Mixed Metal Technology Overview

Houston, TX, USA | March 2018

CONFIDENTIAL
 Outline

· What is Mixed Metal Technology

· Typical Rheologies of Mixed Metal systems
· Technology Advancements
· MM Fluid System Advantages
· MM Fluid System Challenges
· Field Applications
· Available Mixed Metal Products
· NEW Mixed Metal products

CONFIDENTIAL 2
 Mixed Metal Technology

Mixed Metal Technology Based On:

– Patented Technology of layered crystals
of Magnesium/Aluminum
– Interaction of nano-sized synthetic
insoluble crystalline compounds
– This process yields a positive (cationic)
nano-crystal

CONFIDENTIAL 3
 Clay-Based Viscosifier

• Bentonite is negatively charged (anionic)

• MM/Bentonite interaction forms a complex
(adduct)
• Adducts electrostatically create a unique
physical and rheological effect.
– Adducts form three dimensional matrices or gel
structure
– The constant forming and re-forming of these
matrices provide a unique, highly fragile gel structure
of the Mixed Metal System
– The following slides illustrate the formation of the
MM/Bentonite Adduct and the Gel Structure

CONFIDENTIAL 4
 Clay Based Viscosifier

+
+ +
Mixed-metal Crystal
(0.3 µm) - - - -- -
+ - - - +-
- - - -- - -- - -
- - --- - -
+ -
- - - - +-
+ --- + + - + - -
+ - + - +
+
- + -
Bentonite Platelet + +
(~1µm ) - -+ -- +
+
-+ + +
+
-+
- + - +-
-
- - -++-+-+-
MM/Bentonite Complex

CONFIDENTIAL 5
 Unique MM/Bentonite Gel Structure

Electrostatically, the adducts

may form a structure similar
to that shown.

Differentiated from
bentonite, the electrostatic
interactions between the
adducts results in high yield
points while exhibiting
extremely fragile gel
strengths.

CONFIDENTIAL 6
 MMO Products

• PRIMO MMO – D
– Drilling Grade Mixed Metal System
• PRIMO MMO – ST
– Brine/Salt Water Tolerant Mixed Metal System
• PRIMO MMO – HDD
– Industrial Grade Complete Mixed Metal System

• PRIMO MMO – GEL

– Recommended NT Bentonite (highest yielding, non-treated
bentonite, tested source, saves 20% on components)
• PRIMO MMO – FLR
– Modified Starch Fluid Loss Reducer – (selected best fluid loss
performing modified starch, mixed metal compatible)
• PRIMO MMO – AS
– Anionic Suppressant – Additive to treat out contaminants with
anionic chemistry

CONFIDENTIAL 7
 Typical Rheology - Only Bentonite and MMO
     
Rheology @ 120°F MMO-GEL 8 ppb, MMO-GEL 9 ppb,
0.8 ppb MMO-D 0.9 ppb MMO-D
Rolling @ 150°F AHR AHR
600 125 300
300 109 280
200 103 236
100 94 203
6 38 101
3 32 98
Gels 10sec 51 103
Gels 10min 62 108
PV 16  20
YP 93  260
pH Adjusted 11.17 11.01

CONFIDENTIAL 8
 Typical Rheology – Bentonite, MMO, and FLR
  2 ppb Generic 2 ppb PRIMO 4 ppb PRIMO
Rheology @ 120°F CM Starch MMO - FLR MMO - FLR
Rolling @ 200°F AHR@200F AHR@200F AHR@250F
600 67 70 48
300 44 55 35
200 34 54 30
100 23 48 25
6 6 40 18
3 5 39 17
Gels 10sec 5 39 16
Gels 10min 14 42 25
PV 23 15 13
YP 21 40 22
pH Adjusted 10.9 11.11 11.18
API Fluid Loss, ml 7.6 7.2 18.8
HTHP @ 200°F, ml 26.0 17.2 32.2

