HOUSTON, Feb. 19, 2014 /PRNewswire/ - Well Power, Inc. (OTCQB:WPWR),- (The Company), is pleased to provide a corporate update on the business development of the Company. Well Power Inc. entered into an exclusive licensing agreement for the state of Texas (the "Agreement"), effective January 22, 2014, for proprietary technology, with applications in the oil and gas sector, which the Company hopes will create revenues streams for producers and operators by processing wasted natural gas into valued Engineered FuelsTM and Clean Power.
Dr. Cristian Neagoe was appointed as CEO and Director by the board of directors of the Company on January 9, 2014 and subsequently Dan Patience was ratified as President and Director on February 13, 2014.
With this strong management team in place the Company has commenced the business of developing and providing its technology as a solution for flaring, venting and shut-in waste gas in the state of Texas. The initial stage of the implementation of this technology is to seek partnerships with active oil and gas operators to understand their unique wasted gas characteristics. Through these partnerships the Company plans to work towards the deployment of a Micro-Refinery Unit ("MRU") pilot project in accordance to its development schedule as disclosed in the Company's public filings.
The current regulatory environment towards flaring is increasingly restrictive and should provide the Company an opportunity to provide its technology as a solution to the oil and gas industry in Texas.
"The Company's timing is excellent as it enters a market which is facing a crack down on the flaring of wells by the oil and gas drillers by the Railroad Commission of Texas, which is the regulatory body which oversees the oil and gas industry in the state," states Dan Patience, president of the Company. For example, as outlined by www.oilprice.com, earlier this month the Texas Railroad Commissioner Christi Craddick sent letters to oil and gas drillers to warn them about running afoul of the state's rules on flaring natural gas.
The Commission's Statewide Rule 32 allows operators in Texas to flare gas while they are drilling, and up to 10 days after well completion. Typically, no pipeline infrastructure is in place upon well completion and the Commission may issue flaring permits for 45 days at a time, with up to three extensions for a maximum limit of 180 days. To obtain an extension companies must show progress toward "establishing the necessary infrastructure to produce gas rather than flaring it." With infrastructure construction not keeping pace with well completions, total flaring permits approved statewide by the Commission have increased 53% in 2013 from 2012.
Well Power Inc. will also seek to expand its licensed territory for the MRU, in accordance with the rights provided to the Company in the Agreement, to those states where environmentally harmful flaring exists and operators require an economic solution for their wasted gas. In certain states economic incentives are present, such as in North Dakota, where a tax exemption (ND H 1134) is provided for oil and gas wells where gas is collected at the well site by a system that intakes at least seventy-five percent of otherwise flared gas from the well for beneficial consumption, including conversion to liquid fuels and for electrical power.
To proceed with the Company's development objective of implementing a pilot project, the Company must first obtain funding for working capital and general and administrative expenses.
For more information on our Company, management and our technology please visit our new corporate website at www.wellpowerinc.com
About Well Power, Inc. (the "Company")
The Company has acquired an exclusive license from ME Resource Corp., a Canadian publicly listed company that is developing mobile and scalable Wellhead Micro-Refinery Units (MRUs) deployable close to the wellhead to process raw natural gas into liquid fuels and clean power. As a result of the License Agreement, the Company is now a development stage company seeking to commence the new business of distributing MRUs in the State of Texas and from there into other geographical areas.
The Company is looking to position itself as a technology company, which will provide oil and gas producers and operators a solution to process otherwise wasted natural gas, including stranded, shut-in, flared and vented gas and produce valued end-products including Engineered FuelTM (diesel, diluents, synthetic crude) and electrical power.
For more information about the Company please visit our website at www.wellpowerinc.com
Further information on the Company and its filings can be found at www.sec.gov
Forward Looking Statements
Some information in this document constitutes forward-looking statements or statements which may be deemed or construed to be forward-looking statements, such as the closing of the share exchange agreement. The words "plan", "forecast", "anticipates", "estimate", "project", "intend", "expect", "should", "believe", and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve, and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. The risks, uncertainties and other factors are more fully discussed in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Well Power, Inc., herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Well Power, Inc., disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
SOURCE Wellpower inc.