Telephone: (561) 447-7370

FAX: (561) 447-7371

Electronic Mail:  info@geo-tec.net

Chuck Dooley:  geotexas@1s.net

August 21, 2000- October 10, 2000   

Geotec Thermal Generators, Inc. - OTCBB:GETC - Announces Results That Will Enable the Company to Meet Its Business Model


General Summary

GEOTEC THERMAL GENERATORS, INC. brings to North, South and Central America the PGDBK technology which was developed by the former Soviet Union Military Research and Production Facility, NPO ALTAI, for the Ministry of Geology, USSR. This technology is designed to produce a thermo-chemical treatment of oil and gas wells, restoring and increasing output capacities. NPO ALTAI has been developing and manufacturing these generators since the 1970's, refining the technology and making them suitable for diverse geological conditions. The Gas Generators are successfully being used in Russia, C.I.F., Ukraine, Uzbekistan, Kaxakhstan, Turkmenistan, Vietnam, India and have been tested in the La-Chen oil basin, in China, since 1992. Based on this extensive testing, NPO ALTAI has an agreement for use of the Gas Generators throughout China.

The technology is superior to conventional stimulation methods especially when treating fluid sensitive, thin layered, stratified reservoirs with high wellbore damage. The best after treatment performance is observed in wells with high reservoir pressure, high hydrocarbon saturation with deteriorated performance due to paraffin, poor drilling, completion and production practices. The primary treatment of wells is very effective as such treatments ensure higher productivity and longer production time by substantially increasing the permeability over other methods.

The PGDBK can be used to treat reservoirs of diverse geological conditions. It is designed to treat carbonates, limestone, sandstone and dolomite. Generally treatments have been performed in fractured limestone, consolidated sandstone and dolomites. Reservoirs with combinations of these sedimentary rocks have also been successfully treated with this technology.

The technology is based on a firm scientific foundation of a facility with expertise in pyrotechnics. This technology has been successfully applied to over 30,000 wells.

The PDGBK has successfully been applied to the exploitation of coal bed methane and its application in such resources in the western United States would be economically viable. The technology can also be applied in injection, disposal, and water wells.

The PGDBK tools are easy to mobilize and run. More than 25 years of its use verifies that the procedure is safe, environmentally benign, and above all inexpensive. 

Introduction

Caseless charge-powdered pressure generator (in Russian – Poroxovie Generatorie Davlenea BesKorpusnie - PGDBK) is a state of the art stimulation technology that enhances the productivity of wells with a combination of mechanical, thermal, and chemical actions. The gas generator acts on reservoir rocks by creating multiple fractures that enhance the flow of oil and gas from the reservoir into wellbore. These fractures are far reaching, long lasting and significantly reduce skin effect of wells. This action also dramatically increases the permeability of the wellbore region.

The PGDBK technology is not only effective in the enhancement of well productivity, but also has been safely and economically applied in over 30,000 wells around the world. In a single oil field alone, the use of the PGDBK gas generators resulted in an incremental production of 30 million tons of oil. The PGDBK treatment of wells in Tyumen oil basin, Russia, alone resulted in an incremental production of 295 million tons (2.4 billion barrels) of oil over 5 years. This is a whopping $48 billion at $20/barrel. The PGDBK technology has an impressive success rate of more than 70% for oil wells and 90% for gas wells.

There are many technologies from which to choose.
Is this technology for your wells?

The PGDBK technology uses mechanical, thermal, and chemical actions on formation rocks and fluids.

  • High success rates; 70% of oil wells; 90% of gas wells. Treated over
    30,000 wells.
  • Several multi-oriented fractures are formed to enhance permeability
    of the reservoir in the wellbore region 30-60 feet. No other procedure
    can increase the permeability when compared to the PGDBK technology.
  • The fractures walls are eroded and plasticize which keep the fractures
    opened for a long time.
  • The viscosity of reservoir fluids in the well bore region is drastically
    reduced thus enhancing mobility into the wellbore.
  • Surface tension between oil and water is reduced to increase mobility.
  • Use mathematical models to determine amount of charges required and
    predict the probability of the success and the hydrocarbon yield.

Economical

  • Easy to mobilize and rig-up.
  • Less rig-up and production down time.
  • No Charge to the operator for our services unless successful.
  • Share only in incremental recovery.

Application Safety

  • High safety standards and records for personnel and equipment.
  • PGDBK is designed to exceed the fracture gradient and the tensile
    strength of the rock while it is safe enough not to unseat packers, valves
    or destroy tubulars and cement bonds.
  • GEOTEC is insured with property and liability for the use of the PGDBK
    treatments.