CONFIDENTIAL 9
 Typical Results - Salt Gel, Bentonite, and MMO in Seawater

15 ppb 15 ppb 15 ppb Salt Gel +

15 ppb 15 ppb Salt Gel 15 ppb Salt Gel +
Rheology @ Salt Gel Salt Gel 1.5 MMO-ST
Salt Gel + 1.5ppb 1.5 MMO-ST +
120°F + 5ppb + 10ppb +10ppb
Base Mud MMO-ST 5ppb Bentonite
Bentonite Bentonite Bentonite

Rolling @
AHR AHR AHR AHR AHR AHR
150°F
  No MMO No MMO No MMO With MMO With MMO With MMO
600 44 47 84 63 125 231
300 38 43 75 59 111 206
200 35 40 70 57 101 192
100 30 36 63 53 94 174
6 15 23 27 26 53 78
3 14 22 24 20 43 68
Gels 10sec 17 28 27 13 36 58
Gels 10min 18 29 28 43 47 88
PV 6 4 9 4 14 25
YP 32 36 66 55 97 181
pH Adjusted 11.02 11.15 11.0 11.06 11.26 11.07

CONFIDENTIAL 10
 Horizontal Directional Drilling (HDD) Data

Table I: Typical Fresh Water Rheology

Product Properties

PRIMO MMO - HDD lb/bbl 1.0 1.0 1.0 0.75 0.75 0.75

PRIMO MMO - GEL, lb/bbl -- -- -- 6.0 8.0 10.0

API Bentonite, lb/bbl 8.0 10.0 12.0 -- -- --

pH 11.20 11.25 11.31 11.43 11.47 11.42

Rheology

Plastic Viscosity, cP 8 4 50 5 3 41

Yield Point, lb/100 ft2 19 69 160 30 76 203

6 rpm Fann Reading 6 28 98 13 34 105

3 rpm Fann Reading 6 26 97 11 32 103

CONFIDENTIAL 11
 Technology Advancements
Early Technology:
• Mixed Metal products had to be pre-mixed in a chemical barrel
• Fluid system viscosity not fully developed until a complete
circulation
• Only one product and price for oilfield and industrial
• Product had shelf life issues

Current Technology:
• Pre-mixing unnecessary
• Complete viscosity within one minute
• Specifically designed products for oilfield and industrial
• Approximately 75% reduction in prices versus 1988 product.
• No shelf life issues when stored properly

CONFIDENTIAL 12
 Advantages of Mixed Metal Systems

Thixotropic and Shear Thinning – The Best of Both

• Mixed Metal Fluid Systems produce a high YP to PV ratio
• This ratio can range from 10:1 to as high as 40:1
• Higher ratios are indicative of a more shear thinning fluid
Provides a near static layer at wellbore boundary
• Extremely low dynamic fluid loss
• Minimal erosion or washout
• Ability to bridge fractures and fill vugular formations with gels, inherently
behaving as a lost-circulation material
Elevated, Flat and Fragile Gel Strengths
• Optimal cuttings suspension under static conditions
• Provides excellent cuttings transport and wellbore cleaning
• Better hole cleaning at reduced annular velocities
• Minimal pressure to break circulation
• Limits potential for fracture propagation or frac-out

CONFIDENTIAL 13
 MMO in Action

CONFIDENTIAL 14
 Advantages of Mixed Metal Systems
Completely Inorganic Fluid System
• MM Technology does NOT consist of Polymers
• Does not mechanically degrade; works better under high
shear
• Easily converted back for cleanup
• Reusable without need for preservatives
• Reasonable amounts of incorporated drilled clays make
the system more robust, enhancing system properties

Environmentally Friendly
• No biological or chemical oxygen demand, no fish
toxicity
• Chemically indistinguishable from clay
• Not DOT regulated
• Non-reactive to most formations/lithologies

CONFIDENTIAL 15
 Challenges of Mixed Metal Systems

Reacts Negatively with Highly Anionic Products*

• Soaps, acrylates, CAC based fluid loss products
• Drilled anionic contaminants e.g. lignite stringers, coal
seams, etc.
• Unfamiliarity with system can be issue with drill crews
unless appropriately trained

