DynaPump Flow Comparison Chart

18000 16000 14000 12000 10000 8000 6000 4000 2000 0 0 2000 4000 6000 8000 10000 12000 14000

Flow in Barrels Per Day

Depth in Feet
Beam Pump Model 9 Model 11 Model 13

DynaPump Model 11 Maximum Stroke 336 Load Capacity 60,000 Lbs Vintage Petroleum Pleito Ranch, California 350 BFPD from 10,010 Ft

REGISTERED PETROLEUM ENGINEER WITH 30 YEARS EXPERIENCE WORKING FOR A MAJOR OIL COMPANY REVIEWS DYNAPUMPS CLAIMS FOR ITS PUMPING UNITS.
Longer Stroke The DynaPump offers a longer stroke length than is available from competing pumping units. The DynaPump Models 7, 9, 11 and 13 offer maximum stroke lengths of 240, 288, 336 and 360 inches, respectively. The maximum stroke length from a beam unit is 240 inches (available in various units with torque ratings of 912,000 inch-pounds and higher). Tower units like the Rotaflex have maximum stroke lengths of 306 inches. Competing hydraulic units (Weatherford) have a maximum stroke length of 150 inches. DynaPump Model 11 Indian Basin , New Mexico

Each claim has been reviewed in light of a major oil companys current experience with the units and a registered petroleum engineer years work as liaison between DynaPump and the major oil companys operating units.

Price Advantage The DynaPump can offer significant capital cost savings over normal beam pumping units. In the following two example applications, acquisition of DynaPumps resulted in 24-36% percent savings compared to purchase of a new conventional unit.

Horizontal Heavy Oil Wells New high capacity pumping units were needed for horizontal heavy oil wells being drilled in California to a true vertical depth of approximately 1000 feet. These wells were to be part of a steam thermal recovery operation, and thus would have highly variable fluid production rates during their lifetimes. To meet expected maximum fluid rates in excess of 2000 bfpd would have required purchase of model 912 conventional units. DynaPump Model 7 units were purchased at a capital savings of 35%. DynaPump Model 5 CBM Field, Utah The benefits of a slower, longer stroke operation are generally known. For a given pump size and fluid production rate, the lower number of strokes per minute means fewer rod direction reversals which reduces the rate of fatigue in the rod string, thus increasing rod life. Also, the stretch of the sucker rods as a percentage of stroke length is less. For example, a beam unit pumping 800 bfpd from 6000 ft. using an 1824 pumping unit with a 240 inch stroke has a calculated loss of bottom hole stroke of 35 inches (15%). For a DynaPump Model 11 with a 336 inch stroke the same loss represents only a 10% decrease (for simplicity, this assumes the same acceleration loads). Therefore more of the total linear surface movement of the rod string is used to provide effective plunger movement down hole. Greater Rod Pumping Capacity The DynaPumps combination of long stroke length and high polished rod load capacity gives its larger units the capability to achieve pump capacities which exceed other rod pumping systems and which compete with the lower range of ESP systems. For example at a pumping depth of 6000 ft., an A-2560 beam unit has a maximum capacity of approximately 1450 bfpd, a Rotaflex unit 1750 bfpd, and a DynaPump Model 13 1900 bfpd. The recent decision of Norris to provide 1-1/4 inch sucker rods now allows better utilization of the DynaPumps higher polished rod load capacity.

Coal bed Methane Wells A coal bed methane drilling campaign in the Rocky Mountain region required conventional model 456 pumping units. The same lift capacity is being provided by a Model 5 DynaPump. Capital savings were between 24% and 36% depending upon whether the comparison is made versus a new brand name conventional unit or cheapest available conventional unit.

