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American Company Spotlight

 

Wescorp Energy Inc. Website: Click Here

Information As Of July 24, 2008

Exchange: OTCBB Market Cap: 28.9 Million
Outstanding Shares: 75 Million 52 Low / High: $0.32 / $0.51

Price July 24, 2008: $0.385

WSCE Recent Stock Quote and News: Click Here

'Oil & Gas is one of the fastest growing sectors worldwide. As the developing economies such as China and India experience rapid growth, the demand for oil and gas skyrockets in tandem.'


Overview

Wescorp Energy Inc. is an oil and gas operations solutions company focused on commercializing technologies that overcome tough operations challenges facing oil and gas operators today. Wescorp combines its intellectual capital, oil and gas industry experience, best practices methodologies and its market offerings to deliver these solutions in a timely, economic and environmentally friendly manner.  Wescorp's main focus technology is their Water Remediation and Purification Technology, wholly-owned through a subsidiary, Total Fluid Solutions Inc..  The Water Remediation And Purification Technology based offerings by Wescorp can remove hydrocarbon contamination content from water and soil and can prove an effective tool in meeting environmental, regulatory and safety issues facing the World’s Energy Industry today and in the future.  Conventional technology removes hydrocarbon contamination content down to 0.5% to 3% (5,000 to 30,000) parts per million - Wescorp removes hydrocarbon contamination content down to 0.005% (50 parts per million).


Investment Highlights

  • In March 2008, Ubika Research rated Wescorp Energy Inc. a "Speculative Buy" with a $0.90 12-month target price.
  • The newly constructed Total Fluids Solution water remediation unit, is capable of remediating 2,000 barrels per day, and has been in full field operations in Alberta, Canada since February 2008. Results to date have been excellent. The Total Fluids Solution also reduces oil remains in produced water and spent drilling fluids to fewer than 0.005%, or 50 parts per million (PPM), a fraction of what traditional water remediation technologies accomplish. Using standard industry water remediation and cleaning practices, approximately 0.5 to 3% (5,000 to 30,000 PPM) oil remains in the separated water.
  • There are over 800 producing oil companies in Western Canada alone, ranging from a one well producer to producers with thousands of wells. There are in excess of 17,000 batteries that are storage facilities for contaminated formation water that requires remediation prior to re-injection into the oil reservoir just in the province of Alberta. These batteries range in storage capacity from 200 to 50,000 barrels of toxic water. Wescorp's technology can have a significant economic and environmental impact on virtually all oil producing fields.
  • Wescorp Energy Inc. announced in early March 2008, that they signed an agreement with a leading developer of Canadian oil sands to deploy Wescorp's NAVIGATOR Process Management Services to enhance scheduling and logistical issues for its properties in Western Canada. Wescorp's NAVIGATOR services will help streamline operations for a project that is currently valued in excess of $1 billion by independent assessments.
  • Pressure from regulatory and environmental compliance organizations has accelerated the adoption and acceptance of new technology within the oil and gas industry.
  • Wescorp's existing customers include leading oil and gas companies.
  • Wescorp Energy is backed by a strong and experienced management team and board of directors.  Mark Norris, former Minister of Economic Development for the Alberta Provincial Government was recently announced as the Chairman.
  • The VISCOSITOR, jointly developed in Norway by Wescorp and its partner Ellycrack AS, is a prototype designed to upgrade heavy oil to light oil on site, thus enhancing the value of the oil and reducing transportation, processing and refining costs. Using the Ellycrack process, heavy can oil can be upgraded to medium crude oil and can fetch US$ 40 to US$ 50 more per barrel in price. The company has secured a patent in the USA for the process (USA patent #6660158). The process is also low temperature and low pressure, and therefore low cost.


Profile

Picture Below: (Wescorp Energy’s (Total Fluid Solutions)

2,000 Barrel per day Water Remediation

Unit at work in Alberta, Canada)  

Oil & Gas is one of the fastest growing sectors worldwide. As the developing economies such as China and India experience rapid growth, the demand for oil and gas skyrockets in tandem. Heavy demand for oil and gas in recent years has coincided with dwindling supply sources. Years of miserly investments into the oil and gas sector during the eighties and early nineties, when oil and gas prices were very low, has today come back to haunt the sector in poor infrastructure, a paucity of new technologies and few if any incentives for professionals.  Now with demand soaring for oil and gas and easier sources of supplies drying up, production has become increasingly complex. Oil and gas companies today are operating under a very different set of conditions. A rush of new investment has resulted in the mushrooming of new projects that are putting tremendous pressure on resources. Increasingly, companies are also facing regulatory and environmental issues, as rapid growth in the oil and gas industry attracts environmental concerns. All these factors combined are causing major operational challenges for oil and gas companies.

