2. Overview
World-wide oil production has been declining for decades.
There are over 400,000 stripper or marginal oil wells in the USA. Many more
world-wide. Most of these oil wells produce only a small percentage of what they
original produced because of loss of down hole pressure to drive the oil to the
surface.
There are many oil wells and oil fields that have been abandoned with the leases
still having more than 50% of original oil in place. Primary oil production only
gets between 25% to 35% of original oil in place.
Some of the Company’s that are heavily invested in marginal oil fields and
enhanced oil recovery are: Occidental Petroleum (who gets 60% of its revenue
from enhanced oil recovery), Denbury Resources, and many others who have
realized that this is the surest way to gain revenue since they are only enhancing
oil from fields that are already producing. Almost no risk and great upside.
EPRS Energy will be one of those to gain greatly from using our technology to
increase oil production from marginal oil fields, and at less cost than others who
do not have our technology.
3. Oil Production Cycle with EPRS
Energy’s Process
When the oil
well begins
production
Decline curve
of wells in
Texas –
Similar to
wells
everywhere
Final stage of oil
production with
sunset
We inject our chemicals directly into the
injection well, cap it and leave, and it treats
surround wells in same formation until the next
treatment – No unsightly equipment added to
site
2 or more
production
wells are
treated with
each injection
depending on
the field
4. Short-term goal
Obtain financial resources to fund phase one which is the
establishment of our laboratories and field treatment equipment
and start using our proprietary enhanced oil recovery process
on marginal oil wells.
Our enhanced oil technology (EOR) had 6 years of laboratory
and field testing with over $3 million spent to prove the
effectiveness of our chemical, green technology.
We need $750,000 to purchase all laboratory and field treatment
equipment and hire personnel for the first years operations. We
will be self sufficient in the second year. We are requesting a
total of $3,000,000 including the Lab, going public and/or joint
venture producing property acquisitions .
Additional funding would be used to acquire additional
producing marginal oil fields from current operators.
5. Long-term goal
Establish financial resources to fund our
projected rapid growth via acquisitions of
marginal oil well fields which we know we can
increase the production in with our technology.
Acquisition of oil and gas companies that have
both personnel and large leases that fit our
acquisition model.
Search for and evaluate other energy related
technologies that could expand our business
base.
6. The Present Situation
The enhanced oil recovery business has many participants but
few competitors that can be as cost effective and
environmentally friendly as we can be with our process. Ours is
proven, effective and ready to increase oil production in proven
oil fields.
There were over 400,000 marginal oil wells in the US
producing 311 million barrels of oil per year.
Using our process we can slow oil field abandonment rates and
increase ultimate recovery of oil from known fields.
Our process is very environmentally friendly, complying with
the Green initiative and doesn't leave a negative footprint after
treatments.
7. Development up to present
Our chemical process was field tested over a 6
year timeframe and resulted in over 45
successful treatments.
Field tests indicated that it was possible to
determine the best formula in our laboratory for
use in oil fields. This eliminates guess work.
The field tests proved that it was possible to treat
wells and have increased pressure and
production within 4-6 weeks.
8. Potential Alternatives
Most enhanced oil recovery (EOR) techniques require
large capital expenses and take long periods of time
before results are usually received.
CO2, nitrogen, water flood, etc, all cost more and take
longer to get results than our process.
Our advantage is that we are able to determine the
potential effectiveness of our application in any given
field before we go into the field and our process usually
starts getting results within weeks, not months.
Our process can be the most cost effective way to
increase revenue from oil fields.
9. Recommendation
This is a good investment for those investors who want
a low risk opportunity to get into the energy business.
Lenders who want better returns with minimum risk will
find our programs of interest. Our programs deal with
proven, producing leases.
We are not trying to find oil producing properties we
only work with proven oil producing properties.
We are able to buy leases knowing that we can increase
the production and decrease the payback time.
The companies shareholders should see significant
gains over the years with our aggressive acquisition and
development plans.
10. Recommendation
This is a good investment for those investors who want
a low risk opportunity to get into the energy business.
Lenders who want better returns with minimum risk will
find our programs of interest. Our programs deal with
proven, producing leases.
We are not trying to find oil producing properties we
only work with proven oil producing properties.
We are able to buy leases knowing that we can increase
the production and decrease the payback time.
The companies shareholders should see significant
gains over the years with our aggressive acquisition and
development plans.
