The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
$30-32 a barrels break even at 300bblsa day production!
PQE : TSX
PQEFF : OTC
Petroteq Reaches New Production Milestone of 300 bbls/day and is Now Operating on a Break Even Basis at Its Asphalt Ridge Plant
Must be one of the only Project in North America to break even at these oil prices after Russia and Saudi Arabia price war, plus the staff at the site is already trained ready from Double shift operations where the output from the plant at Asphalt Rigde will most likely double to over 600 barrels a day which would be turning a good profit, unheard of really in this price environment!
• The technology at the Plant is flexible enough that it can produce a wide range of different characteristics of oils, which enables the Company to cater to the specific needs of its customers.
• Due to the high quality of oil produced at the Plant, the Company’s sweet heavy oil is being sold at West Texas intermediate (WTI), less the cost of transportation with no further deductions.
• Based on the Company’s current production rate of 300 bbls/day and production costs of approximately $30- $32 per barrel (inclusive of the costs of all plant expenses), the Plant is currently operating on a break even basis.?
• The Company has received a payment of $96,500 from the State of Utah County Roads Department for delivery of heavy unrefined oil to be used in their road paving operations. In addition, the Plant has received an additional purchase order for ?a further $250,000 of the same product from the same state agency.
• Additional staff training has been completed at the Plant in anticipation of implementing dual shift operations as a result of anticipated increased ?production resulting from various engineering improvements at the Plant.
• With the International Maritime Organization’s new low sulfur fuel regulations (IMO 2020) becoming effective on January 1, 2020, the Company is focusing on producing a high ?quality sweet heavy crude oil consistent with refiner and customer demand. Petroteq Heavy Sweet Oil has an American Petroleum Institute (API) gravity in the range of 14 to 20 and a sulfur ?content of less than 0.5%?.
• The Company believes that the low sulfur content of Petroteq’s Heavy Sweet Oil, provides it the potential to reduce refining costs and is an attractive blend component for refiners, which generates a more valuable product for the Company, increasing our ?net margins and netbacks on a per barrel basis.
Break even at $30-32 a barrels break even at 300bblsa day production!
PQE : TSX
PQEFF : OTC
Petroteq Reaches New Production Milestone of 300 bbls/day and is Now Operating on a Break Even Basis at Its Asphalt Ridge Plant
Must be one of the only Project in North America to break even at these oil prices after Russia and Saudi Arabia price war, plus the staff at the site is already trained ready from Double shift operations where the output from the plant at Asphalt Rigde will most likely double to over 600 barrels a day which would be turning a good profit, unheard of really in this price environment!
• The technology at the Plant is flexible enough that it can produce a wide range of different characteristics of oils, which enables the Company to cater to the specific needs of its customers.
• Due to the high quality of oil produced at the Plant, the Company’s sweet heavy oil is being sold at West Texas intermediate (WTI), less the cost of transportation with no further deductions.
• Based on the Company’s current production rate of 300 bbls/day and production costs of approximately $30- $32 per barrel (inclusive of the costs of all plant expenses), the Plant is currently operating on a break even basis.?
• The Company has received a payment of $96,500 from the State of Utah County Roads Department for delivery of heavy unrefined oil to be used in their road paving operations. In addition, the Plant has received an additional purchase order for ?a further $250,000 of the same product from the same state agency.
• Additional staff training has been completed at the Plant in anticipation of implementing dual shift operations as a result of anticipated increased ?production resulting from various engineering improvements at the Plant.
• With the International Maritime Organization’s new low sulfur fuel regulations (IMO 2020) becoming effective on January 1, 2020, the Company is focusing on producing a high ?quality sweet heavy crude oil consistent with refiner and customer demand. Petroteq Heavy Sweet Oil has an American Petroleum Institute (API) gravity in the range of 14 to 20 and a sulfur ?content of less than 0.5%?.
