PHOENIX, January 26, 2017 /PRNewswire/ --
Lithium Exploration Group Inc. (USOTC: LEXG) today announced the results of a recent industry comparison test where the power consumption rate of the Sonic Cavitation Ltd Ultrasonic Generator has outperformed convectional oil and gas production heater applications at a rate of 2 to 1. In other words, the Sonic Cavitation Ltd Ultrasonic Generator is twice as efficient as conventional applications. That means the Sonic Cavitation Ltd Ultrasonic Generator emits half as many toxins as the convectional heaters prevalently in use within most natural gas and crude oil production facilities. These test results validate a compelling LEXG value proposition:
- Reduced toxic emissions as regulatory pressure mounts
- Reduced operational costs, which
- pay for the purchase of LEXG's solution to replace the legacy conventional heater, and
- improve operating margins in the long run.
Heater Applications in Oil and Gas Production
Heaters are used at oil and gas production facilities to provide thermal energy to key operations essential within the production process. For instance, heaters are used as separators to break chemical bonds in order to harvest specific elements within various compounds. Heaters are typically field gas-fired external combustors and are a source of nitrogen oxides (NOx), carbon monoxide (CO), Sulfur dioxide (SO2), volatile organic compounds (VOC) and particulate matter (PM) emissions.
Oil and Gas Now While Lithium Industry Ramps Up
While LEXG turns its focus toward the exponentially growing demand for lithium to satisfy the battery requirements for consumer electronics, electric cars and power grid storage, a compelling product for the oil and gas industry can only help accelerate a revenue ramp-up while the supporting infrastructure necessary to mine and refine an increased demand for lithium is constructed. The experience and production metrics from applying LEXG's Sonic Cavitation Ltd Ultrasonic Generator to oil and gas separation process can be interpolated to improve lithium production planning and operational implementations.
LEXG CEO Alex Walsh On Comparison Test Results
"These test results are huge," said Alex Walsh, CEO of LEXG. "We have some very smart people behind the Sonic Cavitation Ltd Ultrasonic Generator and these comparison test results are terrific. The test results create a tremendous opportunity for LEXG to make money now in the oil and gas industry and make more money as the lithium industry matures. The test results don't' lie. LEXG's Sonic Cavitation Ltd Ultrasonic Generator is a winner."
About The Comparison Test
The comparison was made utilizing a report published in 2013 by Eastern Research Group (http://www.erg.com) for the Texas Commission on Environmental Quality titled "Upstream Oil and Gas Heaters and Boilers".
In that report they studied each of the major basins in Texas and gathered heater fuel usage data compiling it by each basin and statewide. The comparison breaks down the Ultrasonic Generator power consumption down to the kWh usage to heat one barrel of oil one degree during our testing and used an industry estimate of a 100 degree increase in crude production to properly effect the heat treatment. The initial findings are that on a statewide basis the mcf to kwh consumption of traditional burner applications requires twice as much energy to heat one barrel of oil one degree. Specific to the Eagle Ford basin the comparison is close to 3 times more efficient which was analysis covering over 23 million barrels of treated oil.
LEXG and their partners at Sonic Cavitation Ltd have already reached out to operators in all of these basins to gather specific burner consumption throughput data to compare these findings. The company is planning to continue to improve the flow rates and system configuration and believes that their power consumption data will improve over time as the unit gets closer to field deployment.
About Lithium Exploration Group
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused testing its SonCav Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is traded on the OTC Markets under the symbol LEXG.
Safe Harbor Statement
This news release contains "forward-looking statements". Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
SOURCE Lithium Exploration Group Inc.