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1 Confidential Sub-One Technology January 21 st , 2008 InnerArmorā„¢ Overview PDF created with pdfFactory trial version www.pdffactory.com

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1Confidential

Sub-One Technology

January 21st, 2008

InnerArmorā„¢ Overview

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2Confidential

Problem

ā€¢ Internal corrosion, erosion and wear of ā€“ surface piping, downhole tubulars, chokes, valves,

pumps, and other subsea and downhole equipment

costly downtime, maintenance, and repairā€¢ Existing internal coatings are often ineffectiveā€¢ Exotic high performance alloys are very

expensive and backlogs cause significant delays in ramping production

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InnerArmorā„¢ coatings:Ā§ super hard

Ā§ high performance

Ā§ thin films

on the internal surfaces of products from large diameter industrial piping to small components.

Solution - Sub-One Technology

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4Confidential

Coatings - Adjustable in these key areas:ā–Ŗ Thickness ā–Ŗ Wear Resistanceā–Ŗ Hardness ā–Ŗ Corrosion Resistanceā–Ŗ Adhesion ā–Ŗ Erosion Resistance

InnerArmorā„¢ Technology

InnerArmorā„¢ process deposits high performance coatings:

Ā§Diamond-Like Carbon (DLC)Ā§Titanium CarbideĀ§ANY material that we can ionize ā€“ we can make coatings

InnerArmorā„¢ process can:- Customize performance- Create composite coatings

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S Tube Cross Section Video

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Process ā€“ Plasma Inside Part

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InnerArmorā„¢ - Machines

CS10(Up to 10 Foot Capacity)

CSL40(Up to 40 Foot Capacity)

* In Assembly

InnerArmorā„¢

Coating Machines

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InnerArmorā„¢ - Typical Composition

ā€¢ Structure: Mixture of sp3 (diamond) and sp2 (graphitic)

ā€¢ Deposition Temperature: <200Ā°C

ā€¢ Coating Finish: Identical to Substrate

ā€¢ Hardness (Vickers) : 1000-3000 (adjustable) - (carbon steel = 217)

ā€¢ Modulus: 100-180GPa (adjustable) - (carbon steel = 200GPa)

ā€¢ Adhesion: > 30N

ā€¢ Wear: < 5e-07

ā€¢ Friction Coefficient: <0.08

ā€¢ Coating Thickness: Adjustable up to 80 Āµm

ā€¢ Working Temp: 400Ā°C; 600ĀŗC with doping

ā€¢ Chemical Resistance: Chemically inert i.e., No reaction with acids or

alkaline

Most InnerArmor coating properties are tunable to meet specific application

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InnerArmor Film StructureCross Sectional SEM40 Āµm thick Multi-layer Coating on 304SS

Confidential Information

ā€¢ Silicon adhesion layer for good chemical bond to substrate and to DLC cap

ā€¢ Inert, amorphous, dense, pinhole free, dense coating ā€“ high corrosion resistance

ā€¢ Layered structures possibleā€“ Stress reductionā€“ toughness & ductility

ā€“ Surface property enhancement

ā€¢ Electrically insulatingā€¢ Structure can be designed

for end application

Surface

SteelSilicon

Silicon Carbide

Silicon Carbide

Diamond-like Carbon

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InnerArmorā„¢ - Coatings

1. InnerArmorā„¢ Super Hard

Optimum wear resistance (dry or in oil) including applications such as reciprocating pistons.

2. InnerArmorā„¢ Hard

Superior for mud or water wear applications, including reciprocating pumps.

3. InnerArmorā„¢ Erosion

Thick coating for applications requiring maximum abrasion and erosion resistance, such as down-hole tools with high velocity sand particle flow.

4. InnerArmorā„¢ CorrosionPatented multi-layer defect free structure protects the component against corrosive and aggressive media including acids, salts, hydrogen sulphide (H2S).

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Todayā€“ Interiors of conductive substrates (carbon steel, stainless

steel, nickel, aluminum, titanium, etc.)

