MCW In The News:
Oilsand Extraction Technology Could Be a Game Changer
Next year a small Toronto-based energy company plans to begin selling oil made from what it’s calling “America’s first environmentally friendly oil sands project.” MCW Energy Group (MCW:CN) has built a processing plant in northeastern Utah, where about 32 million barrels of heavy crude are trapped in layers of sand and silt. MCW says it can extract that oil without creating the toxic wastelands that have resulted from oil sands projects in Western Canada. The key is a paint thinner-like solvent that MCW uses to separate the oil from crushed rock and sand. The extraction process uses no water. Rather than leaving behind massive tailing ponds filled with millions of gallons of toxic sludge, the sand will be delivered back to the site after it’s cleaned of about 99 percent of the oil.
It’s not just cleaner, MCW says, it’s also cheaper. Processing a barrel of oil will cost MCW about $38, compared with roughly $75 for oil from Alberta. Its plant can handle only about 250 barrels a day, but its small scale could be a model for oil sands projects around the world, especially as lower oil prices keep companies from making huge investments in traditional oil sands operations. On MCW’s heels is Calgary-based US Oil Sands (USO:CN), which will open a similar plant in Utah next year to produce about 2,000 barrels per day using its “citrus-based” solvent.
View the original article here.
Oilsand Extraction Technology Could Be a Game Changer
Canadian oilsands have earned a bad rap, thanks to aggressive oil extraction operations. But a new technology being used in Utah could change how the public — and the industry — perceive the process.
A new technology developed by the California-based MCW Energy Group could change the way oilsands oil extraction is viewed in the United States — and eventually around the world.
Canadian oilsands have earned a bad rap from environmentalists who argue oil extraction is akin to a mining operation, says MCW Energy Group CEO Gerald Bailey.
“It’s very mechanically oriented,” he says. “It takes a lot of machinery and huge mechanical pieces to dig the stuff out of the ground after it’s been softened up. It’s very hard to get out.”
Crews pump steam and hot water into the ground to loosen up the oil to pull it up.
“When it comes back out of the ground, it’s got all this gunky water and everything with it, and they have to do something with it. So, they pump it into these tailing ponds,” Bailey says. “They’re huge. Some of the ponds are just square miles of dirty, oily water because it has residual oil in it, which they can’t get out.”
MCW’s proprietary oilsands extraction technology cleans up oilsands projects near Vernal, Utah — a first for the state and the world.
Bailey says Canadian and Utah oilsands are different. Water-wet sands in Canada are mixed with existing water or water that is added during the extraction process. In Utah, however, oil-wet sands do not contain water, and water is not added during extraction.
“Utah is high desert in this area. It’s very dry and there’s no water, so our process does not use any water,“ Bailey says. “We don’t have to have any water to even get the stuff. The sands are more on the surface, only going down a couple hundred feet in some instances. So you’re literally just scraping it off the top.”
The technology
MCW Energy Group’s process treats the sands using a combination of solvents the company developed. After the material is scraped off the ground, it’s run through a conveyer belt to the top of a tower where it drops through a solvent counter-flow.
“It works just like putting soap on a greasy dish,” Bailey says. “The soap, in this case, is our solvent, and it just pulls the grease or oil right out of the sand.”
When the clean sand drops to the bottom of the tower, Bailey says it is safe to use on land. The oil and solvent then rise to the top of the tower and into another tower where they separate. The oil moves off into tanks, and the solvent is recycled.
“It is a closed system, so nothing goes into the air,” Bailey says. “There’s no effluent other than finished oil and cleaned sand, so that’s why it’s become a very unique and very ecofriendly process. We don’t do anything harmful to the environment, so that’s what makes it so different from what people are doing in Canada.”
He says at the start of the process the sand’s oil content is about 12 percent, which drops to .1 percent at the end of the process.
Bailey says one of the many hurdles is teaching the industry and the general public about the process and its many benefits.
