‘THE PROGRAM’S OBJECTIVES WERE MET AND THE PROJECT SUCCESSFULLY DEMONSTRATED THAT THE PROCESS IS ECONOMICALLY AND ENVIRONMENTALLY SAFE.” (U.S. Department of Energy Report)

CLICK ON LOGO IMAGE FOR THE U.S. DEPT. OF ENERGY'S REPORT ON THE JOINT VENTURE PARTNERS' PATENTED CLOSED-LOOP EXTRACTION OF HYDRO-CARBONS & BITUMEN FROM OIL-BEARING SOILS.

The joint venture partners utilize a proprietary, patented, proven, closed-loop technology, whereas the recovered solvents are compressed back to a liquid; then subsequently cooked and recirculated to an extractor vessel in an endless loop.  The remaining solids/sands are heated to remove any remaining solids.  The result is dry sand, environmentally suitable for mine backfill as per Utah EPA standards.  The process has a proven 99.9% oil recovery efficiency at a cost of less than $ 12.50 USD per barrel.

• The technology is proven, scalable, highly mobile and earth-friendly.
  
  
• The continuous flow system is totally closed-loop, with near-zero solvent loss, emits minimal greenhouse gases and returns the sand to the environment in better-than-original condition.
  
  
• The system does not require water and works efficiently on a wide range of oil and sediment types.

The ore is mined using conventional surface mining techniques and equipment, because most of the Utah Oil Sands deposits are from surface to 250 feet.  These oil sands are characterized by high viscosity sand low sulphur (0.4%) and a gravity rating of 9 degrees.  After the over-burden has been removed, and a flat pit floor created, the oil-bearing solid material is mined.

Here’s How The Process Works:

The oil sand is dissolved in an enclosed container at 100F or higher.  As it dissolves, it is passed to a wash chamber where any remaining oil is removed.  The oil-free sand is desolventized with heat, which converts the liquid solvent to a gas.  The gas is 250 times less dense than the liquid.  This phase change ensures a high solvent recovery.  The solvent oil mixture is pumped into a critical unit which allows the removal of asphalt and oil selectively from the solvent through heating and cooling.  The oil-depleted solvent is returned to dissolve additional oil sand.  The process is economical, gentle and efficient.  And processing temperatures are kept extremely low.  Over 99% of the solvent is recycled.  Most of the heat used is also recyclable. And since the process does not use water torecover the oil, much less energy is required.  The solvent acts more quickly and efficiently than water to remove the oil.  And the footprint left does not create an environmental mess to clean up after the process.

Typically, heavy crude oil is full of salts, minerals and water, which make processing difficult.  The Utah Oil Sands’ crude is free of such impurities.  The separation process produces high API gravity crude which is low in sulphur metals.  It also has a lower viscosity than raw crude which makes it easier to transport than raw crude.  This lighter crude is especially attractive to refiners who cannot process heavier crude.

THE JOINT VENTURE TECHNOLOGY WAS PROVEN DURING A FULL SCALE OPERATION THAT PRODUCED 2000 BBLS/DAY FOR ONE YEAR.

The joint venture partners’ patented oil extraction process was originally proven in Wyoming in 1998, with a full-scale production plant operating for one year, producing 2000 barrels per day.  The United States Department of Energy, National Oil Program/National Petroleum Technology subsequently issued a report titled, “ Closed-Loop Extraction of Hydrocarbons and Bitumen From Oil-Bearing Sands” which is included in this section in its entirety.  The report concluded that “the program’s objectives were met and that the project successfully demonstrated that the process is economically and environmentally safe.” Subsequent to the one year of production, operations at the commercial-sized plant were halted due to extremely low oil prices ( $ 9.50 USD per barrel), which made the process economically unviable.

Nevtah and Black Sands Energy have since mobilized a pilot plant operation at Asphalt Ridge, Utah, in 2005 in order to further improve the process efficiencies. This pilot plant has undergone a continuous program of debugging and stabilization since August, 2005.  This 200 barrel/day plant’s efficiencies have been steadily increased with improvements such as the installation of heating coils to the evaporator in order to minimize accumulation of water.  Two new basket-type devices have improved the heat transfer and a hydraulic motor installed on the lower steam bowl will improve the removal of sand from the bottom of the wash chamber.  An improved conveyor system has been set up and may be operated remotely.  The pilot plant unit is currently undergoing a scale-up in Oklahoma and is expected to be back on the Asphalt Ridge site very shortly.

The joint venture partners have commissioned the engineering and costing of a 2000 bbl/day plant (See Press Release dated April 24th, 2006.).  This unit would produce 100 bbls/hr for an annual output of 800,000 bbls.  It is expected that construction of this commercial unit will commence in the summer of 2006 and will be installed at one of the joint venture partners’ leases at Asphalt Ridge, where three mining permits have been granted for development.

U.S. DEPARTMENT OF ENERGY - National Oil Program - National Petrolem Technology Report - Click Here