17 April 2014. Port of Spain
By Curtis Williams. Oil & Gas Journal Correspondent.
Oil & Gas Journal, PenWell Media; Tulsa, Oklahoma.
Spain’s Repsol has drilled a dry hole with its Pinter One offshore Trinidad and Tobago’s east coast. The dry hole represents a major failure for the company, which has been trying to boost its falling crude production from its Teak Samman and Pouis acreage.
Repsol began drilling Pinter One on Dec. 26, 2013, and wrapped up the well in February after reaching its total depth of 13,000 ft.
The failure also has major implications for the announced discovery of 32 million bbl of recoverable reserves by Bayfield Energy, which has since been sold to Trinity Exploration & Production Co.
Bayfield in 2012 announced on the London Stock Exchange that it made a discovery with its EG8 well on Galeota Block and that the discovery extends into Repsol’s acreage. EG8 was deviated from its surface location towards the southwest in order to target the crestal area of mapped horizons in the prospective EG2/EG5 Central fault block.
The well encountered 10 hydrocarbon-bearing sandstone reservoir zones between 1,364 ft and 6,000 ft below mean sea level. Preliminary analysis showed the vertical thickness of net hydrocarbon-bearing sands. It was drilled to a total depth of 8,133 ft with well sands totals of 421 ft, of which 352 ft is gas and 69 ft is oil.
Trinity Chief Executive Officer Joel Monty Pemberton told OGJ that while his company was aware of the failure, it was not sure to what extent the size of the company’s discovery has been negatively impacted. He said it was logical to expect it meant the size of the discovery will have to be downgraded, but he could not tell without the information from the well.
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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.
The Bio Remediation RecoveryTM process is ideally suited to treat unexploited and underperforming reserves; which represent more than 50% of the world’s “recoverable” oil reserves.
The BRR™ process is protected by a sophisticated intellectual property strategy including unique customization of ingredients for each field performed by EER proprietary software and technicians. Our BRR™ process also uses unique microbial cultures, nano and super conductor technologies, alongside specially developed bio-surfactants to achieve specific results within each pre-analyzed environment.
The innovative design and deployment of EER provides a series of significant advantages over its competitors. In addition, the sale and distribution of the products and services can be facilitated through three distinct channels:
(a) vertical market applications, a direct sales model;
(b) joint venture or vendor systems integrators, a licensing model; and
(c) direct consumer adoption.
EER is currently seeking financing to grow the company at a more rapid pace than its current organic growth trajectory will allow. Proceeds will primarily be used for establishment of manufacturing, internal and external infrastructure, direct sales efforts, international deployment partnerships, product refinement and delivery.
In terms of forward planning, EER is conscientiously positioning and packaging itself for eventual acquisition by a large-scale producer, an alternative competitor, or will consider preparations for listing on a Public Market through an initial public offering, representing strong options for an exit strategy for investment.
The active ingredients in BRRTM can be used as an alternative to chemical substances currently used in hydraulic fracturing.
Energy Remediation products and services are one of the fastest growing segments of the robust Oil and Gas Industry.
With global crude oil prices consistently at, or above US$90 per barrel, the BRR™ Process is a highly cost-effective method.
- The BRR™ Process continues to produce revenue on an ongoing basis with its service and support charge of US$12 per barrel ongoing. (Calculated on production generated above the 30 day weighted average production of the particular resource.)
- This is MUCH less than the exploration costs for new resources
Capabilities and stock
- Manufacturing currently occurs at our factory in Texas
- At any one time we expect capacity to process 300 wells
Local production plans
It is our plan to integrate at least five additional manufacturing plants in order to service geographical focus-points worldwide.
Copyrights and Patents
- The BRR™ Process is unique and has a sophisticated intellectual property protection strategy
- Incorporates proprietary active ingredients and utilizes a unique manufacturing process to produce both ingredients and application processes relevant specifically to each resource’s requirements.
The BRR™ Process is a most innovative system designed to re-vitalize underperforming Oil Industry assets world-wide.
The possibilities implied by the process indicate potential to recuperate an estimated 3 TRILLION barrels of oil still currently underground and abandoned, so far considered to be ‘too difficult’ to extract.
In the past four years, in the USA alone, sufficient oil has been produced from new technology releasing ‘trapped reserves’, to generate revitalization of the US economy.
In a time when the World HAS to “Think Green”, the BRR™ offering is the ONLY logical, ecological, and water resource friendly option for rational consideration.
BUSINESS AND PROFIT MODEL
The Company - Establishment of Joint Ventures
Setting-up networks internationally
- EER works with local partners who have established high visibility within their own territory or country
- Such associations take the form of locally-registered companies
- The format for such associations with local partners is generally in the form of a Joint Venture.
Opportunities – For Joint Ventures: Joint Venture Partners – JV Partners establish a local company.
Joint Venture Partners – Expectations:
- JV Partners are accorded a License to exploit the BRR™ Process and its various products within the geographical area agreed acting as Local Agents, wholesalers, and service providers
- JV Partners brings local Marketing and Administrative expertise and provide financing requirements in order to establish and support local infrastructure
- EER provides technical expertise, client support, the products …at wholesale price – and various support and technical personnel to implement the process as contracted
- Profits are shared according to the JV’s shareholders’ agreement
- Representatives of EER meet with the prospective JV Partner
- If mutually agreeable, an MOU is signed with a commitment to move to the next stage within 2 months. i.e.:
- Establishment of the local Corporate entity
- Establishment of the necessary local infrastructure
- Recruitment of necessary personnel
- Establishment of the first 3, 6 and 12-month expected (milestone) achievements
The intent is that EER and its local JV partners:
- work towards an Initial Public Offering (IPO) of the company within a local, or alternative, Stock Exchange
- work towards securing a trade sale of the JV business in that territory establishment of a local production facility of the BRR™ Active Ingredients.
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.
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.