HYDROCARBON DYNAMICS LIMITED — AGM Information 2022

May 29, 2022

Advancing Crude Oil Mobility

AGM Presentation

May 2022

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Disclaimer
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Disclaimer, Forward Looking Statements and Competent Person Statement

This presentation has been prepared by Hydrocarbon Dynamics Limited ("HCD"). It should not be considered as an offer or invitation to subscribe for or purchase shares in HCD.

This presentation contains forward-looking statements including those identified by the use of forward-looking terminology containing such word as 'believes', 'may', 'will', 'estimates', 'continue', 'anticipates', 'intends', 'expects, 'should', 'schedule', 'program', 'potential' or the negatives thereof and words of similar import. HCD cautions that these forward-looking statements are subject to uncertainties that could cause actual events or results to differ materially from them. The forward looking statements are expressly subject to this caution. To the maximum extent permitted by law, HCD makes no representation or warranty (express or implied) about them and expresses no opinion or any other form of assurance regarding them occurring.

In addition, there are a number of risks, both specific to HCD and of a general nature, which may affect the future operating and financial performance of HCD and the value of an investment in HCD including but not limited to economic conditions, stock market fluctuations, oil demand and price movements, regulatory risks, operational risks, environmental risks, and reliance on key personnel.

Accordingly, this presentation does not purport to contain all information which may be required in order to make an informed assessment of HCD's prospects. You should conduct your own investigation, perform your own analysis, and seek your own advice from your professional advisor before making any investment decision.

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Corporate Summary
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ASX listed - Energy focused

	Board & Management
	Stephen Mitchell	Non-Executive Chairman
	Bill Tarantino	CEO - Chemical Division
	Nick Castellano	Executive Director
	Ray Shorrocks	Non-Executive Director
	Andrew Seaton	Non-Executive Director
	Julie Edwards	Company Secretary & CFO

	Shareholder Summary
	S Mitchell	13.1%
	S McGregor Super Fund	8.8%
	Lowell Resources Fund	4.0%
	Chag Pty Ltd	3.1%
	Wheelbarrow Investments	2.5%
	Top 20 Holders	47.7%

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HCD Share Price
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	Capital Structure
	Cash:	$2.6m (31 Mar 2022)
	Share Price:	$0.024
	Issued Capital:	587.1m Shares
	Market Capital:	$14 Million
	Options on Issue:	46.3m (expiry 31/10/2022 @ $0.03)

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0.040
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Value Creation Strategy
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Our Value Creation Strategy underpins everything we do

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Execute on Strategic Priorities to Market HCD Products and Technology to the Oil Industry

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Evaluate Additional Energy Technologies for Investment

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Evaluate Upstream Projects

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HCD Technology
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HCD PhaseShift suite of chemistries utilise small, specially engineered carbon-based molecules that reduce the Van der Waals attractive forces between like molecules in order to reliquefy large agglomerations of wax and asphaltene deposits naturally occurring in heavy crude oils.

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HCD Technology Delivers Solutions Across the Oil & Gas Value
Chain
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1. Wellhead – HCD Multi-Flow 2. Wellbore – Tri-Phase Squeeze 3. Oil Sands/SAGD – Bit-Flow 4. Pipelines – Assur-Flow 5. Tanks/Vessels – Kleen-Flow 6

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How is HCD Structured?
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Hydrocarbon Dynamics is a non-service, wholesale manufacturer of oilfield chemicals focused on crude oil mobility marketing its technologies through small to mid-sized oilfield chemical service providers and seasoned commissioned sales personnel.

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 Distributors

• small to mid-sized, aggressive oil field chemical service providers

• geographically/regionally based

• technically competent

• have strong, existing customer relationships

• Commission Sales Personnel/ Agents

• well connected in the oil & gas industry with strong decision maker contacts and production chemical background

• Sales & Technical Support

• HCD provides essential technical and marketing support to help our distributors meet their goals

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HCD Strategic Priorities – Progress in 2021, Continued Focus in 2022
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Add New and Strengthen Existing Distributors and Agents Increase Focus on Direct Sales Efforts Accelerate Trials and Leverage Wins Wax Flow Loop Screening to Drive Critical Opportunities Complete Necessary Chemical Registrations and Approvals

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Summary of Distributors and Agents
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HCD Awarded Paraffin Control Business Following Successful Cooper
Basin Trial
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Hydrocarbon Dynamics Limited has been awarded the paraffin control chemical treatment business for 30 wells with receipt of a follow-up order from Santos in the Cooper Basin. The order follows a successful trial on 3 wells during the 2021 winter season.