* An anionic suppressant (PRIMO MMO – AS) is available

and is highly effective in overcoming any anionic
contamination

CONFIDENTIAL 16
 Visual of PRIMO MMO - AS

CONFIDENTIAL 17
 Field Applications

• Environmentally sensitive areas

– Alternative to conventional system that may not be
environmentally acceptable.
• Large diameter wellbores
– Excellent cuttings transport/cuttings slip
– Supplements cleaning at reduced circulation
rates/inadequate annular velocities
• Milling Fluid
– Removes high density metal and debris from annulus
• Coiled Tubing Applications
– Provides effective cleaning in large annular sections
– Very thin at high AV’s
– Thick at lower AV’s

CONFIDENTIAL 18
 Field Applications

• Gravel/cobble producing formations

– Lessens propensity for caving
• Unconsolidated formations
– Minimizes sloughing and packing off
• Fractured or vugular formations
– Reduces chances of propagation and losses by
behaving as an LCM
• Reactive or sensitive shales
– Inhibits invasion/de-stabilization via static wellbore
boundary
• Highly deviated and horizontal wellbores
– Elevated low end rheology maximizes annular
cleaning therefore reducing tendency to build
cuttings beds

CONFIDENTIAL 19
 MMO Products

• PRIMO MMO – D
– Drilling Grade Mixed Metal System
• PRIMO MMO – ST
– Brine/Salt Water Tolerant Mixed Metal System
• PRIMO MMO – HDD
– Industrial Grade Complete Mixed Metal System

• PRIMO MMO – GEL

– Recommended NT Bentonite (highest yielding, non-treated
bentonite, tested source, saves 20% on components)
• PRIMO MMO – FLR
– Modified Starch Fluid Loss Reducer – (selected best fluid loss
performing modified starch, mixed metal compatible)
• PRIMO MMO – AS
– Anionic Suppressant – (Additive to treat out contaminants with
anionic chemistry)

CONFIDENTIAL 20
 New Mixed Metal
Technology Updates

CONFIDENTIAL 21
 High Temperature MMO

PRIMO MMO - HT
• Stable at temperatures at least up to 400°F
(should be stable at higher temperatures)

• Similar rheological profile as other MMO

products, even at high mud weights

• Same 10 : 1 ratio as other MMO products

• Currently Available

CONFIDENTIAL 22
 PRIMO MMO – HT with increasing mud weight
  10.0ppg 12.0ppg 14.0ppg 16.0ppg 16.0ppg + 1.0ppb MMO-
AS
Pre-Hydrated MMO-GEL, bbl 0.946 0.867 0.789 0.711 0.711
PRIMO MMO - HT, ppb 0.8 0.8 0.8 0.8 0.8
PRIMO MMO - AS, ppb - - - - 1.0
Caustic Soda, ppb 1.0 1.0 1.0 1.0 1.0 + to pH 11-12
Barite, ppb 87.1 198.6 310.1 421.5 421.5

Rheology @ MMO-HT  MMO-HT MMO-HT MMO-HT MMO-HT

120°F 10.0ppg 12.0ppg  14.0ppg  16.0ppg 16.0ppg + MMO-AS
Rolling @ 350°F AHR AHR AHR AHR AHR
600 46 95 186 298 105
300 42 91 183 297 99
6 28 65 170 226 93
3 27 64 166 197 92
PV 4 4 3 1 6
YP 38 87 180 296 93
Gels 10sec 21 52 109 173 32
Gels 10min 48 56 122 297 46
pH/ Adjusted 11.05/11.28 11.05/11.07 11.97/11.01 11.02/11.28 11.02/11.11

CONFIDENTIAL 23
 PRIMO MMO –HT System

· An example high temperature system

· 14 ppg HT MMO system stable at 350°F

 6 – 8 ppb MMO-GEL bentonite

 0.6 – 0.8 ppb MMO-HT

 0.5 – 1.5 ppb MMO-AS to modify rheology

 2 – 4 ppb PRIMO THERM (MMO compatible HT fluid loss additive)

