Propell Technologies Group (OTCQB: PROP) announced on July 8 it secured a $9.75 million investment from Ervington Investments, whose ultimate beneficial owner is businessman Roman Abramovich, a . The Houston-based company has a patent-pending technology that allows for increased oil recovery from existing wells, using a plasma pulse.
There are a variety of ways to increase output of petroleum wells already in production. Traditional “enhanced oil recovery” (EOR) techniques include injecting water, CO2, or chemicals into an oil well to increase pressure and extract more oil.
EOR is a common practice in wells that start to see their production levels slip. Some of the leading companies conducting EOR tend to be the oil majors, such as Chevron (NYSE: CVX), or ExxonMobil (NYSE: XOM) but also include companies like Apache Corp. (NYSE:APA).
However, Propell Technologies Group has developed a novel way of increasing oil recovery. Their proprietary technology has been used on over 200 wells internationally and is proven to increase output.
Here’s how it works. The plasma produces a hydraulic pulse that opens holes in wells, clearing out debris that may have blocked oil and gas from escaping. Since it does not use chemicals the company says that it is an environmentally benign process. The technology can increase production for a sustained period up to a year, boosting the production and profitability of aging wells.
The $9.75 million will allow the company to expand and offer its services as a third party to other exploration companies. Propell also wants to gain the rights to oil-producing wells so that it can apply its plasma pulse technology directly.
“This investment provides Propell with immediate access to the resources necessary to continue to execute on our growth strategy. These resources include the funds needed to acquire oil-producing assets that we expect will benefit from the implementation of our proprietary plasma pulse technology to increase the recovery of oil that has already been discovered in a typical reservoir that is unrecoverable using conventional technology,” President and CEO of Propell, John Huemoeller, said in a press release.
By James Burgess of Oilprice.com