Kerm & Friends:
Anyone have any comments / insight on this press release??
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Company: Blackline Oil Corporation
Symbol: BLC
Exchange: VSE
52 Week Low-High: $0.300 / 0.900
Current Price: $0.46
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UPSTART FIRM ANNOUNCES BREAKTHROUGH RECOVERY
PROCESS TO REVITALIZE MAJOR OIL REGIONS
(reprinted with permission from "Individual Investor", Jan. 1999)
'Blackline Oil Corps revenues and earnings projected to grow
exponentially as industry embraces innovative technology.'
Today's petroleum industry is characterized by efforts to reduce overhead to
become more competitive in this era of low oil prices, declining production
and costly exploration in far-off corners of the globe. Consolidations,
downsizing, mergers and growth through acquisition are some of the major
trends emerging, as witnessed by the recent alliance between Exxon and
Mobil.
One progressive company that is poised to fundamentally change the way
the international oil industry operates is Blackline Oil Corp. Blackline, after
several years and over $7 million in research and development, has initiated
a new technological approach for oil recovery that promises to be one of the
biggest breakthroughs in the history of the oil industry.
Through a recent strategic alliance with a industry-leading technology firm,
KeyTech Energy Inc., Blackline has successfully developed the world's first
cost-effective nitrogen-injection technology for increasing oil production from
existing reservoirs previously considered depleted or declining.
"We have basically unlocked a century-old mystery with a nitrogen injection
technology that is the most efficient and most cost-effective in the world
today, bar none," stated project manager Bruce Peachey, Ph.D. Eng., a
leading authority on oil recovery methods.
Among his credits, Mr. Peachey is a director of the Petroleum Technology
Alliance of Canada. Mr. Peachey spent 17 years with Imperial Oil and has
patented a down-hole water separation technique now in commercial
application with major firms throughout North America and internationally.
"Our new technology clearly has the potential to add more reserves than any
single conventional oil reservoir discovered to date," adds Mr. Peachey.
Designed and engineered for universal application, the technology will
initially be applied in the western Canadian province of Alberta, one of the
world's most prolific oil regions where in excess of 45 billion barrels of known
oil reserves remain unrecovered.
Proven Technology.
According to the Alberta Department of Energy, the average oil recovery
rate using conventional techniques is 30%, leaving 70% of the oil in the
ground. Blackline's proven technology, can typically recover up to 70% of
the remaining in situ resource.
Blackline's technology was developed by utilizing extensive field studies of
gas injection technology projects initiated by major multinational petroleum
firms, including Amoco, BP and Exxon.
Until now, competing technologies have proven uneconomic, except in
large oil fields. By applying a new technological approach to gas injection
recovery methods, Blackline has a target recovery cost of $3 per barrel,
compared to $10 per barrel using conventional methods, providing a major
economic impact for both the smaller, remote, mature fields, where the
majority of unrecovered reserves are located, and a number of large-scale
projects that have been abandoned due to the prohibitive cost of recovery.
Key cost reduction initiatives realized by utilizing Blacklines recovery
technology include incorporating membrane technology, which separates
nitrogen from air, creating a portable technology that does not require
permanent equipment or pipelines, and reduced water handling charges,
which account for 40 - 50% of costs in the conventional oil industry.
A compelling example of the potential that exists for the company's
technology is the Redwater D-3 Field, located near Edmonton, Alberta. The
field is now being abandoned despite a known resource in excess of 500
million barrels of oil, roughly equivalent to the Hibernia offshore oil
mega-project in eastern Canada, which incurred upwards of $8 billion in
exploration costs.
"Applying our technology successfully on major projects such as the
Redwater will provide tremendous credibility for our company, while
dramatically increasing the amount of oil produced in Canada and around
the world," says Blackline President, Mr. Barry Hemsworth.
"We see a major market demand and an unparalleled opportunity for our
firm. Even a three per cent increase in recovery from existing pools would
double the amount of oil produced in Alberta, providing an additional $50
billion to the Alberta economy," says Hemsworth.
Commercialization Imminent.
To advance the technology to commercial application, Blackline is currently
proceeding with the acquisition of production rights on a major lease in
Alberta. Drawing on management's proven ability to source, evaluate and
capitalize upon uniquely attractive opportunities in the oil industry, the
company has identified numerous prime opportunities and are now moving
on specific targets.
As a result, the company is now poised to enter the ranks of junior oil
producers with no exploration costs, minimum royalty rates and virtually no
risk.
Once in full commercial application, targeted for the second quarter fiscal
year 1999, Blackline will build its revenues from near-term oil production
and joint-ventures, in addition to significant licensing and royalty fees as
the technology is widely adopted by the international petroleum industry.
Based on the companys proven industry-leading technology, major market
demand and exceptional revenue potential, Blackline Oil Corp. remains
one of the industrys premier growth issues, trading what many insiders
consider significantly discounted to market potential.
Blackline Oil Corp.
Toll Free 1-877-408-6600
Fax: (604) 687-0586
Website: www.blcoil.com
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