With the price of oil reaching new lows daily, the nation’s smallest oil
producers are considering shutting in their wells and potentially losing
their mineral rights. First Titan Corp. (OTCQB: FTTN) believes these
producers would make ideal candidates for the enhanced oil recovery
(EOR) business the
company is currently studying.
Operators of marginal wells – older, declining wells that produce
relatively small amounts of crude per day – are
struggling in this low-price environment. Their wells frequently
don’t produce enough to justify their expense in the current
environment. So the operators shut down production to save money, but
that comes at a risk. In many states, an operator can only idle their
well for up to 90 days before losing mineral rights.
“We want to offer these operators a low-cost, affordable EOR service,”
said FTTN CEO Sydney Jim. “This could help them increase output to make
the well cost-effective to remain in production and preserve their
mineral rights. This concept represents an underserved market with
little competition that could help us generate additional revenues.”
There are more
than 400,000 such wells in the U.S. – 10 percent of the nation’s
total oil production. In 2012, lost production from idled wells totaled
more than $620 million.
Meanwhile, a recent report forecasted the EOR market to grow at a
robust 16.9 percent rate by 2019.
FTTN is building a competitive portfolio of oil and gas properties
alongside companies such as Lucas Energy, Inc. (LEI),
Earthstone Energy, Inc. (ESTE),
Fieldpoint Petroleum Corp. (FPP)
and Evolution Petroleum Corp. (EPM).
For more information on FTTN’s oil and gas projects, please visit www.firsttitanenergy.com.
About First Titan Corp.
First Titan Corp., through its wholly owned subsidiary, First Titan
Energy, LLC, is committed to the exploration and development of oil and
natural gas resources around the globe. The Company continually seeks to
partner with energy developers that are pursuing innovative new methods
of oil and gas extraction, including the development of new
technologies, cleaner methods and unconventional resources.
Notice Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995: This news release contains forward-looking information within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including statements that include the words “believes,” “expects,”
“anticipate” or similar expressions. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievements of the company
to differ materially from those expressed or implied by such
forward-looking statements. In addition, description of anyone’s past
success, either financial or strategic, is no guarantee of future
success. This news release speaks as of the date first set forth above
and the company assumes no responsibility to update the information
included herein for events occurring after the date hereof.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160125005160/en/
Copyright Business Wire 2016
Source: Business Wire
(January 25, 2016 - 5:00 AM EST)
News by QuoteMedia