SECONDARY RECOVERY IN GAS WELLS
Current trends toward higher gas prices have made secondary recovery methods for gas economically viable. In North America, these higher prices are due to a fully developed pipeline infrastructure that enables the supply of gas to reach most major markets. In fact, new exploration has been unable to keep up with the increased demand created by these markets. Supply and demand rules prevail and the price of natural gas has risen.

One of the most common problems in wells located in mature gas fields is hydrostatic pressure. Formation water creates a plug hindering the flow of gas and eventually stopping it altogether. Solving the hydrostatic pressure problem can mean trillions of cubic feet of gas would be recoverable that are now shut in. McOil has an agreement in place to use a newly developed, patent-pending system which, in initial testing, has shown very promising results in solving this type of water problem. Mcoil has organized a limited partnership (see below) to finance the purchase of gas producing properties that have a high incidence of wells with hydrostatic pressure problems. By installing the new system on the problem wells, McOil believes it can significantly enhance production and increase the value of the properties.

 

Aviva Enhanced Recovery Systems - One Limited Partnership
This partnership has been created to purchase gas-producing properties with a high incidence of wells with hydro static pressure problems. The Partnership will install secondary recovery systems (see above) to enhance production. Click here for more information or to receive an Offering Memorandum

 

NON-PIPELINE TRANSPORTATION OF NATURAL GAS
In parts of the world not serviced by a good pipeline infrastructure, natural gas is priced considerably lower than its energy equivalent in other types of fuel. As this gap widens, other methods of transporting natural gas become economically viable. McOil is a leader in non-pipeline gas transportation and has exclusivity agreements in place for a variety of innovative technologies including lightweight high pressure composite tanks (pictured at left). McOil is also working closely with Cryofuel Systems in Washington to develop markets for their patented small scale (distributed scale) gas liquefaction plants. Click here for more information on Cryofuel Systems. These technologies can be used to move gas from stranded wells or from pipelines to distant markets where a pipeline is uneconomical.

In North America, with a mature pipeline infrastructure, the price spread between natural gas and other fuels is narrower. However, there are still many opportunities to use McOil transportation methods, including stranded wells, as well as large industrial projects not located near a pipeline. Natural gas from a nearby gas field may be a cheaper fuel source and is certainly a cleaner burning fuel where environmental considerations are a factor.