 1 – 3% RD-461 MMO PolyLube (as needed)

CONFIDENTIAL 24
 14 ppg HT MMO System at 350°F
Base Mud 8.0 ppb  Base Mud 8.0 ppb Base Mud + 4ppb Base Mud + 4ppb
Rheology @ 120°F MMO-GEL 0.8 ppb MMO-GEL 0.8 ppb
MMO-HT  MMO-HT PRIMO THERM PRIMO THERM
Rolling @   350°F BHR AHR BHR AHR
600 131 93 252 272
300 120 92 171 211
6 57 66 26 77
3 46 65 22 76
PV 11 1 81 61
YP 109 91 90 150
Gels 10sec 46 48 21 70
Gels 10min 70 78 46 81
pH Adjusted 12.49 11.0 11.81 11.56
API Fluid Loss, ml - - - 4.2
HTHP@350°F, ml - - - 26.0

• Formulation: 8 ppb MMO-GEL, 0.8 ppb MMO-HT, 0.25 ppb Soda Ash, 1.0 ppb
Caustic Soda, 1.2 ppb MMO-AS, 4 ppb PRIMO THERM, and Barite to 14.0 ppg

CONFIDENTIAL 25
 Lubricity in 14 ppg HT MMO system at 350°F
6 ppb : 0.6 ppb 8 ppb : 0.8 ppb
Samples 6 ppb : 0.6 ppb 1% v/v RD-461 8 ppb : 0.8 ppb 1% v/v RD-461
BASE MMO Lube BASE MMO Lube
120°F AHR AHR AHR AHR
600 182 156 TTTM 224
300 114 112 295 152
6 11 15 136 27
3 10 13 133 25
PV 68 44 - 68
YP 46 68 - 128
10 sec 7 8 112 12
10 mIn 12 17 202 43
pH 11.64 11.06 11.11 11.15
API 4.7 4.0 3.5 2.8
HTHP@ 350°F, ml 21.8 20.4 30.0 24.0
Sample Reading 29 15 21 16
C.O.F. 0.28 0.15 0.20 0.16
46.4%   -  20.0%
% reduction in C.O.F. - 

*6-8 ppb MMO-GEL, 0.6 – 0.8 ppb MMO HT, 0.25 ppb Soda Ash, 1.0 ppb Caustic
Soda, 1.0 ppb MMO-AS, 4.0 ppb PRIMO THERM, Barite to 14 ppg

CONFIDENTIAL 26
 High Hardness Tolerant MMO

PRIMO MMO - DV
• Tolerant to divalent brines to at least 10,000 ppm
Calcium / Magnesium

• No Soda Ash Needed (but can help)

• Lime can be used to raise pH (cheap)

• Same 10:1 ratio as other MMO products

• Add clay, add MMO-DV, raise pH to 10-11 with

Lime… That’s it!

CONFIDENTIAL 27
 Rheology of PRIMO MMO - DV
Product Base 1% 2% 3%
PHB (MMO-GEL) @ 30ppb, bbl 0.333 0.333 0.333 0.333
Seawater (1.036 S.G.), bbl 0.667 0.667 0.667 0.667
CaCl2 dry pellets, ppb - 2.33 4.67 7.0
PRIMO MMO - DV, ppb 1.0 1.0 1.0 1.0
Soda Ash, ppb - - - -
Lime, ppb 1.5 1.5 1.5 1.5
MW, ppg 8.62 8.67 8.72 8.74

Rheology @ R.T.,
Base Base + 1% CaCl2 Base + 2% CaCl2 Base + 3% CaCl2
AHR @ 150°F BHR AHR BHR AHR BHR AHR BHR AHR
600 84 41 88 40 101 42 53 38
300 72 33 85 34 88 35 52 34
6 21 12 18 13 15 12 20 12
3 20 11 16 10 14 10 17 10
PV 12 8 3 6 13 7 1 4
YP 60 25 82 28 75 28 51 30
10 Sec Gel 20 10 18 10 19 10 23 9
10 Min Gel 21 10 18 10 20 10 23 10
pH 11.34 10.8 11.06 10.6 11.02 10.42 11.51 10.65

