2. 2
This presentation contains statements about future events and expectations that can be
characterized as forward-looking statements, including, in particular, statements about the
Company’s plans, strategies and prospects. The use of the words “anticipate,” “estimate,”
“expect,” “may,” “project,” “believe” and similar expressions are intended to identify
forward looking statements. Although the Company believes that the plans, intentions and
expectations reflected in or suggested by such forward-looking statements are reasonable,
they do involve certain assumptions, risks, and uncertainties, and the Company cannot
assure you that those expectations will prove to have been correct. Actual results could
differ materially from those anticipated in these forward-looking statements as a result of
the factors described in this presentation. Many of these factors are beyond the
Company’s ability to control or predict. The Company cannot assure you that its future
results will meet its expectations and investors are cautioned not to place undue reliance
on any forward-looking statement made by the Company or its authorized representatives.
All subsequent written and oral forward-looking statements attributable to the Company
and persons acting on its behalf are qualified in their entirety by the cautionary
statements contained in this paragraph and elsewhere in this presentation. The Company
does not have any obligation or undertaking to disseminate any updates or revisions to
any forward-looking statement contained in this presentation or the admission document
to reflect any change in the Company’s expectations about the statement or any change in
events, conditions or circumstances on which the statement is based.
Safe Harbor Provision
3. EcoStim Investment Thesis
3
• Refinanced company establishing two market platform to balance risk;
maintain upside in Argentina
• Provide superior equipment and operations team at lowest cost
• Rely on technology to drive efficiency and cost advantage
• Focus on markets with best geology & strongest return opportunity
• Focus on natural gas development in Argentina
4. • Fresh cash injection of $17 million to repay debt,
finance capex and working capital
• Total debt of $41 million to be converted into equity at
$1.40 per share, if shareholders approve at next
meeting (June/July)
• Goal is to create a debt free company to pursue
growth in two solid and expanding markets
• Fir Tree Partners - $10 billion fund with focus on
growth & now 2nd largest shareholder; largest
shareholder following debt conversion
• Nasdaq listing a priority for Fir Tree and the Company
4
Refinanced Company In early March 2017
Description
Actual at
12/31/2016
Proforma
for Fir Tree
Transaction
Proforma
for Fir Tree
Conversion
Cash 1.8$ 15.8$ 15.8$
Debt 24.0$ 41.4$ -$
Shares Outstanding 14.5 14.5 44.1
5. Technology-driven, growth platform in solid markets
• Emerging growth, technology-driven independent oilfield service company
– Well stimulation;
– Coiled tubing; and
– Reservoir field management services
• Proprietary proven technologies and processes to:
– Reduce footprint, horsepower and capital cost;
– Emissions well below required Tier 4; Methane escape best in industry
– Use less fuel or lower cost fuel
• Initial Operation in Argentina
– Started with conventional market
– Transitioned to tight gas market in 2016
– Argentina business should move to cash flow neutral status
– 22,500 HHP remain in Argentina in 2016; more equipment to be added with
contractual commitments
• Entering US Market in Oklahoma
– One year contract in place; Start in Q2 2017
– Base established in strategic location
– Customer expanding; solid growth opportunity
Vaca Muerta
World’s 3rd largest
shale resource basin
5
6. EcoStim Rolling Stock – Equipment Distribution
Moving from 10,000 HHP in 2015 to over 100,000 HHP in 2017
6
OklahomaArgentina
Data VanHydration
BlenderBlender
Data Van
Data Van
Hydration
BlenderBlender
Blender
SandKing
Crew #1 - 16 pumps (35,000 HHP)
Crew #2 & Redundancy -24 pumps (54,000 HHP)
Lease Unit
Lease Unit
Lease Unit
Lease Unit
Blender
- Owned & Ready to Operate
- To be Upgraded
- To be purchased
- Lease option in place
HydrationDataVan
26 Tractors & 10 Light Trucks
Sand & Chemical Handling Equipmnet
Palmero Unit
Flex Crew - 14 pumps (31,500 HHP)
Hydration
SandKingSandKing
TPUs
7. 7
Evercore Research shows that when our equipment is put to work,
we should be able to more than triple the value of the Company
8. Seasoned leadership team with local
and international experience
Bjarte Bruheim
Chairman and Founder
J. Chris Boswell
President, CEO and
Founder
Alexander Nickolatos
Chief Financial Officer and
Assistant Secretary
Carlos A. Fernandez
Sr. VP, Corp. Development
General Mgr., Latin America
Relevant Experience
• 28 years experience in the oilfield service industry
• 15+ years experience in finance and accounting