Operating in this context, Wescorp Energy is an oil and gas operations solutions company focused on finding innovative technologies and solutions that can solve practical operational problems faced by oil and gas companies. The company achieves this by putting together innovative and effective solutions for solving tough field challenges and by cutting operations costs for oil and gas companies globally.

The company finds and acquires new patented and proprietary technologies and focuses on commercializing those technologies that cater to solving operational challenges facing oil and gas operators worldwide. The company’s total fluid solutions focused on water and soil remediation remains their main focus, however other technologies in Wescorp’s portfolio are gas metering, measurement and management solutions as well as heavy oil upgrading technology solutions.

Enhanced recovery methods, which include water flood in conventional oil reservoirs, steam assisted gravity drainage, and cyclic steam stimulation in oil sands, all require that massive amounts of fresh water be injected into reservoirs. The result is that injected water produced with the oil is contaminated and must undergo remediation.

The goal of most producers is to remove waste water from the site and process it to make it potable and usable for agriculture irrigation. Existing water remediation and cleansing technologies include initial treaters — holding tanks that let gravity do the work of separating out contaminants, followed by electrostatic systems and the use of chemicals or heat — all of which use a lot of energy. These methods also leave approximately 0.5% to 3% of residual oil in the separated water. That water must be disposed of, an objective that is frequently accomplished by injecting the water back into the reservoir or leaving it on the surface in toxic tailing ponds.

Wescorp Energy provides a solution that will reduce the amount of oil in the residual water waste to 0.005%. This safe and effective process for remediating oil and gas field contaminants at the well site is suitable for conventional oil production, enhanced oil recovery, steam-assisted gravity drainage, and cyclic steam stimulation.


Technology Solutions

Wescorp’s current solution portfolio comprises the following technology solutions:

Total Fluid Solutions

With the growing worldwide focus on global warming, greenhouse emissions and the controversial Kyoto Protocol, a new focus for the company is the fast growing area of environmental remediation. The company has recently acquired solutions that provide total treatment option to treat water and soil used by oil and gas companies. Total Fluid Solutions, a wholly-owned subsidiary of Wescorp Energy can remove hydrocarbon content from water and soil and can prove an effective tool in meeting environmental, regulatory and safety issues facing Canada’s Energy Industry today and in the future.  Conventional technology removes hydrocarbon content down to 0.5% to 3% (5,000 to 30,000 parts per million - Wescorp removes hydrocarbon down to 0.005% (50 parts per million).  In the future, Wescorp is looking to add salt removal to the Total Fluid Separation solution.

Depending on the oil-water ratio, the technology also has the added benefit of recovering more oil and reducing lifting costs. It is estimated that by operating TFS technology on a 2,000 barrels of water / day stream an additional 5 to 30 bbls of oil will be recovered.

Total Fluid’s technology (TFS) innovation has the potential for significant economic and environmental impact on virtually all oil producing fields.

To introduce this new technology to the market, TFS is working with more than 25 Alberta-based suppliers and has partnered with two post secondary schools, the Schulich School of Engineering at the University of Calgary and the Digital School in Edmonton. Further, independent verification of the demonstration results will be conducted by the Alberta Research Council and other independent laboratories. In Western Canada there are hundreds of oil producers, ranging from companies with a single well to those with thousands of wells. In Alberta, there are thousands of storage facilities for contaminated water requiring remediation prior to reinjection – these facilities, at any given time, are holding hundreds of thousands of barrels of hydrocarbon contaminated water.

Following a worldwide shortage of sweet crude, heavy oil production has taken off in recent years. In Alberta, Oil Sands projects to produce crude are garnering significant investment and interest from large and small companies. This has resulted in a need to treat soil for hydrocarbon contamination. A similar need is also felt by conventional oil and gas companies to treat water that they use during the production process for contamination of hydrocarbon and other impurities.

Wescorp has three proven water remediation and purification technologies that are marketed under a wholly owned subsidiary called Total Fluids Solution Inc. These solutions overcome a full range of environmental operational challenges including contaminated solids remediation and oil/water separation.

These technologies are practical, safe and effective processes for the remediation of oil and gas field contaminants directly at the well site. These technologies can be used independently or as an integrated solution depending on the complexity of the contaminants.

Total Fluid’s oil-water separation technology is significantly decreasing operating costs and bringing the 3 R’s to oil field production: Reduce Water, Reuse Water and Recycle Water.

