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Introduction to EER for Investors. Company Overview. Key Personel and company structure. About the BRRTM Process. Competitive Advantages. Business and Profit Model: Revenue Streams.
EER’s business model includes three main revenue streams.
Primary Revenue Stream - Marketing to “Exhausted Wells"
An average oil well only extracts between 30-35% of available crude oil – the remainder is unattainable, or not profitable to obtain, because of composition, or paraffin content, which can make it uneconomic to refine into usable petroleum.
The BRR™ process is an enhanced microbial recovery system (MEOR) which uses bio-surfactants and “live” concentrates to breakdown the restrictions to mobilization, and treat substances like sulphur and paraffin that can restrict the value of further oil extraction. The market for this technology and formula on exhausted wells is immense.
Heavy crude oil reserves in “exhausted” oil wells represent over a trillion barrels of converted conventional crude – with the current price of over $90/bbl, this represents a minimum of $90,000,000,000,000 in currently undrillable crude.
Oil Production – an increasing demand to re-stimulate production:
- There are over 1 million oil wells in over 70,000 oil fields with significant reserves un-utilized, representing over a trillion barrels of converted conventional crude if it was drillable
- 90% of the oil produced comes from wells that are over 20 years old, and 70% from wells that are over 30 years old
- For every four barrels used, only one new barrel is found and therefore there is an ever-increasing demand for enhanced techniques for recovery of crude oil from currently “exhausted” oil wells
The BRR™ process is approximately $12/bbl, in addition to ingredients, delivery and engineering – this is significantly less than new resource discovery, and is usable for land and well owners that are sitting on unobtainable profits.
Secondary Revenue Stream -
Position and Sell as an Environmental Alternative to Hydraulic Fracturing or Fracking. Fracking is a process in which water, sand and chemicals are shot underground to break apart rock and free trapped natural gas.
The chart above shows the current expansion of the US fracking market – with fracking wells growing from 13,355 to 45,400 over the last year alone and a market expansion of 2300% over the last ten years.
EER Ltd will systematically market to companies using fracking technologies, offering the use of biodegradable active ingredients over chemical additions to frack water.
Oil consumption continues to rise around the globe, and while developments in energy efficiency progress to temper climate change and equalize supply and demand of this limited resource, the fossil fuel market will continue to be extremely luctrative for the foreseeable future...
EER Ltd is poised to be the solution to pave the way for policy and public acceptance of advanced drilling methods as a biodegradable alternative to the chemicals used in fracking, in addition to making new reserves accessible that were otherwise thought too expensive to drill.
The domestic energy demand trajectory is positioned steeply upwards, with enormous financial opportunity. The trajectory changed course because of technological advances, with the environment standing as the looming policy and public barrier. The environmentally friendly characteristics of BRRTM positions this product to capitalise on strong consumer sentiment around environmental issues and especially fracking.
In addition to fracking and exhausted wells, there are huge untapped resources waiting on policy decisions to steer drilling efforts. Most significantly, the California Monterrey Shale is believed to have 15.4 billion barrels of crude that can be drilled by enhanced recovery methods, and the state’s environmental regulatory entity is making decisions now on accepted drilling methodologies, while corporate entities weigh options on extraction.
Investing with EER Ltd is an opportunity to invest in the oil market at a time when these circumstances are converging. This is a conservationist profit model staking a claim in the immense potential of US oil, the future of the environment while selectively choosing international business partners.
The EER Product range of microbial enhanced oil recovery (MEOR) includes solutions for:
1. Oil Fields
- Remediation of existing heavy crude
- “Cleaning” of in-situ equipment
- De-paraffining etc
3. Pipe Lines
- Spill management and cleaning of oil-lines, pipes, and infrastruture
- Improved oil transmission along pipe-lines
- Less energy costs / more efficiency / faster flow
4. Land and sea oil slicks
- Ecologically safe, bio-degradable products specifically tailored for sea-born or land-in filtered hydrocarbon-based spills
5. Other Oil Industry Pollution clean-up: Any hydrocarbon-based spills. i.e.:
- Transformer oils
- Pipe-line breaks
- Industrial areas using oils and fuels
- Storage tank cleaning and remediation
- Tanker ship bunker remediation
6. Certificates of Conformity & Approvals
- (USA) FEMA-approved
- (California) EPA-approved
Where can it be used?
