CALGARY, June 14, 2012 /CNW/ - In July 2009, E-T Energy Ltd. (E-T Energy or the Company) commenced the application process (the Application) with the Energy Resources Conservation Board (ERCB) requesting approval for a 10,000 barrel per day commercial project at Poplar Creek (the Commercial Project). The Application included data from E-T Energy's previous field-testing of the electro-thermal dynamic stripping process (ET-DSPTM), but did not include the results of the current field test (the Step 3 Field Test), which is ongoing. Step 3 is the most significant test the Company has undertaken to date. E-T Energy has had several discussions with the ERCB and has responded to several rounds of supplemental information requests, with the last formal submission to the ERCB being made on March 5, 2012.
On June 12, 2012, the ERCB rendered a decision that "based on the limited production data available to date, the ERCB was of the view that E-T Energy has not demonstrated to date that ET-DSP™ is capable of obtaining or sustaining commercial bitumen production rates." The ERCB encouraged E-T Energy to continue testing the technology and noted that the ERCB decision does not preclude E-T Energy from reapplying as future performance data from Step 3 demonstrates commercial viability.
Management accepts the ERCB's assessment and looks forward to re-filing a commercial application for the 10,000 barrel per day Commercial Project as more data becomes available from Step 3. While Step 3 continues to progress, the recovery factor and the energy/oil ratio required to produce bitumen will not be established until later this year or early next year. In light of the recent decision by the ERCB, the timing of the Step 3 results, and weak capital markets, management will be considering other alternatives including a smaller project building upon the existing Step 3 Field Test surface assets.
About E-T Energy Ltd.
E-T Energy is a private, Calgary-based company focused on bitumen extraction from the oil sands and heavy oil recovery through the use of the proprietary, efficient, and environmentally friendly ET-DSPTM process. E-T Energy is currently field testing the ET-DSP™ in the Athabasca Oil Sands in Alberta. The ET-DSPTM process offers several advantages that will make it the technology of choice for a significant quantity of bitumen and shallow heavy oil resources that currently do not have a suitable extraction method. These advantages include: an established technology, minimal water use, rapid recovery of affected lands, lower energy use, and substantially reduced greenhouse gas emissions.
For further information:
on E-T Energy, please call Trevor Roberts at 403-264-9431 ext.499 or Peter Johanson at 403-264-9431 ext.484.