• The Company believes that the low sulfur content of Petroteq’s Heavy Sweet Oil, provides it the potential to reduce refining costs and is an attractive blend component for refiners, which generates a more valuable product for the Company, increasing our ?net margins and netbacks on a per barrel basis.
Petroteq Announces Completion of Automation, Strategic Account Payment Structure With Valkor Oil and Gas and Appoints New Advisory Board Member
“Petroteq Energy Inc, an oil sands mining and production company having a proprietary technology that extracts hydrocarbons from oil sands without the use of water, is pleased to announce the completion of facility automation, a strategic account payment structure with Valkor Oil and Gas (“Valkor”) and the addition of Dr. Mark Rollins to its advisory board.
The Company has completed the automation of the front end processes for sand separation, oil quality control and centrifugal agitation. The Company believes that with the engineering and technical assistance from Valkor and Alfa Laval, its production of crude oil and potential reduction in operating, maintenance and labor costs will now be achieved. This marks a very important milestone in becoming an oil company focused on the development and implementation of a proprietary, environmentally clean technology for heavy oil extraction“
TSXV:PQE
OTC:PQEFF
https://content.equisolve.net/_e4acb3d204e67146c89551aeff407a7f/petroteq/news/2019-11-20_Petroteq_Announces_Completion_of_Automation_338.pdf
WHY PETROTEQ STANDS OUT FROM OTHER OIL
AND GAS PRODUCERS
https://mkt-petroteq.conversionir.com/asset/1:petroteq-report
Stable continuous production achieved after start up of Petroteq oil sands plant in Vernal Utah Asphalt Ridge!
• Production and sale of 1,000 barrels of oil, achieved in one work week of continuous operations at the Plant.
• A production rate of 200 barrels of oil per day utilizing an eight-hour work shift each day.
• A higher quality of oil on a consistent basis that meets the specifications of refiners and other buyers.
David Sealock, CEO, “The Company has been working with Valkor Engineering, a U.S. engineering firm in charge of the project, together with Alfa Laval, a leading global provider of engineering solutions, separation and fluid handling, and a centrifuge manufacturer, in improving existing processes and installing additional equipment to achieve higher production rates and to provide increase efficiencies at our Utah facility. We believe that all production issues have been resolved and the plant is now achieving continuous and stable production rates.”
https://content.equisolve.net/_147d27910cb94c9d0f92fed1c228ae21/petroteq/news/2019-10-21_UPDATE_Petroteq_Achieves_Continuous_334.pdf
Share Chat on LSE is under ticker:- 0TB2
First character is a zero!
Queensland MOU Memorandum of understanding (Possible Licensing Deal)
• On 17 July 2019, QEM announced successful results using Petroteq Energy Inc’s technology, from Stage 2 test work carried out on the previous drill core sample.
• The test work undertaken by independent lab PRI Asphalt Technologies Inc, provided strong results, with total oil recovery up to 65% of the contained oil, from Julia Creek Project samples.
• With further optimisation by Petroteq, QEM is confident that recovery can be further increased.
• The residual material of approximately 20% of original mass (after oil recovery) was separated as a result of the Petroteq process, and this residual material contains the metals.
• The V205 is contained in the residual material only, as verified by PRI’s laboratory analysis.
• These results warrant a bulk sample test in order to produce sufficient oil and V205 required to carry out API (petrology analysis) testing of the oil, and V205 extraction.
• The bulk sample testing will provide a result that is a better representation for the beneficiation of the V205.
Queensland Vanadium Oil Sands Project Presentation August 2019
http://qldem.com.au/wp-content/uploads/2019/09/QEM_Investor_Presentation_August_2019.pdf
Other Links:-
http://qldem.com.au/project/
https://secureservercdn.net/50.62.89.138/gjz.e79.myftpupload.com/wp-content/uploads/2018/11/QEM_AX_IIR_181031.pdf
http://aigjournal.aig.org.au/julia-creek-vanadium-and-oil-shale-deposit/
Geology of Utah Tar Sands
https://geology.utah.gov/resources/energy/tar-sands/
?Zacks Research Note:-?
