| Executive Summary: | Coiled tubing drilling (CTD) technology has the potential to save the U.S. energy industry over $3.6 billion in well construction costs and reduce the environmental impact of developing vital unconventional energy resources such as natural gas from shale and geothermal power. One of the largest opportunities, but logistically challenging, is the Appalachian basin with maximum estimated gas-in-place of 1744 Tcf. To unlock this potential, our venture (“Newco”) intends to enhance CTD capability to enable economic directional drilling with portable, light-weight, modular equipment.
“Newco” is a joint venture combining the proprietary IP and capabilities of Gas Technology Institute (GTI), AmKin Technologies, and Randolph Services. “Newco” will build on a strong platform—a commercial ready CTD rig that can drill shallow (< 6000 ft), vertical wells very efficiently. CTD demonstrations have yielded 30% reductions in drilling costs while mitigating environmental concerns including surface footprint, waste discharge, air emissions, and noise.
“Newco” seeks $8 million to buy its initial rig, demonstrate commercial operation, and develop and deploy next generation technology. “Newco” expects to be commercially viable within 18 months, then seek financing to establish a 5-10 rig fleet that will be exclusively leased to Appalachia. |
