This news is classified in: Traditional Energy Oil and Gas
Jan 19, 2016
MCW Energy Group Limited a Canadian-registered holding company involved in the development of environmentally-friendly oil sands technologies and the production of oil from Utah's vast oil sands deposits, today detailed a progress report on its newly-implemented Sustainability Program, which focuses on joint venture opportunities and improving production cost efficiencies in order to offset current lower world oil prices.
MCW has quickly established itself as one of the world's leaders in the development of effective, cost-efficient oil sands technologies. And in doing so, the Company has proven that resource development doesn't have to compromise or damage the environment. MCW is now implementing this multi-faceted plan which will not only ensure a viable resource development entity during these times of high production costs and low world oil prices, but will also provide additional revenue streams as the Company increases production capacities and signs joint venture agreements for royalties and technology fees.
"We feel that by implementing our comprehensive Sustainability Program, MCW will demonstrate to our investors that not only can we adapt and survive despite volatile market conditions, we can deliver 'green' energy with industry-leading production costs utilizing clean energy solutions," stated R. Jerry Bailey, Chief Executive Officer of MCW.
MCW's Sustainability Program components include:
1. The creation of an MCW Licensing Sales Team, which will manage global licensing initiatives and will handle the growing number of inquiries with regards to potential joint ventures. More than 12 countries have been identified which have either substantial undeveloped oil sands resources or have remediation projects requiring technologies which focus on the protection of the environment. These countries include Canada, China, Saudi Arabia, Nigeria, Kuwait and Indonesia. In several cases, MCW has successfully tested oil sands or tailings ponds samples taken from oil sands deposits from these countries. Negotiations with these proposed joint ventures are currently at various stages of discussion.
2. Development/Design of a 2,500 bbl/day extraction plant which will provide a template for most of the Company's oil sands joint venture opportunities. MCW's development team has determined that the optimum efficiency level of their extraction plants is at the 2,500 bbl/day level in terms of feedstock flow and process efficiency times. The anticipated production cost has been determined in the $ 20.00 per bbl range. MCW also plans to use this plant template for their next plant in Asphalt Ridge.
3. Scale-up of MCW's 250 bbl/day plant in Utah. MCW's first extraction plant, in production mode since October, 2015, is undergoing a scale-up program in order to increase capacity of this plant to an anticipated 500 bbl/day. The Company had the foresight to install some key components that would facilitate higher capacities when the unit was first completed. The final stages of this scale-up project are now being completed in order to increase processing capacities, improve extraction time efficiencies, and more efficient separation systems. (Please see our Press Release dated December 16th, 2015, "MCW Reports On Capacity Augmentation Program...." for more details). It is anticipated that this program will be completed by the end of Q1-2016. Production costs have been constant in the $ 24.00 - $ 28.00 bbl range and they are expected to improve once the plant's capacity is increased.
