HOUSTON, March 12, 2015 /PRNewswire/ -- Fossil Bay Energy LLC, an emerging leader in portable Exhaust Gas CO2 EOR (Enhanced Oil Recovery) technologies, announced today that former Valerus and Hanover Compressor co-founder, Mike McGhan has joined the Company as its Chairman.
McGhan will help Fossil Bay exploit its exclusive U.S. license rights to certain Exhaust Gas Injection and Pressurization patents owned by Weatherford Technology Holdings by incorporating those patents into a new fleet of Exhaust Gas Processors for Enhanced Oil Recovery in pressure-depleted reservoirs.
Thousands of mature and abandoned oil reservoirs in America, that previously produced millions of barrels of oil during their primary oil recovery phases, still contain millions of barrels of stranded oil that can be recovered by Fossil Bay's Exhaust Gas CO2 EOR equipment. These mature depleted oil reservoirs may have lost their primary gas drive but can be re-pressurized to re-mobilize and extract stranded oil.
According to Fossil Bay COO Larry Shultz, "I've worked with Mike McGhan over the last ten years and am proud to have him join Fossil Bay Energy's management team, validate the profit-potential of our business plan, and do for exhaust gas compression and injection EOR what he and his previous teams at Valerus and Hanover Compressor did for wellhead, midstream, gas-processing and pipeline natural gas compression."
Just as horizontal drilling and multi-stage fracking unlocked the value of numerous multi-billion barrel shale gas and shale oil plays over the last five years, Fossil Bay's modular gas injection CO2 EOR technologies promise to usher in a new era of low-cost oil production that can unlock the value of America's multi-billion barrel stranded oil resources.
According to Mike McGhan, "With the price of oil so low, exhaust gas injection CO2 EOR represents one of the most cost-effective ways for royalty owners and oil well operators of EOR-worthy properties to increase their income, exploiting old assets they already own to produce new EOR revenues. I look forward to working with Dan and Larry to make Fossil Bay Energy a major player in this growing EOR market for exhaust gas re-pressurization equipment and services."
About Fossil Bay
Fossil Bay is an emerging leader in enhanced oil recovery (EOR) technologies and services, fielding the oil industry's next-generation fleet of fully-automated, portable exhaust gas injection CO2-generators to bring low-cost, variable-pressure EOR capabilities on-site to mature and EOR-worthy conventional oil fields not served by CO2 pipelines. The Company's growing fleet of patented thermal, chemical and portable exhaust gas injection EOR technologies and services can produce new supplies of crude oil from old oil fields for less than $15-25 per barrel of recovered oil.
SOURCE Fossil Bay Energy LLC