“It’s totally different than what people think about oilsands. It’s an exciting process, and people have looked at ways to do this even in the Utah area for many years,” Bailey says. “When the Wright Brothers tried to get that first plane off the ground, they had to do it and show people it worked. That’s kind of what we did here. We wanted to demonstrate that this is not just a pie-in-the-sky idea. We had to show commercial viability, which we have done.”
Plans for the future
The 250 barrels per day extraction plant went online in October. It’s the company’s only facility, but that could soon change. Bailey says the plant processes about the same amount as many small oil companies in the U.S.
With the first steps complete, MCW Energy Group now plans to build a 5,000 bpd plant, which will take about a year to 18 months to complete. The 250 bpd plant was constructed in about nine months.
“We control three leases [in Utah] now with thousands of acres of these sands and we would build it right there,” Bailey says. “We have another site a few miles away where we would probably build because it’s closer to a large reserve of the sands that has already been uncovered and opened to the atmosphere.”
Bailey is excited about the opportunities the new technology and plant offer for the company — and for the entire world.
“This will become a worldwide technology play,” he says. “We’ve been contacted by numerous entities around the world that have similar sands, and they’re saying, ‘Boy, we’d like to have this.’ So I think its future lies not in building tons of steel in the Utah desert, but in being able to either joint venture or to license and use the technology worldwide.”
MCW Energy Group believes the technology will also change the industry because an area that was unused with huge reserves of oil can now be added to the energy equation.
“It opens up another source of energy — oil — for America to add to all the other ways that we develop energy, whether it be by hydrocarbons or solar or geothermal or whatever,” Bailey says. “As energy needs in America and overseas grow as populations increase, we need to continue finding ways to optimize and expand our energy resources. It’s going to open up more ways to produce oil, there’s no question about it.”
Although mining activity in the Utah oilsands has increased, there hasn’t been an ideal — and environmentally friendly — way to extract oil until now. Bailey believes the new technology will make the oilsands even more valuable.
“We’re sitting on reserves of potential millions of barrels of oil,” he says. “The numbers are so big, it just defies imagination. There’s enough sand up there with oils that you could keep producing that stuff for the next 50 years. The numbers are huge.”
View the original article here.
Sky Is The Limit For New Utah Oil Sands Tech
Article from oilprice.com
Utah is home to more than half of America’s known oil sands, but getting it out of the ground requires an unusual twist in the technology flow: This time we’re bringing Canadian expertise to the US.
Until only a few years ago, largely brought to mind Alberta, Canada, but the US is experiencing its own oil sands boom across a massive swathe of land covering Utah, Wyoming and Colorado.
The land that makes up this Green River Formation may hold some 3 trillion barrels of recoverable oil, and Utah is the heart of this waking beast, with estimated in-place tar sands oil resources of 32 billion barrels. And at the heart of the heart is Asphalt Ridge, which is thought to contain nearly a billion barrels of oil on its own.
Utah is already on America’s shale revolution map, with the Uinta Basin in the state’s northeast, which has attracted large independent players, including Houston-based Marathon Oil (NYSE:MRO), EP Energy Corporation (NSE:EPE) and Newfield Exploration Co. (NYSE:NFX). Now, a new focus on oil sands extraction means that this area of Utah is shaping up to become the next Alberta.
With this in mind, and with Canada positioned as the king of oil sands, it is only appropriate that a Canadian company—MCW Energy (MCWEF: OTCQB TSV: MCW.V)—cut the ribbon earlier this month on new oil sands technology and a new pilot plant at Asphalt Ridge, near Vernal, Utah.
"After many years of engineering and research, we're extremely proud to finally bring this ground-breaking extraction technology to the market," Dr. R.G. Baily, CEO of MCW Energy Group said on the occasion.
The “breakthrough” technology, as described by the company, is said to offer Utah—where there has been a fair amount of controversy about producing oil sands—an environmentally friendly solution for extraction. The patented technology uses benign solvents, rather than toxic chemicals. Significantly, it also does not require any water, nor does it rely on high temperatures or pressures. Furthermore, an estimated 99% of the benign solvents used in the process can be recycled and re-used.
For Utah—where water is already extremely scarce—this no-water breakthrough technology is a poignant development. The technology can be applied in “oil wet” oil sand deposits in the United States, as well as in “water wet” oil sands deposits in Canada.