• 30+ years international management experience
• 35+ years senior management experience in Latin America
Bobby Chapman
Chief Operating Officer
• 35+ years senior management oilfield experience
Miguel Di Vincenzo
VP, Sales & Technology
• 28 years oilfield services experience in Latin America
8
Barry Ekstrand
Sr. VP, Operations
• 35+ years senior management oilfield experience
9. • Co-founded by Bjarte Bruheim in
1991; served as President until 2001
• Chris Boswell CFO from 1995-2002;
directed >$3 billion in growth capital
• Grew from 2 ships to 33% share of
the marine seismic market by 1998
• Now has 16 marine seismic vessels,
with 33 offices in 25 countries
• Developed in 1995 by Bjarte Bruheim,
Chris Boswell and others utilizing
PGS’ seismic library as seed capital
• Initially funded by Warburg Pincus
• Completed $116 million IPO in 1999
• Acquired by Norsk Hydro ASA (now
Statoil ASA) for $2.45 billion in 2005
• Deepwater exploration venture initially
capitalized by Bjarte Bruheim and
Warburg Pincus
• Acquired certain electromagnetic
technologies from Statoil ASA in 2004
• Completed IPO in 2007 valuing the
company at ~$1.6 billion
• Bjarte Bruheim named Executive
Chairman of financially troubled
seismic equipment designer in 2002
• Successfully arranged new investor
capital to help turn around company
• Sold to Rolls-Royce in 2009 for
approximately $200 million
• Co-founded by Bjarte Bruheim in
2009 as an E&P vehicle to utilize
EMGS technology to de-risk offshore
targets
• Sold to Tullow Oil in 2012 for up to
$672 million total consideration
• Norwegian marine seismic venture co-
founded by Bjarte Bruheim in 2005
• Listed on Oslo Stock Exchange in 2007
• Signed contracts for construction of 6
advanced 12-streamer 3D vessels
• Acquired by Schlumberger in 2007 for
$838 million in cash consideration
• Co-founded by Bobby Chapman in
2005 with backing from Soros and ESS
• Grew to 6 crews and 130,000 HHP by
the second half of 2007
– Contracts in place for 3 additional
crews at 56,000 HHP
• Sold to Trican Well Service in 2007 for
$256 million
• In 2009, Chris Boswell was hired as
CFO to re-set strategy and divest
assets for a distressed silicon valley
backed oilfield technology company
• Mr. Boswell and Carlos Fernandez
successfully farmed 5 blocks in
Neuquén province of Argentina
• Arranged $60 million in expansion
capital from new investors in 2011,
including Microsoft founder Bill Gates
and Energy Capital Group
Management team has consistent track record of building
profitable energy & energy service platforms
Five exits valued at +$4.5 billion; Three ongoing entities valued at $2+ billion 9
10. 10
Establishing two strong positions in high growth markets
with long term contracts
Argentina’s Neuquén Province – Tight
Gas and Vaca Muerta shale Oklahoma’s Mississippian/Stack/Scoop Plays
11. 11
Contract signed with well established operator in Oklahoma
• Contract is for one year beginning on “readiness” date (estimated Q2 of 2017)
• Investment is relatively light to achieve readiness; much of the equipment is
available or has been secured
• ESES to execute all well stimulation stages performed monthly (estimated to be 35-
40 stages until second rig is added) utilizing approximately 25% of capacity
• Customer expects to add second rig in second half of 2017; doubling stage count
• Work will not require sand and only light chemical package; little working capital
• In discussion with other operators in area to secure additional wells/stages
• Area is becoming more active
12. Expansion to the US starts in North Central Oklahoma to position
EcoStim to service the growing regional market
- ESES base of operation
12
13. 13
Midstates - Woods – 1
Comanche - Major – 1
Chesapeake – Major – 1
Kirkpatrick – Major 1
Tapstone - Woodward – 1
Devon – Woodward - 1
Sandridge – Woodward – 1
PPP Petroleum – Ellis – 1
Logan – Red Bluff Resources – 1
White Star – Payne - 1
Dewey – 6
Blaine – 19
Kingfisher – 17
Canadian - 8
Custer – 5
Washita – 0
Caddo – 0
Grady – 14
Beckham - 5
Operators & Rigs as of January 2017; OK rig count up by 60%
since March 2016
• Devon
• Chesapeake
• Continental
• Cimarex
• Marathon
• Newfield
• Linn Energy
• Gastar
• Oklahoma Energy
• Carrera Energy
• Chaparral
• Hinkle
• Council Oaks Resources
• Super Heaters, LLC
Major Operators in Stack/Scoop
14. 14
OK rig count up further in March 2017; New base in close proximity to
Blaine/Kingfisher counties
15. Argentina’s growth opportunity is unique
1. Geology – Resource produces
economic hydrocarbons
2. Pace of activity – Sufficient wells to
maintain good equipment
utilization
3. Demand for hydrocarbons –
Production consumed locally or
export potential
4. Infrastructure – Roads, housing,
fuel, pipelines and support services
5. Local knowledge – Feet on the
ground; local network
6. Business risk – Regulations, taxes,
security, culture, ethics, etc.
Source: EIA and Accenture.
