BEDFORD, Texas, December 20, 2013 /PRNewswire/ --
PetroTech Oil and Gas Inc. (OTC: PTOG) (the "Company" or Petrotech") today announced that they are entering into an agreement with DSS Oil Services Inc. to distribute their new biodegradable products in Texas. Petrotech will be setting up a subsidiary company and structure to accommodate the addition of their added business.
"DSS has given us the opportunity to not only utilize their new innovations in biodegradable products with our own work, but hey have given us the opportunity to become distributors as well, and an opportunity to participate in the growth of their company," said Eddie Schilb president of Petrotech Oil and Gas. "This gives us the ability to be ahead of any other company by being able to provide environmentally safe biodegradable products with our own use and another means of increasing other areas of revenue. We will providing more information on this new development as we progress," he added.
About DSS Oil Services:
Dolezal-Southward Oil Services USA, LLC has been started by Cameron Dolezal and Dean Southward, the 2 senior principals of the Company. Cameron and Dean have petroleum engineering backgrounds and have successfully implemented and run more than $30 billion of projects for Marathon Oil and Devon Energy together with the successful completion of more than 700 wells.
The Company was formed as a Services company for hydraulic fracturing to be run by experienced field engineers and to market and develop green non-toxic and superior performing chemicals for drilling and completions to the oil and gas industry.
DS Oil Services has been working with AI Sealing, an existing chemical company within this area in the development of these non-toxic chemicals for the oil and gas industry. AI Sealing had approximately$28 million in sales in 2012 and increasing sales this year with existing oil customers, including Baker Hughes and C&J Well Services.
DS Oil Services and AI Sealing agreed to form a new company together, DS Oil Supply with each company owning 50% of the new company and having Exclusive rights to sell the 200+ proprietary formulas owned by AI Sealing together with new products being developed.
In addition to already having the best performing Biocide in the oil and gas market which is also non-toxic, DS has recently developed and introduced a new "food grade" fracking gel which is a significant improvement over anything on the market. It is food grade, performs better, and is priced much less than any other gel on the market. In addition, they have also just introduced the first non-toxic and non-corrosive friction-reducer on the market, something that everyone in the business thought would be impossible. This friction reducer performs better than anything else available and it is non-toxic.
Cameron and his associates have put their focus over the recent months and their immediate focus into finishing the development and testing of these chemicals and getting them into the market. They are also finishing the planning and preparation for the expanded manufacturing. The company now has 2 locations in Houston and can handle the anticipated 4 million gallons per month with no problem together with built in expansion above this.
These chemicals have all gone through third party testing and have been tested and approved by the customers in their own labs as well. These chemicals have been confirmed to significantly outperform the other chemicals on the market, they are all non-toxic, and our pricing is up to 50% less than the other inferior and toxic chemicals on the market. For example, our customers, including majors have been paying $23 to $26 per gallon for biocide whereas ours is $12.5 per gallon and our biocide outperforms everything else on the market.
The fact that our chemicals are all non-toxic, perform better, and save these companies money puts us into a very good position. The non-toxicity solves all kinds of life/safety issues for the workers that may have contact with toxic chemicals and also avoids issues with shipping of toxic materials including special permits that are required. Many of the larger companies are "unbundling" their chemical purchasing and starting to control the purchasing process rather than individual service companies. This is very positive for us.
We have been approved by and are processing procurement requests with Shell, Conoco Phillips, Weatheford, Exxon-XTO, Chevron, IOC, CUDD, Archer, Schlumberger, and many others, and are continuing to sell to Baker Hughes etc.
There were more than 47,000 wells drilled last year and this was only inside the U.S.; each of these wells requires the purchase of $150,000 up to $500,000 of chemicals, making this an extremely large market. The International market is also expanding quickly as shale areas around the world are starting to be exploited.
PetroTech Oil and Gas, Inc. uses multiple patent technologies for Enhanced Oil Recovery and in some cases will use their new pumping system co developed by PetroTech. We will use this patented technology with other proven technologies currently used in the industry to drill, complete equip new drill wells and older wells with secondary production opportunities. Throughout the United States there are primary depleted oil reservoirs representing billions of barrels of oil that lend themselves to the use and exploitation of Enhanced Oil Recovery and PetroTech Oil and Gas, Inc.'s proven patented technology. Without EOR technology, these reservoirs will produce only about 20% of their Original Oil in Place. Gas injection EOR is a proven method that has been in use over the last 50 years in the oil fields of West Texas, Kansas, Oklahoma, Michigan, Wyoming and Oklahoma. Starting in the late 1990's we started researching various EOR methods and sources of gases and mixtures of gases to find an alternative gas to pure CO2 for EOR. In doing so, we found that a N2-CO2 mixture was 2-3 times more efficient than CO2 in the recovery of stranded oil. Recently we have been introduced to a patented exhaust unit that was more efficient than regular CO2. A new prototype of that equipment was then built for injection purposes; and is in the process of being further developed for commercial use.
We have analyzed the different types of oil producing reservoirs in most of the major geological basins in the United States and have determined that the use of our process and method will enhance the recovery of stranded oil reserves in these areas that otherwise may never be produced. The pinnacle reefs, other reefs in Texas make excellent reservoirs for EOR because they are compact, have consistent reservoir properties, thick pay columns, and are overlain by an impermeable cap seal. However other formations have responded favorably as well. These reservoirs represent over 300 million barrels of recoverable stranded oil using our patented method and technology. CO2 floods have been successful on the reefs in the US with rates as high as 1000 BOPD. Our process will have a major impact on the recovery of stranded oil in U.S. basins. This statement is based on the fact that we have an unlimited source of gas and we do not need an expensive infrastructure to transport the gas, plus the fact that it is proven that a mixture of CO2 and N2 is more efficient than CO2 in some trials.
The cost and recovery of a project will be dependent on size of structure and depth; the cost will range depending on type of formation and type of treatment design. Hopefully, per project we will capture an additional 20% to 40% of oil in place. Attempting to do this in a period of 5 years as opposed to the original 20% of oil that has already been produced; which may have taken ten to twenty years. Each successful project is estimated to have a six to twelve month payout.
For more information please go to our websites, which can be found at: http://petrotechog.com
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Investor Relations Gabriel Rodriguez E Relations Group +1-888-261-6537
SOURCE PetroTech Oil and Gas Inc.