Chimera Energy reported today that the massive Mexican state-owned Petroleos Mexicanos (PEMEX), the second largest (by market value) non-publicly listed company on earth, recently turned in the well data and logging reports in Poza Rica in order to aide deployment of the company's revolutionary exothermic non-hydraulic extraction method (zero water fracking).
Given the undisputed leadership of PEMEX in Latin America's hydrocarbon sector and the rich, sizeable shale oil concentrations throughout the region, this tight-knit relationship with CHMR (as per last month's Memorandum of understanding between CHMR and PEMEX) puts the company in a prime position to roll out their revolutionary extraction tech across a giant market. This unique process pioneered in China offers exceptional extraction and recovery rates from shale oil without incurring the standard risks associated with hydraulic fracturing, like water table contamination.
Looking at the extensive hydrocarbon envelope yet fully untapped throughout Latin America, we see the perfect environment in which to take this technology to the next level. Initial data-driven targets in Mexico's Chicontepic Basin show ideal conditions for this technology. The Chicontepic Basin, at some 139B bbls or more, is the biggest certified hydrocarbon reserve in all of Mexico, and shareholders should be quite happy that all of the fundamental logistics point to exothermic extraction being superior to hydraulic fracturing in this case.
This huge reserve could form the basis for proliferation of the technology throughout Latin America and would serve as a proving ground. The numerous large pockets off the primary well bore on many wells sunk in the region should respond well to the highly focused pressure-cooker like function of the new extraction technique. Once the activity in Mexico establishes the technology's prowess further, CHMR is looking at a global expansion campaign that could take this technology, which is also cheaper and considerably more effective in some cases (as the pumice-like material pumped into fissures acts as a stent to keep the oil and gas veins flowing), into every major hydrocarbon production region on earth.
A technology whose time has come, exothermic extraction uses no water, no steam, LPG gel, natural gas or the forced pumping of hot material into the well, instead using agents which react in a highly localized fashion. The data from Mexico should certainly win over the larger global industry and make a strong case for proliferation. CHMR is currently reengineering various aspects of the technology to get it fully ready for mass production, relicensing, and sales to an eager global market looking for a safer, cleaner alternative to hydraulic fracturing that won't require any production sacrifice.
For all intents and purposes we have a no-water fracking alternative in CHMR's exothermic extraction technology that is actually superior production-wise in many cases, and the Mexico test bedding should really put the company on the map in a big way. Having PEMEX at the company's side as things progress in Mexico will really go a long ways towards smoothing over any procedural bumps as CHMR advances the technology towards more widespread commercial use and is a clear sign to investors regarding the stability/viability of this technology.
To get more information on this revolutionary technology, or to learn more about the company, please visit the Chimera Energy Corp. website located at: ChimeraEnergyUSA.com
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