Interesting Technology announcement re: enhancing stripper wells
PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--June 25, 1998--Nevtah Capital Management (''Nevtah'') (NASD OTC:NTAH) announced that it has finalized an agreement with Petroleum Asset Management Co. (''Pamco'') to form a partnership utilizing a patented stripper well technology, which will significantly improve the economics of oil production.
The technology will reduce operating costs by $5.00 + per barrel of oil as well as increase production. The nation's 433,171 stripper wells produced more than 350 million barrels of oil in 1996, 15 percent of all the oil produced in the U.S. (excluding Alaska). There are another 500,000 stripper wells not operating at this time. Even at the current low prices of oil, this technology converts marginal wells into an economic success.
As reported by Resource Analyst Jay Taylor, ''assuming this technology is used on just 9,000 Stripper wells in the U.S., management believes its 50% interest in this technology could bring pretax earnings to Nevtah ranging from $14 million to $79 million per year.''
The company has currently installed six new systems on wells in Kentucky and Oklahoma. Four of the wells are located in Kentucky and range in depth from 600 to 1,400 feet. These wells were targeted to test the cost and efficiency with much lower operating costs as compared to the standard pump jack system.
Two systems were recently installed in Oklahoma on wells of approximately 500 feet in depth. These wells will be used to determine the economics of the system on very shallow wells, which had been abandoned for some time. Another 18 wells will be installed over the next 30 days, which will complete phase 1 of the testing program. Phase 2 will include the installation of the system in an
additional 100 wells. At that point, the company will actively seek
additional leases in Texas, Oklahoma and Kansas for its own use as well as start a marketing program to sell the technology to other stripper well operators in non-competitive areas. This will include sales to other countries through exclusive distributors.
Nevtah is still negotiating with prospective joint venture partners to
participate in the development of its Matagorda Island gas field.
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