Too good to be true....sounds like SCAM......
LA
NEW YORK - (BUSINESS WIRE) - Dec. 9, 2005 - Digital Gas, Inc. (OTC Pink
Sheets:DIGG) announced today that it has signed an agreement to partner
with a private US-based company (PRIVATCO) that owns the exclusive rights
to a high temperature fuel cell (HTFC) method which is expected to
dramatically reduce the cost for oil and gas recovery from a variety of
unconventional hydrocarbon resources.
The broadly-patented HTFC approach is designed to make it possible to
economically produce oil and gas from unconventional resources, such as
oil shale, tar sands, heavy oil deposits, and coal bed methane, while
producing electricity as a byproduct. Under the terms of the agreement,
Digital Gas intends to make an equity investment in PRIVATCO, be
responsible for drilling contract and funding matters on
PRIVATCO-controlled properties, and will have the right to use the HTFC
method on properties it acquires independent of PRIVATCO, subject to a
royalty payment. Digital Gas expects initial HTFC units to be operational
during 2006.
PRIVATCO is currently accumulating mineral interests in the vast oil
shale reserves within the Green River Formation of Colorado, Utah and
Wyoming. Their proprietary HTFC technology will subsequently be deployed
to produce oil, other hydrocarbon products and electricity for sale into
North American energy markets. PRIVATCO has already informed Digital Gas
that on just one property of less than 2,000 acres that it owns the
mineral rights to, 800 million to 1.1 billion barrels of oil are expected
to be recoverable.
The environmental benefits of this breakthrough HTFC method are
compelling when compared to other retorting, strip mining, energy and
water consuming techniques for unconventional oil recovery. By producing
oil and other hydrocarbons from a resource "in-situ", without significant
air emissions or water usage, while simultaneously producing "green"
electricity, this HTFC technology will be well received by those who seek
to balance the growing demand for energy with environmentally friendly
processes.
The contrast between the HTFC and previous geothermic approaches to
unconventional oil production is clear: the Net Energy Ratio (NER),
measuring the energy output in comparison to energy supplied, of the HTFC
approach is superior to other approaches being pursued for unconventional
oil recovery. For example, the estimated NER of the HTFCs for oil shale
production is approximately 7 (i.e., 7 units of energy are produced for
every unit used), whereas the in-situ production approach currently being
investigated by Shell in the Piceance Creek Basin shale resource is
claimed to have an NER of 3.7.
A leading national research laboratory of the U.S. Department of Energy
has reviewed and endorsed PRIVATCO's HTFC approach, and is following
through on its interest by working to form a partnership with PRIVATCO to
develop the commercial versions of the HTFC technology. In addition,
PRIVATCO is currently involved in detailed discussions with several major
energy industry sector companies interested in using this advanced
technology for enhanced oil recovery for oil shale, oil sands, coal
formations, as well as depleted oil fields.
According to PRIVATCO, their HTFC technology will not only be developed
to liberate oil from shale, a resource estimated to contain two trillion
oil-equivalent barrels in the US alone (equal to about eighty years of
world oil supply at current annual consumption rates), but can also be
developed to allow the major oil-producing companies to take a second
look at properties now considered to be non-commercial. Depleted oil
fields in the US and elsewhere still contain more than half of the
hydrocarbons originally in these fields, because the residual
hydrocarbons are too viscous to extract with conventional technology.
The HTFC technology can also be developed for application to accelerate
and enhance recovery of coal bed methane, which has suddenly experienced
a spurt in interest and production volume because of historically high
natural gas prices. Digital Gas expects the HTFC system to dramatically
accelerate production for coal bed methane companies. Since the HTFC
produces electricity without any air emissions, their deployment will
create the equivalent of emission free power plants. The electricity
produced by the HTFC wells can be used to power pumps used in pumping
water out of coal bed methane fields as well as powering compressors
required to feed coal bed methane into feeder pipelines. The fuel cells
produce a very pure carbon dioxide exhaust gas stream that can be either
sequestered underground or harnessed for industrial or agricultural
applications, such as the farming centers to be commercialized by a
Digital Gas subsidiary.
With respect to the Canadian oil & gas market, which Digital Gas intends
to enter, the HTFC system will allow for the commercialization of oil
sands and oil shale formations that have too much overburden for open pit
operations.
Anyone seeking additional information on PRIVATCO and this breakthrough
HTFC technology may submit written requests to Digital Gas through email
at [EMAIL PROTECTED]
Persons, companies or banking institutions with shale, tar sand or coal
bed methane properties should also contact [EMAIL PROTECTED]
Digital Gas, Inc. Brian Smith, 732-927-4073 [EMAIL PROTECTED]
