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Tuesday, 08 October 2013 02:50

EER and the Current Industry Climate

enhanced oil recovery

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.

US-Oil-Well-Composition-2003-2012


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. 

Tuesday, 08 October 2013 02:40

Applications of BRR Technology

Product Applications


The EER Product range of microbial enhanced oil recovery (MEOR) includes solutions for:


1. Oil Fields

  • Remediation of existing heavy crude


2. Equipment

  •  “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 
Tuesday, 03 September 2013 05:56

BBR and the Environment

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.

oil and environmental advantages of BRR

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).

Type Description Market Disadvantage

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.)

  • Potential chemical contamination of water sources, under heavy public and policy scrutiny, thought to have caused minor earthquakes in certain cases.
  •  Fracking’ damages the stability of geological structures. Some results would indicate soil-subsidence – and earthquakes.
Long term effects of this destruction are still unknown.
  •  ’Fracking’ historically has introduced ecologically-damaging residual chemicals that are then re-injected into “wells” resulting in long-term damage to aquifers.
Gassing

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.

oil-well-sunflowers
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.

Wednesday, 19 June 2013 06:35

MEOR set to expand it's horizons

EOR (Enhanced Oil Recovery) is an enormous investment opportunity, with total global EOR recovery potential estimated to exceed 750 billion barrels of oil.

The Middle East has the greatest EOR potential with over 475 billion barrels of recoverable oil.

The U.S. DOE estimates that the U.S. has reserves of 100-160 billion barrels of stranded oil that could be recovered (equivalent to 35 years worth of crude oil imports at current levels).

Similar stranded oil extraction opportunities exist in Asia. Since the oil targeted for EOR is located in wells that have already been drilled, exploration risk is virtually eliminated. Effectively, depleted oil reserves can dramatically increase in value with EER's abundant, low-cost BBR TM process, which unlocks a large reserve of EOR producible barrels.

Crude oil production through conventional methods is only able to capture about 20-40 percent of the original oil in reservoirs. However, using EOR enables the recovery of between 60-90% of the reservoirs oil.

The use of CO2 for commercial EOR is an established oil recovery method that began in the United States over 30 years ago. There are now over 120 registered CO2 floods worldwide. However, limited supplies of naturally occurring CO2 and high costs of CO2 production, compression and transport have, to date, limited the wide utilization of EOR. Power plants generate large streams of CO2 from combustion of fossil fuels, but the cost of post-combustion capture remains very high and the technology is not yet commercialized.

MEOR (microbial) methods such as EER's BBRTM  process, can achieve the same or better results for a significant saving per barrel, making it a highly attractive alternative with almost unlimited capacity to expand it's market  into a multibillion dollar industry in the future.

Global EOR-Based Oil Recovery Capacity

Monday, 02 April 2012 00:49

Key Personnel

The key personnel of EER are:  

Gary Davis – Founder, Executive Chairman & CEO  

Gary-Davis3Gary has over 30 years experience focussing on the commercialisation of early stage companies throughout Australia, the US, the UK and the Asia Pacific region.

He has participated extensively in investment review committees for groups such as Souls Private Equity Limited, Kamisha Film Limited and Capital Finance Corporation Limited.

Gary has extensive experience in driving early stage companies to profitable exits for investors, having established extensive support relationships in the USA with VCs, Broker Dealers, Investment Bankers, Corporate Advisory and Legal organizations.              

 

Nicholas Union BA, MIPS – Founder, Executive Director, Chairman of Advisory Board

Nicholas UnionNicholas graduated with a B.A in Economics and Politics, and has over 30 years experience as a successful entrepreneur in media, entertainment, production and international trading.

He was awarded a Masters Degree in International Policy Studies by LaTrobe University, Melbourne in 2010. In recent years Nicholas has worked for Political Media (Australia) Ltd (a company founded by Gary Davis) as a consultant and advisor on policy and marketing strategy.

His role with Enhanced Energy Recovery Inc is to Chair the Advisory Board and advise the Management Board on policy and business development in the international context.              

 

Mike Loftus –  Director

Mike Loftus2Mike Loftus has been involved with start-ups for over 20 years. His senior leadership roles with young companies, has resulted in six of those ventures being acquired by Radius, Agency.com, Texas Instruments, Microsoft, IONA and AT&T for a cumulative USD$380M.

Mike is CEO and Founder of The Glue USA, which advises early stage companies while also mentoring Australian companies through the ANZA Technology Network, helping create the next generation of entrepreneurial leaders through SAGE Global.

