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Seven Generations Energy Ltd. class A common shares T.VII

"Seven Generations Energy Ltd is an independent energy company focused on the acquisition, development, and optimization of high-quality, tight rock, natural gas resource plays. The company employs long-reach and horizontal drilling to produce resources of natural gas, condensate, and natural gas liquids. In addition to drilling operations, Seven Generations owns several gathering lines and processing facilities. The company depends on a skilled technical and business team to identify, capture,


TSX:VII - Post by User

Comment by retiredengexecon Nov 24, 2018 4:48pm
48 Views
Post# 29017932

RE:RE:RE:you guys are super smart and are invested in a great company

RE:RE:RE:you guys are super smart and are invested in a great companyDuxing you are correct that SCO is not a good diluent (although any hydrocarbon liquid csn be used). The objective of blending is lower the density of 8 API bitumen ( density of 1.05) by blending with a lighter hydrocarbon to meet pipeline specifacations ( density of 0.92 with an API gravity of 22) so the dilbit can flow in the pipe.   The lower the density of diluent (ie the higher the API gravity, condensate 0.77 and API 50) the less diluent is required. Converserly the higher the density of the diluent (ie SCO at 30 API and 0.87 density) the more is needed to get to pipeline spec.

It takes 0.35 bbl of Condy with one bbl of bitumen to meet pipeline spec. It takes 0.59 bbl of SCO with one bbl of bitumen.
To illlustrate this on a 25,000 bpd project, you need 8,750 bbls of condy and 14,750 bbls of SCO. That's why Condy is more valuable.
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