Highlights

• With superior technology and performance, HCD has supplanted the incumbent chemical supplier, one of the world’s largest oilfield chemical companies.

• HCD concluded a successful 6-month paraffin control trial on 3 of Santos’ most challenging wells in the Cooper Basin.

• 250 ppm of HCD Multi-Flow achieved the key objectives of mitigating down time and production loss issues stemming from paraffin build-up and subsequent high-pressure trips.

• HCD to capitalize on this win with other producers in the region.

	Results of 6-month Trial on 3 Production Wells	Results of 6-month Trial on 3 Production Wells	Results of 6-month Trial on 3 Production Wells	Results of 6-month Trial on 3 Production Wells	Results of 6-month Trial on 3 Production Wells
	Year		Chemical	Downtime (days)	Oil Loss (bbl)
	2019	Competitor		76.5	4681
	2020	Competitor		49	2656
	2021	HCD Multi-Flow		2.8	88

• Downtime was reduced by 94%.

• Oil production losses were decreased by 97%.

• Increased revenue from reduction in lost production

• Lowered operating costs.

• Improved operational efficiency and safety by reducing the complexity of the paraffin control program by eliminating the struggle to restore production.

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Direct Sales Highlights and Current Priorities
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HCD are ramping up its direct sales efforts while continuing to drive our distributor strategy to accelerate closing trial opportunities and transforming those into ongoing business.

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Distributor Highlights and Current Priorities
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HCD remains dedicated to driving its distributor strategy by pushing & strengthen the existing distributor base while adding new ones that are critical to growth.

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Distributor Highlights and Current Priorities
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HCD remains dedicated to driving its distributor strategy by pushing & strengthen the existing distributor base while adding new ones that are critical to growth.

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Summary of Testing Milestones
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Laboratory testing remains a crucial part of HCD’s product development and marketing. The company must comply with applicable regional chemical regulations and meet regulated treatment application approvals to be permitted to market and apply its chemistries in these circumstances.

HCD has achieved the following critical approvals, certifications, and registrations:

• Gas-Lift Certification – this certification is required in order to inject chemical into a gas-lift well. NVR Thermal Stability Test is utilized to simulate elevated temperature conditions in solvent stripping environments while evaluating the mobility and thermal stability of the product for gas lift applications and qualification for chemical injection via capillary string.

• Capillary String Qualified – required to inject chemical down a Capillary String. The NVR Thermal Stability Test is utilized.

• REACH Registered – is a regulation of the European Union, adopted to improve the protection of human health and the environment from the risks that can be posed by chemicals. All chemicals entering the EU must be REACH registered. HCD chemistry is REACH registered.

• UK REACH Registered – is a REACH regulation for the UK. HCD chemistry is UK REACH registered.

• Umbilical Approved – required to inject a chemical down an offshore umbilical. To achieve approval, a chemical must meet pass the tests prescribed by Operator for their specific umbilical conditions and includes tests such as cleanliness, stability, viscosity, and cold centrifuge. HCD Multi-Flow has been umbilical approved for our North Sea offshore trial opportunity.

• Wax Flow Loop Testing – Wax Flow loop testing has been utilized and shown to be the best indicator of HCD chemistry capabilities in laboratory testing as it best simulates field conditions. HCD LTD will be focusing on this lab testing procedure moving forward.

As a final step to trialing our HCD is currently working towards Cefas registration which is required to be able to inject chemicals in North Sea offshore assets. The testing includes partitioning testing and toxicity testing.

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Advancing Crude Oil Mobility

Thank You

Advancing Crude Oil Mobility

Appendix

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Differentiated Technology To Move Oil
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Viscosity Reduction

• The mechanism utilised is entirely different to conventional PPD’s in that PhaseShift technology works by electron sharing with like molecules (wax, asphaltene etc) through molecular repulsion between the aggregated hydrocarbons in long chain molecules

• This reduces the Van der Walls attractive forces between the waxes responsible for corresponding molecular attraction

• Pour Point Depressants (PPD’s) utilise the polymer-wax interface to halt or hinder wax crystallization -> typically very narrow in their applicability, and challenged by High MW n-paraffins

• HCD PhaseShift technology can therefore be used to remediate (liquefy) existing deposits as well as prevent (inhibit) the formation of new deposits.

• This technology will also reduce crude viscosity chemically and can increase API Gravity.

