INNOVATIVE NANOPARTICLE TECHNOLOGY

nFluids Explained
A Canadian Technology Company
Commercializing a leading edge Nanoparticle (NP) Technology Platform
4 filed patent applications
Target Market: Chemical additives for Oil & Gas drilling fluid
nForcerTM nFluids 1st commercial product
Improves packing, produces a thinner, stronger, smoother and less permeable filter cake 1
Seals micro-fractures and creates pressure barrier preventing further formation breakdown
Fills in surface roughness, reduces asperity and keeps moisture out
Reduces oil on cuttings
Integrated Solution - 4 Cost Saving Benefits:

Drilling Fluid
Loss Reduction

Wellbore Strengthening

Lubrication /
Friction Reduction

Oil on Cuttings
Reduction

Other potential applications: lubricants, catalysts, re-fracking, cements, composites, electronics,

medical devices, ferromagnetic fluids, surface coatings, etc.
1.

CONFIDENTIAL

Jiao, D. & Sharma, M. Mechanism of Cake

Buildup in Crossflow Filtration of Colloidal
Suspensions. Journal of Colloid and
Interface Science, 162, 454462, (1994).

Drilling Challenges & the nFluids Benefit

Drilling Challenge

Costly drilling fluid losses

nFluids Benefit

Potential Cost Savings

Thinner, stronger filter cake

Typical well 3,500 m3, 3-5 m3 lost / 100 m

drilled
Assume HPHT FLR = 60%

Resulting in:
30 90% reduction in drilling fluid
loss
Less formation damage
Reduced rig downtime

Drilling fluid cost: $1,000-1,500 m3 (WTI $80+

/bbl)
Drilling fluid cost: $700 (WTI $30-40 /bbl)
Potential cost savings: $45-150k per well

Weakened wellbore while

drilling

Strengthened core, increase in

fracture pressure resistance up to
60%

Potential Cost Savings: $42k per/day

Resulting in:
Reduction of rig downtime

Increase ROP and Hz reach

Enhanced lubrication up to 50%

reduction in friction (metal-onmetal)

Potential Cost Savings: $42k per/day

Resulting in:
Faster drilling and longer reach
10-15% reduction of oil on cuttings
Improve environmental
performance

Drilling fluid losses to cuttings: 10 m3 per well

Resulting in:
Less trucking , remediation &
disposal costs

Potential cost saving per well = $10k - $15k

CONFIDENTIAL

nFluids Nanoparticles
Synthesized calcium- and iron-based NPs (CNP and INP)
Patented bottom-up process, successfully scaled to 1,000 kg per batch
Compatible with all types of mud systems and additives
Readily dispersed in oil or water under low shear conditions
Effective at a low concentration (0.5 wt%)
Non-reactive, non-toxic, aerosol-free, non-polluting & acid-soluble

20 wt% INP in carrier oil

60 wt% INP

0.5 wt% INP in mineral oil

4

CONFIDENTIAL

NPs Characterization

Figure 8 High-resolution STEM images of INP. 60,000x magnification (left) and 450,000x magnification (right). Hitachi S5500
operating at 30 kV. Holey carbon grids.

INP: 3.6 0.6 nm

CNP: 50 5 nm
5

CONFIDENTIAL

Lab Results HPHT Fluid Loss

176-300 F, 500 psi, paper or 12 m disk
18

API Filtrate Volume at 30 min (mL2)

16
14
12
10
8
6

-45%

-65%

-72%

-63%

2
0
Diesel OBM 1
90/10
1050 kg/m3

Diesel OBM 2
Diesel OBM 3
78/22
80/20
3
1350 kg/m
920 kg/m3
Control
0.5 wt% nForcer

Mineral OBM 1
80/20
1500 kg/m3

CONFIDENTIAL

Lab Results Lubricity

OFI Lubricity Tester, 60 rpm, 150 lbfin
7

-26%
Coefficient of Friction

-31%

-15%

-48%

0
Diesel OBM 1
90/10
1050 kg/m3

Diesel OBM 3
Mineral OBM 2
80/20
80/20
3
920 kg/m
915 kg/m3
Control
0.5 wt% nForcer

