REFINE ENERGY COMMISSONS CRUDE FUEL CONDITIONING SYSTEM

REFINE ENERGY COMMISSONS CRUDE FUEL CONDITIONING SYSTEM

1 February 2019

Refine Energy is pleased to announce that it has successfully commissioned and tested a new crude oil conditioning system at the RCMA  Jingemia Production facility asset, south of Dongara, West Australia. The system treats and conditions raw crude oil, on site, to produce a liquid fuel that can be used as an onsite fuel in reciprocating engines.

RCMA is the Operator and holds a 93.7% interest in production licence L14 situated in the northern Perth Basin, 360km north of Perth. The permit covers an area of 9,835 acres. RCMA is the operator of the Jingemia field producing light oil from an excellent quality Dongara Sandstone reservoir. Production commenced late 2003 and to date 4.6 million barrels have been produced of the 12 million barrels in place. There are extensive surface facilities in place including oil storage, separators, piping, export and water injection facilities. The field has 4 oil wells producing at 330 bopd and 3 operational and 1 suspended water injection wells.

Refine Energy has developed a fuel conditioning system as a simple and cheap method of field  processing of light to medium crudes such that the product can be used as a directly in reciprocating engines without modification. The system is small, cheap, automatic and modular so that it can be rapidly installed in field applications to avoid the costly purchase and transportation of alternative fuels. It has many applications across oil production business where locally produced crude can be used as fuel source for pumps, compressors, generators and other equipment.

The Jingemia fuel conditioning unit is providing fuel supply to 2x 1000hp engine driven HPS units.

The system was designed and constructed by Refine Energy as a means of reducing the most substantial operating costs in small remote oil production facilities, namely imported fuel. The system functions by physically separating impurities such as waxes, solids, water and other impurities to deliver an end product that meets most diesel engine specifications. The system has the capability of being integrated into existing facilities or can be delivered as a standalone containerised module requiring no supporting services or infrastructure. The objective being to provide a relocatable unit that can be quickly deployed into the field to meet operator needs. The unit has been designed to meet Australia standards, is fully automated and has negligible safety and environmental impact.

Economic assessment of the technology has shown that the processing costs range between 3-5 cents  per litre of product leading to a payback period of approx 3 months based on a 20bbl/day unit. The unit size is scale-able with similar economies possible over a wide range of production rates.

Refine Energy CEO, Adam Stepanoff was quoted as saying, ”The prototype fuel conditioning unit installed at Jingemia proves that this technology works, is reliable and can deliver substantial operating cost savings to oil producers. Our plan now is to offer a range of modular fuel conditioning systems based on this new technology to the oil and gas industry”. We are able to provide the conditioning units for purchase or lease to suit the customer requirements and can arrange for delivery and commissioning, Australia-wide.

For further details on this technology, please contact Refine Energy at www.refineenergy.com.au