CONFIDENTIAL 28
 MMO-DV and MMO-D with Salt Gel

Salt Gel + 10 Salt Gel + Salt Gel +

*Salt Gel Salt Gel + Salt Gel + Salt Gel + Salt Gel + 5ppb Salt Gel +
Rheology @
Base 5ppb 10ppb 1.5 ppb Bentonite + 1.5 ppb Bentonite 1.5ppb 1.5ppb MMO- 1.5ppb MMO-
120°F + 1.5 ppb DV + 5ppb DV + 10ppb
Mud Bentonite Bentonite MMO-D ppb MMO-D MMO-DV
MMO-D Bentonite Bentonite

Rolling @                  
150°F
AHR AHR AHR AHR AHR AHR AHR AHR AHR
600 44 47 84 63 125 231 50 85 TTTM
300 38 43 75 59 111 206 45 70 TTTM
200 35 40 70 57 101 192 42 64 TTTM
100 30 36 63 53 94 174 36 58 282
6 15 23 27 26 53 78 17 35 95
3 14 22 24 20 43 68 16 27 81
Gels 10sec 17 28 27 13 36 58 20 23 90
Gels 10min 18 29 28 43 47 88 24 32 115
PV 6 4 9 4 14 25 5 15 -
YP 32 36 66 55 97 181 40 55 -
pH Adjusted 11.02 11.15 11.0 11.06 11.26 11.07 11.19 11.05 11.04

* Base mud is 15 ppb Salt Gel (Attapulgite) in Synthetic Sea Water AHR@150°F

CONFIDENTIAL 29
 MMO-DV and MMO-D with Sepiolite

Sepiolite + 10 Sepiolite + Sepiolite +

Sepiolite + Sepiolite + Sepiolite + Sepiolite + 5ppb Sepiolite +
Rheology @ *Sepiolite 5ppb 10ppb 1.5 ppb Bentonite + 1.5 ppb Bentonite 1.5ppb 1.5ppb MMO- 1.5ppb MMO-
120°F Base Mud + 1.5 ppb DV + 5ppb DV + 10ppb
Bentonite Bentonite MMO-D ppb MMO-D MMO-DV
MMO-D Bentonite Bentonite

Rolling @                  
150°F
AHR AHR AHR AHR AHR AHR AHR AHR AHR
600 19 20 44 28 30 53 49 64 171
300 16 17 39 23 27 48 47 55 157
200 14 15 36 21 25 44 45 49 146
100 12 13 33 19 22 41 43 46 140
6 8 9 22 12 14 23 25 30 94
3 8 9 22 12 13 16 24 22 61
Gels 10sec 9 9 20 13 11 14 24 21 58
Gels 10min 11 11 27 14 12 15 34 22 69
PV 3 3 5 5 3 5 2 9 14
YP 13 14 34 18 24 43 45 46 143
pH Adjusted 11.14 11.39 11.03 11.05 11.2 11.06 11.05 11.03 11.05

* Base mud is 15 ppb Sepiolite in Synthetic Sea Water AHR@150°F

CONFIDENTIAL 30
 “One-Sack” MMO

REDI-MMO
· A simple, easy to use, all-in-one MMO product targeted for

oilfield and industrial drilling applications

· Reduces human error and over/under treating the system

· Add to fresh water, mix/shear/hydrate, then ready to pump

· Contains bentonite, MMO, and stabilizers

· Yield per ton: 340 – 380 bbl (High grade bentonites 200-220

bbl)
· Environmentally friendly (NSF Certified)

CONFIDENTIAL 31
 REDI-MMO at 10 ppb in Fresh Water

Mixing Time*     15’ 20’ 25’ 30’

