Acceleware, an innovator of clean-tech oil and gas technologies announced that it has secured two new partners and a test site for its commercial scale pilot of the Company’s transformative RF XL clean technology (the “Project”). The Pilot project will farm-in to Broadview’s Marwayne asset near Lloydminster in the Cold Lake Oil Sands area and Broadview and Cenovus Energy will be added as consortium partners for the Project. The agreement with Broadview grants Acceleware certain access rights to the Marwayne asset to complete the Project and provide the terms for future RF XL purchases by Broadview from Acceleware (the “Broadview Partnership”). With favourable operating conditions that support accelerated timelines, Broadview’s Marwayne asset is expected to be highly suitable for the RF XL commercial-scale test — offering numerous attractive features including all-weather access, existing roads and well sites, and close proximity to key services and trades. Acceleware believes that testing at Marwayne offers the most compelling heavy oil operating environment with an expedited path to commercialization of Acceleware’s RF XL clean technology.
Key anticipated benefits of the Broadview Partnership includes immediate access to a viable and high-quality test site targeting the GP formation anywhere within the Marwayne asset, an option to conduct a subsequent test at a second location within the Marwayne asset at any time within five years of the spud date of Acceleware’s first test wells, and ownership and economic benefit from all petroleum substances produced in both the first and second tests subject to a gross overriding royalty of up to 7.5% payable to Broadview.
“We are extremely pleased with the Broadview Partnership, which enables Acceleware to benefit from Broadview’s experience and agility while being able to access an optimal test site at Marwayne” said Geoff Clark, CEO of Acceleware. “The extensive engineering and de-risking work that we have completed over the past two years will be instrumental in validating the performance and potential of our RF XL clean technology. We greatly appreciate the continued support of our funding partners, SDTC and ERA, as we continue to advance commercialization of this clean-tech innovation.”
“Broadview looks forward to working with Acceleware to advance the RF XL technology as we recognize its significant potential benefit for business, industry and the environment in opening up a new era of growth within the heavy oil sector,” said John Festival, Broadview’s CEO. “Broadview is excited to have a front row seat at the Marwayne test site where we will support Acceleware’s efforts to validate their RF XL technology. Over the past 30+ years, Broadview’s personnel have trialed and closely monitored a number of different heavy oil recovery technologies. Broadview recognizes Acceleware’s RF XL technology as one of the biggest potential game-changers in heavy oil and bitumen recovery since SAGD (steam assisted gravity drainage) was commercialized over 20 years ago.”
The agreement with Cenovus will see the company provide funding of up to $2 million and technical expertise in support of the Pilot under the terms of an agreement with Acceleware. In exchange for the funding, Cenovus will be able to provide input into Pilot designs and test specifications prior to completion, and will receive, along with the other Pilot participants, exclusive access to the full set of detailed technical data and test results for one year following completion of the Pilot. Acceleware has granted Cenovus prioritized rights to host a subsequent test of Acceleware’s RF XL technology, preferred pricing on pre-commercial products, and preferred access to RF XL products over operators who do not participate in the Pilot.
“Getting to a low-carbon energy future is complex and will require a multitude of solutions, a realization that this will be a transition over time, and a lot of players who are willing to actively participate. We are very pleased that Cenovus is coming on board as a third major oil sands partner in our Marwayne RF XL commercial pilot – particularly in light of their participation in the recently announced Oil Sands Pathways to Net Zero collaborative initiative,” said Geoff Clark, CEO of Acceleware. “While carbon capture technologies are a terrific and necessary innovation, it’s heartening to also see support for commercialization efforts for next generation technologies such as ours – one that is capable of near zero scope 1 and 2 GHG emissions.”
Cenovus joins two other major oil sands companies who have each agreed to provide technical assistance and up to $2 million in funding for the Pilot. In aggregate, Acceleware’s oil sands partners represent well over one million barrels of oil sands and heavy oil production per day. Acceleware has also received commitments for a total of $15.5 million in funding from Sustainable Development Technology Canada, Emissions Reduction Alberta, and Alberta Innovates.
