Thursday, December 1, 2016

Canada: Plans to Harness Geothermal Energy From Producing Oil Wells -- A First in Canada

WellStar Energy Corp. Signs LOI to Acquire Sundial Energy Ltd. Plans to Harness Geothermal Energy From Producing Oil Wells -- A First in Canada (News Release)

WellStar Energy Corp. of Calgary, Alberta, advises that the company has entered into a Letter of Intent dated November 25, 2016 in connection with the acquisition of Sundial Energy Ltd. which represents an undivided 100% interest in its assets and intellectual property. Sundial is involved in the field of geothermal heating applications, LED lighting and solar power generation.

WellStar, at its McTaggart, Saskatchewan oil project produces in excess of 1,200 barrels per day of oil and water that at surface is approximately 50 degrees Celsius. Currently, the produced oil and water are gravity separated, then the produced hot water is pumped into the company's onsite disposal well, leaving a significant resource of unutilized geothermal heat.

The excess heat in the volume of liquids produced from the company's oil wells at its McTaggart project is rare but not unique. The company believes that existing pumping oil wells that produce significant heat can be used as a source of energy for many applications. The acquisition of Sundial Energy with its renewable energy expertise, will assist WellStar in developing the process to make use of this otherwise wasted resource.

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