For Oilfield Drilling Fluids “A Bright Future”
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A COMPANY Hectorite – For Oilfield Drilling Fluids “A Bright Future” 1 Hectorite vs Bentonite . Smectite/Montmorillonite Family of Clays . Hectorite • Trioctahedral hydrous magnesium silicate with some lithium substitution for magnesium. • Commonly used in specialty applications such as cosmetics, coatings, and in drilling fluids. Bentonite • Dioctahedral hydrous aluminum silicate. • Commonly used in drilling fluids, foundry, iron ore pelletizing, cat litter, and specialty applications. 2 Hectorite Deposit Western Lithium USA Corporation . Large Hectorite deposit in Humboldt County, Nevada about 45 miles north of Winnemuca, Nevada . Suitable for extraction of lithium for manufacturing lithium-ion batteries. Frequent occurrences of near surface high purity hectorite (88% - 92%) Kings Valley Lithium Project 3 Drilling Fluids – Function Functions: . Transporting drilling cuttings to the surface where they can be mechanically removed from the fluid before it is reconditioned and re-circulated downhole. Supports and stabilizes the well bore until casing can be set and cemented. Cools the drill string and bit. Balances and overcomes formation pressures in the well bore to maintain control of the well and maintain favorable drilling conditions. 4 Drilling Fluids Function of Hectorite & Bentonite Clay Minerals in Drilling Fluids (water-based and oil-based) . Rheological Additives, Rheolology Modifiers • Viscosifier • Suspending Agent • Gelling Agent • Emulsion stability (oil-based drilling fluids) . Bentonite based additives are the predominate clay mineral used in drilling fluids . Bentonite based additives are lower cost . Currently available Hectorite based additives are expensive due to low purity and high cost of wet purification process 5 Drilling Fluids Types Water-Based Drilling Fluids Oil-Based Drilling Fluids . Fresh water, salt water . Diesel oil, mineral oils . Shallow well drilling . Deep well drilling . Low temperature environments . Horizontal directional drilling through . Stable formations shale formations . High temperature drilling conditions . Drill hole stability Hectorite clay has emerged as the enabling mineral with thermal stability Synthetic-Based Drilling Fluids superior to bentonite clays to perform in . Environmentally sensitive drilling challenging environments known as high environments pressure and high temperature (HPHT) . Improved rheology control to increase drilling efficiency often referred to as “Rate of Penetration” or ROP . Low Equivalent Circulation Density (ECD) 6 Drilling Fluids – Typical Composition Oil-Based Drilling Fluids . Base oil (diesel, mineral, synthetic) . Primary emulsifier . Brine water (30% calcium chloride) . Rheological additive, such as organophilic Hectorite, bentonite, attapulgite, sepiolite . HPHT fluid loss additive, organophilic lignite, asphalt bitumen . Secondary emulsifier or wetting agent . Weighting agent such as barite, hematite Water-Based Drilling Fluids . Water . Rheological additive, bentonite, Hectorite, attapulgite, sepiolite . Viscosity control (viscosity thinning agents), lignite products . Fluid loss control additive, cellulose and starch derivatives . Weighting agent barite, hematite, calcium carbonate 7 Organophilic Clays Bentonite and Hectorite clays have cationic charges on the clay particle surface that can be reacted with various quaternary ammonium chloride compounds to yield an organophilic bentonite or organophilic Hectorite. Wet-process versus dry-process . Currently available Hectorite products are manufactured using a cost intensive “wet process” to remove impurities. Material recovery rates are less than 50%. Hectatone uses a dry process that incorporates 90% purity clays, innovative engineering and chemistry to manufacture cost effective products with unique and superior performance characteristics. 8 Hectorite – Comparative Processing Dry Process Costs: Wet Process Costs: Mining Mining Reactor $ Wet Purification $ Drying/Milling Hydrocycloning $ Packaging Centrifuging $ Reactor $ Drying/Milling Packaging Other Products ProProducts 9 Hectorite “A New Source, a New Opportunity, a Bright Future” . Low cost of mining . High purity . Low manufacturing cost . Innovative product development to engineer and chemically modify new Hectorite products that offer superior performance attributes • RHEOFLAT™ and GELFAST™ performance . Heat stability 10 Hectatone – Organophilic Hectorite . A price competitive alternative to current organophilic Hectorite products. Stable performance in hot environments found in deep well drilling. Unique performance attributes that have attracted the interest of oilfield service companies. RHEOFLAT ™ Technology minimizes viscosity variation over a wider range of temperatures; a flatter viscosity profile with lower viscosity without compromising gel strength. GELFAST™ Technology provides significantly faster development of rheological properties compared to other organophilic clay products. 11 RHEOFLAT™ Technology RHEOFLAT ™ Technology . Flatter rheology profile over a wider range of temperature and shearing conditions . Lower 600/300 rpm viscosity . Maintain 3/6 rpm viscosity . Higher 0.5 rpm Brookfield RVT viscosity 12 GELFAST™ Technology GELFAST™ Technology Faster development of rheological properties compared to other organophilic clay products 13 Hectatone’s Organophilic Hectorite Performance Attributes Significance of RHEOFLAT™ and GELFAST™ organophilic Hectorite products in today’s drilling environment . Greater emphasis on drilling efficiencies, increased rate of penetration (ROP), improved management of Equivalent Circulating Density (ECD), especially in low-toxicity mineral oils. Cost effective GELFAST™ organophilic Hectorite products allows for faster development of rheological properties improving fluid management. Cost effective RHEOFLAT™ organophilic Hectorite products exhibit minimal viscosity variation over a wide range of temperature and a flatter viscosity profile with lower viscosity without compromising gel strength. 14 Solution for Oilfield Drilling Challenges We believe the information is accurate, however, actual product and product specifications may vary and we cannot guarantee the accuracy of the information. This document does not form part of a contract for sale, and as such: (i) purchasers of products should not rely on any statements made herein; (ii) purchasers are responsible for conducting their own investigation to determine if products 15 are suitable for use; and (iii) there is no warranty, express or implied, including a warranty of merchantability and fitness for use. Hectatone Organoclay Plant 16 Nameplate capacity: 10,000 tons per year (practical capacity 24,000) Product mix: Hectorite, bentonite, sepiolite, and other clay rheology modifiers Contact: [email protected] 778-656-5820 17 .