MCW Energy Group Limited announced details of two recently commissioned feasibility reports by independent mining consultants, JT Boyd Company and energy advisory firm, Nexant, Inc., which it said have confirmed the viability of MCW's plans in order for the company to move forward with its 2,500 bbl/day scale-up extraction plant project in Utah, now in the funding stage.
The JT Boyd Report confirmed attractive mining costs for the Asphalt Ridge oilsands ore, based on a detailed economic analysis of all major mining functions (drilling, blasting, overburden removal, oilsands mining and mine reclamation, maintenance), the company said.
Based on three separate scenarios, mining costs are estimated to range between $5.35 and $5.76 per ton of oilsands ore, MCW said. Low mining costs are due, in part, to the fact that MCW's oilsands resource is directly at, or just beneath the surface so that minimal overburden (non-ore material) removal is required.
The low mining costs, combined with low processing costs by MCW's proprietary, closed-loop, solvent-based process will result in significantly lower per bbl production costs than the costs for traditional hot water-based oilsands extraction technologies.
The Nexant Report confirmed that production costs at MCW's 250 bbl/day operation in Maeser, Utah were US$31 per bbl during their multi-day site visit in late 2015. Nexant is currently working on final production cost estimates for the 10-fold scale-up of MCW's operations to the 2,500 bbl/day production level.
With positive economies of scale, the production costs for the 2,500 bbl/day plant are anticipated to drop into the low US$20 per bbl range, MCW said, comparing favourably with the current $70 per bbl break-even costs estimated by the Canadian Energy Research Institute (CERI) in August, 2015 for the hot water-based extraction technologies used in Canada.
MCW said that the Nexant Report confirmed its operations are among the most cost-efficient and potentially profitable oilsands operation in the world, even with the currently depressed global oil prices. The company’s waterless technology also significantly reduces the negative environmental impact of oilsands processing, which is a growing concern generated by the environmental damage caused by other extraction technologies. MCW said its technology extracts over 99 per cent of all hydrocarbons and recovers over 99 per cent of its benign solvents for recycling/reuse. Nothing leaves the system except oil and clean sand.
Due to strengthening global oil prices, Toronto-based MCW recently announced the restart of operations at its 250 bbl/day plant in Maeser, Utah.
"These two independent feasibility reports further confirm the economic viability and the enormous profit potential of our 87 million bbl oil reserve available to us in Utah (Chapman Petroleum Engineering Report, 2012), as we apply our environmentally-friendly extraction technology," commented MCW's chairman Aleksandr Blyumkin.