As First Titan Corp. (FTTN) continues its due diligence on a potential move into enhanced oil recovery (EOR), the company is finding increased enthusiasm in the industry for the process, with one prominent online news portal calling it “the next big thing.”
FTTN is seriously examining the possibility of getting into the EOR business and is currently conducting due diligence into future market conditions, the state of the competition and potential upcoming technology advances.
EOR is a method for increasing the amount of crude oil that can be extracted from an existing field. Sometimes it is called “tertiary recovery,” as it follows primary and secondary extraction methods. There are currently three means used to enhance recovery at an oil field: chemical injection, thermal injection and gas injection (usually using carbon dioxide, or CO2).
EOR can result in up to 60 percent extraction of a field’s available oil - far higher than primary or secondary recovery methods. Analysts estimate enhanced oil recovery can extend an existing oil field’s production life by up to 25 years.
“We’re looking at a wide range of scenarios,” said FTTN CEO Sydney Jim. “We’re very early in the process, but from what we’ve seen thus far, such a move would be one potential way to diversify the company, secure another revenue stream and ultimately build shareholder value. We’re open to all these possibilities and carefully considering all options.”
FTTN has been investigating EOR as part of an effort to diversify its business portfolio to better profit from the present market conditions.
“This is an industry that looks like it’s about to take off,” Jim said. “If it does, we want to be in a strong position to take advantage of that.”
“The main takeaway is that exploration and production are now becoming cost-prohibitive thanks to continually falling oil prices,” said Jim. “EOR is rapidly becoming a cost-effective way to competitively produce in the current price environment. If EOR on already producing wells is cheaper than new exploration, fracking or developing shale deposits, then this technology creates a unique market opportunity we can take advantage of to build revenues. This is the kind of information we are looking for to enable us to make the most prudent decision on the future of FTTN.”
Some analysts speculate EOR technology could be a vital weapon to fight back against OPEC in the current global oil price war.