Research Note
https://scr.zacks.com/Research-Reports/Companies-by-Name/default.aspx
https://s1.q4cdn.com/460208960/files/News/2019/Zacks_SCR_Research_06112019_PQEFF_Ralston.pdf
research note:-
https://wfn1.com/financial-news/columns/zacks-research/pqeff-zacks-initiates-coverage-of-petroteq-energy/
The interest is here already from large company’s which is validation in itself with a Non-Exclusive License Agreement in place with Valkor LLC for the CORT Technology/Process.
License Agreement:-
Under the Agreement, Valkor has agreed to pay Petroteq a non-refundable license fee of US$2 million per Plant in two payments, with 50% payable upon start of construction of a Plant and 50% payable upon first production of such Plant. Valkor also agreed to invest (or secure investment) of a minimum US$20 million towards the construction of a Plant by December 2020, and to have in production a minimum of 1,000 barrels per day. The agreement further provides that Valkor will pay Petroteq a five percent (5%) royalty based on annual gross sales, excluding solvent and or water, for so long as licensed technology is covered by a valid claim in the country in which it is used.
https://www.globenewswire.com/news-release/2019/07/02/1877278/0/en/Petroteq-Announces-Technology-Licensing-Agreement.html
Valkor Homepage:-
http://www.valkor-offshore.com
One of largest deposits of Oil Sands in the world :-
166 Billion Barrels!
Buried in Alberta, Canada’s Oil Sands in Athabasca and at this field, the bitumen sits on top of a layer of limestone, which allows for surface mining!
The Technology used by the large companies is called SAGD system - (Steam Assisted Gravity Drainage)
The are concerns over its environmental impact are that the process involves high levels of water plus the operations produce large amount of greenhouse gasses because diesel engines are used to heat up the tanks to separate the oil so the process is not efficient
The Technology used by the large companies work on SAGD system :-
(Steam Assisted Gravity Drainage)
and the measurement for energy technology on how efficient is abbreviated to EROEI :-
(Energy Returned Over Energy Invested)
A third party consultant, Chapman Petroleum Engineering performed an extensive energy analysis of MCW’s PetroTeq technology and the result was determined that the combined effect off all the Energy Saving features:-
The figure for SAGD is 4:1 EROEI Ratio!
CORT Technology is a 45:1 EROEI Ratio!
But to be Conservative it was Reduced to 22:1 to Account for Unforeseen Energy Losses!
PetroTeq is the first in Utah and USA to commercially produce surface oil sands based in Vernal, they recently completed re-engineering modifications/commissioning of the new equipment to the process/plant and have just started producing, the aim is to get somewhere between 1000 barrels continuous production per day which they will achieve in stepped process week by week!
The Projects:-
Asphalt Ridge facility in Vernal is a 1.5 Billion Barrels Deposit, the leases cover 2,542 gross acres of contingent resource of which 87.5 Million Barrels is recoverable on the leases.
Evaluation of Contingent Resource CPR by Chapman Petroleum Engineering:-
https://content.equisolve.net/_2f890012ef4beeb5d21edba60e3003cc/petroteq/db/207/2256/pdf/Report+OSB.pdf
Also
P.R Springs Project has recently been acquired and is a 4.5 Billion Barrels in place resource and own 8,480 gross acres of oil sands under U.S. federal oil ?and gas leases.
Latest Presentation:-
https://content.equisolve.net/petroteq/media/a9bc1245c1b816150e14fa309f4aa53c.pdf
Why PetroTeq stands out from other oil and gas producers.
https://mkt-petroteq.conversionir.com/asset/1:petroteq-report
PetroTeq patented technology is abbreviated to CORT (Clean Oil Recovery Technology)
It is environmentally friendly and the process produces zero greenhouse gas, zero waste and ?requires no high temperatures, it extracts 99% of the oil from oil sands and returns nearly clean sand back to the environment with a solvent based extraction that can be reused at a percentage of 99% recovery.
