This news is classified in: Traditional Energy Oil and Gas
Jun 2, 2016
MCW Energy Group Limited, a Canadian holding company specializing in the development and commercial implementation of oil sands technologies, through MCW Oil Sands Recovery, LLC, ("MCW Oil Sands") today announced its plans to resume revenue-generating oil production in June of 2016.
MCW's Chairman, Aleksandr Blyumkin, commented on recent developments with regards to progress being made at its oil sands extraction plant in the Asphalt Ridge area of Maeser, Utah. Several factors, including improving world oil prices gradually closing in on the $50.00 bbl benchmark and confirmation of MCW's efficient production costs have combined to substantiate the decision by MCW's team to move forward on ramping up production at its lease site in Utah in order to resume generating positive production income.
Prior to the decline of oil prices during the latter part of 2015 and the first quarter of 2016, the Company produced approximately 10,000 barrels of oil from its 250 bbl/day plant. The decision to immediately move forward into production mode was made recently, subsequent to the gradual rebound of oil prices to a level where MCW's production is again economically viable. Production costs for MCW's plant were confirmed at $31.00 bbl. (Chapman Petroleum Engineering Study, 2015) The resumption of production will result in almost immediate revenue and will increase incrementally as the Company moves to a 500 bbl/day level and up to the 750 bbl/day with the assistance of Vivakor Inc. and the installation of its mobile 250 bbl/day extraction unit. (See Press Release, May 4th, 2016, "MCW In Discussion With Vivakor Inc. To Operate...") (Vivakor) (OTC PINK: VIVK) MCW expects to resume production by the second week of June, 2016. The Company intends to obtain positive cash flow within the remaining three quarters of 2016. Feedstock will be drawn from MCW's oil sands resource at the Temple Mountain Energy lease site, which contains over 89 million barrels of oil. MCW is implementing the funding process for a 2,500 bbl/day plant on this site.
"Market conditions have now become more favorable to justify the commencement of our production facilities at Asphalt Ridge, Utah," stated Alexsandr Blyumkin, Chairman of MCW. He added: "We worked really hard during the downtime forced upon us by the global oil market decline on improving the efficiency of our technology, identifying new strategic partners, securing the needed operating capital funding and new channels of distribution of our product. We fully expect those efforts to pay off and give us a competitive edge with the resumption of the production at our plant in Utah."
