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Amros Corporation |
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October 5, 2015 Issue |
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The Most Powerful Name In Corporate News and Information |
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Revolutionary Technology for Optimizing the Development of Shale Plays |
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President and Founder
Amros Corporation
Interview conducted by: Lynn Fosse, Senior Editor, CEOCFO Magazine Published – October 5, 2015
CEOCFO: Dr. Ingerman, what is the concept behind Amros? Dr. Ingerman: Amros develops new technology for shale plays, which is a hot topic in the industry. Thanks to shale oil, US crude production is at its highest levels for decades. However, there are problems with developing this formation because traditional interpretation of well log is not applicable for formation evaluation in shale plays. As a result, according to the experts, about 95% of oil from shale plays is left in the ground. Recovery efficiency is actually from 3% to 5%. At the same time, two thirds of frack stages produce no oil.
CEOCFO: What is the Amros approach? Dr. Ingerman: The Amros approach is based on a new way of interpretation of standard open hole log data that everyone has after a well is drilled. We make an interpretation of this data and generate a production profile. This production profile shows where the recoverable oil is located, which is key, because currently operators do not know what is going on under the surface. They tried to frack everything, and now they also try to drill everything, which is pretty expensive.
CEOCFO: How are you able to understand where recoverable oil is? Dr. Ingerman: I had all of my education in Russia. I also worked for a long time in Western Siberia, Russia. When I worked there we produced 65% oil and gas from the former Soviet Union. At the same time, I had access to some unique data, which was permeability calculated from testing more than 400 wells. This is very unique data because it is expensive, as you would need to shut down the well for some period of time. Western companies do not do this very often. I also worked in the US for many companies including Shell, and I know that they normally have tests just for few wells. Using this data I developed proprietary equation for permeability calculation based on open hole log data. It was used in Russia first, but then in many other countries. Then I figured out how it could be applied to unconventional formations. Our technology was verified, mostly on the Permian Basin, on more than 100 wells, and through the statistics we can see that the technology can reduce the cost of fracking up to 50%, while increasing well production by at least 20% at the same time. We do charge our customers for service, but they have a great rate of return of around 900%.
CEOCFO: With such an attractive solution, does the shale community believe you can do this? Are they embracing your methods? Dr. Ingerman: Good question. It is the nature of people to be very conservative, and in the oil and gas industry it is double conservative. Traditionally, all small and mid-sized companies are looking to the majors. The companies in that industry watch each other very carefully. Therefore, if you present a new technology to a small or middle size company, they will want to know if a major has used it. If the answer to that is no, they will normally want to wait. For executives it is safe for their job security to do nothing with the innovations, than to do something. When you approach the majors, whether it is an oil and gas company or a major service company, they do research on all hot topics and this is a very hot topic. Because this is a hot topic, they are afraid to talk to you, because they are afraid to contaminate their own research. As a result, for the industry an average implementation time for innovations is 15 to 20 years, and it is losing great amounts of money for the country, and for the industry because the obstacle of implementation of any innovation.
CEOCFO: How do you break through? Dr. Ingerman: Amros is an HTC (Houston Technology Center) client company. HTC is doing a great job trying to bring oil companies in to see what we can do. Thanks to HTC we just finished a project for one of the majors. This was a very successful project. Another way that we reach potential customers is through publications. I published an article in Oil Field Technology in October 2014 issue. We also do presentations. Our company has presented twice in this year and we were recognized as a Most Promising Company two times by RICE ALLIANCE in 2015.
CEOCFO: Does the current price of oil matter in your efforts for recognition? Dr. Ingerman: It does matter. I believe that this price should push operators to us. The shale plays are like God’s gift to us. The exploration risk is very low and every one knows that oil is there. Operators tried to frack everything and drilled what they could drill, but it was profitable with a price of $90 and higher. At the current price, that approach is not profitable, so operators need to think about how to use geosciences and information that is available. Therefore, I believe that they should be looking for this kind of technology.
CEOCFO: How important is concern for the environment in getting your foot in the door? Dr. Ingerman: With the concerns about the environment, it is the same as with any drilling project. With the fracking technique the operators pump to the formation a lot of liquid with chemicals, and my understanding is that it usually does not go to the surface because there are some seals that do not allow it to go to the surface. However, if there is a problem with the well cementing, then it could happen, the less liquid they push to the formations the better for environment. Our technology, for example in the Permian Basin, it demonstrates that operators can frack two times less. That means that they push for the formation two times less chemicals, which is good. Therefore, companies that use our technology will be more green than other companies.
CEOCFO: How do you handle the frustration of know that you have something so good, that is taking a long time to be recognized for its value? Dr. Ingerman: I am not upset. I believe that we will go forward and as soon as people realize what we have, we will grow.
CEOCFO: Are there many competing new technologies? Dr. Ingerman: There are other companies that say that they have something special, but they have not really been able to help the industry. Non can generate the production profile that we can. We show them where to frack, and where the best formation is to drill horizontal well. As a result, we can double or triple recover efficiency. That would be like opening another Permian Basin right here on our soil, and this is a big field, but people just do not know how to develop it.
CEOCFO: Put it all together for our readers. Why pay attention to Amros today? Dr. Ingerman: Amros is the only company today that can bring technology to shale oil operators for optimizing the development of shale plays. This technology show them where to frack vertical wells, where to drill horizontal wells, decreases costs, while increasing production, decreases the environmental impact, gives operators a great rate of return of around $900 percent. Therefore, the sooner that operators discover Amros and our technology, the better for them. |
“We have developed the technology for shale plays that industry needs, we were recognized as Most Promising Company at Rice Alliance in 2015 twice. FRACK LESS – PRODUCE MORE. The technology is fully developed and we are looking for new customers and partners who help us penetrate the United States and international market at a large scale.”- Dr. Vladimir G. Ingerman
Amros Corporation
Contact: Vladimir Ingerman 281 240 0881
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Dr.
Vladimir G. Ingerman