Matt BARCLAY Director, Energy Resources Group

1. Mini-to-Medium Scale LNG – A Profitable & EnvironmentallySustainable Solution for Flared or Stranded Gas Matt BARCLAY Director, Energy Resources Group

2. Presentation overviewThe Agenda • Introduction to Prometheus Energy • Small-Scale LNG Production from Flare Gas or Non-Conventional Sources • Applicable Purification & Liquefaction Requirements • Why Small-to-Medium Scale Projects Work & What’s Driving the Market • Niche LNG Market Opportunities & Future Demand Sources • Summary & Conclusions

3. Prometheus Energy CompanyCompany Background • Vertically Integrated LNG Production and Supply Company • Design, Own, Operate LNG Project Development Capabilities • LNG Supply to Vehicle, Industrial and Utility Customers • Non-Traditional LNG Supply Sources • Landfills, Coalmines, Associated Gas Wells & Digesters • Corporate Offices in Seattle & London • Publicly Listed on London Stock Exchange (PEC.L)

4. What is small-to-medium scale LNG?An Overview of the Existing Market • Numerous Small/Medium Scale LNG plants in operation around the world • Plants sized for 2.5-100M scf/d • Produce between 1/50th and 1/500th the capacity of global-scale liquefaction facilities • Niche Market Supply Focus • Utility Peakshaving • Over 100 production/storage sites in US • Other LNG Production Sources • NRU’s and/or Liquid Helium Plants • Non-Conventional LNG Plants (Prometheus)

5. Non-conventional Gas Source ComparisionA Comparision of Component Concentations and Other Properties

6. Trace Contaminants Filtration Chilling; Phase change Absorption Water Chemical Solutions Liquid CO2 Adsorption Activated Carbon/Zeolites Batch or Regenerative TSA PSA CO2 Removal Water scrubbing Chemical Absorption Amines of various types Cold methanol Adsorption (PSA) Membrane Cryogenic Distillation using ethane Freezing with sublimation Nitrogen Removal Phase equilibria Batch or dynamic Technologies For Gas PurificationA Suite of Technologies Exist for Gas Clean Up

7. Distributed Scale LNG ProductionA Solution for Otherwise Flared or Stranded Gas

8. Bowerman Landfill Gas-to-LNG ProjectProject Application: A 11M Scf/Day Flaring Reduction Project

9. Existing LNG Vehicle MarketsThe World LNG Vehicle Markets Continue to Grow Refuse Mass Transit Paratransit & Shuttle Vans Heavy Duty Fleet

10. Other Niche LNG Market OpportunitesExisting Applications for LNG Utilization Pipeline Outage Propane & Heating Oil Displacement Utility Peak-Load Shaving Residential supply

11. Source: Tupolev Future LNG Demand ProspectsFuture Utilization in Heavy Fuel Demand Markets

12. Comparision Of Alternative Fuel PricesEconomics Ultimately Drive the Market 53% 59% 46% 19% 47% 41% 40% (GGE) (GGE) (GGE) (DGE) (DGE) (GGE) (DGE) Prometheus Retail LNG with Federal Excise Tax Included GGE: Gasoline Gallon Equivalent DGE: Diesel Gallon Equivalent Other Alternative Fuel Retail Price

13. Air Quality Benefits Of Alternatve Fuel UseReductions in Ground Level Ozone Emissions can be Substantial Ozone Forming Emission Reduction % by Fuel Type and Pollutant Biodiesel 100 CNG, LNG Biodiesel 20 20% +10% +2% 0% -15% -20% -20% NOx -40% PM CO -47% -48% -53% -60% -80% -85% -89% -100% Source: 2005 NREL Technical Report 540-36355; Puget Sound Clean Air Agency Biodiesel Fact Sheet

14. LNG & Related Green House Gas ReductionsThe Use of LNG Can Lead to Lower Greenhouse Gas Emissions • While natural gas vehicles do emit minor amounts of methane, this slight amount of unburned methane is more than offset by a substantial reduction in carbon dioxide emissions compared to other fuels When compared to diesel, natural gas transit buses are shown to reduce greenhouse gas emissions by as much as 37%. Emissions of CO2 & CO2 Equivalent from Model Year 2004 Transit Buses (grams/mile traveled) 3295 3500 3000 2500 2089 1913 2000 1500 1000 + = 500 176 0 CO2 Emissions CO2 Equivalent of Unburned Methane Emissions CO2 Emissions from 2004 Diesel Transit Bus Net CO2 Equivalent Emissions from 2004 Natural Gas Transit Bus Source: 2005 NREL Technical Report 540-36355

15. 7,600 standard cubic feet per minute (scfm) Total Equivalent Emissions Reduced [Total = Direct + Avoided] MMTCO E/yr tons CH /yr tons CO /yr 2 4 2 million metric tons of carbon tons of methane tons of carbon dioxide equivalents per year per year dioxide per year 0.8995 42,242 104,461 Equivalent to any one of the following annual benefits : Environmental Benefits 173,957 • Removing emissions equivalent to __ vehicles: 247,888 • Planting __ acres of forest: 2,109,687 • Preventing the use of __ barrels of oil: 99,155,286 • Displacing the use of __ gallons of gasoline: Bowerman LNG Project Emissions BenefitsThe Beneficial Use of Flared Gas can have Substantial Environmental Benefits • Emission Reductions and Environmental and Energy Benefits for Frank R. Bowerman Landfill Gas-to-LNG Project

16. Presentation Conclusion And Key FindingsWhere Does the Market Go from Here? • Continued strong world-wide growth of LNG supply & demand • Market growth driven by economic & environmental factors • Growing use of LNG in the transportation fuel market • New, much larger NGV markets for 400+ HP NG engines • New global role for LNG produced from stranded or waste gas • Look for over 100 small/medium LNG projects to develop in next 10 years and for non-traditional sources of supply to play a significant role