SOURCE: MCW Energy Group

MCW Energy Group

July 21, 2015 06:30 ET

MCW Energy Group Sets Definitive Production Target After Completing Systems Optimization Program at Their Asphalt Ridge Oil Sands Extraction Plant

TORONTO, ON--(Marketwired - Jul 21, 2015) - MCW Energy Group ("MCW") (TSX VENTURE: MCW) (OTCQX: MCWEF), a Canadian-registered holding company involved in the development of environmentally-friendly oil sands extraction technologies, through MCW Oil Sands Recovery, LLC, today announced further progress of its Asphalt Ridge oil sands operations based in Vernal, Utah.

Back in October, 2014 during a benchmark Ribbon-Cutting Ceremony, MCW successfully demonstrated its proprietary oil sands extraction technology, passing the "proof of concept" stage with flying colors and confirming that it was indeed commercially viable. As pioneers of America's first environmentally-friendly oil sands project, the MCW team subsequently acknowledged that a considerable period of system optimization would be required to increase extraction system efficiencies and production flow capacities for larger extraction plants. Under the leadership of MCW's Chief Technology Officer, Dr. Vladimir Podlipskiy, the Company implemented its Systems Optimization Program, which commenced in January, 2015 and has now been completed. As part of this program, MCW has added significant measurement and control devices for measuring and monitoring all of the production phases of its current extraction plant and its processes. Improvements have been made in throughput time as well as the reduction of the system's overall energy requirements.

With these extraction system improvements, MCW has now set a production target of 6,000 barrels of oil over a 60 day period ending on September 30th, 2015. It is expected that with the addition of a second and third shift, actual production will exceed this target. Oil sales are now being made to the nearby Salt Lake City refineries and delivery schedules will be stepped up as production volumes increase. All of these elements will contribute towards greater revenues from MCW's initial extraction plant facility. More importantly, these enhancements will be incorporated into the design engineering of the proposed extraction plants anticipated to increase daily production to 5,000 bbl/day.

Dr. R. Gerald Bailey, MCW's CEO, stated, "We have successfully transitioned from the completion of our Systems Optimization Program into an efficient production mode." He added, "Our initial extraction plant will now serve as a showcase for potential joint venture groups wanting to join our leadership with the environmentally-friendly development of oil sands projects throughout the world. We really believe that energy resources can be developed responsibly without risk to the environment."

As part of the production expansion plan, MCW's technical and geological teams have been working very closely with a global financial institution towards financing an anticipated 5000 bbl/day extraction plant. The bank's due diligence programs include a feasibility study of MCW's technology, its planned expansion program, and further study of the nearby Temple Mountain Energy resource (87 million barrels of bitumen - Chapman Petroleum Engineering Report - 2014), the site of the proposed expansion. The due diligence on the resource has now been completed with very positive results, and the technology due diligence is ongoing.

MCW is also currently involved in several joint venture discussions with international companies seeking environmentally-friendly oil sands extraction technologies. Recently while world oil prices were sagging, MCW surprised the resource industry with its under $ 30.00 bbl production cost estimates, probably the best production costs in the unconventional oil industry. 

About MCW Energy Group Limited:

MCW Energy Group Limited is focused on value creation via the development and implementation of (i) Proprietary, environmentally-friendly oil sands extraction technologies and remedial tailings ponds project solutions, (ii) Expanding production capacities of its now operational oil sands project in Asphalt Ridge, Utah, (iii) The formulation of worldwide joint ventures and the licensing of oil sand opportunities with private and governmental resource entities within countries possessing extensive oil sands/shale deposits. MCW's management team is comprised of individuals who have extensive knowledge in both conventional and unconventional oil and gas projects and production, both in upstream and downstream industry sectors.

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Forward-looking statements in this news release, include, but are not limited to the commercial viability of the technology and the extraction plant, economic performance and future plans and objectives of MCW. The new extraction plant in discussion here, if commercially viable is anticipated to produce 2,500 bbl/day. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although MCW believes that the expectations reflected in forward looking statements are reasonable, they can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, MCW disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • For more information, please contact:
    MCW Energy Group Limited
    Paul Davey
    Communications
    Tel: +1 (800) 979-1897 (Ext. 3)
    Cell: 1-778-389-0915
    Email: pdavey@mcwenergygroup.com