1. Water Engineered Technologies in partnership with Aqua Technologies Holdings Inc. Presents a test of WET'sMechanical/Physical process to separate Barium, Solids, and Hydrocarbons To the Pennsylvania Independent Oil & Gas Producers Association

3. Manufacturers Direct Technology Implemented by creatingPartnerships with Local service companies for the benefit of Oil & Gas producers in partnership with Aqua Technologies Holdings Inc.

4. Water Engineered Technologies in partnership with Aqua Technologies Holdings Inc. Manufactures Activated Clay®andWater Treatment Systems Modified at its molecular level to repel water and attract organics, Activated Clay® provides a revolutionary means of efficiently loading trace hydrocarbons and numerous other organic compounds in mass. With industry leading capacity and capabilities, WET is the manufacturer of modified “organo-clay” filtration media

5. In 2004 the worlds largest flow through underwater contamination barrier was constructed through the US EPA Superfund. After extensive testing against all other forms of filtration media, due to its proven capabilities of loading a wide range of organics, and its unique physical properties in water, Activated Clay® was selected, and installed.

6. The WET/ATHI flow-back system test In late November thru early December 2009 WET/ATHI tested its mechanical/physical process to treat flowback generated from drilling operations into the Marcellus formation. The well was located outside of Covington, PA.

7. Test Dates: November - December 2009 Well Location: Outside Covington, PA. on NY & PA Boarder Ambient Temp: 40 F. Water Temp: Ambient The blind test instructions were to remove a range of metals, total suspended solids, and any organics that may be present.

8. The Process The WET/ATHI & Ionizer process begins with the circulation of the raw flow-back tank for enough time so as to circulate the contents. This first low pressure Ionization step is to break any emulsion present, reduce TSS, and aide in the agglomeration of hydrocarbon particles from the free and dissolved state. The content of the tank is pumped through an oil water separator to assist in the separation of solids, water and hydrocarbons if present. The separated water is filtered through Activated Clay®to remove any organics.

9. The Process 4. The filtered water is circulated through the Ionizer in another tank at a higher pressure to separate and segregate problematic dissolved state metals like Barium. 5. The resulting water is filtered with sand or micron filters depending on how low the producer wants TSS to be. (no sand or micron filtration was performed on the test presented)

10. Three different tests were performed with Marcellus Flow-back influent to determine the best operating method for removing contaminants Marcellus Flow-back Influent reported by the Producer Sulfate 50 PPM ≤ Barium 6000 PPM ≥ Iron 500 PPM ≥ TSS 2500 PPM ≥ TDS 100,000 PPM ≥ Hydrocarbons 25 PPM ≤

11. Test “A” The Test Results

12. Test “A” results Test “A” conducted at low pressure (50psi) significantly reduced the contaminants, with specific mention to sulphates & organics Sulphates in the presence of dissolved barium ions often cause scaling in wells. Removing one or both reduces the risk of scaling

13. Test “B” The Test Results

14. Test “B” results Increasing pressure in the system (50 to 89 psi), significantly reduced barium levels in the effluent Test “B” also continued to reduce the contamination of other metals compared to Test “A” including Iron

15. Test “C” The Test Results

16. Test “C” Results A coagulant was added to the effluent of Test B to study the effects: Barium was reduced further indicating the Ionizer’s ability to encourage dissolved barium ions to come out of solution Tests A-C did not use a sand filter at the back end. This is a simple piece of kit which will significantly reduce the TSS count for the customer

17. Filtration for Re-use or Pre-Evaporation OneSystem With WET/ATHI partnering, Seamless service will be offered to the Producer through service companies they already do business with. Instead of the Producer paying for hardware, they can contract for service by the barrel treated under a term agreement. Provides the producer with the option to re-use or evaporate on site. Solids are segregated by process and will be disposed of in accordance with classification

18. Our systems can incorporate state of the art, real time sampling, monitors and controls. Built by Hydronic Modules Corporation, a subsidiary of Yates, our systems can be monitored in real time by clicking onto a secure web site. Systems can include webcams that display the area surrounding the system so the operator and authorities have real time visual and electronic data monitoring. Celular, satellite direct, radio, or telephone hard line communication per site logistics. Emergency shutdown with a click of the mouse. Real Time web based treatment performance verification.

19. Modified Frac Trailers house WET/ATHI Flowback System components Ionizer 6.55Oil/Water Sep Activated Clay Ionizer 6.93 Sand/ Micron

20. Benefits for the Producer Re-Use or Dispose on site Reduce single point disposal negative impact Reduce Frac-makeup demand on surface waters Reduce Roadway degradation Reduce fuel consumption Consumes No Chemicals Web Based Monitoring & Control Segregates Soilds