Diesel OBM 7
90/10
1060 kg/m3

CONFIDENTIAL

Lubricity Observations
OFI Lubricity Tester, 60 rpm, 150 lbfin
0.13

Mud Lubricity Coefficient

0.12
0.11
0.1
0.09
0.08
0.07
0.06

0.05
Control

0.5 wt% nForcer

1.0 wt% nForcer

Control Post-NP

Coefficient of friction reduced with nForcer

Reduction observed in subsequent control sample
Deposition of NPs observed on the instrument
Indicates interaction between NPs and metal surface
8

CONFIDENTIAL

Lab Results Wellbore Strengthening

Roubidoux sandstone cores, 90/10 Diesel OBM2
3000

Fracture Breakdown Pressure (psi)

2800

2600

Control
INP 0.5%, Graphite 0.5%
INP 2.5%, Graphite 0.5%
CNP 0.5%, Graphite 2%
CNP 2.5%, Graphite 2%

58%
55%

41%
39%

2400

FRACTURE
BREAKDOWN PRESSURE
WITH ADDITIVE, Pfb1

2200

2000

1800
2.

1600

CONTROL CORE FRACTURE

BREAKDOWN PRESSURE, Pfb1

Contreras, O.; Hareland, G.; Husein, M.; Nygaard, R.

& Alsaba, M. Wellbore Strengthening in Sandstones
by Means of Nanoparticle-Based Drilling Fluids. SPE
Deepwater Drilling and Completions Conference,
Galveston, Texas, 10-11 September (2014). SPE170263-MS.

1400
9

CONFIDENTIAL

Wellbore Strengthening Observations

Catoosa shale cores, 0.5 wt% CNP, SEM
At fracture end:

At fracture mouth:

Shale core showing two

vertical fractures3
NPs form a continuous seal along the fracture3

CONFIDENTIAL

3.

Contreras, O.; Hareland, G.; Husein, M.; Nygaard, R.

& Alsaba, M. Experimental Investigation on Wellbore
Strengthening in Shales by Means of NanoparticleBased Drilling Fluids. SPE Annual Technical
Conference and Exhibition, Amsterdam, The
Netherlands, 27-29 October (2014). SPE-170589-MS.
10

Field Testing Overview

9 total tests completed in Alberta
6 field tests completed4 near RMH

1st gen nForcer (CNP) at 0.5 wt%

12 offset wells for comparison
Horizontal wells, ~4,000 m TD
Shale and coal zones in build section
Cardium sandstone pay zone
Focus on mud loss reduction
Cutter-D 90/10 to 85/15 OBM system
Mud weight: 1,030 to 1,150 kg/m3 (361
to 403 lb/bbl)
Group D different lithology, no offset
data, not shown herein
4.

Borisov, A. S.; Husein, M. & Hareland, G. A Field

Application of Nanoparticle-based Invert Emulsion Drilling
Fluids. Journal of Nanoparticle Research, 17, 340, (2015).

11

CONFIDENTIAL

Field Results Total Mud Losses

1st gen nForcer (CNP) 0.5 wt%
90
NOTE: Total mud losses include final surface and subsurface losses calculated between surface casing and TD

80

Total Mud Losses at TD, m3

70

-21%
-24%

-29%

60

-28%

50
40
30
20
10
0
Control A

Test A

Control B

Test B1

Test B2

Control C

Test C
12

CONFIDENTIAL

Field Results Total Mud Losses

1st gen nForcer (CNP) 0.5 wt%
3.5

Average Mud Losses per 100 m Drilled, m3 / 100 m

NOTE: Average mud losses per 100 m drilled account for variations in TD between wells - final mud losses at TD
divided by the interval drilled and multiplied by 100

2.5

-23%
-29%
-34%

-30%

1.5

0.5

0
Control A

Test A

Control B

Test B1

Test B2

Control C

Test C

13

CONFIDENTIAL

nFluids Technology Summary

nFluids nanoparticle (NPs) products:

Iron-based nanoparticle (INP)

Calcium-based nanoparticle (CNP)

Lab work focusses on three properties of drilling fluids:

Fluid loss reduction (HTHP with paper and ceramic disks)

Inhibited pressure communication in the formation (sandstone, shale, and cement core fracturing)
Lubrication (OFI metal-on-metal lubricity tester)

Fracture pressure lab tests:

Up to 60% increase in fracture initiation pressure in sandstone cores with CNP (Diesel OBM)
Up to 40% increase in fracture initiation pressure in sandstone cores with INP (Diesel OBM)