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Production Facilities- Phoenix
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• Production & storage facilities in Phoenix Arizona. Also storage facilities in Malaysia

• Current capacity is 10,000 drums/year. Could be lifted to 20,000 with additional staff

• Simple automation of facility could swiftly bring capacity to 130,000 drums/year (24 hours/day)

• Existing stock of ~ 380 drums of HCD Multi-Flow®

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Testing Implications on Dosage Rates
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• Tests and trials indicate dosage rates of HCD products for use in pipelines and continuous down-hole applications on viscous crudes are typically between 250 - 750 ppm

• Tests and trials indicate dosage rates of HCD products for use in heavy, extra heavy and viscous crudes are in the 1,000 – 2,000 ppm range

• Dosage rates will always vary considerably depending on individual applications and oil composition

• New product range and pricing to be confirmed before June 30[th] but indicative cost to producers for baseline product follows:

	Multi-Flow Dosage Rates (ppm)	250	500	750	1000	2000
	End User Cost/bbl of oil treated (US$)*	$0.36	$0.72	$1.08	$1.45	$2.90

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* Based on the North American recommended retail price of HCD standard Multi-Flow. Other MF based products will have different pricing
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Field Trials
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Lab & Bench-Top Success- Seeking Field Trials	Lab & Bench-Top Success- Seeking Field Trials	Lab & Bench-Top Success- Seeking Field Trials
PROJECT	LAB RESULT	STATUS
Gulf of Mexico USA # 1	Oils showed large reduction in viscosity and API increase	Postponed offshore trial in 3 undersea flowline wells (1300BOPD) at MF feed
		rate of 250-2000 ppm (40 drum trial)
Gulf of Mexico USA # 2	As above	Trial postponed until field success elsewhere demonstrated
CNRL (Diluent) (Canada)	Viscosity Reduction 90% @40C	Awaiting a trial (COVID DELAY)
Petro China (Diluent reduction	Well AD05 Viscosity Reduction 90% and API increase 7.01-8.98	Awaiting approval for trial (COVID DELAY)
Canada)	Tested at 15C/40C
Nexen SAGD Crude (Diluent Canada) (72,000 BOPD)	API increase 5.5 to 19.3 with 50/50 Blend of Diluent/crude &	Will pursue after industry conditions improve
	1000 PPM MF
Valkor (Trinidad)	Results on other Valkor oils sufficient	Well cleaning for 5 wells. Potential for hunderds of wells (1-2 drums/well.
		Goal is to replace “Hot Oiling”
Valkor (Unita Basin)	Success in liquifying yellow & black waxes	Expecting ~6 drum order for trial. Potential for 250 drums/month
Valkor (Ukraine)	Results on other Valkor oils sufficient
Colombia (SELVA)– oil from 10 wells tested & 1 tank	Many tests on many fields/wells and tanks API increase in all at	Awaiting Colombian distributor
tested	least at least 1.2 API units
ADOC 45,000 bopd pipeline, Abu Dhabi	Liquefied paraffin-rich sludge with slight agitation	Proposal Submitted
NESL (Belarus tank cleaning) (8-350,000-barrel tanks on site	Distributor reports successful testing on sludge reliquification	Distributor made inquiry for 182 drums in mid- May. Proposal submitted (PO
all require cleaning)	(Bench Test)	PENDING)
Colombia well 713 (CRC Montalvo/Grubb)	Lab reports MF inhibits deposition of asphaltenes and	Awaiting Colombian Distributor
	paraffin.
Quifa Field (Colombia)	API increase 13.4-14.7 . Viscosity drop 50%, BS&W drop 50%	Awaiting Colombian distributor for next step	21

Distributors and Agents
Company Name	Region	Country / Area
Imperative Chemical Partners	North America	North America
Platinum Chemical Services	North America	Western Canada
OG Chemical	North America	Colorado
New Agent	North America	Houston,Texas
Perfex Chemical Solutions	North America	Oklahoma & Wyoming
Striker Hydralink	North America	US & Europe
AZT Glogal LLC	North America	Western Canada
Chemics	North America	Western Canada
Iron Horse Group	North America	Western Canada
Smart Chemical Services	North America	Texas
Deepwater Technical Services	North America	Gulf of Mexico
Creedance EnergyServices	North America	North Dakota
United Hydrocarbon Solutions(FormerlyTrimor)	North America	Southern Texas
Element & SharpInternational Svcs	North America	Houston,Texas
Dorf Ketal	India/South Africa	India/Brazil
Miridual Pathak	India	India
Ciel EnergyFZCO	Dubai	Middle East/Africa/Iraq
New Dubai Based Distributor	Dubai	Middle East/Africa/Egypt
GGCD	Middle East	Middle East
Qinghua	China	China