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Hinto Energy (OTCQB:HENI) has performed the first test of a new proprietary technology designed in increase oil production and reserves. The technology targets both newly drilled and existing oil and gas wells using water as a drilling fluid.
As quoted in the press release:
The technology is engineered to drill multiple, very short radius lateral bore holes from a vertical well that extend out to a maximum of 300 feet, although there is significant support documenting enhanced well productivity with laterals as short as 10 feet.
In the article, Low Cost Radial Jet Drilling Helps Revitalize 40 Year Old Oilfield in the May 23, 2013, Drilling Contractor, discussing radial jet drilling (RDJ), the authors commented, “RJD is a low-cost, environmentally friendly method to drill numerous small-diameter horizontal laterals from a vertical or near-vertical wellbore. It works in both new and old wells that already have a production history.” They went on to say that, “Radial jet enhancement has made it feasible to improve production from more than 1.7 million wells that would otherwise be cost prohibitive to recover. This represents a total potential untapped market of more than $50 billion.”
Hinto Energy CEO, George Harris, said:
Hinto is developing this new technology in order to cost effectively extract greater quantities of oil and gas from new and existing wells, while substantially increasing reserves. The technology has even more importance during the current period of low oil and gas prices. The Company began the project when it was unable to locate a service provider to drill lateral bore holes in its Cisco, Utah field wells at a satisfactory price point.
Hinto announced the new technology last week:
Companies utilizing similar types of technology, such as Buckman Jet Drilling, Inc. have indicated that completion of 30 to 100 foot laterals can increase production by “50 to 200 percent in new wells and 100 to 1000 percent in stripper wells” and “can replace hydraulic fracturing in some cases.” In the report “Effect of Multiple Laterals on Well Performance,” prepared by Joshi Technologies International, Inc., the potential to increase production and associated reserves by 80 to 620 percent by drilling three, fifty foot laterals, as compared to a comparable vertical well that is normally perforated or produced open hole is indicated. The potential gains in production and reserves is based on oil zones twenty or fewer feet in thickness, adjusted for vertical permeability, skin damage, well diameter and other factors.
The Company has been developing this downhole completion technology over the past 30 months and is very excited about the potential to unlock added production and increase reserves from its own existing wells, as well as from new wells and properties. This technology has the potential to bring old wells that meet the right parameters to near new well production levels. The key is identifying the wells/fields that meet the criteria,” Harris continued.
Click here to read the Hinto Energy (OTCQB:HENI) press release
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