Wescorp Energy Inc. announced in December 2007 that it had acquired certain assets and intellectual property from FEP Services Inc., a private Canadian corporation specializing in water remediation.

Virtually all oil reservoirs contain associated formation water which is produced with the oil. Using current water remediation and cleansing practices, approximately 0.5 - 3% residual oil remains in the separated water which must be disposed of, frequently by injection back into the reservoir or left on the surface as toxic tailing ponds.

Wescorp's unique patented aeration system creates micron-sized gas bubbles which super saturate the produced water. As the solids are cleaned of hydrocarbon, the heavy solids fall and the lighter suspended solids rise and are encapsulated in the recovered oil. Our innovative tank configuration removes the oil and a slight amount of water from the primary tank. This oil-water mixture flows through the remainder of the system, achieving virtually total separation of the oil and produced water. The recovered oil flows into an oil collection tank and the water, free of oil and solids, is pumped down a disposal well back into the reservoir. Through this process the hydrocarbon content in the injected water is reduced from the conventional 5,000 to 30,000 parts per million to under 50 parts per million. The economic advantages, which include reducing the frequency of expensive remedial work on injection wells, recovering additional reserves from the reservoir and, in some cases, decreasing the amount of surface treating facilities, will make a significant difference in the operating costs of an oilfield.

The economic advantages, as great as they are, are dwarfed by the environmental advantages.

Enhanced recovery methods, which include water flood in conventional oil reservoirs and steam assisted gravity drainage and cyclic steam stimulation in oil sands, all use massive amounts of fresh water injected into the reservoirs, which is then produced back with the oil as contaminated water which must undergo remediation. The high demand for hydrocarbons and declining oil reservoirs, coupled with the high price per barrel of crude oil, create an atmosphere in which enhanced oil recovery is a critical component for all producers. In Canada, government imposed environmental regulations are currently being implemented to stop the injection of fresh water currently being used during the enhanced oil recovery methods.

Extremely large quantities of water are being taken from natural sources in Alberta, Canada for use in oil sand extraction and upgrading facilities. Using current oil sand extraction practices, it takes between two and four barrels of fresh water to produce one barrel of synthetic crude. Figures from Alberta Environment show oil sand mining operations contaminated 540 million barrels of natural water in 2006 from the Athabasca River - a 950 mile river that is the largest fresh water source for oil sand production in the province. Existing and approved oil sand operations are currently licensed to remove and use 2.5 billion barrels of water. Extraction from the oil sands is expected to nearly quadruple over the next two decades to four million barrels of oil per day in 2030. Current production is approximately 1.1 million barrels of oil per day.

The volume of water flow in the Athabasca River is currently 30% lower than historic levels. According to a recent report by the Pembina Institute, the water used for petroleum extraction is stored in huge, toxic tailing ponds that now cover an area of more that 20 square miles in Alberta.

This new technology has the ability to significantly help with water shortages in a number of oil and gas producing areas, including the Barnett Shale production areas in the USA. Wescorp's solution provides a substantial economic and environmental impact for the Oil & Gas Industry.

Environmental Remediation – Water/Oil Separation Market Size

  • Global market for cleaning and reuse of produced water is in the hundreds of billions of dollars
  • Cleaning and disposal of contaminated water associated with the production of Alberta’s oil sands is estimated to be billions of dollars
  • As an example, 540 million barrels of water were contaminated by oil sands exploration, development and production in Alberta in 2006
  • Oil and gas companies are experiencing immense pressure to clean contaminated solids that result from conventional and unconventional oil productions
  • Total Fluid Solutions has a separate proprietary technology to clean solid waste material which results from oil and gas drilling and production operations
  • This technology separates and cleans solid waste materials from oil sands mining development and SAGD operations
  • The process transforms contaminated solid materials from a contaminated waste product to a material that is approved by environmental agencies for commercial and residential construction use
  • Eliminates the significant cost and the retained liability associated with the disposal of contaminated solids in the oil and gas industry
  • Allows for the reclaimed solids to be reused or sold for commercial or residential construction
  • The North American market for cleaning and reuse of contaminated solids from heavy oil exploration and development is in excess of $100 billion
  • Cleaning and disposing of drill cuttings associated with the drilling of Alberta’s oil sands is estimated to be in the excess of $24 billion

Flowstar DRC-Series Gas Metering Solution

Flowstar Technologies Inc. is a wholly owned subsidiary of Wescorp Energy that produces and markets advanced natural gas and natural gas liquids (LNG) measuring devices based on a patented turbine-based Digital Chart Recorder (DCR) technology. DCR-series metering systems are self-contained energy-efficient flow computers with integrated volume calculators.  In 2007, revenue for the Flowstar business division exceeded $3.1 million.

