LONDON, November 9, 2015 /PRNewswire/ --
As the fracking boom cools off amid a continued oil price slump, getting more oil out of the ground faster and cheaper is driving industry innovation and one new joint venture has hit the ground running with the exclusive North American license for what is being described as 'revolutionary' Plasma Pulse Technology (PPT).
PPT is one of the favorites poised to make major gains right now, proving its prowess most recently with a successful treatment of a well for the Kuwait Oil Company that resulted in an 85% increase in production.
The key is getting more oil out of the ground cost-effectively. In the case of PPT, the process has proven to increase a well's productive performance for up to a year with a single treatment that takes only a few hours.
PPT uses a series of impulse waves to re-open permeability for up to one year per treatment. Data from an average of 27 oil wells showed a 295% increase in initial production after a single PPT treatment, while the average from 36 injector wells showed a 545% increase of the amount of fluid after a single plasma treatment. In an Oklahoma oil field, the application of PPT led to an amazing 1040% increase in daily well production.
The technology doesn't open rock like fracking; rather, it comes in afterwards and cleans up well bores to clear the pathway for oil to flow faster and more efficiently to the surface. On an environmental level, it is friendly-making it a sure sell in today's market.
On 27 October, Propell Technologies (OTCQB:PROP) announced the operational launch of the new JV between its wholly owned subsidiary, Novas Energy USA, and Calgary-based Technovita Technologies USA. The new JV, Novas Energy North America (NENA), has now cornered the entire North American market and is ready to begin sales and delivery, with the first treatments already successfully completed.
The new JV was formed this summer with a $1.2-million investment by PROP, which has a 60% share. Its partner invested $800,000 for a 40% stake.
Major strategic investors have been playing the EOR market for some time, and the recent $15-million investment in Propell caught everyone's attention at the time, and since then the project has moved forward quickly, with some saying the new JV's North America-wide business could be worth billions.
By James Burgess of Oilprice.com