Wescorp Deploys 1st Water Remediation Solution for Operator in Canada

Wescorp Energy Inc. reported that its patented commercial water remediation solution is now fully operational at an oil producing field in Western Canada. The newly constructed Total Fluids Solution water remediation unit, capable of processing 2,000 barrels per day, reduces the oil remains in produced water and spent drilling fluids to fewer than 0.0005%, or 5 parts per million (PPM), a fraction of what traditional water remediation technologies accomplish. Using standard industry water remediation and cleaning practices, approximately 0.5 to 3% (5,000 to 30,000 PPM) oil remains in the separated water.

"In fewer than 60 days we have taken our water remediation technology from construction to reality," said Doug Biles, president and CEO of Wescorp Energy. "Our goal is to innovate and launch solutions that cut costs, solve field challenges and streamline operations for our oil and gas field customers. We look forward to working with the operator to track the solution's success in remediating produced water on their oil producing field located west of the city of Edmonton, Alberta. We are looking forward to demonstrating this proprietary technology to other oil companies that have expressed interest."

All oil reservoirs are associated with formation water to some degree, and formation water is a natural by-product of oil field production. The term that industry utilizes to describe the mixture of produced fluids is emulsion. Industry practice is to design a battery that utilizes a series of tanks and heaters that assist natural buoyancy forces of fluids to separate the produced oil from the undesirable contaminated formation water. The oil is trucked or pipelined to a sales market, and the contaminated water is usually re-injected into the reservoir through injection or disposal wells.

Wescorp's patented system treats the waste water to recover additional oil, leaving fewer than 5 PPM, which normally gets re-injected into the reservoir. This additional oil increases the recovery factor of the well and also the efficiency of the energy required to produce the oilfield.

By significantly reducing the hydrocarbons remaining in the water, Wescorp's technology reduces potential environmental liabilities, reduces the frequency of service and repairs on injection and disposal wells, and helps recover additional hydrocarbons from oil production operations. These advantages significantly reduce oil field operations costs, creating opportunity for higher operating margins and greater return on capital.

There are over 800 producing oil companies in Western Canada alone, ranging from a one well producer to producers with thousands of wells. There are in excess of 17,000 batteries that are storage facilities for contaminated formation water that requires remediation prior to re-injection into the oil reservoir just in the province of Alberta. These batteries range in storage capacity from 200 to 50,000 barrels of toxic water. Wescorp's technology can have a significant economic and environmental impact on virtually all oil producing fields.

"The industry is embracing new environmental standards and increasingly investing in advanced water remediation technologies -- all for very good reason," said Steve Cowper, Wescorp chairman and former Governor of Alaska. "Wescorp has the technology and know-how to significantly help customers with water management issues critical to business success in the oil and gas industry. Wescorp focuses on solutions that provide positive environmental impact and that also offer substantial economic advantage to almost all operators, particularly those struggling with clean-up and regulatory issues. Our newly launched Total Fluids Solution unit completely fulfills that promise."