BEDFORD, Texas, May 23, 2013 /PRNewswire/ -- PetroTech Oil and Gas Inc. (OTC Pink: PTOG), announced today they have entered into an agreement to purchase solid controls equipment that will expand their services by offering waste management solutions for Oil and gas drilling, completion and work over operations.
"In addition to the first five wells of 110 being worked over, we are pleased to be working with Solid Services Depot, a recognized industry leader in the manufacturing of quality solids control equipment," said Eddie Schilb president of PetroTech. "Depending on which Rig, depth, stage and formation; the Rig and equipment will charge a day rate of between $2,000.00 to $16,000 per day, depending on the amount of equipment and tools used during that day. Factoring working days, the equipment should generate gross income of approximately 1,000,000 year and yield a net of $450,000.00 to $475,000 per year revenue. We already have a commitment on two major oil company contracts," he added.
About Solid Control Services
Solids control is a technique that uses combined equipment for drilling rigs to separate the solids in the drilling fluids that are crushed by the drill bits and carried out of the well to the surface.
Solids control systems consist of five stages, including mud tanks, shale shakers, vacuum degassers, Desanders, desilters and centrifuge. Each of these items play a major role on the drilling rig as a filtration system to extract solids from the mud and return cleaner mud to the active system. It controls Mud weight and allows the rig to drill faster and keep the properties of the well-bore hole consistent so that producing formations are protected, it helps prevent blow outs and is environmentally friendly.
There is a demand for the services of solids control due to the rise in the price of oil and gas prices, domestic and developing countries supply and need for petroleum products, the explosion of shell well development due to new technologies like solids control sweeping across the country.
Solids Control Depot (SCD) originated in Central TX. SCD was established to compliment all of the third party Solids Control organizations with all their equipment wants and needs.
Solids Control Depot has over 15 years in the Oil and Gas Industry. We provide the most advanced, cutting edge equipment for your Solids Control Operations in the field.
Not only does SCD offer a variety of Equipment, SCD also offer some of the Industries most advanced technicians. Let SCD's years of experience assist you with the initial Rig Up and Rig Down, Preventative Maintenance and Training on all of your equipment's day to day operations, ensuring that you provide First Class Service to your customers.
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 enhanced 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:
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.
Porter, LeVay & Rose, Inc.
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Phone: 212 564 4700
SOURCE PetroTech Oil and Gas, Inc.