Market Overview

Hexion Announces New Proppant Flowback Control Additive

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The Oilfield Technology Group (OTG) of Hexion Inc. (Hexion) today
announced its new proppant flowback control additive for the oil and gas
industry.

Proppant flowback occurs when well production carries unbonded proppant
out of the fracture. This has detrimental effects on the success of a
well by causing frac width reduction, wellbore deposition, pump
destruction, and surface equipment damage.

With the evolution of completion designs leveraging longer lateral
lengths and increased proppant intensity, proppant flowback control has
become a critical challenge. In some cases, conventional solutions do
not provide the cost-benefit ratio operators are looking for when
addressing proppant flowback.

Hexion's PropShield™ proppant flowback control additive is an economical
liquid agent developed specifically for uncoated frac sand completions.
This unique solution is applied at the blender tub on location using a
standard liquid additive pump and is suitable for all sand mesh sizes.
The PropShield additive is compatible with most commonly used fracturing
fluids and is effective at bottom-hole temperatures ranging 90°F-275°F.

"This new solution provides our customers with a cost-effective way to
treat proppant flowback, a significant source of cost due to downtime
and equipment repairs," said Jerry Kurinsky, Senior Vice President and
General Manager, OTG. "Early adopters have found the product to be very
effective in the Permian Basin and elsewhere."

Compared to nearby offset wells, a user in the Permian Basin experienced
50% less proppant returned during drillout and over 80% less proppant
flowback once the wells were put in production. "The well in which the
PropShield additive was utilized produced half the sand that the offset
well produced during drillout," said the completion manager at
Centennial Resource Development, Inc. "The flowback phase yielded
positive results as well. The well using the PropShield additive
averaged 0.5 to 3 gallons/hour of sand recovered, while the offset well
averaged 6 to 8 gallons/hour of sand recovered. We were very pleased
with the results and will continue to evaluate the PropShield additive
in various areas across our acreage," he added.

About Hexion's Oilfield Technology Group

Hexion's Oilfield Technology Group is a leading provider of innovative
technologies for the oil and gas industry. We offer well stimulation
solutions with our advanced resin-coated proppants and a variety of
performance additives for oilfield applications. Our products also
include production chemicals such as hydrogen sulfide scavengers for
crude oil and natural gas production. Hexion is committed to enhancing
its industry leadership and meeting its customers' specific application
needs with a total solutions approach of quality products and services.
Additional information is available at www.hexion.com/oilfield.

About the Company

Based in Columbus, Ohio, Hexion Inc. is a global leader in thermoset
resins. Hexion Inc. serves the global wood and industrial markets
through a broad range of thermoset technologies, specialty products and
technical support for customers in a diverse range of applications and
industries. Hexion Inc. is controlled by investment funds affiliated
with Apollo Global Management, LLC. Additional information about Hexion
Inc. and its products is available at www.hexion.com.

®, ™ and SM are trademarks owned by or licensed to Hexion Inc.

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