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Slocum Slocum Geophysics Geophysics Ultra-High Resolution AeroMagnetic (U-HRAM) Surveys for Drilling Hazard Avoidance (DHA) & Other Geophysical Applications SIPES JUNE 5, 2019 (ESTES PARK) NON-PROPRIETARY EDIT OF PRESENTATION AGENDA


  1. Slocum Slocum Geophysics Geophysics Ultra-High Resolution AeroMagnetic (U-HRAM) Surveys for Drilling Hazard Avoidance (DHA) & Other Geophysical Applications SIPES JUNE 5, 2019 (ESTES PARK) NON-PROPRIETARY EDIT OF PRESENTATION AGENDA • Ultra-High Resolution Aeromagnetic Survey System (U-HRAM) • North Oklahoma Anadarko Shelf - Drilling Hazard Avoidance Survey Summary This presentation is UNCLASSIFIED but contains information and/or discussions subject to restrictions under the International Traffic in Arms Regulations (ITAR). Foreign persons must be under approved agreement or license to participate in this meeting. “Foreign person” means a person who is not a U.S. citizen or a lawful permanent resident. It also means any corporation, business association, partnership, society trust, or any other entity that is not incorporated to do business in the United States. CFR 120.15 (ITAR). Polatomic magnetometers are on the U. S. Munitions List under Department of State jurisdiction; therefore, they are “Defense Articles” and compliance with the ITAR is mandatory. This presentation is ITAR Restricted & Polatomic/Slocum Geophysics Proprietary under the Non-Disclosure Agreement (NDA). 1

  2. Slocum Slocum A new tool in the box for geologic imaging…U -HRAM Geophysics Geophysics Geophysical Toolbox Airborne Magnetic Surveys • Seismology • Aeromagnetic Surveys • fixed-wing • Airborne Magnetic Surveys • High Res Aeromagnetic Surveys • Gravity Gradiometers • Fixed-wing • Helicopter • CS)EM/Radiometrics • Ultra-High Res AeroMag • Remote Sensing  Fixed Wing &  Helicopter • Ground Penetrating Radar AEROMAG ITAR Restricted & Slocum Geophysics/Polatomic Proprietary 2

  3. The Pola latomic ic CMDS SB SBIR He Heritage: Tech chnology for La Laser – Pumped He Heli lium-4 Optic tical l Magnetometer Systems wer ere deve veloped Slocum Slocum for a famil ily of f NAVAIR, NAVSEA and NASA applic lications. Geophysics Geophysics 3

  4. Slocum Slocum Geophysics Geophysics Pola latomic ic, Inc Inc. Leg Legacy - Las Laser-pumped Heliu elium-4 Opti tical l Mag agnetometers • Use of U-HRAM for geophysical surveys encouraged by NASA Geomagnetism Working Group with the Office of Naval Research providing Joint Use Agreement. • Polatomic, Inc. has an exclusive agreement with Slocum Geophysics to make Laser Pumped Helium-4 Optical Magnetometer technology available for Geophysical Exploration Survey Systems. CASSINI Chapter 9: Helium Magnetometers MagEagle UAV Robert E. Slocum, Douglas D. McGregor, and Andy W. Brown Polatomic, Inc., Richardson, TX Chapter 14 Space Magnetometry B. Patton, R. E. Slocum, A. W. Brown, and E. J. Smith Cambridge University Press 2013 4 ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

  5. Slocum Slocum A ‘new tool in the box’ for the hydrocarbon geophysics! Geophysics Geophysics ADVANCED U-HRAM MAGNETIC SURVEY SYSTEM GIVEN: Two Joint-Use US Navy Laser Helium Optical Magnetometers with State-of-the – Sensitivity and Stability with: • Ultra – high sensitivity helium magnetometers with 30x in-flight sensitivity improvement* • Large aperture vertical gradiometer with 50X improvement in measured gradiometer sensitivity* • Very stable aircraft platform: DC-3 • Stable custom towing system for pair of ‘towed birds’ with military grade GPS and Inertial Navigation Unit in each ‘bird’ • Proprietary flight noise reduction software • A New Geophysical Tool with significantly lower data cost! Client estimate: At $1K per square mile, less than 2% the acquisition cost of 3D seismic * compared to today’s industry standards Slocum Geophysics/Polatomic Proprietary 5