15
Key Selection Criteria For International Shale
Market Opportunities
16. Source: WoodMackenzie /
YPF
Shale Oil Benchmarking
Summary from YPF’s Recent Earnings Webcast
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
Wolfcamp Vaca Muerta Bone Springs Eagle Ford Bakken
Vaca Muerta Well Productivity Compared To Best in USA
EUR / Foot of Lateral Length
16
17. What has changed in Argentina?
New pro-business, free markets President
Natural Gas prices set at $6.00-7.50 through 2021
Currency controls removed
New trade agreement with US & rejoins IMF
New deal between government, labor unions, and energy
companies expected to double investment
Shell signs new exploration deal with YPF
Tecpetrol commits $2.3B to Vaca Muerta and Tight Gas
17
18. Drilling efficiency gains – Eagle Ford vs Vaca Muerta
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Drilling days per horizontal well
Eagle Ford Vaca Muerta
18
Source: Management Estimates & YPF Public Data
19. Mature oil producing country with strong
customer base
E&P Companies Operating in Argentina
Source: Management research
19
21. Review of past business and new contract
opportunities for EcoStim
2015 Customers
New Customers - 2016
New Contracts – 2017
And Partners
21
22. Argentina market oversupplied in 2016 due to rig count reduction.
Rigs starting back to work, prices improving; barriers to entry remain
22
Barriers to Entry:
• Importation of new stimulation equipment is still challenging
• Any new equipment into country must be negotiated with at least 3 agencies (Ministry of Industry, Department
of Trade, and Customs Office)
• Matching agreements need to be negotiated with local vendors
• Government still favors protectionist policies to support local industry
• Repatriation of dollars has been difficult historically; still scares some competitors
23. Neuquén Offices and Operational Base
2 OFFICES IN NEUQUEN AND 1 OFFICE IN BA
ACTUAL YARD AT THE PIN NEUQUEN AND FUTURE YARD IN PLOTTIER
23
27. EXECUTION - Technology well suited to reduce cost and
environmental impact
Only pumping unit in the world capable of:
– running on 100% natural gas
– can run on multiple fuel sources including natural gas, CNG, LNG and Diesel
– delivering emissions 65% below EPA Tier 4 requirements
– delivering 4500 HHP from a single trailer with engines weighing ~ 800 pounds each
– Proprietary control system modified & enhanced with automated functions
27
CNG tube trailer –
2200 psi
Heater to avoid freeze
up during
decompression
Gas conditioning skid
to remove liquids
4500 HHP on one
trailer
28. Multiple Natural Gas Fueling OptionsMultiple Natural Gas Fueling Options
Traditional EcoStim
First Frac Operation with TPU in Argentina
EXECUTION - Technologies Integration
28
29. “You can’t manage what you don’t measure”
• Leverages fiber-optic technology and predictive modeling (how many stages don’t actually produce hydrocarbons?)
• Enables Eco-Stim to efficiently predict stimulation effectiveness and understand the shale in real-time
1. Predict
3. Measure
4. Evaluate
Prediction
Proprietary process to efficiently
predict “sweet spots” in shale plays
Stimulate all planned stages
as designed
Downhole technologies to determine
which stages are actually producing
Compare prediction of
sweet spots to actual
production
“Learn” best producing areas of the
formation in a given area and
incorporate information into next
geophysical prediction
5. Update
Model
2. Execute
Predict, Execute, Measure, Evaluate, Re-Predict
Eco-Stim conducts its horizontal stimulation services within a systematic methodology
29
30. Example of “sweet spot” PREDICTION; largely based on the
identification of micro-fracture swarms or “natural fracturing”
Technology used primarily in high cost regions
30 Ft
Flare
7610
5 Ft
Flare
7970
5 Ft
Flare
8630
5 Ft
Flare
8742
3 Ft
Flare
9659
4 Ft
Flare
10480
4 Ft
Flare
11305
Targeted Sweet Spots
-
+
• Using proprietary technology
for accurate well placement
and stimulation stage planning
• Maps produced in less than
three weeks at minimal cost
• Over 350 shale projects
completed in U.S. shale plays
• Over 25 projects completed in
Argentina
Curvature Attributes
• Flares correlate with Geo-
Predict sweet spot mapping –
confirming the effectiveness of
Geo-Predict’s methodology
Mud logs on this horizontal well show flare markers that confirm predictive fracture maps
30
31. MEASURE & EVALUATE - Confirmation of producing zones…..
(It is generally accepted that only one of three stages produce hydrocarbons)
… Derived from Fiber Optic Acoustic Signatures
TIME
Gas Production from zone 6
Gas + Water Production
from zone 8
9 7 6 5 4 3 2 18
31
32. UPDATE MODEL & CALIBRATE - Target completion stages based
on technology & empirical data
32 Stages @ $100k / Stage = $3.2 Million
16 Stages @ $100k / Stage = $1.6 Million
32
33. EcoStim Investment Thesis
33
• Refinanced company establishing two market platform to balance risk;
maintain upside in Argentina
• Provide superior equipment and operations team at lowest cost
• Rely on technology to drive efficiency and cost advantage
• Focus on markets with best geology & strongest return opportunity
• Focus on natural gas development in Argentina
