Underground Energy’s innovative approach to recovery of stranded oil addresses the unique characteristics of each reservoir deposit and designs each oil production project to best address the technical challenges and capture the resource. This innovation includes use of proven petroleum engineering practices and enhanced oil recovery (EOR) techniques. As dictated by the characteristics of the oil field and its geology, UE will add or combine technologies and methods from the underground construction, mining and other industries to design optimum oil recovery projects.
Several projects combining petroleum and mining engineering have been conducted by others during periods of technological advancement in the oil industry in the 1970s and 1980s. Currently in the industry, surface and underground mining techniques are being utilized to recover bitumen from tar sands and light to medium oils from shallow oil reservoirs respectively. Underground Energy intends to build on these innovations through the application of proven underground construction methods and the utilization of modern equipment, instrumentation and techniques from the oil and gas industry.
The Company’s approach to oil recovery from stranded or previously non-recovered oil resources has three fundamental elements:
Acquire ownership of quality resources that are not, or have not been immediately attractive to E&P companies for a variety of reasons including: non-economic recovery when oil prices are low, the resource geology does not lend itself to acceptable recovery rates with conventional enhanced oil recovery (EOR) techniques, the oil field is considered depleted based on conventional EOR techniques, or political or environmental reasons have prevented conventional recovery of the resource.
Apply a broad vision across many industries in the assessment of technologies and methodologies and develop innovative approaches to profitably recover oil from the resource deposits. Apply conventional oil production technologies where applicable and combine petroleum, mining and underground construction engineering technologies to develop new and innovative methodologies for enhanced recovery within more difficult resource fields.
Develop oil recovery projects specific to each resource, utilizing a combination of means and methods to achieve high resource recovery factors resulting in profitable oil production operations.
