SOURCE: MCW Energy Group

MCW Energy Group

June 07, 2016 07:00 ET

MCW Energy Group's 2,500 BBL/Day Scale-Up Oil Sands Project Validated by Two Independent Feasibility Reports for Cost-Efficiency, Profitability

TORONTO, ON--(Marketwired - Jun 7, 2016) - MCW Energy Group Limited ("MCW"), (TSX VENTURE: MCW) (http://ir.mcwenergygroup.com/quote-tsx) (OTCQX: MCWEF) (http://irmcwenergygroup.com/quote-otc),  a company involved in the development and implementation of oil sands technologies, today announced details of two recently commissioned feasibility reports by independent mining consultants, JT Boyd Company and energy advisory firm, Nexant, Inc., which have confirmed the viability of MCW's plans in order for the Company to move forward with its 2,500 bbl/day scale-up extraction plant project in Utah, now in the funding stage.

The JT Boyd Report confirmed very attractive mining costs for the Asphalt Ridge oil sands ore, based on a detailed economic analysis of all major mining functions (drilling, blasting, overburden removal, oil sands mining and mine reclamation, maintenance). Based upon three separate scenarios, mining costs are estimated to range between $ 5.35 and $ 5.76 per ton of oil sands ore. Low mining costs are due, in part, to the fact that MCW's oil sands resource is directly at, or just beneath the surface so that minimal overburden (non-ore material) removal is required. These low mining costs, combined with low processing costs by MCW's proprietary, closed-loop, solvent-based process will result in significantly lower per barrel production costs than the costs for traditional hot water-based oil sands extraction technologies.

The Nexant Report confirmed that production costs at MCW's 250 bbl/day operation in Maeser, Utah were USD$31.00 per barrel during their multi-day site visit in late 2015. Nexant is currently working on final production cost estimates for the 10-fold scale-up of MCW's operations to the 2,500 bbl/day production level. With very positive economies of scale, the production costs for the 2,500 bbl/day plant are anticipated to drop into the low USD$20.00 per barrel range. MCW's projected production costs in the low USD$20.00 per barrel range compare extremely favourably with the current CDN$70.00 per barrel break-even costs estimated by the Canadian Energy Research Institute (CERI) in August, 2015 for the hot water-based extraction technologies used in Canada.

The Nexant Report confirmed that MCW's operations are among the most cost-efficient and potentially profitable oil sands operation in the world, even with the currently depressed global oil prices. Additionally, MCW's unique, waterless technology significantly reduces the negative environmental impact of oil sands processing, which is a growing concern generated by the environmental damage caused by other extraction technologies. MCW's technology extracts over 99% of all hydrocarbons and also recovers over 99% of its benign solvents for recycling/reuse. Nothing leaves the system except oil and clean sand.

Due to strengthening global oil prices,, MCW recently announced the restart of operations at its 250 bbl/day plant in Maeser, Utah. (See MCW Press Release dated June 2nd, 2016.) The confirmed production costs of approximately USD$30.00 per barrel provided further justification for the management team's decision to re-launch MCW's extraction plant operations, since current WTI prices are approaching the USD$50.00 per barrel level.

"These two independent feasibility reports further confirm the economic viability and the enormous profit potential of our 87 million barrel oil reserve available to us in Utah (Chapman Petroleum Engineering Report, 2012), as we apply our environmentally-friendly extraction technology," commented MCW's Chairman, Aleksandr Blyumkin.

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. Please visit: www.mcwenergygroup.com .

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, MCW maintaining extremely efficient production costs, the ability of MCW to successfully increase the capacity of its current plant to an anticipated 500 bbl/day as part of the Capacity Augmentation Program; the commercial viability of the technology and the extraction plant, economic performance and future plans and objectives of MCW; and the commercial production of oil from MCW's oil sands extraction plant in Asphalt Ridge, Utah 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
    Director of Communications
    Tel.: (800) 979-1897 (Ext. 3)
    Cell: (778) 389-0915
    Email: pdavey@mcwenergygroup.com