Asphalt Ridge Economics

Modular Plant

Economics

Energy Efficient

Technology

• Modular & scalable, anticipate multiple 5,000 bpd process trains/locations
• Closed-loop, continuous recycle of process materials
• Low CAPEX estimates: ~$19,000-$22,000 per flowing bbl of capacity (conventional mining operations 2-3X higher due to water demand)
• Returns over 14X energy used to produce oil, compared to 2-6X for competitive technologies

• All-in costs anticipated to average $25 /bbl1 – 24 hour day at 5,000 bpd
• Netback margins anticipated to average between $23 - $28 /bbl – 24 hour day at 5000 bbl/d
• Economics run at EBITDA assumption of $70.00 /bbl WTI – 24 hour day at 5000 bbl/d
• Assumes 330 days of operation for each process train – 24 hour day at 5000 bbl/d

(1) Based on 24 hour operations – 330 days per year at 5,000 bpd

(2) Netback margins of $23/bbl (net of transport and 8% royalty) at $70/bbl WTI. No netback improvement assumed for sale of produced clean sand.