Core Lab (ticker: CLB) only company capable of generating EOR data at 20,000+ PSI in GOM Deepwater Plays
Core Laboratories (ticker: CLB), a global leader in reservoir description, production enhancement and reservoir management services, announced the purchase of Sanchez Technologies in an all-cash transaction on June 22, 2015. Terms were not disclosed.
Sanchez Technologies, based in France, designs and manufactures pressure-volume-temperature (PVT) equipment to for use in hydrocarbon reservoirs. In the release, Core said it has fully adopted the Sanchez series of PVT instruments, which generate data sets concerning saturation pressures, compositional characterizations, formation volume factors, viscosities and gas-to-oil ratios.
Sanchez’s technologies are particularly effective for deep reservoirs, and CLB is the only oilfield service company capable of generating data from reservoirs with pressure up to 29,000 pounds per square inch, which are generally encountered at depths of 20,000 feet.
The Gulf of Mexico (GOM), in particular, is a focus point of ongoing Core operations. In its Q1’15 conference call, management said it expects 2015 to be its busiest year to date in the GOM and is confident its latest venture will assist its customers in gaining the greatest amount of information before initiating operations on the high-risk offshore projects.
“As with the land shales, deepwater Gulf of Mexico clients are starting to explore the feasibility of EOR to get incremental oil out of their prospects,” said David Demshur, Chairman and Chief Executive Officer of Core Laboratories, in the company’s Q1’15 conference call. “Deepwater Gulf of Mexico clients are requesting ultra-high pressure, 20,000 PSI and above, EOR studies. Core’s performed a number of flow assurance and EOR studies for clients and expects the demand for these tests to increase, as Core is the only provider of these services at the pressured experience in the deepwater environment.”