Here’s the Patent:-
Dr. Vladimir Podlipskiy
Patent no 9/884997
http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=1&p=1&f=G&l=50&d=PTXT&S1=Podlipskiy-Vladimir-$.INNM.&OS=In/Podlipskiy-Vladimir-$&RS=IN/Podlipskiy-Vladimir-$
Additionally, we are seeing technological advances in the space that look set to reduce this cost per barrel even further, as well as alleviate some of the environmental impact of oil sands processing – something that falls in line with the Paris summit agreement.
Take MCW Energy Group Limited (TO:MCW), for example. The company, run by the former Exxon (N:XOM) president of Arabian Gulf operations, has developed a technology that allows for the processing of oil sands without any water (removing the possibility of water source pollution) and which uses a solvent to separate the bitumen instead of heat (which vastly reduces greenhouse gas emission.) Because a solvent is used, the byproduct of the process is clean sand, meaning it automatically meets the ELC criteria. Further, a report conducted in 2012 suggests the technology can produce at a cost of $24 a barrel.
So what’s the takeaway here? Well, oil sands will remain controversial, there’s no question about that. However, with the latest Paris summit targeting a 2-degree cap in global temperatures, the space has an opportunity to reform its image. With technology in the sector improving the environmental impact that oil sand production has in its mining regions, and the increasingly attractive per barrel economics, oil sand is here to stay – and at a time when the entire energy sector is under real pressure from markets, there may be opportunity in some of oil sand’s constituent companies to pick up an exposure at a discount.
oil sands crude production creates 12% higher emissions than standard crude production.
Second, it can be highly destructive to local natural environments. One of the biggest oil sands production facilities in the world is the Athabasca oil sands in Alberta, Canada. At this field, the bitumen sits on top of a layer of limestone, which allows for surface mining. The Athabasca oil sands lie in the middle of the Boreal forest, and to allow for surface mining, and in turn to allow for access the bitumen, miners need to destroy forestry.
The government in Alberta requires that the company mining the land (currently two companies dominate the region - Suncor Energy Inc (N:SU) and Syncrude, the latter of which is a joint venture between seven companies, including Suncor and a host of state owned enterprises) restore it to what’s called equivalent land capability (ELC). Restoration qualifies for ELC if the land supports any number of a range of uses post-processing, and companies have come under fire in the past for reclamation as pasture for bison, rather than forestry.
Third, water use. The traditional oil sand conversion process involves high levels of water use – estimates put the numbers at up to 4.5 cubic meters of water required to produce 1 cubic meter of synthetic crude. Governments in the respective oil sand field territories have imposed strict water use rules on the companies involved in the space, and water is generally recycled (returned to source) after use. However, this brings with it a host of other issues, including the potential for toxic returns to a water source. Estimates suggest that Suncor and Syncrude will have polluted 1 billion cubic meters of water from the Athabasca River by the end of this decade.
So with these issues, why are companies like Suncor involved in oil sands, when they could be involved in traditional well drilling? It’s a case of economics. The price of oil is a hot topic at the moment, and the vast majority of producers are unable to well profitably at $50 barrels, never mind the current $35 barrels. Suncor’s cash operating cost at its Alberta fields was $34.45 per barrel as of March this year – a time when oil priced in at between $45-55 a barrel. Currently oil sits at a little over $35 a barrel, but by nature of the production process, as the price of oil drops, the cost of production per barrel drops (as producers are having to pay less for transport costs, machinery running etc.) With this in mind, Suncor is likely still drawing a profit on the barrels it is producing out of Alberta.
TSX Venture : PQE
OTC : PQEFF
CORT (Clean Oil Recovery Technology)
Started Producing Oil from Oil Sands in Utah a 1.5 Billion Barrel Resource with their 2,542 acres of mineral leases at Asphalt Rigde with a Contingent Resources report establishes a Best Estimate of discovered bitumen initially-in-place (DBIIP) of 87,495,000 STB!