Variable Speed The DynaPump use of an integrated variable frequency drive for its prime mover plus its automated control system allows the operator to easily change pump speeds without the need for a crew call-out to change belt sheaves. Pumping speed can be set using the Palm Pilot interface at the well site, from the office in those fields which have automation systems such as Case Services or XSPOC (XSPOC not yet in public release as of March, 2003), or through DynaPump software using a cell phone or radio connection and modem in the DynaPump power unit. The unit also has independently controllable acceleration and deceleration rates for both the up and down strokes (two acceleration rates and two deceleration rates). These rates are set in the inverter, and are independent of the upstroke and down stroke speed settings. These accelerations are not fixed by unit geometry and speed as is the case with beam units. This permits soft stroke reversals, which reduce peak rod loads and lessen the differential between the peak and minimum polished rod load. This helps prolong rod life. DynaPump Model 7 CBM Field, Utah

Differential Speed Up/Down The DynaPump use of an integrated variable frequency drive for its prime mover plus its automated control system also allows the operator to specify different speeds for the up-stroke and downstroke. This can help improve pumping efficiency in two ways: When pumping very viscous oils, this permits the use of a slower down stroke to eliminate or minimize rod float which occurs when the viscous drag on the rod string slows its rate of fall to a velocity less than that imposed by a fixed geometry pumping unit on the rod carrier bar. With the DynaPump, this slower down stroke is coupled with a quicker upstroke to maintain the desired strokes per minute and fluid production rate. The use of a faster upstroke minimizes leakage past the pump plunger due to the shorter amount of time during which leakage occurs. This can be particularly advantageous when a pump has become worn, or when a loose plunger/barrel fit is needed in a sandy well. It is also important in deeper wells where high differential pressures across the plunger increase the rate of leakage.

Stroke speed turn-down ratio is 2.5:1 (hydraulic pump motor rpm adjustable from 900 to 2250). Stroke length is also variable by controller adjustment. Although the amount of stroke length turndown varies slightly between units, the Model 11 has a stroke length turn-down ratio of 2:1. Thus, the combined turn-down ratio for a Model 11 is 5:1. Communications for Control and Feedback The DynaPump is electronically controlled from a panel within its power unit module. This makes it very easy to provide communications for control and feedback. Data can be downloaded on site through a serial port to a laptop computer or Palm Pilot, or accessed remotely where a communications link is available. Remote access may use DynaPump software, Case Services automation software, or XSPOC automation software (XSPOC presently in beta test format). These communications links provide information on unit performance, including dynamometer cards, and allow adjustment of unit operating parameters such as speed, stroke length, and set points for detection of pump-off conditions.

Flow Control Ratio 5:1 The DynaPump has a very significant turn-down ratio available through its surface control unit electronics without a crew callout for sheave changes or a rig call-out for changing down hole pumps. This turn-down ratio is achieved without having the well intermittently shut-in as with conventional pump-off controllers.

Diagnostic Feedback The control panel also provides diagnostic feedback on the operation of the unit itself. This feedback takes two forms: Warnings of impending problems or need for maintenance, items which do not result in an automatic shutdown of the unit; and Alarms which report the reason the unit has experienced an automatic shutdown. In addition to providing service personnel with the immediate cause of a unit shutdown, the unit will display the last five alarms to have occurred. This can assist with troubleshooting. The DynaPump software also provides comment windows which pop up with suggested troubleshooting data when the cursor is placed over a given alarm description. Adjustable Automatic Flow Control The built-in electronic controller on the DynaPump includes functions, which act as a pump-off controller, but without intermittently shutting down the unit. As part of its standard instrumentation, the DynaPump obtains a dynamometer card on each stroke. One of the adjustable load set points can detect when the well is in a pumped-off condition. When a pump-off condition is detected, the unit automatically adjusts to a slower speed. It will periodically return to its original pumping speed to check whether or not there is sufficient fluid to support the higher pumping speed. Light/Portable The DynaPump is lighter, and more portable than conventional beam units. For example, a Model 5 is capable of 750 bfpd from 3,000 ft deep. A C-456-305-120 beam unit is required to produce the equivalent volume. The Model 5 wellhead unit has an assembled weight of 5000 pounds and the power unit a weight of 600 pounds. The C-456 has a bare weight of 18,440 pounds (without counterbalance), and with maximum counterbalance weighs 43,420 pounds. Lower Transportation Cost The lower weight and compact size of the units can result in lower transportation costs, particularly if several units are shipped simultaneously. Savings of 25% were estimated by the operator for an application in Utah based on using a DynaPump Model 5 rather than a C-456 beam unit. Lower Installation Cost The low weight, compact size and ability to ship DynaPump wellhead units fully assembled result in reduced installation costs. The small footprint of the wellhead unit and lack of massive rotating counterbalance weights results in less massive foundations. The light weight requires smaller lifting equipment, reducing costs. Since the wellhead unit is shipped fully assemDynaPump Model 11 Pump intake at 12,515 Ft Along the California coast north of Los Angeles

