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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


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SLIDE 1

Ultra-High Resolution AeroMagnetic (U-HRAM) Surveys for Drilling Hazard Avoidance (DHA) & Other Geophysical Applications

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).

Slocum Geophysics Slocum Geophysics

1 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
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SLIDE 2

A new tool in the box for geologic imaging…U-HRAM Geophysical Toolbox

  • Seismology
  • Airborne Magnetic Surveys
  • Gravity Gradiometers
  • CS)EM/Radiometrics
  • Remote Sensing
  • Ground Penetrating Radar

Airborne Magnetic Surveys

  • Aeromagnetic Surveys
  • fixed-wing
  • High Res Aeromagnetic Surveys
  • Fixed-wing
  • Helicopter
  • Ultra-High Res AeroMag

 Fixed Wing &  Helicopter

AEROMAG

ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

Slocum Geophysics Slocum Geophysics

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SLIDE 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 for a famil ily of f NAVAIR, NAVSEA and NASA applic lications.

Slocum Geophysics Slocum Geophysics

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SLIDE 4

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.

ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

MagEagle UAV

Chapter 9: Helium Magnetometers 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

Slocum Geophysics Slocum Geophysics

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SLIDE 5

A ‘new tool in the box’ for the hydrocarbon geophysics!

ADVANCED U-HRAM MAGNETIC SURVEY SYSTEM

Slocum Geophysics/Polatomic Proprietary

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 Slocum Geophysics

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SLIDE 6

Geophysical Applications for U-HRAM Survey Technology: CLIENT DIRECTED U-HRAM DATA APPLICATIONS

Slocum Geophysics/Polatomic Proprietary

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 Slocum Geophysics

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SLIDE 7

The Lea Leadin ing Edge, , 37(1 37(10), , 774 774–779. (O (October 2018 2018) Afif fif H.

  • H. Saa

Saad (201 (2018). ”Sedimentary magnetic ano anomali lies: Part art 1 1 — The valid lidity of

  • f 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.

Slocum Geophysics Slocum Geophysics

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SLIDE 8

The Lea Leadin ing Edge, , 37(1 37(10), , 774 774–779. (O (October 2018 2018) Afif fif H.

  • H. Saad

Saad (201 (2018). ”Sedimentary magnetic ano anomali lies: Part art 1 1 — The valid lidity of

  • f sho

short-wavelength, low-amplit itude SE SEDMAG anomalies.” Fi Figure 3.

  • 3. Model 2.
  • 2. Di

Different types s of

  • f mag

agneti tic ano anomalie ies an and their sou sources s includin ing intrabasement, su suprabasement, , an and intrasedimentary ry.

Slocum Geophysics Slocum Geophysics

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SLIDE 9

Polatomic Inc. DC-3 Data Collection Team

ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

Slocum Geophysics Slocum Geophysics Docking cradle and towed body (‘bird’)

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SLIDE 10

DC DC-3 Ree eelin ling Equip ipment in in Passen enger Ca Cabin in

ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

Slocum Geophysics Slocum Geophysics

Operator Dis Displa lays for monitorin ing towed bir ird fligh flight t and doc

  • cking,

navig vigation data & ob

  • bserved magn

gnetic field fields fr from both

  • th th

the e high igh and lo low sen ensor.

8

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SLIDE 11

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)

Slocum Geophysics Slocum Geophysics

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SLIDE 12

U-HRAM Magnetic Survey by Slocum Geophysics

North STACK - Oklahoma Anadarko Shelf DHA Survey Summary

Q4 2017

ITAR Restricted & Slocum Geophysics/Polatomic Proprietary

Slocum Geophysics Slocum Geophysics

Airborne Imaging DC-3 towing dual CMDS Sensors 10

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SLIDE 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

  • b7slocum@sbcglobal.net
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SLIDE 14

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.

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SLIDE 15

GEOPHYSICAL APPLICATIONS for U-HRAM Survey Technology: BASEMENT & SEDIMENTARY STRUCTURE AND FAULT MAPPING

Slocum Geophysics/Polatomic Proprietary

BOTTOM LINE!

U-HRAM SURVEY’S OFFERS THE CLIENT EFFECTIVE GEOPHYSICAL DATA THAT

  • 1. REQUIRES NO PERMITTING
  • 2. HAS A RAPID TURN AROUND (< 2 MONTHS FOR A TYPICAL TURN-KEY SURVEY)
  • 3. COSTS LESS THAN 2% OF 3D SEISMIC PER MILE2 ($1K/MILE2) FOR THE FOLLOWING APPLICATIONS:
  • SEDIMENTARY FAULT MAPPING FOR DRILLING HAZARD AVOIDANCE (DHA) FOR HORIZONTAL

DRILING & FRACKING

  • BASEMENT FAULT MAPPING & PROFILING
  • DRILL SITE SELECTION & CONFIRMATION
  • RESTRICTING SEISMIC SURVEY AREA TO MOST PROMISING PROSPECTS
  • DISPOSAL WELL SITE SELECTION
  • DUE DILLIGENCE BY P/E INVESTORS (Great Execution, Data very useful – filled in 3D seismic

blanks, Cheap! Fast! New Tool in the Geophysical Tool Box!)

  • OTHER???

QUESTIONS?

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