But the highlight for MCW is that the pilot plant validates the technology. It proves the commercial viability and scalability of the company’s proprietary extraction technology, setting the course for very significant gains.
Not only has the technology been validated, but the original extracted oil API guidance was projected at 22, but the actual output at the Vernal plant, which opened on 1 October, measured in at 32 API—an even higher-quality crude that sells at a premium.
An independent Chapman Engineering Report concludes that MCW’s extraction technology is an innovation with no rivals, particularly from an energy-efficiency perspective.
For potential investors, it’s a potential gold mind of oil sands extraction, with production costs coming in at under $30 a barrel across the board. This means that falling oil prices will not be a snag for the Utah project, which can perform profitably in a WTI oil scenario from as low as $65 a barrel.
Extraction capacity is also slated for extension following on the pilot plant, with several additional extraction units—larger than the initial—planned for next year in Asphalt Ridge.
The most important part of this second phase will be the construction of two 2,500 bbl/day extraction plans on the company’s 1,100 acres of oil sands property at nearby Temple Mountain, estimated to cost about $80 million.
The economics of this project are already solid, but when you add another 5,000 bbl/d to the capacity, the economics become stellar.
Beyond this, MCW is moving forward with the finalization of another acquisition—this time of property owned by Temple Mountain Energy LLC, along with other oil sands leases.
The Temple Mountain Energy acquisition converts to 50-plus million barrels of oil (proven/probable) under long-term lease to 100% owned. The total cost of the deal is $10 million and 10 million MCW shares, with $1 million is cash already paid down.
The company also holds an option to acquire the Asphalt Ridge lease for $10 million, which would add $15 per barrels to the equation.
Over the longer term, this $38-million market microcap stock is poised for a major boost as it proves its oil sands extraction project is technologically and environmentally viable and capable of extracting high-quality 32 API sweet crude oil at $30 average production rates.
This is a significant and transformational development for Utah and its eight major oil sands deposits containing an estimated 32 billion barrels of oil.
From a cost perspective, re-focusing on oil sands in Utah could unleash another major boom—with the economics in oil sands’ favor and heavily rivaling the costly process of hydraulic fracking in shale oil deposits.
And from where we are sitting, MCW poised for the long-term game: Once it starts licensing its new oil sands technology across Utah, the rest of the region, and beyond, the sky is the limit.
By. James Burgess of Oilprice.com
View the original article here.
MCW DEMONSTRATES NEW TECHNOLOGY IN UINTA BASIN
(An excerpt from Utah’s Department of Energy Development’s website.)
On Wednesday, October 1st, 2014, MCW Energy Group hosted a ribbon cutting on the newest Utah energy production site in Vernal, where the proprietary oil sands extraction technology was demonstrated.
Touted as transformative, the patented process claims 99% closed-loop solvent recovery and zero water consumption, making it environmentally friendly, cost efficient and commercially viable.
The ribbon-cutting event was attended by local dignitaries that included Vernal Mayor Norton and State Senator Van Tassell along with the Vernal Area Chamber of Commerce Dinah-Mites, the chambers “good will ambassadors.”
Guests were taken on a facility tour and were able to climb to the top of the ore mixing unit and see the process first-hand
Dr. R.G. (Jerry) Bailey, CEO of MCW Energy Group recognized the importance of this project and of unconventional oil processing in general. He comes from a long career as a “Texas oil man” with more than 50 years in the industry. He is a strong supporter of MCW’s new technology and said that he believes it will be revolutionary for the energy industry. He explained that MCW is in a testing phase during September/October of 2014, and anticipates starting production from this plant in the 4th quarter of this year at 250 bbl/day.
The company stated it has a number of interested investors and has secured 90% of the capital ($100 million US) it estimates is needed to expand to the 1000+ bbl/day production level. They also are in preliminary discussions concerning modular unit construction at sites in Wyoming and China.
MCW representatives thanked the Office of Energy Development for their participation at the event during the lunch speeches, and concluded with production samples of oil processed on the demonstration equipment along with clean sand obtained after the extraction process. The impact to the state’s ongoing commitment to provide reliable, affordable energy has the potential to be significant.