bled, only one lift is required for placement. A second lift to unload the power unit completes the operation. This reduces the time required for field installation, further reducing costs. In one example, a reduction of greater than 40% was estimated by the operator for foundation and crane work compared to a beam unit. Low Installed Power When designed to take optimum advantage of the high polished rod load capabilities of DynaPump units (i.e., large diameter pump, and long stroke), DynaPump installations have significantly reduced installed horsepower requirements compared to conventional pumping units. Lower Power Consumption An electrical power consumption survey of 8 DynaPump wells and more than 50 beam pumped wells showed that mean power consumption of the DynaPumps was more than 30% less than

beam units with pump-off controls and more than 80% less than un-optimized units without pump-off controls. High Electrical Power Factor DynaPump units have inherently high power factors due to their design. In power surveys conducted on 14 conventional units and 8 DynaPump units pumping horizontal heavy oil wells, the mean power factor for the conventional units was 48% while it was 86% for the DynaPump units. Positive Effect on Electrical Grid Demands The lower power requirements and higher power factors of the DynaPump units reduces the total load on the electrical grid. For a three-phase power system, the power factor is equal to watts/1.73EI, where E is voltage and I is current. Using the mean power factors from the surveys discussed in the preceding paragraph, it is seen that the current requirement to deliver a given amount of power to the conventional units would be approximately 1.8 times the current required to deliver the same power to DynaPumps. Transmission line losses are proportional to the current squared. Thus, line losses to supply power to the beam units would be 3.2 times as great, assuming the same size conductor. Lower Infrastructure Costs Where DynaPumps are used in new well drilling programs there is the opportunity to reduce infrastructure costs through their more efficient energy usage. In a coal bed methane example, the use of a Model 5 DynaPump rather than a C-456 reduced the required transformer size from 75 KVA to 22.5 KVA. Where new power lines must be installed, commensurate savings in conductor size are possible

Palm Pilot Operator Interface

Total control from a small, easy to use handheld device. Read alarms, adjust speed and stroke length, create surface and down hole dynamometer cards. Real time monitoring of rod loads and pumping cycle.

Read Alarms & Warnings. Adjust speed. Change stroke length. Adjust pump-off control. Read runtime statistics. Create surface and down hole dynamometer cards. Program communication port parameters. Conduit for transferring data to Excel.

Rod Load: 52670 CWT psi: 610 Hyd Up psi: 1650

SL: 336 SPM: 3.4 POS: 180

Speed Up Speed Down Top Switch

6 5 3 2 0

Hyd Dn psi: 1600 Oil Temp: 118 Flow Temp: 235 Cycle Status

Bottom Switch 1 3 5 POC POC Load Load 4 6 0 0 0 POC Delay 1

.8

DynaPump maintains tight control over the manufacturing process. The cylinder is machined in house to ensure quality control of the patented design.

DynaPump Optimized Flow Potential Throughout Steaming Process Of Heavy Crude.

Previous Situation
The variable flow rates created by the steaming process required constant adjustments to the conventional beam unit. As production temperatures decreased floating on the down stroke was a consistent problem with no solution other than to slow the pump down. The result was lost production due to the slower polish rod speed. Configuration Lift System Lufkin 640 Horsepower 100 BHP 3.75 Intake 1097 SL 168 SPM 6.0 Flow 1239

Solution
DynaPumps variable speed capability was able to maximize flow by running faster up than down. Rod floating on the down stroke was eliminated and well flow was optimized. As production temperatures decreased the speeds were easily adjusted to maintain flow potential. Configuration Lift System DynaPump Model 7 Horsepower 50 BHP 3.75 Intake 1097 SL 240 SPM 4.1 Flow 1456

Diminishing Gas Production Compromises Gas Lift As A Viable Lift Solution.