* Economical in Lowest Oil Price Environment
* Lowest Break Even Per Barrel $17-$25!
* Environmentally Friendly!
* Water Free Operation!
* Clean Sand End Product!
* 99% Extraction of Oil in Place!
* 99% Extraction of Solvent!
* No Declines in Production!
* US Patent Tech - No 9/884997!
This is very current even more so as since the time of writing the Technology has matured with better oil quality, a re-Engineered smoother process with the addition of key components (sand separation process) for an upscale in production and a better oil quality for the local refineries and is in high demand which PetroTeq has said in the last news release!
Also this is just the Asphalt Ridge Project in Utah since then the addition of the leases and surface infrastructure for PR Springs with the deposit of 4.5 billion barrels of oil in place!
Good Article written a while ago
Written By :- Samuel Rae
Article
On Saturday, December 14, representatives from 193 UN member states and 2 observer states signed an agreement that will see a cooperative effort to limit the global temperature to 2 degrees above pre-industrial temperatures. The effort is spread across a wide range of contributing factors, but one of the major talking points is the oil sands space. The space has long held negative connotations; a view point compounded by Obama’s recent blocking of the Canada-Gulf Coast Keystone pipeline. Executives in the space, however, are saying that the Paris summit marked a turning point for oil sands, and that the sector now has the opportunity to reinvent itself. Let’s have a look at what lies behind this reinvention, and try to figure out what it means for companies in the oil sands industry.
First, what is the problem? For those not familiar with oil sands, they are a mixture of sand, clay and bitumen (also sometimes water) that is too thick to freely pass through pipelines or pumps, without being processed. Oil sands represent a large portion of global oil reserves, with an estimated worldwide resource of 249 billion barrels (Gbbl), of which 176 Gbbl (close to 80%) are in Alberta, Canada. The space is big business for the Canadian economy, but there are some serious concerns over its environmental impact – concerns that could hold it back in the wake of the Paris agreement.
First of all, the process produces large amount of greenhouse gasses. A study conducted in 2011 by Stanford University academic Adam Brandt concluded that crude derived from oil sands is 22% more carbon intensive that traditional oil well drilling. A concurrent study conducted by a California based engineering firm concluded that
As of yesterday 11.2.19 True Oil LLC Operators/Partners Request Undisclosed Additional 2 Mile Wells at East Denver Pad 15-16, terms for Highlands on extra wells would need to be arranged/negotiated as is not covered under same above agreement so would find out in near term the percentage cut with True covering costs!
https://twitter.com/fadec92/status/1095244401234886656?s=21
These are the videos I took when in Denver, Colorado, there are 8 wells in total from 2 sections of land (2 x640 acre parcels 1280 acres in total), these wells are high producing and are 2 miles long in horizontal length there are 3 Niobrara benches that are productive the Niobrara A,B and C, the wells here are 4 in B and 4 in C and normal IP per Well was 750bbl/d Oil and Gas but are primarily oil wells!
The total production is aiming for 5000bbl/d and Highlands partners True Oil operate the site all the costs of the wells Drilling/Completion site infrastructure is payed by True Oil and Highlands take 7.5% of Production!
Recently a pipeline was installed at the site with an offtake agreement with Conocophillips so all the gas is sold not flared and a lot of the waste water was recycled and reused in the fracking as a pilot project with Epiphany units and formed a subsidiary company Highlands Water Resources which has produced small revenue but hope to expand operations as more wells are drilled around the area as Conocophillips, Bison oil and Gas and Axis Exploration has a vast amount of wells all around as this is the first Multiwell Pad to be producing this number of wells, and a focus for other companies also Highlands hope to drill further 16 wells in area!