Although situated within the Cold Lake Oil Sands region, the reservoir at the test site is classified as a heavy oil deposit and oil produced from the area has lower viscosity than a typical oil sands reservoir. As such, the results gleaned from the Project are expected to be more analogous to, and relevant for, conventional heavy oil operators in Alberta and Saskatchewan as well as operators developing heavy oil deposits in the Middle East, California, and Latin America. In addition, the depth of this test site is anticipated to allow Acceleware to demonstrate that the RF XL clean technology can be successfully deployed to heat reservoirs at depths consistent with both heavy oil and oil sands reservoirs. The Company believes that positive test results from the reservoir at Marwayne will open up a much larger addressable market for its RF XL clean technology upon commercialization, including the potential to reinvigorate the many CHOPs fields that have been shut-in and neglected in Alberta and Saskatchewan.
The Marwayne site was cleared in early 2021, and barring unforeseen delays, construction at the site is scheduled to be complete in Q3 2021, with power up and heating following shortly thereafter. While the initial heating phase is planned for approximately six months, this period may be extended to allow Acceleware to capture additional information on the efficiency and operation of the technology.
RF XL is Acceleware’s patented and patent-pending Radio Frequency Heating technology, designed to improve the extraction of heavy oil and bitumen, with the possibility of saving significant production costs. When applied, RF XL has the potential to reduce both capital and operating costs, while offering significant environmental benefits, which include: (a) immediate GHG emission reductions; (b) a substantial decrease in land use; (c) the elimination of external water use; (d) no requirement for solvents; and (e) no need for water treatment facilities or tailings ponds. The Company believes that its RF XL Heating technology, as an electrically-driven process, can provide a clear pathway to zero-GHG production of heavy oil and oil sands and provide optimal alignment with industry and government goals to recognize innovation as a meaningful solution in the oil and gas industry’s overall emission reduction plans. Learn more about Acceleware’s innovative technology at https://www.acceleware.com/technology/overview.html.
With a successful Pilot, numerous potential environmental benefits could be realized by oil sands producers deploying RF XL. Acceleware’s RF XL electromagnetic heating technology generates near-zero GHG emissions when it is powered entirely by renewable electricity, nuclear, or other clean power sources. In addition, RF XL eliminates the need for fresh water, which in turn means fewer surface facilities and less land disturbance, offering a cleaner and more sustainable solution to meet the world’s growing demand for energy. For further information about the Pilot, to review prior news releases and learn more about Acceleware’s innovative RF XL technology, please visit the Company’s website at acceleware.com.
Acceleware is developing RF XL, its patented low-cost, low-carbon production technology for heavy oil and oil sands that is materially different from any heavy oil recovery technique used today. Acceleware's vision is that electrification of heavy oil and oil sands production can be made possible through RF XL, supporting a transition to much cleaner energy production that can quickly bend the emissions curve downward. Further, Acceleware’s RF XL technology could be a key component of an end-to-end integrated carbon management system that can eliminate greenhouse gas (GHG) emissions associated with heavy oil and oil sands production, whether for fossil fuels, or for future clean bitumen by-products such as petrochemicals, carbon fibre, and blue or green hydrogen production. RF XL uses no water, requires no solvent, has a small physical footprint, can be redeployed from site to site, and can be applied to a multitude of reservoir types. In shallow oil sands implementations, no tailings ponds will be required.
Acceleware has partnered with Saa Dene Group (co-founded by Jim Boucher) to create Acceleware | Kisâstwêw to raise the profile, adoption, and value of Acceleware technologies. The shared vision of the partnership is to improve the environmental and economic performance of the energy sector by supporting ideals that are important to Indigenous peoples, including respect for land, water, and clean air.
The Company’s seismic imaging software solutions are state-of-the-art for high fidelity imaging, providing the most accurate and advanced imaging available for oil exploration in complex geologies. Acceleware is a public company listed on Canada’s TSX Venture Exchange under the trading symbol “AXE”.