26/02/2016
Smaller producers could make good targets for enhanced oil recovery
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.
Read more: http://www.pennenergy.com/articles/pennenergy/2016/01/oil-gas-news-smaller-producers-could-make-good-targets-for-enhanced-oil-recovery.html
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.