Economics and Opportunity
The patent pending RF XL heating technology reduces both capital cost (CAPEX) and operating cost (OPEX) of oil sands and heavy oil production in comparison with SAGD by 76% and 43% respectively, but of critical note is that it can also allow for extraction from reservoirs that, until now, have not been considered viable to produce. This means that in addition to the billions of dollars that can be saved compared to current production costs, up to ten times more barrels of previously untapped Alberta oil could now be produced using this innovation.
The range of untapped geologies and reservoir formations that RF XL can produce include:
- Deep or thin reservoirs: RF Heating can be used at depths and in formations where steam is not viable.
- Cracked and fractured reservoirs, such as carbonates: RF Heating efficiently delivers heat to the reservoir directly around the antenna and does not suffer heat loss through cracks or fractures.
- Shallow reservoirs: RF Heating can operate with or without a cap rock or other containment structure required for steam.
Equally compelling is our ability to get this innovation to market quickly. RF XL uses proven power industry technologies and relies on down hole equipment and processes that are already industry standard, allowing development to be accelerated and streamlined. This means RF XL can be fully commercialized and available on the market by 2020. Our current commercialization schedule includes:
- Near-surface test Q4 2016 - Q1 2017
- Commercial scale RF XL test 2017-2018
- Multi-well tests targeted for 2019/2020
- Commercial RF XL systems available 2020
This innovation is a fantastic development in addressing environmental concerns, and since RF XL can reduce oil sands production costs to such a great degree, it can ensure the oil sands viability even in very low oil price environments.