MCW Energy Group Projects a Windfall Reduction in Its Oil Sands Processing Costs Down to $ 28.00 USD Barrel as a Result of Slumping World Oil Prices
TORONTO, ON -- (Marketwired) -- 01/27/15 -- MCW Energy Group Limited, ("MCW"), (TSX VENTURE: MCW) (OTCQX: MCWEF), a Canadian holding company involved in the development and implementation of oil sands extraction technologies, through MCW Oil Sands Recovery, LLC, ("MCW Oil Sands") today announced further details of its projected oil sands processing costs in the advent of world oil prices under $ 50.00 USD per barrel.
During the latter part of 2014, MCW had assessed its average cost of processing oil sands feedstock at approximately $ 35.00 USD per barrel. This cost was determined when oil prices were in the $ 95.00 - $ 105.00 USD range per barrel. MCW's processing costs have now been projected downwards to $ 28.00 USD per barrel, mainly due to lower costs of the petroleum products being used in the extraction process, such as solvent blends, diesel fuel, liquefied propane, heating oil and natural gas condensates. All of these energy/processing component prices have fallen in tandem with the current dramatic fall in world oil prices. Condensate prices are down 50%. Solvent blend, diesel fuel and propane prices are down an average of 40%.
"Unlike the high production costs and lower energy efficiency levels associated with the mega oil sands projects in Alberta, MCW is in a unique position to take advantage of this unexpected 'silver lining' of lower petroleum product prices," stated MCW's CTO, Dr. Vladimir Podlipskiy, who provided the Company's newly projected processing costs. He added, "Not only have we reduced the costs of these components by 18%, we've also enhanced the automation of our proprietary extraction process, which effectively reduces our labour costs by 20%."
As a result of these lower processing costs, MCW's management team is confident that the Company can turn a profit with its lower fuel/solvent costs and a streamlined extraction process, despite oil prices below $ 50.00 USD per barrel, while other unconventional oil sands projects are either being delayed or cancelled outright. MCW is currently preparing to commence production with its initial extraction plant in Asphalt Ridge, Utah this month and is currently in negotiations for the funding of a 5,000 bbl/day extraction plant as part of its 2015 - 2016 scale-up phase production program.
About MCW Energy Group Limited:
MCW Energy Group Limited is a Canadian-registered, publicly-traded company which is focused on the development and implementation of: (i) Proprietary, environmentally-friendly oil sands extraction technologies and remedial project solutions, (ii) Worldwide joint ventures and licensing of oil sands opportunities with governmental and private industry entities within countries possessing extensive oil sands/shale deposits.
MCW's management team is comprised of individuals who have extensive knowledge in both conventional and unconventional oil and gas projects and production, both in upstream and downstream industry sectors.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Forward-looking statements in this news release, include, but are not limited to the commercial viability of the technology and the extraction plant, economic performance and future plans and objectives of MCW. The new extraction plant in discussion here, if commercially viable is anticipated to produce 250 bbl/day. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although MCW believes that the expectations reflected in forward looking statements are reasonable, they can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, MCW disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise .This press release does not constitute and the subject matter hereof is not an offer for sale or a solicitation of an offer to buy, in the United States, or to any "U.S. Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933 (as amended (the "1933 Act") of any equity or other securities of MCW. The securities of MCW have not been registered under the 1933 Act, and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable exemption from the registration requirements of the 1933 Act.
Not for dissemination in the United States or for distribution to U.S. newswire services and does not constitute an offer of the securities described herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact:
MCW Energy Group Limited
Tel: +1 (800) 979-1897 (Ext. 3)
Source: MCW Energy Group
Released January 27, 2015