Environmentally Safe

  • High design parameters and operation procedures ensure that the
    procedure will not contaminate surface or underground aquifers.
  • The technology does not use hazardous chemicals or materials.
     

GEOTEC THERMAL GENERATORS, INC.  is ready to analyze, free of charge, reservoir and well data to determine the suitability of our applications to improve performance, extend well life, and add to the net worth of your oil and gas properties.      

 



GETC—OTCBB     Get Latest Quote, News and Chart
The Science

The basis of The PGDBK treatment is to have influence on the parameters imbedded in the fundamental equation that governs the flow of oil and gas in a reservoir rock (porous, permeable medium rock).

The PGDBK is based on the effort to enhance the flow of oil and gas by creating substantial effects on some of the above rock and fluid properties that determines the flow of oil/gas in the reservoir.

The cylindrical shaped powder charges are ignited almost instantaneously along its length, in the well, creating excessive pressures and temperature. These gases are quickly forced to expand. In the process of expansion the gases first fill the void spaces around the wellbore and overload the existing fractures. The pulsating action of the quick gas overload builds up pressures to overcome the rock’s tensile strength, creating several additional fractures of diverse orientation. The vertical fractures tend to stay longer, as they are least affected by overburden pressure and are assisted by the confining pressure.

The reaction is not an explosion and a blast does not occur as in some perforation practices. Thus the formation is not crushed but rather yields to the intrusion of gases into void spaces and channels with a reaction that occurs on an order of magnitude slower than rocket propellant.

The mechanical impact of the combustion products on the formation is manifested in formation of fractures, displacement of corrosion products, products of chemical reactions, loose sand, clay particles and solid deposits. The impact of this action is determined by the amount of pressure created and the way the pressure behaves over time.

Note: The generators do not contain explosives and a combustion blast does not occur.

Fractures created go through an irreversible deformation process when the following condition is met;

… where Pw, is the wellbore pressure, Pf the formation pressure, and Plr the lateral rock pressure. Here, E1 and E2 are Young’s moduli for the rocks in the case of loading and relief, respectively. Such fractures once created cannot completely close after the generators have been expended.

The pulsating action of the pressured gases helps to erode the fracture surfaces. It also cleans the perforations and pore channels through the surge action of liquid and combustion products under high speed. The eroded and plasticized wall is a distinguishing feature PGDBK treatment has over conventional stimulation methods. Whereas hydraulic fractures must be kept open with special propping agents, the PGDBK plasticized walls stay open much longer without the need for proppants.

This process is also accompanied by partial erosion of the fracture walls. The continuous generation of the gases extends these fractures until enough volume is created to reduce the gas pressure below the fracture extension pressure. 

After the gas has been burnt out, a pressure back surge cleans out the solids of sedimentation and filtration due to drilling, completion and production practices. Other solids arising from the combustion of the powdered charges are similarly washed back into the well. The amount of gas to be generated is determined with the knowledge of the fracture gradient and the transmissibility of the formation to the gaseous products. This initial process substantially reduces the skin effect of the wellbore area, s, and also increases the permeability, k, of the wellbore region.

Another advantage of the PGDBK powdered charge is its thermal effect. Tremendous heat (930o F - 1300o F) is emitted in this process acting in two ways. First, there is a reduction of the viscosity of the fluid, m, in the wellbore region which mobilizes any precipitation of paraffin, asphalt, resin, and other heavy hydrocarbons. The thermal energy helps to keep the fractures, once created, open for a longer period of time by plasticizing the walls of the fractures. Such fractures stay open for a long time and do not require propping agents, which would limit the number of re-treatments, as occurs with hydraulic fracturing. The chemical reaction reduces the surface tension between oil and water, facilitating the relative permeability to oil.

Using existing reservoir and well data, our mathematical models are used to determine: a) the optimal amount of generators that are required; b) the design of the tool configuration; c) predict the outcome and yield probability of each treatment.  

The Technology

The tools can be conveyed on a wireline or in tubing. The generators are mounted in series and typically lowered on a wireline. Tubing conveyance is used in setting the charges in horizontal wells. When positioned at the determined depth in the well bore, the generators are ignited almost instantaneously. They disintegrate completely since they have no outer casing.

The type of generator appropriate for a stimulation job is dependent on the geological and reservoir conditions and also on the well configuration. The number of generators required on a single run assembly depends on the number of pay zones and their thickness.