1. Anywhere that the oil production yields are reducing – due to…
- reduction, or loss, of natural pressure
- reduction, or obstruction, of remaining oil reserves
- environments where production could be enhanced by cleaning/clearing infrastructure, reductions in porosity due to build up of paraffin or scale superior enhanced recovery method.
2. Any field where the infrastructure is still in place…
- as a value add to the Fracking process
3. Most fields where peripheral wells offer an injection capacity…
- allowing for sweep of the oil towards central extraction point/wells heat in the well is below 200 C
EER Ltd is committed to identifying and developing environmentally sustainable ingredients that can be used seamlessly in currently popular enhanced oil recovery technologies within the oil industry.
The active ingredients of BBRTM can be used as an alternative to chemical substances currently used in hydraulic fracturing (or fracking as it has become known).
Hydraulic Fracturing, or "Fracking"
Fracturing of rock layers by pressurized fluid and chemicals through rock using a horizontal drill.
(‘Fracking’ can be used in conjunction with the BRR™ Process – significantly increasing effectiveness, and reducing environmental impact.)
Injection of CO2 to add a pressure differential that moves the oil towards an extraction point.
|Requires an expensive and specialized infrastructure.|
Steam and Hot Water
Injection of steam and hot water to mobilize oil by decreasing its viscosity.
|Costly to exploit, requires an expensive infrastructure with unreliable results.|
|Chemical “Sweeping”||Mobilizes oil by “sweeping” it off the rock face and out of rock cavities.||
Relatively expensive, environmentally tenuous due to chemicals used, requires processing to remove the residuals.
The BRRTM microbial energy recovery process will be positioned as the environmentally friendly and a superior and effective solution to enhanced oil recovery.
Comparative to the above solutions, the BRRTM process offers the following benefits:
- Effective: In trial cases, the BRRTM process produces higher yields, compared to the average 10-15% netted from alternative enhanced methods.
- Cost efficient: BRR uses existing on-site (or in situ) infrastructures for distribution, and therefore does not require additional costly infrastructure to be built.
- Eco-friendly: The bio-surfactants are entirely biodegradable, leaving no trace or the possibility of water contamination.
- Wider range of appropriate well and resource targets
- A more consistent, quantifiable and cost-effective result
- Energy and water efficient
- Uses existing on-site (or in situ) infrastructures
- Totally eco-friendly
- Does not pollute community water resources
This trademarked MEOR process, once injected, contributes to active pressure differentials that facilitates the BRR™ active ingredients to:
1. reach both deep-into, and widely-across the oil-bearing stratum
2. break-down the ionic bonds holding the oil and rock in place. The active ingredients in BRRTM can be used as an environmentally friendly alternative to chemical substances currently used in hydraulic fracturing.
Microbially Enhanced Oil Recovery (MEOR) is the use of microbes in petroleum reservoirs to enhance the amount of oil that can be produced.
The microbes in MEOR are typically hydrocarbon-utilising, non-pathogenic micro-organisms that are naturally found in petroleum reservoirs or are introduced.
As a result of their metabolic activity, the microbes excrete natural and non-toxic bio-products such as alcohols, gases, acids, surfactants and polymers.
These can cause a series of very desirable changes in the physical-chemical properties of the crude.
There is also a marked improvement or a near-complete restoration of the lithological properties of the reservoir rock.
Improving production of Australia’s oilfields
Demand for fossil fuels approaches or even outstrips supply growth.
Despite advances in renewable energy sources and the likely move to a hydrogen economy, oil will remain a key energy source for 20-30 years.
However, globally it’s recognised that it is getting progressively harder to find more oil. Most likely, the majority of the oil provinces and giant oilfields have already been discovered.
The best way to influence oil production and hence Australia’s balance of payments is by improving productivity of known oilfields. Future oil exploration is focussing more and more on difficult targets.
The best way to influence oil production and hence Australia’s balance of payments is by improving productivity of known oilfields.
