Eagle Oil Enters into Oil Well Production Enhancement Project
Eagle Oil has entered into a definitive agreement with a European oil services company to be the first oil field in the United States to test and use its system for oil well production enhancement through the electrical treatment of oil reservoirs. EGOH's East Texas oil field will act as the pilot project for this treatment in North America.
The system, which has been successfully used to increase production in oil wells in Russia and other European locations, uses specialized equipment to pass electrical impulses through the oil reservoir, which increases the percentage of oil and decreases the percentage of water extracted during the pumping process. While no significant production increases can guaranteed, the system’s inventors predict that daily oil production can increase up to several fold per well in operation for a varying period of time.
As the pilot site for this system in the United States, EGOH will benefit from this technology without having to make any upfront financial commitment. The agreement calls for no upfront cash outlay by EGOH and a back-end revenue split of any increased production at each well.
EGOH had previously announced that it was negotiating the terms of the agreement. Treatments of the field are expected to commence simultaneously with the recommencement of pumping operations at up to 20 wells which have already been reconditioned.
Eagle Oil President Connie Helwig stated, "We are pleased to have been selected as the pilot site for this technology in the United States, and we are excited about its potential to significantly increase oil production in our East Texas oil field."