Xfuels and Converde forming gas-to-liquids JV
01 June 2016
Xfuels Inc. and Canada-based Converde Inc. have signed a joint venture agreement with Converde Inc. The JV, named Area 2 Energy, holds producing natural gas assets in Southern Alberta currently has 300 producing Natural Gas Wells connected to the pipeline with purchase and significant established operator contracts already in place. Converde (51% share) purchased the wells early May with the intent to build a pilot Gas To Liquids (GTL) plant on the site. Xfuels (49%) is contributing its Hydrogen Recovery Technology (HRT) and will also use the site for a pilot project for its combined Carbon/Hydrogen Fuel Cell technology.
The property has its own compressor station located at the main pipeline resulting in extremely low transport cost.
The shallow gas play produces an average of 1.1 million cubic feet per day and has an established capital plan to increase the volume to over 2.1 million cubic feet per day by September 2016. The site has approximately 80 Bcf (Billon Cubic Feet) of reserve which equates to growth opportunities for decades to come.
Converde and Xfuels have already begun implementing the GTL technology and are sourcing government funds to build and produce a 500 gallon per day plant on the site. The GTL technology is producing product at 65% percent lower than the national refining costs.
XFuels is a publicly held energy company based in Portland, Oregon established to design, build, and operate regionally-integrated, small-to-midcap electricity and petroleum production facilities. XFuels offers a range of low-cost modular systems via its hydrocarbon biorefinery platform (the XRefinery), which produce low cost electricity and advanced petroleum-equivalent fuels and chemicals in partnership with select small to mid-size industrial energy users in target markets.
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