Terra Energy & Resource Technologies Inc. (TEGR)

[Stock Lobster]

Economic Impact of STeP™

Implementation of the STeP™ technology renders oil and gas exploration success factor of 0.75. Based on the mean statistical reliability of STeP™ predictions, 75 percent have been confirmed by the results of oil and gas exploration carried out within the USSR (prior to 1992) and in Russia during 1997-2002 (Mordovia, Kalmykia, the Penza and Perm regions, as well as the Eastern and Western Siberia). Moreover, structurometric analysis, a method employed independently from the STeP™ technology, additionally confirms the aforementioned results, further boosting the success factor. Structurometric analysis also further reduces the risk of unproductive drilling by determining, separately from STeP™, the parameters of structures that occur in the Earth.

Statistically, approximately 2/3 of expenses associated with geophysical research efforts using traditional technologies are NOT productive. That results in high percentage of unproductive drilling and, consequently, higher net costs of oil produced. The current mean statistical oil-and-gas exploration success factor approaches 0.35 - a typical indication of seismic exploration's poor capabilities. Among the reasons for traditional geophysical research shortcomings is the method's capability of detection of only the structures' geometric qualities. Seismic studies provide specific information concerning the shape of traps (with respect to HCs), however they do not answer the question of whether HCs are present in the traps. The STeP™ technology addresses this question, among others, with the probability of at least 75%.

Cost effectiveness of the STeP™ technology can reach an order of magnitude of 10 compared with traditional methods. Considerations of indirect expenditures associated with unproductive drilling (land reclamation, etc.) as well as savings on 2D/3D work compound TIC's economic distinction.

source: http://www.terrainsight.com/