Integrated Environmental Technologies (IET; Ticker: IEVM) is now producing its Excelyte biocide for use in 174 wells across the Uinta Basin in Utah and the Permian Basin in New Mexico. The biocide reduces the amount of hydrogen sulfide (H2S) down-well to near zero, reducing maintenance costs associated with corrosive damage caused by H2S.
IET increased the number of wells it is treating by 64% from March 2015 to May 2015, according to a company press release, and the company estimates that there are approximately 5,000 wells in the Uinta basin and approximately 25,000 wells in the New Mexico region of the Permian that could benefit from its product.
“Oilfield workers, midstream workers, company executives and regulators all have an interest in reducing H2S levels at well sites,” IET’s CEO David LaVance told Oil & Gas 360® during a recent interview. “It can be lethal in doses as small as 500 parts per million (ppm). The Excelyte biocide offers a way to almost completely eliminate H2S,” LaVance said.
The company’s product attacks microorganism’s at a microscopic level, destroying large systematic groups of unwanted bacteria, microbacteria and viruses without damaging human tissues or the environment, according to IET. When exposed to environmental conditions, the biocide degrades into salt and water.
Savings from lower H2S levels can add up to $4,750 per month
“Monthly treatments are required in order to keep H2S levels down,” explains LaVance, “but the savings in maintenance costs alone can be five times more than what the treatments cost.” H2S is highly corrosive. By reducing how much is present before removing the resource in the ground, oil and gas infrastructure is able to stand up to operations through a longer life cycle.
Depots in the Oilfield
IET operates out of 5,000 square foot depots located in oil and gas operations areas. The depots are operated by IET’s staff, and they create the product a day or two in advance of the treatment. The depots cost $175,000-$200,000 and pay themselves off within months. “In the future, we expect the depots will have the potential to break-even in three to four months,” said LaVance.
LaVanace says that the company is not planning on adding transportation to its services, and decided instead to focus on making its product at the best possible cost. “We find that our customers like their existing service company, so we prefer to work with them when it comes to transporting the biocide to the wells.”
IET expanding presence in several oil and gas basins
IET’s biocide is also certified by the NSF, USDA and EPA for use in healthcare and food production as well, but IET is focused on increasing its presence in the oil and gas market, LaVance told OAG360®. He said the company plans to expand further in the Permian and move into the southwest Gulf and the Eagle Ford. “We’re expecting to open 2 or 3 more depots in Texas this year,” said LaVance.
To continue its growth, IET announced on July 21 that the company had hired Chad Crady to serve as its Vice President of sales and Operations for the company’s Oil and Gas Division. Crady has more than a decade managing sales and operations for oilfield service companies, including those in the Permian and Western Gulf Basin, where IET is focused on development.
“Chad’s extensive relationships at both the field and the corporate level with E&P companies, particularly in Texas, will be extremely valuable as we expand our operations in both the Permian Basin and the Western Gulf Basin,” said LaVance.
IET will present at EnerCom’s The Oil & Gas Conference® in Denver on Thurs. Aug. 20.