Mike has earned degrees in business and computer engineering from Rochester Institute of Technology, completed the Executive MBA program at Stanford University and completed the Franklin Covey Leadership Program.    

           

Malcolm Beville –  Director

malcolm-bevilleMalcolm is a former Macquarie Group banker and co-founder of the SMILE Foundation (Supporting Medical Innovation for Life Enhancement); a charitable children’s medical foundation. Malcolm has held directorships of both private and public companies. He has experience in strategy and implementation from early stage through to full commercialisation for a number of venture capital projects ranging from funds management to biotech businesses. The Beville Group has recently focused on owning and managing shopping centres such as the Marrickville Metro, sold to AMP and the repositioning of the Darling Harbour Harbourside complex subsequently sold to Mirvac for some $250m. Malcolm holds a BCom (UNSW) and completed a Masters in Counselling and Psychotherapy.

 

 

Professor Ibrahim Banat, BSc, PhD, CBiol, FIBiol – Scientific Advisor

Prof. Ibrahim BanatProfessor Ibrahim Banat is a Professor of Microbial Biotechnology. He completed his PhD at the University of Essex (UK) in 1982, and has over 30 years’ experience in industrial microbiology and its biotechnical application in research, industrial and academic establishments in Kuwait, the United Arab Emirates, Italy and the UK. At present, Professor Banat holds a Professorship Chair at the University of Ulster (UK).

He has participated in numerous research projects supported by academic, research and industrial establishments. In addition, he has published over 175 papers and review articles in peer reviewed international scientific journals worldwide.

His main areas of interest and expertise are microbial bio-surfactants’ production and biotechnological and industrial application, microbial enhanced oil recovery, bioremediation, fermentation and biofuel production.        

 

Associate Professor Steven L. Bryant BE, PhD Chemical Engineering - Scientific Advisor

steve bryantAt the University of Texas, Austin, Dr Bryant holds the J. H. Herring Centennial Professorship in Petroleum Engineering and the George H. Fancher Centennial Teaching Fellowship in Petroleum Engineering. He earned degrees in chemical engineering from Vanderbilt (B.E.) and from UT-Austin (Ph.D).

He worked in industry research centers at BP and at ENI for a decade before taking a research scientist position at Rice University, then joining UT-Austin in 2002. Dr Bryant’s research interests range from grain-scale models of geologic processes to the role of methane hydrates in the Earth’s carbon cycle.

He has published more than sixty papers and one textbook with applications in production engineering, reservoir engineering and formation evaluation. He served as Distinguished Lecturer for the Society of Petroleum Engineers in 2001-2.      

     

Richard Hobson, LLB, BA, MBA - Corporate Governance Advisor

Richard HobsonRichard is an experienced business adviser and director with over 30 years experience as a commonsense commercial lawyer. He founded Linchpin Legal Management Pty Ltd in 2006 as a legal business advisory service specialising in corporate governance, risk management and compliance as well as general commercial law. Richard has been Company Secretary and General Counsel for a top 100 ASX company, with operations in Australasia, North America, Asia and Europe.

He has had various management roles in other public companies and has been Chief Executive Officer of a medium-sized law firm where he undertook a wide-ranging change management program.

A person of professional standing, integrity and intellectual authority, Richard has considerable experience in a wide range of commercial law areas, including corporate governance, company law, trade practices, risk management, contract law, employee share plans, finance and securities. He is on the Committee of Australian Corporate Lawyers Association - Victorian branch (ACLA) and represents ACLA on the Department of Justice’s Civil Procedure Advisory Group. Richard is also a member of the Law Institute of Victoria (on the Trade Practices Committee) and a member of the Australian Legal Practice Management Association.  

 

Larry Jackson - International Development Advisor

Larry JacksonLarry has over 25 years’ experience in International Business having worked for a number Private and  Publicly Listed Multi-Nationals in Australia and Japan.

Having lived and held Senior Management Positions in Australia, Asia and North America and lead Global Trading Operations, Larry has extensive hands on operating experience in managing end to end Multi-National Business Units in complex markets.

He has completed Post Graduate Studies in Management at Melbourne Business School – University of Melbourne.  

 

 

 

Dr. Barry Ferrier B.A., B.Litt (Hons.),  Dip. Mus. (Comp.), Dip. I.T.   -  Media Consultant  

Barry FerrierBarry supervises the implementation of all marketing material, and he designed and manages the website for EER.

He was previously Assistant Professor of Multimedia at Bond University.