Previous Situation
Gas production profits were continuously being compromised by the use of gas lift on a substantial amount of wells. The use of submersible pumps would not prove profitable based on the projected production. BHP sizing for a conventional beam unit would not meet the flow requirements and insure rod string life.

Configuration Horsepower N/A Lift System Gas Lift BHP N/A Intake N/A SPM N/A Flow 450

Solution
Installation of a DynaPump Model 11 with a 100 Hp Power Unit was the chosen solution. The DynaPump by design has much slower accelerations, decelerations and are adjustable, thus increasing rod string life. In addition the structure rating of 60,000 Lb. allowed for a larger BHP. The installation of the DynaPump resulted in more than double the oil production. Configuration Horsepower 100 Lift System DynaPump Model 11 BHP 2.75 Intake 6,675 SL 336 SPM 3.6 Flow 855

DynaPump Eliminates High Maintenance Costs Due To Parted Rods

Previous Situation
A decision was made to reactivate the well the first quarter of 2000. On March 16th the work began and was completed the end of April. A Mark unit was installed and the well was back in production. Production was over 500 BFPD with a good water cut. During the first fourteen months of operation six rod parts substantially reduced cash flow and created high maintenance costs. Configuration Lift System Lufkin 912 Horsepower 150 BHP 2.25 Intake 6,335 SL 168 SPM 7.9 Flow 500
Rod Parts 8/2001 to 3/2004 Work Over Rig Cost

Solution
A DynaPump Model 9 with a 100 Hp Power Unit was installed in late November. With 30 percent more stroke length and running at about half the SPM the DynaPump produced close to 20% more total fluid. No rod parts have been encountered in the first 17 months of DynaPump operation. Configuration Lift System DynaPump Model 9 Horsepower 100 BHP 2.25 Intake 6,335 SL 288 SPM 4.3 Flow 657

Conventional
$20,000 $15,000 $10,000 $5,000 $-

DynaPump

May-02

May-03

Feb-02

Feb-03

Nov-01

Nov-02

Aug-01

Aug-02

M onth

Downtime: Thirty two days Produced 50 BOPD when running Lost production revenue $40,000 Total cost of rod parts $93,080.00

Aug-03

Nov-03

Feb-04

Same BHP and rod string

Model 5 DynaPump Increases Gas Production On CBM Field In Buzzard's Bench, Utah.
Previous Situation
Existing beam unit and downhole configuration was unable to lower the FOP. Gas production ran around 738 MCF a day. Results from dewatering the well indicated that lowering of the casing level should result in increased gas flow. Configuration Lift System Beam Unit 456 256 120 Horsepower 75 BHP 2 Intake 2825 SL 120 SPM 8.6 BFPD 380

Solution
To increase production a DynaPump Model 5 was installed and the BHP was up-sized from 2" to 2.75". The installed horsepower went from 75 to 20 Hp, this not only saves on power consumption but also has a positive effect on the power grid. Running with a longer stroke and one third the SPM of the beam, surface and subsurface equipment life will be dramatically improved. The increased flow and computerized pump-off control moved the casing level down in a controlled manner while limiting interference into the tubing string and flow lines. Gas production has been on a steady increase and has reached 959MCF as of the date of this report, March 2004. Configuration Horsepower 20 Lift System DynaPump Model 5 BHP 2.75 Intake 2825 SL 168 SPM 2.9 BFPD 425

Statements from Customer: 1. If it wasn't for DynaPumps we would have never pumped off 35-89 or 10-42. 2. If I was going to start my own gas company every pump would be a DynaPump. 3. DynaPump has greatly improved our gas field. The water DynaPumps pump relieves the water from other wells greatly improving gas production on some of our Beam units.

