Epic Oil and Gas Ltd -
Epic subsidiary granted request for proposal
Epic Oil and Gas Ltd
EAS
Shares issued 15,743,706
1999-08-09 close $0.13
Tuesday Aug 10 1999
Mr. Bob Curr reports
Through new research, developed by the Alberta Research Council, Epic is
currently situated to take full advantage of becoming a world leader in lowering
greenhouse gas emissions by the injection of waste gas emissions of local plants
and factories into deep unminable coal seams. Installing an economic pilot site on
Epic control leases would be the final outcome.
Both federal and state regulations are currently being evaluated and through the
company's wholly owned subsidiary, Rival Resources, Inc. has been granted a
request for proposal by the United States Department of Energy (USDOE) on the
sequestration of CO2 into unminable coal seams to lower greenhouse gas
emissions. Success with this program will create a new profit centre for Epic that
could be larger than gas storage and conventional gas production combined. The
storage of CO2 in the coal seams has proved to dramatically increase the gas
production from the coals, and as well, Epic will be able to collect fees from the
industries producing the harmful CO2.
Over the last two years, Epic saw a need for this new and exciting research as a
very profitable business to be involved in. This business also complements Epic's
core business in the Pacific Northwest, natural gas production from coal seams.
This RFP is directly due to the 1997 IEA sponsor Kyoto Conference in Japan on
reducing greenhouse gas emissions worldwide to 1990 levels by the year 2010.
Over 60 countries have participated in setting up technical groups, including
Canada, Britain, Australia and the United States.
Rival's submitted proposal could see matching funds of up to $20.0-million (U.S.)
spent over three phases. Phase one and phase two will show results that will
indicate the best area to complete a pilot test site. Phase one will be a feasibility
study of all the coals and CO2 sources in the United States. Phase two will be a
single test in four areas of the United States (including Washington). Phase three
will then be design for a multiwell pilot site.
Leading Rival's team of experts is Ken Sinclair, currently a director of Epic Oil
and Gas Ltd. and current chairman of the Canadian Coalbed Methane (CBM)
Forum. Due to the complexity of the research with economics on this project in
Washington, the following companies have put together a consortium to assist Mr.
Sinclair. This consortium of world-class experts in this field is as follows:
Dr. W.D. Gunter -- Alberta Research Council -- research scientist;
Dr. John McLennan -- Terratek, Inc. -- vice-president;
Matt Mavor -- Tesseract Corporation -- president; and
Dr. John Seidle -- Sproule International -- CBM engineer.
This consortium has a combined 100 years of experience in CBM and in
environmental issues. This group has developed a test site in central Alberta over
the last three years that continues today. Specific details are being left out due to
the competitive nature of this process.
The sequestration of local greenhouse gas emissions from either area plants or
factories will make Washington the most viable area in the United States to
continue these principles. This will happen over the next decade as Epic injects
CO2 or flue gas into unminable coal seams on Epic controlled leases, which
produces natural methane gas. Added bonuses would be increased gas
production to an economic rate and 100 per cent gas recovery.
The proposal will be completed within the allotted time frame with work starting in
early 2000.
Shareholders of Epic will see this new technology develop over a period of time
with help from the United State Department of Energy, once Epic is awarded the
RFP.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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