RE: Similar Tech?I talked to the CEO. I hold a few shares of PEP.v but PBG.to is the real thing. Profitable oil/gas operations while you wait for Columbia, White Sands and/or THAI to send it to the moon!
Anyway this is the first test results from the DHT. Notice we still don't know how long the steam effect will be and what the falloff rate in increased production is. Without that, PEP.v can't show a prospect the economics of the treatment. Nor can they price it.
Any operator is going to want to see the expense to shut down the well, take off the pump and how much it's going to cost in lost production versus the increased production. The increased production is impossible to determine unless you know the approximate dropoff rate in the production as the steaming wears off. This will be different for each different well but they need some data or nobody is going to pay up front for any treatments.
CEO said they were going to keep testing and tinkering with the DHT to improve it. He told me they were a few months away from a commercial decision and hadn't decided on pricing yet because of the lack of data about the improvement in production and how long it lasts.
This treatment is going to be relatively cheap compared to SAGD or THAI or anything else. It's a short term treatment without the big capex to setup infrastructure. Could be effective for small operators who only want to treat a couple of wells. He mentioned that they are looking at long term leases to operators and leaving the DHT downhole. They would schedule periodic heatings to pressurize the well and possibly sustain the effect. There might be a lease payment as well as a percentage of the improved production.
It's interesting but a whole different ballgame from THAI. Small, niche product that could have widespread use someday.
Bobwins