• 40 mins Shell Restarts Bonny Light Exports
  • 2 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 8 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 13 hours British Utility Companies Brace For Major Reforms
  • 17 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 19 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 20 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 21 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 22 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 23 hours Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 1 day India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 8 days Renewable Energy Startup Powering Native American Protest Camp
  • 8 days Husky Energy Set To Restart Pipeline

Breaking News:

Shell Restarts Bonny Light Exports

Alt Text

Gold Prices Could Spike As India Resumes Imports

Gold purchases in India imploded…

Alt Text

Will Ecuador’s Mining Sector Return To Its Golden Days?

Despite the recent political problems…

Alt Text

Copper Prices Ignited By Chinese Demand Growth

Copper prices saw some gains…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Sky Is The Limit For New Utah Oil Sands Tech

Sky Is The Limit For New Utah Oil Sands Tech

Utah is home to more than half of America’s known oil sands, but getting it out of the ground requires an unusual twist in the technology flow: This time we’re bringing Canadian expertise to the US.

Until only a few years ago, largely brought to mind Alberta, Canada, but the US is experiencing its own oil sands boom across a massive swathe of land covering Utah, Wyoming and Colorado.

The land that makes up this Green River Formation may hold some 3 trillion barrels of recoverable oil, and Utah is the heart of this waking beast, with estimated in-place tar sands oil resources of 32 billion barrels. And at the heart of the heart is Asphalt Ridge, which is thought to contain nearly a billion barrels of oil on its own.

Utah is already on America’s shale revolution map, with the Uinta Basin in the state’s northeast, which has attracted large independent players, including Houston-based Marathon Oil (NYSE:MRO), EP Energy Corporation (NSE:EPE) and Newfield Exploration Co. (NYSE:NFX). Now, a new focus on oil sands extraction means that this area of Utah is shaping up to become the next Alberta.

With this in mind, and with Canada positioned as the king of oil sands, it is only appropriate that a Canadian company—MCW Energy (MCWEF: OTCQB TSV: MCW.V)—cut the ribbon earlier this month on new oil sands technology and a new pilot plant at Asphalt Ridge, near Vernal, Utah.

"After many years of engineering and research, we're extremely proud to finally bring this ground-breaking extraction technology to the market," Dr. R.G. Baily, CEO of MCW Energy Group said on the occasion.

The “breakthrough” technology, as described by the company, is said to offer Utah—where there has been a fair amount of controversy about producing oil sands—an environmentally friendly solution for extraction. The patented technology uses benign solvents, rather than toxic chemicals. Significantly, it also does not require any water, nor does it rely on high temperatures or pressures. Furthermore, an estimated 99% of the benign solvents used in the process can be recycled and re-used.

For Utah—where water is already extremely scarce—this no-water breakthrough technology is a poignant development.
The technology can be applied in “oil wet” oil sand deposits in the United States, as well as in “water wet” oil sands deposits in Canada.

But the highlight for MCW is that the pilot plant validates the technology. It proves the commercial viability and scalability of the company’s proprietary extraction technology, setting the course for very significant gains.

Not only has the technology been validated, but the original extracted oil API guidance was projected at 22, but the actual output at the Vernal plant, which opened on 1 October, measured in at 32 API—an even higher-quality crude that sells at a premium.

An independent Chapman Engineering Report concludes that MCW’s extraction technology is an innovation with no rivals, particularly from an energy-efficiency perspective.

For potential investors, it’s a potential gold mind of oil sands extraction, with production costs coming in at under $30 a barrel across the board. This means that falling oil prices will not be a snag for the Utah project, which can perform profitably in a WTI oil scenario from as low as $65 a barrel.  

Extraction capacity is also slated for extension following on the pilot plant, with several additional extraction units—larger than the initial—planned for next year in Asphalt Ridge.

The most important part of this second phase will be the construction of two 2,500 bbl/day extraction plans on the company’s 1,100 acres of oil sands property at nearby Temple Mountain, estimated to cost about $80 million.

The economics of this project are already solid, but when you add another 5,000 bbl/d to the capacity, the economics become stellar.  

Beyond this, MCW is moving forward with the finalization of another acquisition—this time of property owned by Temple Mountain Energy LLC, along with other oil sands leases.

The Temple Mountain Energy acquisition converts to 50-plus million barrels of oil (proven/probable) under long-term lease to 100% owned. The total cost of the deal is $10 million and 10 million MCW shares, with $1 million is cash already paid down.

The company also holds an option to acquire the Asphalt Ridge lease for $10 million, which would add $15 per barrels to the equation.

Over the longer term, this $38-million market microcap stock is poised for a major boost as it proves its oil sands extraction project is technologically and environmentally viable and capable of extracting high-quality 32 API sweet crude oil at $30 average production rates.

This is a significant and transformational development for Utah and its eight major oil sands deposits containing an estimated 32 billion barrels of oil.  

From a cost perspective, re-focusing on oil sands in Utah could unleash another major boom—with the economics in oil sands’ favor and heavily rivaling the costly process of hydraulic fracking in shale oil deposits.

And from where we are sitting, MCW poised for the long-term game: Once it starts licensing its new oil sands technology across Utah, the rest of the region, and beyond, the sky is the limit.

By. James Burgess of Oilprice.com

Legal Disclaimer/Disclosure: MCW Energy is an Oilprice.com client. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Oilprice.com only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News