As a logical extension to the DGWS technology, DHI has researched and developed a downhole three-phase separation technology that separates water, oil and gas if present. This DTPS technology has been successfully tested and proven in a laboratory and mathematical model. The first DTPS prototype has been manufactured and is awaiting deployment to a test well. The concept behind this technology is very similar to DHI's DGWS technology. The DTPS system hinges on 90% of the proven DGWS technology. DHI believes that DTPS will be ready for commercial deployment in late 2004.

The amount of economically recoverable oil and or gas reserves can be increased through use of downhole three-phase separation (DTPS) technology. Such systems allow oil and or gas to be physically separated from water in the same wellbore while simultaneously injecting the water into a suitable geologic disposal zone below. A small and controlled volume of water is produced to the surface with the oil and or gas. Use of this technology will reduce or eliminate many of the economic and environmental problems associated with water produced to the surface.

Water, co-produced with oil and gas adversely affects the economics of oil and gas production in a variety of ways if, as is conventionally the case, that water must be brought to the surface for processing and disposal. However, DTPS technology is a potential candidate whenever water, co-produced with oil and gas, adversely affects the economics of the oil and gas production and where this economic burden is sufficient to discourage and/or limit the commercial development of oil and gas. Beyond the issue of economics are the adverse environmental effects conveyed by conventional surface water processing and transportation methods. These issues have a particularly large impact in remote basins. Such basins contain environmentally sensitive natural areas and have more limited access to affordable surface water handling options.

Comprehensive specifications are available to qualified customer candidates upon request.