Robert Price talking about the 8 wells in operation at the East Denver Multiwell Pad!
https://twitter.com/fadec92/status/1087462909813448704?s=21
CEO Robert Price Talking About Production Automation Equipment Installed At East Denver Operations!
https://twitter.com/fadec92/status/1085783854395285505?s=21
Domingo Mata showing All Individual Well Outputs!
https://twitter.com/fadec92/status/1085781993013432321?s=21
West Texas API 40, East Denver Operations!
https://twitter.com/fadec92/status/1085779361817489408?s=21
Battery Tanks From Separation Ready For Sales, Domingo Mata @ East Denver Oil Production!
https://twitter.com/fadec92/status/1085774740118134784?s=21
Domingo Mata, Tracers (Isotopes) Injected To Find the Minimum Distance Between Wells For Optimal Well Spacings!
Achieved on 8 x XRL Wells East Denver Multiwell Pad!
https://twitter.com/fadec92/status/1088442670601637888?s=21
Oil production is separated into three phases:
1.Primary
2.Secondary
3.Tertiary also known as Enhanced Oil Recovery (EOR).
Primary oil recovery is limited to hydrocarbons that naturally rise to the surface, or those that use artificial lift devices, such as pump jacks.
Secondary recovery employs water and gas injection, displacing the oil and driving it to the surface. According to the US Department of Energy, utilizing these two methods of production can leave up to 75% of the oil in the well.
Tertiary recovery method or EOR can further increase oil production, although more expensive to employ on a field, EOR can increase production from a well to up to 75% recovery.
EOR In The US
The US Department of Energy estimates that currently there are 89 billion barrels of additional oil trapped in onshore reservoirs. This is in great contrast to the country's current domestic proven reserves, which is estimated at 21.9 billion barrels. The DOE stresses that much of this production could be tapped by implementing EOR methods, namely the injection of carbon dioxide.
In fact, the governmental agency claims that the pervasive application of EOR technologies on US reserves could increase the country's oil recovery from approximately 30% to more than 60%. If this oil was added to the US proven reserves, the country would rank fifth in the world for the size of its reserves.
https://www.rigzone.com/training/insight.asp?insight_id=313&c_id=
Enhanced Unconventional Oil and Gas Production with Nitrogen Fracturing
http://www.airproducts.com/industries/energy/oilgas-production/oilfield-services/product-list/~/media/9546ad39b8fe4584b1f802f84d572d1b.pdf
Highlands, the London-listed natural resources company, is pleased to announce that gas samples collected from the Barret 1-14B Well in Kansas during the company's flow tests on 21 June 2018 indicate initial nitrogen purity levels over 99.59%.
The analysis has been conducted by Isotech Labs, a prominent independent laboratory who serves the industry across the United States.
By way of illustration of the importance of this result, nitrogen with 98-99.5% purity is used as a preserving agent by food and beverage producers, meaning that Highlands' output could be immediately used in this industry.
“Highlands' output could be immediately used in this industry.”
So no need for the costs of plant equipment or the energy costs which the industry recognizes as the major cost and impediment of EOR being utilized more!
With 800 acres acquired and a cheap re-completion to assess the potential of Barret 1B (2,581 Mcfpd flowtest), more acreage has been identified and as can be seen from wells within the township there are more potential drilled and cemented wells with just the brigde plug that needs drilling out, the drill rig has been adapted to facilitate the production of a high pressure formation, so with more acreage it’s easy to see the plan and potential!
So testing will be mobilized in September from the 1B well from the presentation on page 12!
http://highlandsnr.com/wp-content/uploads/2018/08/HNR-Corporate-Update-Q2-2018-RL-comments-200818.pdf
Highlands Nitrogen Video.
http://highlandsnr.com/nitrogen-film/
Nitrogen Application and Distribution.
http://highlandsnr.com/wp-content/uploads/2018/06/Nitrogen-Gasworld-April-2018Correct-Version.pdf
Update on Kansas Nitrogen Project with second longer flowtest.