Comparing Maximum Loading of the DynaPump to Beam Pumping Units

Written By: Ed Hanzlik, Petroleum Engineer
Beam pumping units have two primary ratings with respect to their lift capacity a maximum polished rod load and a maximum torque. The maximum polished rod load is based upon the strength of the structure of the pumping unit while the maximum torque is based upon the loading on the reduction gears. Different combinations of structural and torque ratings are matched to fit common well conditions. For example, with a Lufkin conventional unit having a 640 gearbox, three different polished rod load ratings are available 25,600 pounds, 30,500 pounds and 37,500 pounds. Similarly, for a given polished rod capacity, various torque ratings are available. For a polished rod rating of 30,500 pounds, Lufkin offers conventional units with torque ratings of 456, 640, 912 and 1280 thousand inch-pounds. For any given combination of structure and gearbox, the potential exists to reach the maximum rating of either the structure or the gearbox, depending upon pumping depth and down hole equipment. Examples of this, as calculated by the commercial Rodstar software, are enclosed for the case of a C-1280-365-192 unit. In the example labeled Max Torque, the unit gearbox is overloaded (102%), but the structural load is only 86% of rating. Under different well conditions, the case labeled Max Structure shows that the structure is overloaded (117%) while the gearbox is within rating (97%). The DynaPump unit also has two primary ratings with respect to their lift capacity a maximum polished rod load (as for the beam unit), and a maximum hydraulic load (analogous to the maximum torque for a beam unit). Again, the maximum polished rod load is based upon the strength of the structure of the wellhead unit. The maximum hydraulic load is based upon two factors a maximum operating hydraulic pressure of 1700 psi or a maximum counterbalance pressure of 1000 psi. As for the beam unit, it is possible to reach either a maximum structural or a maximum hydraulic (torque) limit for a given DynaPump depending upon well conditions. In its design, the piston surface area against which the counterbalance pressure works results in the maximum counterbalance pressure of 1000 psi being reached at a polished rod load which is extremely close to the maximum structure rating. In the calculation spreadsheet, this shows a red flag in the power hydraulic psi warning box. Inspection of the CWT PSI and HYD PSI values will show whether it is the counterweight (related to structural loading) exceeding 1000 psi or the power hydraulic pressure exceeding the 1700 psi operating limit. For simplicity of manufacturing and inventory, DynaPump does not offer multiple combinations of structural load ratings and hydraulic cylinder sizes. DynaPump elected to produce seven models with single, standardize combinations of hydraulic cylinder and structural rating which are appropriate for a broad range of applications. This compares to the 73 different combinations offered by Lufkin for conventional beam units. The range of structural loadings for DynaPumps is from 4,000 pounds to 80,000 pounds compared to the range of 5,300 pounds to 42,700 pounds offered by Lufkin conventional units. Another question which arises is the maximum strokes per minute (SPM) allowable with DynaPump units. DynaPump bases its maximum allowable SPM on a cylinder speed of 200 feet/minute, which gives a polished rod speed of 400 feet/minute. This is equivalent to the allowable speed of Lufkin air-balanced pumping units. According to the formula in the Lufkin catalog, an airbalanced unit with a 240 inch stroke has a maximum speed of 9.96 SPM. This is equivalent to 398 feet/minute. This, and the DynaPump maximum speed, is 10% slower than the permissible

Additional Flow Created By The Model 5 DynaPump Triples Gas Production In CBM Field.
Previous Situation
Increasing the gas flow was hampered by the high fluid level. The existing 160 beam unit with 74 stroke was running at 9 SPM and not able to pump the well off which in turn limited the gas production to approximately 100 MCF per day.

Solution
A DynaPump Model 5 was installed with a 20 Hp Power Unit. Due to the increased load capacity of the model 5 DynaPump the BHP was increased to 2 inch. The DynaPump has more than twice the stroke length of the previous beam pump. Within thirty days of installing the DynaPump the well was pumped off and gas production increased to 300 MCF a day. Configuration Lift System DynaPump Model 5 Horsepower 20 BHP 2.0 Intake 3,860 SL 168 SPM 3.0 Flow 187

Configuration Lift System Beam Unit 160-173-74 Horsepower 25 BHP 1.25 Intake 3,860 SL 74 SPM 9.0 Flow 84