Rheology at BHR AHR R.T. R.T. R.T. R.T.
77°F
600 148 91 66 91 105 124
300 120 84 54 78 92 107
6 39 45 17 25 37 58
3 36 39 15 21 32 41
PV 28 7 12 13 13 17
YP 92 77 42 65 79 107
10 sec 48 30        
10 min 57 31        
pH 9.68 -        
pH Adjusted 12.0 12.0 11.12      

*Mixing was performed at 5000 RPM on a Hamilton Beach mixer

CONFIDENTIAL 32
 MMO Shale Inhibitor / Stabilizer

PRIMO MMO - HIB

• Provides shale inhibition and fluid loss control
at low concentrations without negatively
affecting rheology

• Synergistic with common potassium inhibitors

(KCl, K-acetate, K-sulfate, K-carbonate, etc.)

• Also makes the MMO system significantly

more tolerant to anionic contamination

• Dry Powder
CONFIDENTIAL 33
Mud formulation with PRIMO MMO - HIB Shale Inhibitor

Products Base Sample 1 Sample 2

Water, bbl 0.609 0.609 0.609

Pre-hydrated MMO-GEL, bbl 0.333 0.333 0.333
Soda Ash, ppb 0.25 0.25 0.25
PRIMO MMO - D, ppb 1.0 1.0 1.0
PRIMO MMO - AS, ppb 1.25 1.25 1.25
CaCO3, ppb 20.0 20.0 20.0
PRIMO MMO - HIB, ppb - 0.5 1.0
Barite 4.1, ppb 44.07 43.87 43.75
NaOH, ppb 0.5 0.5 0.5

CONFIDENTIAL 34
 Shale Inhibition in MMO – PRIMO MMO - HIB
  Base 0.5 ppb PRIMO MMO - HIB 1.0 ppb PRIMO MMO - HIB
Base + Base + Base + Base +
Erosion
  Base Test  0.5 ppb 0.5 ppb AHR + 0.25 1.0 ppb 1.0 ppb AHR w/ 0.25
Properties Base MMO - MMO - ppb Lignite MMO - MMO - ppb Lignite
@ 120°F HIB HIB HIB HIB
H.R. @ BHR AHR BHR AHR AHR BHR AHR AHR
150°F
600 262 158 284 100 112 244 99 99
300 212 147 254 83 94 205 77 79
6 80 51 56 36 38 84 32 30
3 79 50 55 35 33 83 30 28
PV 50 11 30 17 18 39 22 20
YP 162 136 224 66 76 166 55 59
10sec Gel 76 40 57 37 28 53 33 32
10min Gel 84 64 75 58 30 60 34 33
pH 12.61 12.05 12.03 11.95 11.94 10.13 10.73 11.79
API, ml 64.0 - 29.0 -  - 24.0  -
Erosion 89.17% - 62.76%  - - 54.58%  -
Test  

CONFIDENTIAL 35
 MMO Products

• PRIMO MMO – D
– Drilling Grade Mixed Metal System
• PRIMO MMO – ST
– Brine/Salt Water Tolerant Mixed Metal System
• PRIMO MMO – HDD
– Industrial Grade Complete Mixed Metal System

• PRIMO MMO – GEL

– Recommended NT Bentonite (highest yielding, non-treated
bentonite, tested source, saves 20% on components)
• PRIMO MMO – FLR
– Modified Starch Fluid Loss Reducer – (selected best fluid loss
performing modified starch, mixed metal compatible)
• PRIMO MMO – AS
– Anionic Suppressant – (Additive to treat out contaminants with
anionic chemistry)

CONFIDENTIAL 36
 New Mixed Metal Products

• PRIMO MMO – HT
– Mixed Metal System that remains stable at >400°F
• PRIMO MMO – DV
– Divalent brine-tolerant system (high calcium/magnesium)
• REDI-MMO
– One-sack Mixed Metal solution for Industrial Drilling

• PRIMO MMO - HIB

– Shale inhibitor / rheological stabilizer / fluid loss additive

CONFIDENTIAL 37
 Thanks!

CONFIDENTIAL 38