VANCOUVER, June 14, 2017 /CNW/ - A new oil technology has just unlocked an extremely shallow field that is brimming with heavy oil in Texas, that was previously deemed impossible to recover—until now.
After multiple oil companies have spent several millions of dollars in an unsuccessful effort to unlock the Wardlaw field, the developers of a new technology designed to maximize production potential from challenging geology and conditions, seem to have cracked the code.
Unlike previous attempts to unlock this prolific field involved expensive steam injections, the new technology uses a combination of waves and vaporization to produce at extremely competitive and economically advantageous rates.
While steam injections can cost upwards of $50 per barrel, this new technology produces oil at a cost of under $10 per barrel—an astounding advantage that could withstand even an oil price crash not seen since the late 90s.
Through an update earlier today, Petroteq Energy (TSX-V: PQE)(OTCQX:PQEFF) announced the first sale of oil from the Wardlaw field, which is operated by Accord GR Energy Inc (a private company, 46%-owned by Petroteq), and being developed with the cooperation of Galex Energy Corporation.
The commercial sale marks the success of the S-BTF process (developed by Galex), which incorporates a combination of technologies, including the wave-involved SWEPT technology, and the vaporization technology S-BRPT.
ECONOMIC GAME CHANGER
The Texas Permian Basin has produced oil for nearly a century, but while billions of barrels have already been produced from this oil giant, geological assessments show that there are still billions more waiting to be pumped.
The Wardlaw field, located in Edwards County, Texas, is a prime example of how major technological advancements can achieve what was previously thought to be impossible.
A wide variety from small private companies to majors took turns investing multi-millions of dollars into the Wardlaw, only to come back frustrated with no significant production to date.
Wardlaw's challenges involved no water, gas or other drive mechanism in the zone, the formation pressure was abnormally low, and the oil was too viscous.
Over 130 wells have been put into production on the property, but all came with extremely low production rates. Due to lowered oil prices, and high costs of production, the previous operators suspended production in 2015, due to economic shortfalls.
The oil is known to be there, but the previous stewards barely seemed to make a dent.
They tried everything, from steam injections, to water flooding with surfactants to produce the oil. They never could find the breakthrough.
Until Galex Energy partnered with Petroteq Energy (TSX-V:PQE)(OTCQX:PQEFF) through Accord GR Energy (which is 46%-owned by Petroteq) applied S-BTF successfully, and saw major improvement on production at a far lower cost per barrel than the Wardlaw had ever achieved.
Visionary Petroteq was the force behind the founding of Accord, which lead to the acquisition of the Wardlaw field, and to partner with Galex and its game-changing S-BTF technology to unlock it.
100 MILLION BARRELS
The Wardlaw field is a 7,000-acre shallow oil field, awash with heavy oil and proven reserves estimated to contain more than 100 million barrels of oil in place.
Now under the control of Accord GR Energy, the Wardlaw field and its 130+ wells that have already been drilled, but can be further optimized, will start to draw attention from majors for its ability to produce oil at a massive discount.
Being able to produce a barrel of oil for less than $10 per barrel is practically unheard of today.
But, the S-BTF process keeps production costs low, by implementing impulse waves through SWEPT, which improves many of the factors that restrict flow, and S-BRPT, which uses a thermobaric process to vaporize and resynthesize hydrocarbons at the wellhead. Through the combination, there is a significant reduction of input costs, and a sizeable increase in production.
Across North America, the majors will be taking note, as they too still have access to fields like Wardlaw in the Permian Basin, which could be very economic with the right technology.
The leading Permian Basin players today are Occidental Petroleum, Chevron, Apache, ExxonMobil, and Concho Resources.
The importance of the Permian Basin is once again growing, now that the methods of unlocking trapped oil and gas are starting to emerge. The successes of S-BTF will be noted in the days to come.
Disclaimer: This editorial report should not be taken as investment advice. The author of this editorial content is third-party and not the opinion of the company. A fee has been paid for the distribution of this report. Always advise a broker before making any investment decisions.
Cautionary Note to Investors
The U.S. Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. The author of this article – based on information provided by Petroteq or Accord, its affiliate, may use certain terms in this article such as "reserves", "recoverable reserves", "estimated reserves" and other similar terms that SEC rules and guidelines strictly prohibit Petroteq from using or including in filings with the SEC. Use of such terms – though believed to be reasonable in nature – do not take into account the certainty, timing or cost of resource recovery, which is contingent on exploration, drilling and production success, the successful application of the Technologies and technological improvements, both in drilling and in production, commerciality, and economic feasibility and efficiencies and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully any disclosures that may be made from time to time in Petroteq's Annual Report. A fee was paid for the distribution of this report. This is not a solicitation for investment. Investors should always consult an investment advisor before making any trading decisions.
SOURCE Petroteq Energy Inc.