  6. Geophysical Applications for U-HRAM Survey Technology: Slocum Slocum CLIENT DIRECTED U-HRAM DATA APPLICATIONS Geophysics Geophysics ULTRA-HIGH RESOLUTION TMI & RESIDUAL MAPS & PROFILES FOR:  MAPPING BASEMENT STRUCTURE & SURFACE FAULTS  MAPPING SEDIMENTARY STRUCTURE, STRATIGRAPHY & FAULTS ULTRA-HIGH RESOLUTION MEASURED VERTICAL MAGNETIC GRADIENT DATA FOR:  MEASURED VERTICAL MAGNETIC GRADIENT MAPPING AND PROFILING  ULTRA-HIGH RESOLUTION BASEMENT DEPTH TO BASEMENT SURFACE PROFILING  INFLIGHT MAGNETIC ANOMALY VALIDATION CLIENT’S ECONOMIC BOTTOM LINE! U-HRAM DATA USEFUL FOR:  DRILLING HAZARD AVOIDANCE (DHA) FOR HORIZONTAL DRILLING & FRACKING (ANADARKO SHELF)  DRILL SITE SELECTION & CONFIRMATION (DELAWARE BASIN)  RESTRICTING 3D SEISMIC SURVEY AREA TO MOST PROMISING PROSPECTS (PERMIAN EASTERN SELF)  DISPOSAL WELL SITE SELECTION (PERMIAN BASIN)  DUE DILIGENCE BY P/E INVESTOR (DELAWARE BASIN) AND U-HRAM DATA: • REQUIRES NO PERMITTING • HAS RAPID TURN AROUND (< 2 MONTHS FOR A TYPICAL 1-COUNTY TURN-KEY SURVEY) • COST LESS THAN 2% OF 3D SEISMIC PER SQUARE MILE Slocum Geophysics/Polatomic Proprietary 6

  7. Slocum Slocum Geophysics Geophysics The Lea Leadin ing Edge, , 37(1 37(10), , 774 – 779. (O 774 (October 2018 2018) Afif fif H. H. Saa Saad (201 (2018). ”Sedimentary magnetic anomali ano lies: Part art 1 1 — The valid lidity of of sho short-wavelength, low-amplit itude SED SEDMAG anomalies.” Fi Figure 2. 2. Model 1. 1. SED SEDMAG an and micromagnetic ic ano anomalies s an and their pos possib ible sour sources. 12

  8. Slocum Slocum Geophysics Geophysics The Lea Leadin ing Edge, , 37(1 37(10), , 774 – 779. (O 774 (October 2018 2018) Afif fif H. H. Saad Saad (201 (2018). ”Sedimentary magnetic ano anomali lies: Part art 1 1 — The valid lidity of of sho short-wavelength, low-amplit itude SE SEDMAG anomalies.” Fi Figure 3. 3. Model 2. 2. Di Different types s of of mag agneti tic ano anomalie ies an and their sou sources s includin ing intrabasement, suprabasement, su , an and intrasedimentary ry. 11

  9. 7 Docking cradle and Polatomic Inc. DC-3 towed body (‘bird’) Data Collection Team Slocum Slocum Geophysics Geophysics ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

  10. Operator Dis Displa lays for monitorin ing towed bir ird fligh flight t and doc ocking, 8 DC DC-3 Ree eelin ling Equip ipment in in navig vigation data & ob observed magn gnetic field fields fr from both oth th the e high igh and Passen enger Ca Cabin in lo low sen ensor. Slocum Slocum Geophysics Geophysics ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

  11. Slocum Slocum Geophysics Geophysics U-HRAM CASE HIS ISTORIES  Anadarko Shelf NW STACK (Client Proprietary) • Fort Worth Basin (Hill County TX) • Hainsville Salt Dome Faulting (Wood County, TX) • Eastern Shelf of the Permian Basin (Client Proprietary) • Everglades & Florida Continental Shelf (US NAVY) • South Delaware Basin (Client Proprietary) 9

  12. 10 U-HRAM Magnetic Survey by Slocum Geophysics North STACK - Oklahoma Anadarko Shelf DHA Survey Summary Q4 2017 Slocum Slocum Airborne Imaging DC-3 towing dual CMDS Sensors Geophysics Geophysics ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

  13. U-HRAM Magnetic Survey by Slocum Geophysics North STACK - Oklahoma Anadarko Shelf DHA Survey Summary CLI LIENT HAS AUTHORIZED VIE IEWING BUT NO NOT RE RELEASE OF F SU SURVEY DATA TO VIE IEW DH DHA NORTH STACK SURVEY RESULTS IN IN PERSON OR BY Y WEBEX, CONTACT CT: BO BOB B SLOCUM, 214-649-7316 bob ob7slocum@sbcglobal.net

  14. Slocum Slocum Geophysics Geophysics CLIENT & INTERPRETER RESPONSE – Anadarko Shelf U-HRAM Survey Client Response to U-HRAM Products and Maps • Very Pleased – Very Interesting for mapping faults and fractures. • Unbelievable what we can see of basement & sedimentary faulting at <1/30 the cost of 3D Seismic! • Very useful for planning and managing horizontal drilling operation & fracking operation. • Useful for identifying sedimentary faults extending up to the Mississippian formations based on basement faults. • U-HRAM sedimentary fault identification validated with mass spectrometer analysis of mud log drilling chips. Interpreter Response… • Money well spent! Great data! ‘Really well pleased with U -HRAM survey data! • Best aeromagnetic data set seen (over 37+ years in the industry!) No quality problems! • U-HRAM data so much improved over today’s conventional High Resolution Aeromagnetic data from HRAM Cs optical magnetometers. • Depth-to-basement accuracy improved in Werner Deconvolution DTB calculation by use of Measured Vertical Gradient to replace Computed Vertical Gradient. • DC-3 is ideal stable platform for data collection, and towed-birds with military quality GPS and Inertial navigation units great for precision fault location. 26

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