Paul Davey <paul@mcwenergygroup.com>
8:02 AM
to me
Hello Tyler:
Thank you for your inquiry with regards to MCW Energy Group’s current status on several fronts. I’ll try and answer accordingly below…
I have some questions for you about the current status of the company.
1. What is the status of the plant upgrades? According to the presentations and updates it is 80% complete. When does the company plan to finish the upgrades and does the company still have the funds to complete it?
We’re moving closer to final completion of the upgrades, as well as the installation of Vivakor’s mobile unit (250 bbl/day). We had a pause in progress due to some Utah state regulations on groundwater upgrades (even though we don’t use water), which had to be dealt with and very recent news as of yesterday, all of our protective measures/proposals concerning water and enviro-issues have been approved by the state. I have been advised that the production phase will begin sometime next week after the mobile unit is compatible with the feedstock conveyor system.
2. Are there any status updates about securing funding to build a 2500/5000 bbl plant?
We’re still negotiating with several sources for funding. Many of the merchant banks have adopted a “wait and see” mode until they get a feel for a stable oil price level. We have demonstrated the ability to generate profits even at current oil prices in the range of $ 48.00 - $ 51.00 bbl. If during our initial production run this month we can prove sustainability, I’m sure that several banks will come knocking. We’re in the midst of several presentations in New York which may glean some funding progress.
3. With the new agreement to acquire 57% of Accord, will this generate any revenue from the producing wells? What is the current BOPD for all the wells?
Not as far as I can see. Basically, the oil well portfolio belonging to Accord was a “throw-in” component in the deal. As of now, I do not have any stats on the wells as far as past production and potential reserves, etc. Our focus right now is to move into production at our Maeser, Utah plant. Further details will be provided by Accord once the TSX-V approves all the elements of the proposed transaction(s). I don’t expect that there will be any immediate revenue stream derived from this technology at this point.
4. MCW acquired the SWEPT technology to drill wells into the deeper oil sands that were no economical to mine. What are the capital costs needed to implement this technology and does MCW have the funding or a plan to acquire funding? Additionally, is this a proven technology that will actually work? What will be the estimated production rates for a single well?
Again, most of the questions you pose here in #4 have not been determined. A comprehensive mining plan will have to be developed to prove up the potentials of this tech for our existing Temple Mountain Energy resource. It is the opinion of our tech team that the tech does work and it will be a valuable tool to extend the estimated 80 million bbls to much more once the mining plan has been developed.
5. Are any of the tailings ponds remediation bids or technology licensing agreements near a close?
We are definitely moving forward on the remediation front. We have appointed TS Energy (Vancouver, BC) as our licensee for Canada and Trinidad & Tobago. (the site of the world’s largest “asphalt lake.”) We have identified two ideal locations in Alberta for remedial work through two oil and gas companies owned by First Nations groups. Negotiations are ongoing at this time. We are also moving forward on recent progress with one of the world’s largest oil companies in the Middle East. Just this week, we’ve received an official reply from their R & D department to send feedstock samples to our labs for extraction performance testing. We are now preparing a lab test protocol, along with testing procedures. and sample shipping logistics, which is an extremely good sign. These people move very slowly but we do seem to be making marked progress recently. This is probably the largest remediation project in the world….a 15 year project worth more than $ 21 billion USD!
We will continue to focus on remediation while we negotiate funds for our 2,500 bbl/day unit. These clean-up projects are extremely profitable (up to $ 55.00 bbl) and they will make MCW less dependent on fluctuating world oil prices.
I hope I’ve answered most of your questions here….and as I’ve mentioned, much of the costing on the new tech(s) has yet to be determined as they are directly applied to our project in Utah.
Regards,
Paul