Successful First Flow Test of 1769 MCF/d from a Recompletion which perforated the Cedar Hills formation a High Pressure Reservoir at a depth of 2,150 feet, Second Flow Rates Test of 2,581 Mcfpd over 46% increase in flow rates. Nitrogen purity levels received back from Isotech Labortory measured of over 99.59% Purity.
So this Secures Nitrogen supplies for DT Ultravert technology and also a New Revenue stream in Kansas for Production and Supplies of low-cost Nitrogen to the Industry.
In the RNS Highlands have payed Nitrogen prices of DT $9.04 - $11.70 which is 3 - 4 times higher price than Natural Gas, also In talks with Kansas Oil and Gas Commission on the Gas Reserve and Talking to an operator to test the Carlile shale formation which consists of the Codell Formation, previously sampled wells in area have exceeded 95% Nitrogen.
Arizona CO2 Priject.
Also a new project has been started to supplement DT with Enhanced Oil Recovery (EOR) with the purchase of 46,000 acres in Arizona for a Prospective CO2 Resource to supply the Permian Basin needs in Enhanced Oil Recovery (EOR) which can increase the Oil Extracted for well by 75%.
Other service company's Schlumberger and Halliburtons go direct to the bigger Air products distributors to supply their Nitrogen needs and at a much higher costs as the Air product company's use bigger infrastructure and plant to convert the air into the Nitrogen. Helium is often found in commercial quantities in high nitrogen gas but there is no mention of this in the RNS not too mislead people, also worth noting that the giant Hugoton gas field, the Panoma gas field and about a dozen Niobrara gas fields are on the Colorado side of the border.
The plan is to test a potential nitrogen reserve to supply the nitrogen to roll out DT Ultravert by improving the margins with the highest cost in the delivery of DT Ultravert being cut. Would have been preparing for a while, reasons - 1.800 acres of land leased for appraisal. 2.Drill ready in two weeks. 3.Established itself as a bonded operator in Kansas. This is also in an undisclosed location not to let anyone know, I should imagine if successful then a more fuller leasing activity would take place, so by the end of next week would be near drill time to test a formation in a state known for high content of Nitrogen and Helium discovery in the state of Kansas! Also good to know is the strategic positioning of the location in Kansas where Denver Colorado is the adjoining state to the west and Oklahoma and Texas joins to the south, both are where the court case occurred where a precedent was set for a well bashing instance where an operator was awarded a payout from damages from frack fluid interference and a damaged well. and Highlands latest test in the Permian Basin where a 1 mile Horizonal well group was proved to not only to be protected from bashing but increase oil and gas production to 15% not just on IP (initial Production) but over the course of months on the overall reserve extraction EUR (Estimated Ultimate Recovery
Highlands are looking at a source where nitrogen exists in a natural state, so if the drill is sucessfull the costs of production will be much lower than using the 2 industry standards of 1.Separation Units. 2.Membrane Technology. The source should be at sufficient purity to cover all of DT Ultravert needs and due to the estimated size of the resource from the RNS it can potentially cover other uses of know Oil and Gas recovery Technologys that uses Nitrogen as a major component and Highlands can become a supplier of this in oil and gas wells as a service company along with DT Ultravert, so I'm sure in the supply of nitrogen to the oil and gas industry with the Enhance recovery and artificial lift can also form connections and deals and perform further work for DT Ultravert. Look up! 1.Enhanced Oil and Gas Recovery. 2.Artificial Lifting (low pressure wells) Although the recent nitrogen announcement brings more focus to DTU there are other potential applications and supply chains for low cost/high purity nitrogen which becoming a supplier would be creating another revenue stream for the Company Which are! Industry needs ie Medical, PCB's, Fertilisers, Stainless Steel Production, Explosives and Food Preservation. So the Drill! "Highlands will drill a vertical well to a depth of approximately 3,150 feet, perforate multiple zones and, if successful, hopes to achieve sustained large quantities of long-term nitrogen flow rates from the first well. Based on the project modelling carried out by the Company's technical staff"