View the original article here.
UNIVERSITY OF HOUSTON HONORS MCW’S CEO, DR. R.G. BAILEY.
On June 12th, 2014, the University of Houston’s Cullen College of Engineering Alumni honored our CEO, Dr. R.G. Bailey during their annual Alumni Awards Gala, which recognizes key alumni members for their significant contributions to society and the profession.
LIFETIME ACHIEVEMENT AWARD
Raymond G. Bailey Ph.D., P.E.
(BSChE ’63)
Gerald Bailey, Ph.D.,P.E., (BSChE ’63) is a product of the UH Cullen College of Engineering’s chemical engineering department and studied under such notable professors as Dukler and Tiller, who set the standards for the department. He was active in the AIChE student chapter and won first place in the 1963 regional paper contest among Texas universities with a paper on fuel cells. He joined Texaco after graduation, and over a period of 15 years, worked in Port Arthur, Texas and New York, NY in the petrochemicals department, rising to a plant supervisor position. He then took a position in Libya, where he had operations supervisory posts in production and LNG. Subsequently, he served as operations superintendent at the Exxon refinery in Aruba. He then travelled back to the Middle East to Qatar Petroleum as field operation manager of the Abu Dhabi Onshore Oil Company. In 1992, he was appointed President, Exxon Arabian Gulf with responsibility for all operations in the region. He retired early in 1997 to return to the United States after many years abroad.
Since then Gerald remains active in consultations at Bailey Petroleum, where he is involved in consulting and operations management of several oil and gas ventures. He was recognized by the AIChE for these services. He currently serves on a number of industry boards, holding chairman, and CEO positions, among which are MCW Energy Group, BCM Energy, Trinity Energy and Origin Oil. Along with being an UII Alumni Life Member, he is a member of the Middle East Policy Council, Society of Petroleum Engineers, American Institute of Chemical Engineers, and is a registered Professional Engineer in Texas.
Gerald is a native Houstonian and an Aldine High School graduate and has written books on his hobby….golf, and on political science. He credits his success and support to his wife, Sue, who has relentlessly accompanied him in all these adventures for the past 51 years, from time to time in the trenches to state dinners with royalty…along with his two now married daughters, Debra and Barbra, who likewise have shared this challenging and exciting engineering lifestyle.
MCW's CEO, Dr. R.G. Bailey is Interviewed by Investor Intel.
January 20th, 2014
American Institution of Chemical Engineers Honors MCW’s CEO, Dr. R.G. Bailey.
January 14th, 2014
The prestigious American Institute of Chemical Engineers recently bestowed an honor to MCW’s Chief Executive Officer, Dr. R. G. Bailey with their recognition of his dedication and contributions to the profession over the past fifty years as a Life Member. While he was a ChE student at the University of Houston, Mr. Bailey won the Student Paper Contest for the Southwest Region of Colleges and Universities in 1964. His paper was titled, “Chemical Engineering of Fuel Cells,” which was far ahead of its time, and he was recognized at the AIChE National Conference that year.
Mr. Bailey’s extensive experience in both petroleum and chemical engineering disciplines enhances MCW’s broad energy strategies as both an upstream and downstream entity. Dr. Bailey will continue to utilize his international energy experience to guide both of MCW’s divisions and to provide added value to MCW shareholders.
MCW Energy Group's CEO, Dr. R.G. Bailey Featured In Keynote Radio Interview With "The Stock Radio"
December 21th
U.S.D.O.E. Publication, “Secure Fuels From Domestic Sources:
MCW Energy Group Is A Government-Recognized Developer Of America’s Oil Sands
October 11th, 2011 to November 2012
Click here to download document. MCW Energy Group Story is on Pages 42 & 43.
Can Oil lBe Considered Cleantech?
October 5th, 2012 (Green Energy & Clean Technology, ProEdgeWirePro)
Read Article
MCW’S CEO, Dr. Jerry Bailey Contributes His Libyan Experience To A Newly-released Book, "Sweet Crude: Taming The Sands Of Libya."
