What is Enhanced Oil Recovery? Enhanced Oil Recovery is the - - PowerPoint PPT Presentation

What is Enhanced Oil Recovery?

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Enhanced Oil Recovery is the injection of substances (other than water or natural gas) to increase the production of crude oil from existing oil reservoirs and extend field life

Remaining Oil 45% Primary 20% Secondary Recovery (Waterflood) 18% Tertiary Recovery (CO2-EOR) 18%

Source Denbury Resources Investor Presentation (June 2013) Source U.S. Department of Energy, National Energy Technology Laboratory, Carbon Dioxide Enhanced Oil Recovery Primer (March 2010)

Full-Cycle Oil Reservoir Development: An Example

Denver Unit of the Wasson Field in West Texas (Shell Oil)

Primary Recovery Secondary Recovery Tertiary Recovery Natural reservoir pressure or gravity Water or natural gas injection Injection of gas or chemicals or application of heat/steam

Notes Provided for informational purposes only and is not an offer, or a solicitation of an offer, to buy or sell any security or strategy. All investing involves risks

The EOR Process

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Source Trinity CO2 Website

Carbon Dioxide is miscible with crude oil, facilitating the flow of additional crude oil from injector wells to production wells

Notes Provided for informational purposes only and is not an offer, or a solicitation of an offer, to buy or sell any security or strategy. All investing involves risks.

Trinity CO2

A Portfolio Company of Morgan Stanley Global Private Equity

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Source Trinity CO2

Trinity CO2 is a carbon dioxide based enhanced oil recovery company based in Midland, TX Trinity operates two CO2 enhanced oil recovery projects in the Permian Basin of West Texas and New Mexico and owns and operates 187 miles of pipeline in the Permian Basin, servicing transportation and CO2 supply requirements of large oil producers’ EOR floods Trinity was founded as a private company in 2000 with the acquisition of 200 miles of carbon dioxide pipelines Trinity later built a CO2 supply portfolio with a goal to move to a fully integrated CO2 / EOR business In July 2012, Trinity acquired SandRidge Tertiary LLC from SandRidge Energy (NYSE:SD). The combination of SandRidge Tertiary’s EOR assets with Trinity’s CO2 supply and pipelines has enabled the company to supply, transport and inject CO2 into its own fields.

Source Trinity CO2

In August 2010, Morgan Stanley Global Private Equity acquired a controlling interest in Trinity CO2

Notes Provided for informational purposes only and is not an offer, or a solicitation of an offer, to buy or sell any security or strategy. All investing involves risks.