Barry is advising the board on IT integration and internet optimization strategies.

 

Monday, 02 April 2012 00:14

Competitor Analysis

enhanced oil recovery

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.

Feature

Titan Oil

BRRTM Process

Increase oil mobilisation/movement

enhanced energy recovery competitive advantage

enhanced energy recovery competitive advantage

Increase oil recovery by improving water flood sweep efficiency

enhanced energy recovery competitive advantage

enhanced energy recovery competitive advantage

Decrease the percentage of water content in recovered oil

enhanced energy recovery competitive advantage

enhanced energy recovery competitive advantage

Increase oil recovery by reducing the surface and interfacial tensions of oil

enhanced energy recovery competitive advantage

Increase oil recovery by enhancing oil degradation to reduce viscosity

enhanced energy recovery competitive advantage

Increase efficiency of oil recovery by plugging large spaces and increasing pressurisation

enhanced energy recovery competitive advantage

Increase oil recovery from oil sands

enhanced energy recovery competitive advantage

Enhanced Energy Recovery Inc.

Information Memorandum

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.

Tuesday, 31 May 2011 13:52

Energy Recovery

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.

  Read More

Monday, 02 May 2011 11:49

Bio Remediation

Bio Remediation RecoveryTM uses an in situ microbial activity and bio-surfactants to not only cost-effectively break down the heavy oil, but to also remove impurities from that oil before it is recovered.

The unique BRRTM Process therefore not only potentially releases substantial value to investors in terms of previously unrecoverable oil, but may also significantly decrease the cost of refining that oil, dramatically improving a project's potential bottom line.

 Read More

Despite the fact the world appears to be running out of oil, some 87 million barrels of oil were still consumed per day in 2010 (Source: CIA World Factbook). The emerging markets of China and India are driving this daily figure higher minute by minute. It’s unlikely there will be sufficient oil for the remainder of this century, and even alternative energy experts are sceptical that this is sufficient time to overcome the world’s dependence on oil.

IEF-chart-oil-supply-crunch

BBRTM - Extending the lifetime and asset value of known resources

Enhanced Energy Recovery Inc ( EER ) has developed an environmentally friendly process that can potentially extend the lifetime of oil reserves significantly. This unique process, known as Bio Remediation RecoveryTM (BRR), takes advantage of the vast amounts of un-utilized oil reserves in almost all oil fields. These oil reserves exist in the form of heavy crude, being the thick oil or sludge that exists at the bottom of oil wells. Heavy crude oil represents more than half of the world’s “recoverable” oil reserves (Source: Peak Oil – True or False, Stephen Lendman, 6 March 2008). But, until recently, it has not been cost effective to recover this “heavy” oil.

BRRTM uses an in situ microbial activity and bio-surfactants to not only cost-effectively break down the heavy oil, but to also remove impurities from that oil before it is recovered. The BRRTM Process therefore not only potentially releases substantial value in terms of previously unrecoverable oil, but may also significantly decrease the cost of refining that oil.

EER Ltd  has put together a team of technical and business experts with a proven ability to commercialize the BRRTM Process, and to translate the potential of this MEOR business to a profitable exit for investors. The Corporate team is led by Gary Davis. Gary has over 30 years’ business experience, and has been responsible for taking companies in a number of industries from start- up through to sale and/or listing on public markets.

The Advisory team is led by Professor Ibrahim Banat, one of the world’s leading experts in bio- surfactants production and the use of bio surfactants and microbial activity for enhanced oil recovery. Professor Banat has been highly successful in recovering commercial heavy crude oil from oil storage tanks, and has extended his expertise in this area to the recovery of heavy oil from oil wells. He has exclusively committed his services, expertise and know-how in this field to EER.

The BRRTM Process has the following significant advantages over competitive recovery methods:

  • It has been developed to recover heavy crude oil in a range of environmental situations, and across a range of heavy crude oil conditions (eg: high sulphur levels);
  • It uses the same recovery infrastructure as for conventional crude oil, saving millions of dollars on infrastructure construction required for other recovery methods;
  • It can be applied across a greater range of oil recovery situations, including recovery from oil sands;
  • It is environmentally friendly; and
  • It has demonstrated yields unachievable with other recovery methods.

EER offers the following financial advantages:

  • Ability to re-value languishing assets;
  • High value benefit to small to medium oil companies;
  • Vendor financing potential based on expert re-valuation;
  • Industry with growing revenues and increasing prices;
  • Strong un-utilized resource asset class; and
  • Opportunity for new structured financing options.
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