October 18th, 2012:
MCW’s Chief Executive Officer, Dr. R.G. (Jerry) Bailey, has lent his extensive Middle East experience in the oil industry has provided his expertise to the author of a novel, published this week, titled “Sweet Crude: Taming The Sands of Libya,” written by V.C. Thomas. Dr. Bailey has received on-cover credit and an Author Acknowledgement as a Technical Advisor for the oil industry adventure novel featuring a Texas oil man’s return to Libya to repair the damaged oil and gas fields in war-torn Libya amongst the regrouping of the CIA and terrorists from neighbouring countries in post-Qadhafi Libya.
Author Thomas acknowledges Mr. Bailey’s contribution:
“The author takes great pleasure in offering special thanks to Dr. Jerry Bailey, ‘oil engineer extraordinaire’ whose unflagging technical support made this book possible. His admiration for, and his knowledge of the people of Libya was inspirational and helped immeasurably to capture the essence of this unique country in the Middle East.”
Dr. Bailey has spent several years in the Arabian Gulf area, as President of Exxon, Arabian Gulf, Assistant General Manager Administration & Commercial, Abu Dhabi Onshore Oil Company, Operations Manager, Qatar General Petroleum Corp, and Operations Superintendent, Esso Standard Libya, Brega.
Sami Dabbas, MCW Fuels, Rod Palmer, Phillips 66 and David Sutton of MCW Fuels at the Pacific Oil Conference in Reno, Nevada.
September 17th – 20th, 2012:
This photo was published in the O&A; Marketing Newspaper.
MCW’s Dr. R.G. Bailey Conducts Workshop At Toronto Investment Resource Conference.
September 27/28, 2012:
At the conference MCW’s CEO, Dr. R. G. Bailey conducted an industry workshop, speaking about the trends and the future of oil in the western markets. He presented the Company’s powerpoint presentation and fielded questions from the interested audience.
Meanwhile, back at the MCW corporate booth, many investors stopped by to learn about the latest news on the developments in Asphalt Ridge, Utah.
MCW Attends Toronto Resource Conference
September 27/28, 2012:
MCW management team members, Dr. Boris Goldstein and Dr. R.G. Bailey, attended the 2012 Resource Investment Conference held in Toronto where investors, brokers, industry leaders and more attended the two day event, with keynote speakers, workshops and exhibitors on hand to provide trends, investment tips and resource investment opportunities. It was a successful event for MCW which participated with its corporate booth, complete with brochures on the Company and its breakthrough technology now being deployed in Utah.
Does U.S. energy touchdown herald the death knell for oil sands?
Utah Poised to Lead in Energy Production
O&A; Marketing News
University of Houston's "Cougar" Magazine story
on Dr. R.G. Bailey
Oil sands battle between Canada and EU
See MCW's Chief Executive Officer, Jerry Bailey's video interview about MCW's future, during the German Equity Fund, Conference, November, 2011, Frankfurt.
The interview can be seen here.
New York Times - New Technologies Redraw the World's Energy Picture
October 25th, 2011
Why Invest in Micro Cap Energy Companies
By Dr. R. Gerald Bailey, P.E.,
Published in the MicroCap Review, 2011
Like It or Not, Oil Sustains Us
By R. Gerald Bailey, P.E. - Published in the Micro Cap Review, December 2010
David Sutton, CEO of MCW Energy Group, Featured on the Borsen Radio Network AG
MCW Energy Group (”MCW”) is pleased to announce that David Sutton, MCW’s Chief Executive Officer, was featured today on Borsen Radio Network AG. A recording of the interview can be heard here.
In his five years with MCW Fuels (”MCW Fuels”), MCW’s wholly-owned subsidiary, Mr. Sutton transformed the Company into a focused, energetic business that delivers reliable results to shareholders and superior products to customers. Mr. Sutton’s initial assignment upon joining MCW Fuels was to revitalize their branded gasoline-marketing operations.
Prior to joining MCW Fuels, Mr. Sutton owned and managed several successful companies in the oil and gas and medical products field.
