Oil Sands

“HHO Release”, a derivative product of Catawater®, is a groundbreaking achievement that enables the extraction of bitumen (oil) from oil sands with little or no heat.  The initial focus of CATAWATER HHO RELEASE, LLC will be to exploit “HHO Release” to cost-effectively extract bitumen (oil) from oil sands without the extensive harm to the environment through expansive buildup of contaminated tailings ponds and the depletion of excessive amounts of water and natural.  In a recent study completed by Dr. A. N. Starks, an analytical Chemist at the University of Dallas, “HHO Release” demonstrated an unprecedented capability to separate 28% of bitumen from oil sands (by weight of oil sands samples), as compared to a 14% bitumen yield from the current heat-based process used in the extraction from bitumen from oil sands.  In other words, the catalyst extracted virtually 100% of the bitumen from the oil sands sample.  Dr. Starks’ conclusion was that:

“The results of this analytical study of “HHO Release” as a “no-heat” catalyst for extraction of bitumen from oil sand are so definitively positive that further investigation at full scale operation levels are indicated.”

Advantages of “HHO Release” to extract bitumen from oil sands:

  • Numerous and significant environmental benefits, including:
  • Strong potential to extract bitumen from oil sands in situ, via drilling of wells;
  • Capability to reprocess effluent in existing tailings ponds and receive remediation payment as well as value of recovered bitumen;
  • Up to two-fold increase (28% vs 14% yield) in oil production per ton of oil sands;
  • Low or no-heat extraction processing with substantially lower production costs;
    • Significant reduction in water usage because the catalyst is recyclable;
    • Elimination of bitumen-impregnated effluent and associated tailings ponds;
    • Upgrading processed bitumen by removal of any sulfur present;
    • Conservation of natural gas and mitigation of greenhouse gases released into the atmosphere by elimination of heat required for bitumen extraction; and Action of “HHO Release” as a superlative soil conditioner to breathe new life into soils contaminated by oil, thus accelerating the reclamation of damaged land.

Dr. A.N. Starks further concludes in his laboratories at the University of Dallas, Irving, Texas, that;

“In lab-scale use, “HHO Release” quantitatively extracted bitumen from oil sands in minutes.  In full-scale operations, comparable effects should be possible, with results within hours, if not minutes.  Even if multiple full-scale trials are required to establish optimum conditions such that “HHO Release” functions most efficiently, such test could be completed in a few days.”

Oil Sands Economics

Canadian oil sands operations produced 3.0 million bbls of oil per day in 2014.   With the potential to effect a major increase in oil output of oil sands operations (over current processing techniques), CATAWATER® HHO RELEASE, LLC’s initial strategy is to structure partnering transactions to share in the increase in revenue generated by the catalytic process.

If CATAWATER® HHO RELEASE, LLC achieves a sharing arrangement with 50% of the oil producers (over time) in Canadian oil sands wherein CATAWATER® HHO RELEASE, LLC received a processing fee of 5% (a conservative example), based solely on only a 25%  increase in production, CATAWATER® HHO RELEASE, LLC could generate over $2.2 -3.3million daily from Canadian Oil Sands (assuming today’s production rate and an oil price of $60-90/bbl.).

This figure will be based on a penetration ramp-up over time but in the end may be on the low end of what CATAWATER® HHO RELEASE, LLC could generate.  CATAWATER® HHO RELEASE, LLC expects additional substantial increase in revenue, given that the sands currently captured in the tailings ponds could be reprocessed.   (These sands contain as much oil as has been extracted over the past few years.)  Alternative pricing models have been suggested and are under consideration.

Oil Sands Summary.

From an engineering perspective, “HHO Release” enables:

  • an extremely simple and straightforward methodology to extract oil from oil sands,
  • has far superior extraction efficiency,
  • is cost effective,
  • provides greater profitability through increased production and lower processing costs, and
  • offers significant benefits to the environment (and to the user with respect to regulatory and environmental compliance).

CATAWATER® HHO RELEASE, LLC expects to confirm the efficacy of “HHO Release” in an up-coming field test involving current processing methods but without the use of heat.  As evidenced by the dramatically successful laboratory testing, the field-testing appears to not hold any technological challenges.  The field testing protocol involving current extraction and strip mining processes appears to involve determining optimal amounts of catalyst and the issues surrounding engineering and mechanics to recover catalyst following processing.

Additionally, CATAWATER® HHO RELEASE, LLC expects to test Catawater®’s effectiveness in situ, by using the catalyst down hole in a shallow well.  CE fully expects this in situ process to work as planned, which would present an entirely new paradigm in oil extraction from oil sands.  Enabling the ability to replace strip mining of oil sands would result in phenomenal benefits to the environment and immense cost savings.  Strip mining equipment would be used sparingly, and large and capital intensive facilities would be unnecessary.

As the efficacy of “HHO Release” is confirmed in the field, whether with strip mining or with the new approach of in situ recovery, or both, it is expected that such news will travel from the Board Room to Press Room to the legislators, who may change the laws to enable the adoption of this new more efficient and environmentally friendly technology.  It is also CATAWATER® HHO RELEASE, LLC’s intent to involve the Canadian Government and the Indian Nations.  The benefits to all parties include remediation of toxic tailings, water conservation, natural gas conservation, less pollution, environmental protection, increased profitability, increased oil supply, and increased royalties/tax revenue for landowners and governments.  And by fully separating the oil from the sands – it will improve the ability of the recovered oil to be transmitted through pipelines without damaging the infrastructure.