Well stimulation (fracking) is a US$50 billion per year industry and re-stimulation is an emerging part of the industry due to the current depressed oil and gas pricing environment. Exploration and production (‘E&P’) companies are looking at ways of increasing oil and gas production without the expense of drilling new wells. Growth in refracturing (refracking) is expected to be significant in the next few years.
Refracking horizontal wells has been a challenge to the industry. While over 4,000 vertical refracture treatments have been successfully carried out in the Wattenberg Field, horizontal refracking is a less mature industry lacking optimized technologies and processes. Therefore the industry’s search for a breakthrough in diversion technology continues and a successful technology will have excellent recurring revenue potential by way of a licensing agreement and on-going royalty payments.
An independent report by RPS Knowledge Reservoir highlighted a series of unique advantages which differentiates DT Ultravert from other competitive solutions and confirmed that, if the technology is successful, it has the ability to revolutionise the way certain wells are stimulated. The independent report asserted that Highlands Natural Resources’ technology, which is gas-based, could deliver a step increase in well productivity, reduce formation damage, offer a net increase in reservoir contact by individual wells and their associated fracture stages, facilitate ease of use and deployment in the right formation, and provide superior well production and significant profit potential.