In 2003 Australia was 75 per cent self-sufficient in oil, but this is predicted to decline to 50 per cent by 2015.
This will contribute to an ever-widening trade deficit.
In mature basins a major component of the addition to reserves is derived from 'reserve growth' (field 'growth'). While finding and exploiting more subtle traps and oil pools in or near existing oil fields is important, as is exploring for oil in new petroleum provinces, Enhanced Oil Recovery (EOR), sometimes called Improved Oil Recovery (IOR) or tertiary oil recovery, will play a critical role in sustaining oil supply from mature fields.
Primary recovery usually only accesses 30 to 35 per cent of the original oil in place (OOIP).
Secondary and tertiary recovery methods may net a further 15 to 25 per cent OOIP, leaving 30 to 55 per cent OOIP left behind as irrecoverable or irreducible oil in the reservoir.
MEOR technology targets this remaining oil and aims to enable production of 80 to 85 per cent of OOIP.
While it is clear that biocatalysis performed by microbes may promote beneficial chemical reactions such as the production of biosurfactants in a very specific and energy-efficient manner, a sound understanding of the underlying principles is important to predict site-specific effects of microbial activity on fluid flow in porous media and hence on the efficiency of oil production.
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Based on EER’s research, there are three main competitors to the BRRTM Process:
- Ongoing new discoveries of oil reserves;
- The use of steam to recover heavy crude oil from exhausted oil wells, employed primarily by the major oil companies; and
- The use of selected specialised nutrients to increase oil mobilisation and movement employed by a US company called Titan Oil, Inc.
The Competitive Advantages of the BRRTM Process v New Oil Discoveries
The BRRTM Process has the following major advantages over new oil discoveries:
- The last major oil fields to be discovered were the Alaskan North Slope (1967), Siberia (1968) and the North Sea (1969) * ;
- Between 1967 and 2005 the world’s largest oil producer (Saudi Arabia) conducted intense oil exploration and discovered only one significant oil field * ;
- There are 58 countries producing less oil today than in the past due to the fact that they have made no major new oil discoveries * ;
- The only region of the world where oil production has not peaked is the Middle East.
( * Source: A Crude Awakening – The Oil Crash (2007));
The Competitive Advantages of the BRRTM Process v Steam Recovery
The BRRTM Process has the following major advantages over the use of steam for the recovery of heavy crude oil from exhausted oil wells:
- It can be adapted to the various states of the heavy crude (eg: high sulphur content) to ensure that the recovered oil requires as little further refinement as possible;
- It does not require the construction of the costly new infrastructure for steam recovery;
- It does not require the massive amounts of energy required to produce the steam that is the foundation of the steam recovery method;
The chemical surfactants used in steam recovery have inherent environmental risks, and are vulnerable to heat and pressure.
The Competitive Advantages of the BRRTM Process v Titan Oil and other MEOR Processes.
Increase oil mobilisation/movement
Increase oil recovery by improving water flood sweep efficiency
Decrease the percentage of water content in recovered oil
Increase oil recovery by reducing the surface and interfacial tensions of oil
Increase oil recovery by enhancing oil degradation to reduce viscosity
Increase efficiency of oil recovery by plugging large spaces and increasing pressurisation
Increase oil recovery from oil sands
Enhanced Energy Recovery Inc.
Titan Oil represents the closest competitor to the BRRTM Process, business model, and primary target market (being the USA). It’s potential and, by association, that of EER was described by 321gold founder Bob Moriarty in a recent interview with The Gold Report as:
My very favourite company right now …. It will be the Google of investing. It’s a company called Titan Oil Recovery Inc. …. In the oil business, most oil gets left in the ground. …. This process (the Titan Oil process) is going to be worth many billions of dollars.
Enhanced Energy Recovery Inc. has developed an environmentally friendly MEOR process that can potentially extend the lifetime of oil reserves significantly. This unique process, known as Bio Remediation RecoveryTM, takes advantage of the vast amounts of un-utilized oil reserves in most oil fields, which exist in the form of heavy crude, the thick sludge that exists at the bottom of oil wells. This represents more than half of the world’s “recoverable” oil reserves. Until recently, it has not been cost effective to recover this “heavy” oil.