FTTN: Smaller Producers Could Make Good Targets for Enhanced Oil Recovery
By Business Wire News
By Business Wire News
With the price of oil reaching new lows daily, the nation’s smallest oil producers are considering shutting in their wells and potentially losing their mineral rights. First Titan Corp. (OTCQB: FTTN) believes these producers would make ideal candidates for the enhanced oil recovery (EOR) business the company is currently studying.
Operators of marginal wells – older, declining wells that produce relatively small amounts of crude per day – are struggling in this low-price environment. Their wells frequently don’t produce enough to justify their expense in the current environment. So the operators shut down production to save money, but that comes at a risk. In many states, an operator can only idle their well for up to 90 days before losing mineral rights.
“We want to offer these operators a low-cost, affordable EOR service,” said FTTN CEO Sydney Jim. “This could help them increase output to make the well cost-effective to remain in production and preserve their mineral rights. This concept represents an underserved market with little competition that could help us generate additional revenues.”
There are more than 400,000 such wells in the U.S. – 10 percent of the nation’s total oil production. In 2012, lost production from idled wells totaled more than $620 million.
Meanwhile, a recent report forecasted the EOR market to grow at a robust 16.9 percent rate by 2019.
FTTN is building a competitive portfolio of oil and gas properties alongside companies such as Lucas Energy, Inc. (LEI), Earthstone Energy, Inc. (ESTE), Fieldpoint Petroleum Corp. (FPP) and Evolution Petroleum Corp. (EPM).
For more information on FTTN’s oil and gas projects, please visit www.firsttitanenergy.com.
About First Titan Corp.
First Titan Corp., through its wholly owned subsidiary, First Titan Energy, LLC, is committed to the exploration and development of oil and natural gas resources around the globe. The Company continually seeks to partner with energy developers that are pursuing innovative new methods of oil and gas extraction, including the development of new technologies, cleaner methods and unconventional resources.
Notice Regarding Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words “believes,” “expects,” “anticipate” or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone’s past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
First Titan Corporation
Sydney Jim, 702-448-8148
President and CEO