11.5 Million Annually
• Upgrading
• Capital US$ 4650 per stream barrel
• Operating Costs US$ 0.60 per Barrel
• Annual Revenue US$ 82 Million
Next Steps
Short
Term
Medium
Term
Long
Term
• Conduct independent validation testing on the technologies
• Seek technology development agreements with industry
partners or associations on both the Extraction and
Upgrading technologies
• Secure commercial and operational agreements for both
technology applications.
Appendix
•
•
•
•
•
•
Patents and Patent Applications
Black Wax – present case example
Value Proposition
Government Initiatives
Industry Initiatives
Contact Information
Questions?
Patents
Patent No.: U.S. 8,192,61852 - Date granted: June 2012
Patent No.: CA. 267426 - Date granted: November 2013
• Oil Sands Treatment System and Process
Patent Application No. U.S. 13,987,031 - Filing date June 2013
Patent Application No. CA. 2826511 - Filing date Sept. 2013
International Application No. PCT/CA2013/000825 - Filing date
September 2013
• Treatment process and apparatus for reducing high viscosity in
petroleum products, derivatives, and hydrocarbon emulsions
Black Wax - Present Case Example
Utah Black Wax
Utah Basin black wax crude oil is pumped to the surface as
a hot liquid at a temperature of about 150oF.
It has a very high paraffin content and it hardens up as
soon as it cools down and can’t be pipelined
Transportation
It is kept in heated tanks and shipped by tanker trucks to
local refineries while hot.
Trucks have a 4-6 hour window to reach refineries before
they become a candle on wheels.
Problems
Significant viscosity reduction has never been obtained
and maintained with Utah black wax.
Research towards achieving this goal has been under way
for the past 60 years in Utah - without success.
Black Wax - Present Case Example
Technology
• Black wax is produced and pumped into the feed tank of the upgrader.
Upgraded
• In less than 1 minute at standard temperature and pressure, the viscosity of black wax is
reduced from 631,000 to 280 centistokes at 20 degrees Celsius.
• Note: a viscosity meter built into the upgrading process allows specific viscosities to be
achieved.
Results
• This light viscosity oil remained stable when stored at standard temperature and
pressure where black wax is normally a solid. It can now be pipelined.
Value Proposition
Intellectual Property – Patented Cavitation technology for Extraction of bitumen
from oil sands and the Upgrading of bitumen, heavy oil and waxes
Management Team – experienced management team with a diverse industry and
technology background
Customers – Oil Sands Miners and Producers, SAGD Producers, Black Wax
Producers
Customer Value – Increased Production. Reduced Costs. Higher $Netbacks/bbl
Government Initiatives
• In 2002, Alberta passed the Climate Change and Emissions Management Act
(CCEMA) signalling its commitment to manage greenhouse gas emissions in
the province.
• In 2003, Alberta passed the Specified Gas Reporting Regulation (SGRR)
requiring all facilities emitting over 100,000 tonnes of carbon dioxide
equivalent (CO2e) annually to report their emissions
• In 2007, Alberta passed the Specified Gas Emitters Regulation (SGER) to
legislate greenhouse gas (GHG) emissions reductions for large industrial
facilities becoming the first jurisdiction in North America to do so.
– SGER requires all facilities in Alberta emitting over 100,000 tonnes of CO2e per
year to reduce their emissions intensity by 12% below their 2003-2005
baseline emissions intensity.
Government Initiatives
• In 2009, Alberta introduced Directive 74 requiring Operators to prepare
tailings plans and report annually on tailings ponds. Specific enforcement
actions if tailings performance targets are not met.
• Facilities that fail to meet their emission intensity reduction targets have the
option to:
– Buy Alberta-based emissions offsets credits from the Alberta Emissions
Offset Registry (AEOR);
– Purchase Emissions Performance Credits (EPC) from the SGER facilities
that have reduced their emissions intensity beyond their reduction target;
– Pay $15/tonne of CO2e over reduction targets into the Climate Change
and Emissions Management Fund (CCEMF) which supports projects and
technologies aimed at reducing GHG emissions in the province.
Industry Initiatives
Canada’s Oil Sands Innovation Alliance (COSIA)
• An alliance of oil sands producers focused on accelerating the pace of
improvement in environmental performance in Canada's oil sands through
collaborative action and innovation.
• Participating companies capture, develop and share the most innovative
approaches and best thinking to improve environmental performance in the oil
sands, focusing on four Environmental Priority Areas (EPAs) – tailings, water,
land and greenhouse gases.
• To date, COSIA member companies have shared 560 distinct technologies and
innovations that cost over $900 million to develop.
Industry Initiatives
• The Alberta Research and Innovation Authority is an integral part of Alberta
Innovates - a strategically aligned and integrated provincial research and
innovation system.
•
Alberta Innovates work with key innovation support agencies, with publicly
funded post-secondary institutions, industry and government to further
research and innovation in the province and make Alberta more competitive in
the global economy.
• Through AI-EES (CCEMC) made significant investments in renewable energy
projects which have resulted in more than $1 billion dollars worth of activity
Contact Information
Kevin Lee
Twin Hills Resources Inc.
Ph: 403-710-6587
Email: [email protected]
Larry (Lazarus) Saidakovsky
Envirotech Green Inc.
Ph: 416-557-9684
Email: [email protected]