Lubricity lab tests:

Up to 37% reduction in coefficient of friction with CNP (metal-on-metal, Diesel OBM)

Up to 48% reduction in coefficient of friction with INP (metal-on-metal, Diesel OBM)

Recent field tests:

Six full-scale field tests completed in Alberta (RMH) in 2015

Up to 30% reduction in mud volume losses while drilling with CNP
Field results consistent with lab HPHT observations

14

CONFIDENTIAL

Formation Damage Prevention

Reduced filter cake thickness and permeability

HPHT/LPLT fluid loss tests, WBM and OBM, 0.5 wt% INP

Acid-soluble product
Soluble in 10% HCl

Shallow depth of penetration

From SEM and EDX experiments on filter cakes

Up to 90% reduction in spurt loss

WBM formulation, LPLT fluid loss, 0.5 wt% INP

Up to 55% reduction in 30 min fluid loss

WBM formulation, LPLT fluid loss, 0.5 wt% INP

15

CONFIDENTIAL

O&G Production Applications

Fracturing/Re-Fracturing:

Creating a pressure barrier that prevents further formation breakdown (permeability reduction)
Mono-bore design

Conformance control:

Creating a fluid barrier via permeability reduction would improve conformity of the flood front in EOR

Cementing:

Reducing the permeability, increasing the strength and improving the bond with metal & rock

Lubrication:

Drilling-Coil Tubing
Coatings

Wellbore Integrity:
Reducing the permeability and increasing the strength of shale zones etc.
Corrosion Control:
Nanoparticles can be capped with hydrophobic materials-preventing water from migrating into the asperities
of the material
Oil & Water treatment:
Utilizing magnetic nanoparticles to remove oil from water bodies & solid materials
Removal of Arsenic etc.

16

CONFIDENTIAL

Jeffrey Forsyth, CEO

Jeremy Krol, VP
Alex Borisov, R&D
Hai Wang, R&D

jforsyth@nfluids.com
jkrol@nfluids.com
aborisov@nfluids.com
hwang@nfluids.com

www.nfluids.com

APPENDIX

CONFIDENTIAL

Filter Cake With and Without NPs: SEM Characterization

Control OBM

OBM with 0.5 wt% INP

Filter cakes produced by HPHT fluid loss test at 250 F

Cryo-SEM performed on the profile
Control OBM shows many cracks and fractures that form filtrate flow channels
OBM with INP do not contain any visible fractures consistent with reduction of filtrate
volume

19

CONFIDENTIAL

Wellbore Strengthening Roubidoux Sandstone

Graphite, INP and CNP at

different concentrations were
added to OBM to study their
effect on the fracture
breakdown pressure, Pfb1

20

CONFIDENTIAL

Wellbore Strengthening Sandstone2 Diesel OBM

2.

Contreras, O.; Hareland, G.; Husein, M.; Nygaard, R.

& Alsaba, M. Wellbore Strengthening in Sandstones
by Means of Nanoparticle-Based Drilling Fluids. SPE
Deepwater Drilling and Completions Conference,
Galveston, Texas, 10-11 September (2014). SPE170263-MS.

21

CONFIDENTIAL

Wellbore Strengthening Catoosa shale

Graphite, INP and CNP at

different concentrations were
added to OBM to study their
effect on the fracture
reopening pressure, Pfb2

22

CONFIDENTIAL

Wellbore Strengthening Catoosa shale

Effect of CNP and INP on Fracturing Pressure in Shale Cores
800
700

Pressure, psi

600

27%

500
400
300
200
100
0
0

10

20

30
Time, min

Control
CNP 2.5wt%+Graph 2wt%
INP 2.5wt%+Graph 0.5wt%

40

50

60

CNP 0.5wt%+Graph 2wt%

INP 0.5wt%+Graph 0.5wt%

23

CONFIDENTIAL

Wellbore Strengthening Shale3 Diesel OBM

3.

Contreras, O.; Hareland, G.; Husein, M.;

Nygaard, R. & Alsaba, M. Experimental
Investigation on Wellbore Strengthening in
Shales by Means of Nanoparticle-Based
Drilling Fluids. SPE Annual Technical
Conference and Exhibition, Amsterdam, The
Netherlands, 27-29 October (2014). SPE170589-MS.

24

CONFIDENTIAL