Titan Update October 2018
The 3rd and 4th Quarter have been very busy for Titan. Titan is now moving into a growth phase that should mark the beginning of “industry adoption” of the Titan Process. Below are some recaps of our progress.
Titan’s partner in Europe and Australia
Hunting Energy Services, the oldest oil service company in the world and our partners in Europe and Australia, are actively presenting Titan to over 35 international oil companies. The first two major companies have submitted water samples for two large offshore platforms in the North Sea and we are awaiting scheduling on one and conclusion of lab work on the other. The Titan Process applied to one of these platforms would exceed $5 -20 million in revenues annually.
Titan Scientific Team to Present in London and Aberdeen
Dr. Colin Hill, Titan’s chief scientist, has been invited to address the Energy Institute in London on October 30th. Titan will also present a technical briefing to the Oil and Gas Authority (OGA) in Aberdeen on November 7th. Most of the oil companies that operate in the North Sea will attend. The OGA is the U.K.’s equivalent of the US Dept. of Energy. This is a significant symposium that will highlight the Titan Process as the only low cost, proven enhanced oil recovery process that can be deployed on offshore platforms.
Titan receives its 5th Patent
One of the new technologies that is being deployed in the oil industry is using low salinity (LoSal) water to treat oil fields that are under waterflooding (waterflooding being the dominate secondary recovery method in the industry). By injecting water that is less saline it was found that recoveries improved. Titan started working on this patent 5 years ago and your company was recently awarded our LoSal patent. The patent basically ensures that using microbes, biology and ecology in addition to LoSal water injections is under Titan’s domain. LoSal is being championed by British Petroleum, the world’s 8th largest oil company.
Titan Canada Incorporated in Alberta
Titan paid in shareholders will be receiving shares of Titan Canada on a one for one basis at no cost. The plan is to take Titan Canada public after it has been funded with a small financing to allow the company to purchase a small oil field and then build the company.
Governor of Louisiana
Titan and principles of Conservation Oil Company recently met with Governor John Bel Edwards and his staff to move forward to have Titan test its technology on orphaned wells that the State was forced to take over. The financial obligation to pay for the plugging of these wells is now the responsibility of the state. Oil companies that went bankrupt years ago abandoned 4,000 wells. The cost to plug each well is $30-80,000 representing a possible third of a billion dollars expense to the State.
The proposal before the State is simple: Test the Titan Process. If it can revive some of these wells the State could earn royalties, revenue and taxes and pay for the eventual plugging costs of the wells. For every 10 wells revived by Titan, the State would earn $280,000 annually. Over a ten- year period, the impact to GDP in the State by the added revenues and economic activity would amount to $18 million from just 10 wells producing another 5 years.
One can see why this proposal was very well received. Considering that 65% of the oil is still in the ground, the possibility for a major win-win situation is present. In the past Titan has had excellent success reviving “dead” wells. In fact, two revived dead wells were verified in two SPE Papers written by two Titan customers. One well went from zero to 40 bbls. per day. Pictured are (L to R), Spyro Contagouris, Co-Founder of Conservation Energy, Governor Edwards, Ken Gerbino and Mike Hillman Co- Founder of Conservation Oil.
New Oil Company formed to focus on the Titan Process
Conservation Oil Company of Louisiana has been formed by three businessmen, one of whom I have known for over 20 years. This company will focus exclusively on restoring the abandoned wells in Louisiana in partnership with the State.
Titan to be featured on the Cover of Oilfield Technology January 2019 Issue
Oilfield technology magazine is a leading industry publication featuring the latest technology and newest developments for the onshore and offshore oil industry. The magazine is published in the United Kingdom and its readership is 40,600 industry professionals. 55% are oil engineers and 33% are Executive Management. 32% of the readership is from North America and 43% from Europe and Asia.
This should help spread the word about the excellence of the Titan Process.
Titan Exhibiting at Major Industry Trade Shows
Titan recently exhibited at the SPE (Society of Petroleum Engineers) Advanced Technology (ATCE) Convention in Dallas with 8,000 attendees. Titan was very well received, and we expect to exhibit at the giant OTC Convention in Houston in May of 2019 and we have already reserved a booth for the 2019 ATCE Convention in Calgary.