Our usual tools have temperature and pressure ratings up to 400oF and 14,500 psi respectively. Well depths of at least 2000 feet are desired, however, they can be used to depths of 22,000 feet. GEOTEC is capable of handling other reservoirs that fall outside these desired parameters with customized generators.

The application of PGDBK technology is not limited to the stimulation of oil and gas wells. There are other applications. It has been successfully used to relieve methane from coal beds in Russia. Today we are ready for the commercial exploitation of coal bed methane gases that are found, in Australia and in the Midwest and Western basins of the United States. This technology enables operators to book gas reserves in several existing coal bed methane deposits.

Applications

Fracturing and thermo-chemical treatment of near wellbore region using the burning effect of powdered charges. This is a reliable application to increase production capacities of oil and gas wells.

Advantages of Method

  • Uncomplicated technology
  • High portability of tools
  • No operator charge for the technology application unless we are successful
  • Short rig-up time and running operations
  • Compatible and may be used as a complement to other methods of stimulation
  • May be applied over a wide range of geological conditions
  • Primary well treatment ensures higher productivity and longer production time before workover.
  • Ideal for wells in which packers cannot be used
  • Thin beds or beds with close oil and gas contacts
  • Reservoirs that are incompatible with external fluids

Results of Uses

Average incremental oil production after PGDBK treatment – 800 tons per year per well. (6,000 bbls/yr/well) from a single or repeat treatments. In a single field in the Tyumen region, in Russia, an incremental 330 million tons (2.4 billion barrels) was produced over 5 years.


Average incremental oil production after PGDBK treatment – 800 tons per year per well. (6,000 bbls/yr/well) from a single or repeat treatments. In a single field in the Tyumen region, in Russia, an incremental 330 million tons (2.4 billion barrels) was produced over 5 years.


  • Duration of treatment effectiveness is from several months to several years. In some specific fields, treatments have lasted for 5-7 years.
  • Success rate of PGDBK treatment; oil wells 70%; gas wells 90+%

 

 

Economics

Below is a series of increased oil recovery for successful well treatments. GEOTEC Thermal Generators, Inc. will continue to bring these desired benefits to the American oil operators and interest holders.

The use of the PGDBK technology has added significant production to several wells at least cost of stimulation. On the average incremental oil production of 6,000 barrels per well per year has been recorded. The graph below also shows the corresponding increase in permeability around the well bore region.


Incremental Oil Production from Arctic Region, Siberia
and Central Asia Fields using PGDBK Gas Generators

Oil Producing
Company

Number of
Wells
Treated

Number of Effective Treatments

Incremental Oil Production
(bbl/well-effec/yr)

Incremental Oil Production (bbl/well-total/yr)

Incremental Oil Production
(bbl/field/yr)

Mamontovoneft

15

10

18,561

12,374

185,614

Yuganskneft

19

16

41,400

34,863

662,394

Strezhevoineft

121

62

4,002

2,051

248,138

Vasyuganneft

5

3

1,009

605

3,027

Tebukneft

157

97

9,074

5,606

880,186

Zhetybaineft

68

55

1,498

1,212

82,390

"PGDBK stimulation technology has been successfully used in diverse geological formations and varied climatic environments to enhance productivity of wells and increase the net worth of oil and gas properties. Best results of incremental production have been observed in wells with depths of 4000 feet and deeper, producing from reservoirs of high hydrocarbon saturation, high pressure, and low porosity. Note in the graph that follows, that the Yuganskneft’s treatments were 85% successful with incremental oil production exceeding 125 BOPD."

--- Albert O. Banahene - Chief Petroleum Engineer



OPTIMUM WELL CHARACTERISTICS
FOR TREATMENT EVALUATION


Wells submitted to GEOTEC for treatment evaluation should be existing in stratums consisting of one or more of the following:

1. Carbonate or terrigenous rocks.

2. Dense, fractured, limestone having low overall porosity.
   
             (Porosity < 4%)

3. Dolomitized, vertically fractured, non-argillaceous porous limestone.
          
              (Porosity > 15%)

4. Homogeneous, low permeable limestone having mean primary porosity.

5. Non-argillaceous limestone.
           
(Interstratification of porous, argillaceous and dense intercalations)


6. Dolomite.

7. Non-argillaceous consolidated sandstone with interstratification of aleurolite and clay.
            
(In this case, the opening by perforation is only in the sandstone)

Ideally, wells that meet the above criteria should also be a minimum of 3900 ft. deep and have a bottom hole temperature less than 400º F.