Customer Performance Summary CBM Field, Buzzard Bench, Utah

Conclusion: The DynaPump pumping unit has become a preferred method of artificial lift in the Buzzards Bench Field, Utah. The unit has provided excellent runtime performance, good adaptability to changing well conditions, electric power savings, and potential down hole equipment savings. DynaPump Inc. has made extra effort to warranty defects and provide quality field support. Upgrades are handled the same way on all units, for instance, if a better mouse trap is identified, DynaPump Inc. will make the change on all the pumping units and not just the new sales. The only real unknown is the long term reliability of the units, but all indications look good today. The big lesson learned is that training is everything with this new technology and follow up training is important to obtain timely pumping unit optimization and peak well performance. The Ferron Team explored the opportunity with this new type of pumping unit and achieved results that improved operations. The lease operators now prefer this style of pumping unit over conventional pumping units. History: The DynaPump pumping unit was introduced into the Buzzards Bench Field in October 2001. The initial purchase was nine size 5 pumping units. In 2003 there were three size 7 pumping units ordered. These original size 5 units were purchased to produce water production from coal bed methane wells ranging in depth from 3000 to 4000 with flow capacities ranging from 50 to 250 bwpd. This matched the production rate most commonly seen in the field. The existing conventional units range in size from 160-143-74 to 456-256-120. Generally, top hold down insert pumps are used. Sizes range from 1 to 2 inch and are run with 2 7/8 inch tubing with a combination of 3/4 and 7/8 rods. Generally 50 to 200 feet of 1.5 inch weight bars are also installed on the bottom of the string. The units ordered for 2003 were purchased for directional wells with depths to 5000 feet. One of these units was installed in a directional well at 4800 feet(MD) and is currently producing from 175 to 225 BWPD. The other 2 units were used to optimize existing production wells and they are producing 800 BWPD per well at 3500 feet with a 2 inch tubing pump. Controls: The DynaPump computer logic and laptop/palm pilot controls make this unit very user friendly and adaptive to changing well conditions. A summary of the most appreciated features of the DynaPump are: 1) the surface pump card, dyno card, display, 2) the ability to change the SPM speed with the computer, 3) the ability to change the upstroke and down stroke to different speeds with the computer, 4) the ability to rock or alter the speed and pump direct for trash cleanup, 5) the ability to electronically change the position of the pump in the barrel in order to tag or remove pump tagging, 6) the automatic ability of the unit to slow the pump speed if pump off is detected with the dyno card, and 7) the SCADA ability and data storage that helps trouble shoot both DynaPump issues and down hole issue. This list is not inclusive but represents those with the most feedback. Summary: The DynaPump pumping unit currently has a higher maintenance cost than the standard conventional pumping unit but overall savings can be achieved by fewer equipment failures, energy savings, and greater adaptability to production variances. For example, the unit runs slower with less rod string acceleration and over a longer stroke length reducing rod wear and rod fatigue. The variable speed drive which slows the unit down automatically if pump off is detected, the ability to change stroke speeds on the up and down SPM cycle, the continuous dyno surface pump cards, and the ease to adjust the plunger location for pump tagging are also areas where increased efficiency will drive down operating cost. The DynaPump pumping unit is adaptive to changes in well performance and can provide a steady inflow performance equating to cost savings and increased productivity.

NATURAL GAS UNIT DynaPump Model 5 Maximum Stroke 168 Load Capacity 15,000 Lbs CBM Field Durango, Colorado

Pumping Unit Specifications

DynaPump has a full range of Power Units to match each application of Pumping Unit from 3 HP to 200 Hp. Pumping and Power units can be matched to optimize flow potential while minimizing power consumption. 1 1/4 rods are available to support the larger load capabilities the DynaPump brings to the sucker rod pumping arena.
240 Inch Maximum stroke 25,000 Lbs Limit

360 Inch Maximum stroke 80,000 Lbs Limit 336 Inch Maximum stroke 60,000 Lbs Limit

288 Inch Maximum stroke 40,000 Lbs Limit

168 Inch Maximum stroke 15,000 Lbs Limit

120 Inch Maximum stroke 7,000 Lbs Limit 72 Inch Maximum stroke 4000 Lbs Limit

Model 2

Model 3

Model 5

Model 7

Model 9

Model 11

Model 13

www.dynapumpinc.com

DynaPump, Inc. 9321 Melvin Avenue Northridge, Ca. 91324 (818) 407-7577 FAX (818) 407-7578

Cat#050304