Another Major Success for Proflux Technology

Oilflow Solutions Ltd. and Saxon International Energy Ltd., a wholly owned subsidiary of Bankers Petroleum Ltd., have completed a major field trial of Oilflow¹s Proflux technology with excellent results. The trial took place in the Patos-Marinza heavy oil field in Albania (API 6-10).

In the two-phase field trial, Proflux 200 was injected into a surface flowline from the wellhead to a collecting station. In the second phase, Proflux 200 was injected downhole through the well annulus to allow mixing of Proflux 200 and produced fluids at the progressive cavity pump. In both cases, measurements showed a reduction in viscosity by approximately two orders of magnitude from 40,000 cP to 200 cP. Both trials also produced a 40-per-cent drop in the wellhead pressure. In the downhole test, a 40-per-cent reduction in pump torque was also demonstrated.

This is the second major success for Proflux 200 in the last four months. The first successful field trial was in Colombia where the Proflux 200 technology and engineering system was tested on the combined 13 API-heavy oil produced in a four-inch flowline from the wellhead to a central processing station.

Proflux 200, which has now been field proven, is the first of two new product systems being developed by Oilflow Solutions Ltd. The second product system, Proflux 300, stabilizes waxy crudes allowing them to be pumped well below their original pour-point temperature.

Oilflow Solutions Ltd. was recently formed by joint venture partners, Vienco Oil & Gas Ltd. and AGT Energy Ltd., to market a portfolio of new product systems which are targeted at flow optimization of heavy and waxy crudes. Using Vienco's engineering and field management expertise and AGT's unique polymer-based chemistry, Oilflow provides a complete solution for the production and transportation of heavy oils from subsurface to refinery which will lead to flow assurance from the world's most difficult reserves. This is an international market valued at $6-trillion.

Commenting on the success of the field trials in Albania, Mike Crabtree, Managing Director of Oilflow Solutions Ltd., said: "We have now proved that Proflux 200 reduces the viscosity of heavy oil both in the pipeline and in the well. These are major milestones in the Company's development as we head towards full product commercialization in 2006."