TULSA - All the pieces are falling into place for Energy Reclamation LLC to establish a global foothold in the oil recovery industry - although much work remains.
The Tulsa-based company announced three more memorandums of understanding Wednesday, with KBF Trading and Contracting Co. of Doha, Qatar; Matacore Technology Ltd. of India; and Nile Petroleum Industrial Co. of Cairo, Egypt.
"We are very much interested in EOR (enhanced oil recovery), as Egypt suffers from the many abandon oil wells and declining production from the mature oil fields in general," said Aly Kassem, operations manager for Nile Petroleum. "We believe it will be a great advantage to recover oil with new techniques at low recovering-cost prices."
That brings Energy Reclamation's total number of signed agreements to five in two weeks. Last week the Tulsa company announced a deal with British Columbia firm RTG Management to study RTG-client fields. On Tuesday, it unveiled a similar deal with Gulf Energy Co. of Kuwait.
Energy Reclamation Chairman Roy Wales expects to complete more such memorandums this month, including with a Saudi national oil company, all targeting stranded oil reserves.
"Probably before Christmas we'll have all of our MOUs in place," he said Wednesday, "probably a dozen in all worldwide - and all with legitimate companies we're proud to be working with."
Two key factors remain in the balance.
First, the memorandums include no financial obligations. Under the deal inked by KBF Chairman Sheik Khalifah Bin Fahed Al Thani - as typical of all the memorandums - Energy Reclamation's scientific team will start a review of Qatar's nine major oil fields. Led by former Soviet scientist Sayavur Bakhtiyarov of the New Mexico Institute of Mining and Technology, the four-man team will then propose which fields, and oil-producing clients, KBF should apply its enhanced oil recovery systems to.
If KBF, Manatcore or Nile chooses to proceed at that point, Energy Reclamation may begin to earn compensation - which largely depends upon realized improvements in oil production.
Second, the Tulsa company remains in search of a partner to handle groundwork at these sites. Wales hopes to land a local oilfield contractor for the job, "to bring all that money home to Tulsa."
Two-year-old Energy Reclamation employs four different oil recovery systems: a "cocktail formulation" involving two-phased carbon dioxide injection, a cooled engine exhaust injection system, a formulation developed by Zytek International to eliminate paraffin problems, and a generator to inject wet steam into heavy oil.
"It costs about $115,000 to bring the team in to treat the fields anywhere in the world," said Wales. Such treatments they may repeat every nine months, at a cost range as low as $1.60 a barrel. "They can do that over and over until they get all that oil out."
With all the memorandums, Wales said Energy Reclamation will receive service fees and expenses for oil fields they treat, plus one or more points drawn from any increased production.
Wales noted traditional production methods may leave 70 percent or more of a field's oil stranded in the earth.
"If they can get 70 percent of what's left, they'll have oil for another 200 years," he said - and with even a fraction of that revenue, Energy Reclamation could earn millions.
"Theoretically that could be worth $1 million a day," he said of potential oil production hikes in Kuwait and other Middle Eastern fields. "It doesn't take many fields to accomplish that."
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© Press Release 2006
