Sunridge Energy Corp. (SRG.V) has soared more than 20% to a year high 25 cents after announcing it has signed a binding letter agreement with private US based Current Environmental Solutions LLC. The agreement gives Sunridge a five year exclusive license to use CES's proprietary technology within the Alberta Oil Sands area to assist in the extraction of heavy oil (bitumen). CES has the option to participate in any project in which Sunridge participates within the Oil Sands for up to 5% of the companies interest by contributing up to 5% of the costs.
Using CES's proprietary technology (Six-Phase Oil Heating), Sunridge has an unprecedented opportunity to extract oil from depths that were previously too deep to mine and too shallow to utilize high pressure steam injection ( SAGD ). The Oil Sands are the second largest petroleum reserve in the world with current technologies focusing on 75 metre deep excavation deposits or deep steam injections in excess of 175-275 metres. CES's technology is best suited for the shallow-depth zones from 75 metres to 175 metres, which capitalizes on a major untapped reserve in the Oil Sands. On a section of land (640 acres), there are potentially over 100 million barrels of oil in place at this depth. There are hundreds of sections of land in Alberta that contains Oil Sands that are too deep for surface mining and are potential candidates for this technology. The company is planning to commence 2 pilot projects this fall.
"This exclusive arrangement is a major accomplishment for Sunridge and we are extremely excited with the potential of this extraction technology in the recovery of heavy oil at shallow depths," Dwayne Tyrkalo, President and CEO of Sunridge, said in a statement. "We are confident this technology will allow us to extract the extensive reserves of shallow depth targeted oil at costs comparable to or less than steam injection used at deeper depths".
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