BIOS Energy Signs Royalty and Distribution Rights Agreement with Titan
BIOS is paying Titan $3 million for a 3% royalty on Titan’s revenue with Titan having the option to buy back 2% (2/3rd of the royalty at a later date). BIOS will also represent Titan in Canada with two dedicated sales and marketing personnel that will operate out of Calgary, the oil capital of Canada. BIOS will also be acquiring oil properties in Canada for the express purpose of increasing production using the Titan Process. BIOS has already paid Titan $500,000. $250,000 is due at the end of October and the remainder is due by March of 2019.
Titan Process to Attack Deadly Gas Emitted in some Oil Fields
Certain bacteria in oil fields consume sulfates in the water and convert the sulfates to a deadly gas called H2S (Hydrogen Sulfide Gas). Oil field workers must wear alarm buttons on their uniforms and if they go off, not breathe and move away as fast as possible. The Titan Process only targets other species in an oil reservoir that we can affect. By focusing on feeding only specific targeted microbes we increase their population dramatically.
One microbe fed by Titan can become 2.4 billion cells within one day. The end result is that the SRBs (Sulfate Reducing Bacteria) are crowded out and therefore produce less H2S. SRB’s don’t eat the sulfates, they actually breathe it. But they also have to eat something to stay alive and that is where our boys down there crowd them out at the table (various minerals in the water). Less SRB’s active means less H2S. We have conducted tests in the past and the reduction of H2S was as high as 35%. H2S is also very corrosive to pipes and equipment. Oil companies spend hundreds of millions on SRB suppression for large offshore platforms. Hunting is moving this new revenue model forward in the North Sea as another added benefit to the Titan Process besides production increases.
Titan Agrees to have Tendeka Represent Titan in the Gulf of Mexico
Tendeka is a global reservoir optimization company 51% owned by Shell. They will co-brand and exclusively market the Titan Process to their customers in the U.S. Gulf of Mexico. Shell has 16 platforms in production in the Gulf and we look forward to an introduction to this global giant in that area. Tendeka specializes in Inflow Control Devices, Reservoir Monitoring, Production Enhancement and Sub Surface Engineering. The Titan Process will be a good fit for them to market to their customers.
United States Energy Department announces new Funding for Enhanced Oil Recovery
This funding focus will be for R&D projects to enhance U.S oil production. Although Titan is already focusing on a Grant to deliver the Titan Process to small and medium size oil operators, this new funding proposal underscores the Energy Department concern about the vast amount of oil that is trapped in U.S. oil fields – 400 billion barrels. Our lobbyists are meeting with all key D.C. Congressional and Senate committees, trade groups and Energy Department personnel to promote the Titan Process.
Sonar Tusk Ltd. to represent Titan in West Africa
With offices in Angola, Nigeria and Ghana, Sonar Tusk will represent Titan in these countries. This is a distribution agreement where Sonar will market the Titan Process to their customer base offshore and onshore and Titan will be responsible for applications. West Africa promises to be a potentially very large market for the Titan Process.
Global Marketing Efforts for the Titan Process
The following countries and regions are now part of the Titan marketing effort from oil service companies, oil service consultants and engineering firms:
United Kingdom, Norway, Europe, Australia, India, Indonesia, Canada, Gulf of Mexico, West Africa, and Malaysia. We are now well represented by established companies and we expect business to increase dramatically in 2019.
Introducing the Titan Process technology takes time and technical meetings to move the business forward. But we expect the unique ability of the Titan Process to deliver low cost and very high production increases to add to the momentum of customers adopting the technology.
Titan Customer Cairn India to Spend $2.5 billion to Boost Oil Output
A few months ago, five oil engineers and enhanced oil specialists from Cairn India met with Titan at our new lab in Monrovia. They are going to test the Titan Process in the large Bhagyam Field in India. The water samples are currently enroute to our lab. Cairn produces 25% of India’s oil production and we look forward to building a major business with this important oil producer.
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