 

Optimum treatment results, are not limited to, but can be obtained when:

The fractures of the non-uniform stratums nearest to the well zone rocks have lower permeability than the distant zone of stratum;

-or-

The near well filtration zone is plugged up during the drilling process;

-or-

Assimilation or exploitation of the well and the stratum pressure remains sufficiently high;

-or-

The well has low productivity even though it is located near wells with high productivity.

 

KEY RECENT DEVELOPMENTS

Oct 4 Geotec Thermal Generators, Inc. Elects to Cancel Equity Financing Agreement with Private Investor as Arranged by Jesup & Lamont, Investment Bankers - Business Wire
Sep 20 Geotec Thermal Generators, Inc. Will Present Case Studies At The Petroleum Technology Transfer Counsel, Central Gulf Region On Dec. 5, 2000 - Business Wire
Aug 21 Geotec Thermal Generators, Inc. - OTCBB:GETC - Announces Results That Will Enable the Company to Meet Its Business Model - Business Wire
Aug 8 Geotec announces a Funding Agreement in Excess of $24,000,000 - Business Wire
Jul 12 Geotec Thermal Generators, Inc. and the Marquardt Family Trust Have Acquired Emerald Production and Restoration Company - Business Wire

WEBSITE INFORMATION

Copies of company press releases, SEC filings, current price quotes and stock charts may be found on the Corporate Web Site’s  www.geo-tec.net

 

To SUBSCRIBE to our FREE Newsletter and gain total access of our upcoming profiles, please enter your email address:

 Why Join?

 

 

-------------

 Disclaimer 

This profile published by OTC Live, Inc is an independent electronic publication providing information and factual analysis on selected companies. All statements and expressions are the opinion of OTC Live, Inc and are not meant to be either investment advice or a solicitation or recommendation to buy, sell, or hold securities. Investing in micro-cap securities is highly speculative and carries an extremely high degree of risk. OTC Live, Inc is not a registered investment advisor or a broker dealer. It is possible that an investor's investment may be lost or impaired due to the speculative nature of the companies profiled. Profiles rely on information provided by the featured Companies and/or Edgar filings. While OTC Live, Inc believes its sources to be reliable, associates of OTC Live, Inc, or any affiliated parties make no representation or warranty as to the accuracy of the information provided. Readers should not rely solely on the information contained in this publication, but should consult with their own independent tax, business and financial advisors with respect to any investment opportunity, including any contemplated investment in the advertised Company.

Factual statements in this publication are made as of the date stated and are subject to change without notice. OTC Live, Inc is not responsible for any claims made by the Company. We have prepared this report, drawing upon a range of public news, the company's website and information from sources in the industry, as well as data and opinions provided by the company. Prior to issuing this report, the Company reviewed and approved the contents in writing hereof. OTC Live, Inc has not independently verified the Company's representations. Any opinions expressed in this report are statements of judgment as of the date of publication. We urge readers to carefully verify all presentations within the report independently. The receipt of this publication shall not create, under any circumstances, any implication that there has been no change in the affairs of the company profiled since the date of review. This advertisement does not provide an analysis of the Company's financial position. OTC Live, Inc of this advertisement will be paid in the form of restricted stock, in the amount of 15,000 shares of GETC by Geotec Thermal Generators for the preparation and electronic dissemination of this report.  We intend to sell these shares at the appreciation of the price on the open market.  This should be viewed as a potential conflict of interest. Furthermore, associates of OTC Live, Inc may have stock positions on profiled companies from time to time. We may profit in the event the shares of the Company profiled by us increase in value. These positions may be liquidated from time to time even after we have made positive comments regarding the Company.  The receipt of this information constitutes your acceptance of these terms and conditions.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS: Except for historical information contained herein, the statements on this website and newsletter are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition and risk inherent in the companies operations. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ``anticipate,'' ``estimate,'' ``expect,'' ``project,'' ``intend,'' ``plan,", "anticipate", "guess", "think", "hear", "suggest", ``believe,'' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance.

As a suggestion, "Never, ever, make an investment based solely on what you read in an online newsletter or Internet bulletin board, especially if the investment involves a small, thinly-traded company that isn't well known," said Nancy M. Smith, Director of SEC's Office of Investor Education and Assistance. "Assume that the information about these companies is not trustworthy unless you can prove otherwise through your own independent research." "Internet Fraud" is available on the SEC's Web Site, at http://www.sec.gov/consumer/cyberfr.htm.

 

 

 

The Financial Ad Trader The Financial Ad Trader