Oil Sands Supply
MCW HAS A LONG TERM OIL SANDS FEEDSTOCK AGREEMENT WITH TEMPLE MOUNTAIN ENERGY.
MCW Energy Group has a long term Supply Agreement with nearby Temple Mountain Energy Inc., of Utah…a long time supplier of asphalt and bitumen products. The supply agreement initially provides MCW with a minimum of 8,333 tons of oil sands material per month at very favourable prices. The terms of this agreement also include a process-ready, stock-piled inventory of 100,000 tons of feedstock on MCW’s Asphalt Ridge lease site.
This agreement, which includes the shovel-ready oil sands materials, is strategically important as it eliminates any lead time that would be required during the development of MCW’s own oil sands lease at Asphalt Ridge. MCW’s management team feels that this arrangement with Temple Mountain will not only save valuable site preparation time, but will also provide an immediate revenue stream for the Company as it enters into production in 2015 and the future years to come.
The holder of only one of two “Large Mining Permits” in Utah, Temple Mountain has been producing several oil sands products on its site since 2006, with an average of 6% to 15% or more oil by weight, with the balance being sand. Temple Mountain estimates its proven reserves at Asphalt Ridge to be 150 million barrels of oil (prospective reserves), of which approximately 80 million barrels are surface-recoverable. The remaining 70 million barrels could be recovered through in-situ extraction methods. Its operation carries a near zero carbon footprint. As an integral part of MCW’s Phase Three Development Plan, the Company will finalize the outright purchase of the Temple Mountain lease resources to ensure an ongoing supply of high quality feedstock.
All mined areas at the Temple Mountain lease site undergo a thorough reclamation process to ensure that the cleaned sands materials are returned to their original sites in good environmental condition. Temple has produced asphalt (for road paving in Utah, Wyoming and Colorado), asphalt binders and crude oil since the commencement of the operation in 2006. Another valuable by-product is cleaned sand, which has a wide range of applications from glass-making to hydraulic fracturing for the conventional oil and gas industries.