ā€“ 0.375 in - 24 in ID

ā€“ 8 -12 ft long

ā€“ Aspect ratio (length:diameter) up to 50:1

ā€“ 5 to 80 Ī¼m thick

ā€“ Multiple entry points and shapes

Futureā€“ Length: 40 ft long

ā€“ ID: Several feet

What We Can Do Today vs Future

Confidential Information

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Corrosion Performance

Substrate: 1020CSAdhesion: >30NHardness: 12 GpaThickness: 65 um

Post Exposure Holiday Test: PASS

Test Conditions

ā€¢ Temperature = 300Ā°Fā€¢ Pressure = 5000 psiā€¢ Duration = 3 days

ā€¢ Aqueous Phase: 5% NaCl Brineā€¢ Hydrocarbon Phase: 100% Xyleneā€¢ Gas Phase: 1% H2S + 85% CO2 + 14% CH4

Gas phase

Hydrocarbon Phase

Aqueous Phase

Indent AFTER Autoclave Test

Sour Autoclave (NACE MR-175)

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Corrosion Performance

Test Conditions:Ā§ Concentration: 18% HClĀ§ Temperature: 200FĀ§ Duration: 8 hours

Substrate: CS1020Hardness: 10GPaAdhesion: >30NThickness: 65um

No Damage

InnerArmorā„¢ Protected

Substrate : Coated CS1020

Substrate : Uncoated CS1020

Hole thru the pipe wall

Hot HCl - CS1020

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14Confidential Confidential Information

Instrument ā€“ Tribometer

ā€¢ ASTM G133-02, Linearly Reciprocating Ball-on-Flat Sliding Wear

ā€¢COF = resistive force/normal perpendicularforce

200X

Sample of wear track using crude oil Bare steel

Sliding Wear Test

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InnerArmorTM Wear Performance

10X Improvement

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ā€¢ Substrate: 13Crā€¢ Corrosion Resistance:

Excellentā€¢ Hardness:15 GPaā€¢ Thickness:23 Āµm

No abrasion damage on surface

Test conditions:ā€¢ Abrasive: Al203ā€¢ Abrasive Discharge: 2 gm/minā€¢ Velocity: 30m/Secā€¢ Angle of impingement: 90 deg

ā€¢ Duration: 10 minutes

ā€¢ Substrate: 316SSā€¢ Corrosion Resistance:

Excellentā€¢ Hardness:12 GPaā€¢ Thickness:70 Āµm

No abrasion damage on surface

Test

Coating Performance: Erosion

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Impact Resistance

Impact Test :Ā§ 34 micron thick coatingĀ§ Substrate ā€“ Stainless steelĀ§ 30mm stainless steel ball dropped on coated specimenĀ§ Impact with one joule of kinetic energy

Viewed atā€“ 200x magnification No cracks or de-lamination observed

Viewed atā€“ 10x magnification No cracks or de-lamination observed

Impact Crater

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Test condition:ā€¢ Substrate placed in mechanical vise and compressed to open substrate to almost a flat condition.

ā€¢ Properties of coating:

ā€¢ Substrate ā€“ SS316

ā€¢ Hardness= 14 GPa (HV1400)

ā€¢ Modulus= 104 GPa

ā€¢ Coating Thickness = 12Āµm

ā€¢ Adhesion = 20N

Sample size = 2.5ā€ x 2.5ā€

Can a super-hard coating have ductility?Bend Testing

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InnerArmorTM Flex-DLC

Impact crater

Flex-DLC Performance:Ā§ Hardness = 20 GPaĀ§ Thickness = 12ĀµmĀ§ Wear rate = 3.9E-07 mmĀ³/Nm with 25N loadĀ§ COF = .01 with 25N load

Bend-ability of InnerArmorTM Flex-DLC on stainless steel foil

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EndUser

Business Model

Global Provider Network

NEED

SERVICES

SOLUTION

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Summary

ā€¢ Developed a proprietary PECVD coating process for interior surface coatingā€“ Hollow cathode plasma processing enables thick (70Āµm) barrier type

DLC films on internal surfacesā€“ High deposition rate and low stress filmsā€“ Other coating materials and multilayer coatings possible

ā€¢ Imparts array of ā€˜tunableā€™ surface propertiesā€“ Excellent wear and COFā€“ Corrosion resistantā€“ High hardnessā€“ Toughness

ā€¢ Simple and automated commercial coating systemsā€“ Safe and environmentally benign chemistry

ā€¢ Qualifying applications for oil/gas industryā€“ Applicable to a variety of markets

ā€¢ Size scale up and joining remain as challenges

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22Confidential

Thank YouContact: Dr. Mark J Gore

Sub-One Europe Ltd1 Berry StreetAberdeen AB25 1HF ScotlandO: +44 (0)1224 841314F: +44 (0)1224 841301M: +44 (0)7769 [email protected]

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