Big Cat Energy Offers Recharge System to Coal Bed Methane Operators
Big Cat Energy Corporation of Upton, Wyo., has received requests for proposals from seven major coal bed methane (CBM/CSNG) operators in Wyoming and Montana, representing $11 million of potential revenue and encompassing approximately 580 well sites.
The company supplies the ARID® Aquifer Recharge Injection system, a water handling component selected for a proof of concept project to enhanced public water supply in the southwestern United States. The project team includes, among others, a major university and a federal agency. The first phase of this project is scheduled to be completed in September and will have a budget of $40 million. The project involves the collection and re-injection of a combined solution of treated brine water and drinking water into existing drinking water aquifers to enhance and preserve the public drinking water supply for future use.
“We are encouraged by the interest in the ARID systems shown by these operators,” said Tim Barritt, Big Cat chief executive officer and president. “With the tight margin on gas prices and the increased pressure to eliminate surface discharge, the use of ARID in-bore aquifer recharge at around $0.03 per barrel is the intelligent choice for CBM water management,” he added.
Big Cat is in discussions with a service provider in Australia to evaluate the use of the system for handling Coal Seam Natural Gas produced water in Australia prior to major CSNG development in that country.
"We are also involved in a research project with another CBM operator utilizing a federal grant rejuvenating small producer involvement in CBM by demonstrating the economic impact of utilizing development best practices. This study will use results of the salvage process to create an economic model connecting costs of salvaging within the value of the proved reserves, and book previously abandoned reserves as proven reserves,” noted Barritt.
If final contracts are achieved, fulfillment of the above proposals and new business opportunities may require additional working capital. The company is currently exploring potential financing options, including private placement and debt opportunities.
Big Cat Energy Corporation works with Coal Bed Methane Well operators to assist them in implementing the most cost effective, yet most environmentally friendly, method for handling produced water.