Ellycrack Heavy Oil Upgrading Technology

Wescorp also owns 56.5% of Ellycrack A/S, a private technology company based in Norway that has developed and owns the intellectual property to a patented high-intensity thermodynamic cracking process for processing and upgrading heavy oil. The process is proven to upgrade 6 API crude to 22 API in a single pass with further enhancements expected to raise that upper limit to 31 API. (Crude oil is graded according to gravity, measured by the American Petroleum Institute degree of gravity (API): the higher the number, the lighter the grade.)


Growth Drivers

  • Heavy investment in the oil and gas industry.
  • Escalating operational and production costs.
  • Severe shortage of experienced personnel & other resources.
  • Growth in unconventional Oil & Gas sector.
  • Escalating environmental demands

Recent News and Press Releases

Wescorp's Flowstar Technologies Secures Record Breaking Order Estimated to Be Over $1 Million
Marketwire (Thu, July 24)

 

WESCORP ENERGY INC Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits
EDGAR Online (Fri, Jul 11)


Wescorp's Flowstar Technologies Launches Proprietary IFMWorks Web-based Hosting Solution
Marketwire (Thu, Jul 10)


Wescorp Energy Inc.: Mark Norris Appointed Chairman of the Board
Marketwire (Thu, Jun 26)


WESCORP ENERGY INC Financials
EDGAR Online Financials (Tue, Jun 17)


WESCORP ENERGY INC Files SEC form 10-Q, Quarterly Report
EDGAR Online (Fri, May 30)


WESCORP ENERGY INC Financials
EDGAR Online Financials (Sat, May 24)


WESCORP ENERGY INC Files SEC form 10KSB, Annual Report
EDGAR Online (Thu, May 15)

 

WESCORP ENERGY INC Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and Exhibits
EDGAR Online(Mon, Mar 10)


Canadian Heavy Oil Company Selects Wescorp NAVIGATOR Services to Streamline Field Operations
Marketwire(Wed, Mar 5)


WESCORP ENERGY INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Unregistered Sale of Equity Securi
EDGAR Online(Wed, Feb 20)


Wescorp Energy Deploys First Water Remediation Solution for Oil Operator in Western Canada
Marketwire(Tue, Feb 19)


Industry Gas Producer First to Adopt Wescorp Energy's Gas Management NAVIGATOR Solution
Marketwire(Thu, Jan 31)


Wescorp Energy Poised for 'Year of Execution'
Marketwire(Thu, Jan 17)


WESCORP ENERGY INC Files SEC form 8-K, Completion of Acquisition or Disposition of Assets, Unregistered Sale of Equit
EDGAR Online(Fri, Dec 21)


Wescorp Energy Announces Purchase of Water Remediation and Purification Technology
Marketwire(Wed, Dec 19)


WESCORP ENERGY INC Financials
EDGAR Online Financials(Sat, Dec 15)


Wescorp Energy Announces Strong Sales Growth for the 3rd Quarter 2007
Marketwire(Wed, Nov 21)


Management

Mark Norris
Chairman
2008 - Present
Mark P. Norris is a well known Alberta businessman with extensive experience in both the private sector and government. He served as Alberta's Minister of Economic Development from 2001 to 2004. During his tenure he initiated numerous programs to foster the province's economic growth. Mr. Norris joined the Wescorp Energy board in March 2007.

Doug Biles
President, CEO
2004 - Present
Doug Biles brings over 35 years of experience in the upstream hydrocarbon industry. This experience includes a broad scope of technical, operational, management and board issues that span multiple decades and continents.

Scott Shemwell
COO
2006 - Present
Scott Shemwell brings over 25 years of experience leading turnaround and transformation processes for global S&P 500 organizations as well as start-up and professional service firms. Mr. Shemwell's unique background and expertise in oil field management make him highly qualified to guide oil and gas companies in creating economical and efficient oil fields of the future.


Contact

Investor Relations contact:
Wescorp Energy, Inc.
David Jones
(705) 845-0933 or Toll Free: 1-877-247-1975

Email: djones@wescorpenergy.com
Website: www.wescorpenergy.com

Media contact:
For Wescorp Energy, Inc.
Virginia Brooks
(903) 532-9714

Email: virginia@brooksandassociatespr.com


FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Wescorp Energy, Inc. current expectations about its future results, performance, prospects and opportunities. Wescorp Energy, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Wescorp Energy, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.


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