The joint venture will initiate and establish the deployment of Paradigm’s Transportable Enhanced Oil Recovery (T-EOR) Platform technology.
T-EOR is a turnkey integrated and portable oil recovery platform that can be deployed to recover oil from previously producing oil wells with known oil reserves which have not been fully developed.
EGPI said T-EOR will initially gather oil production from non-producing existing wells on a rotating basis, in order to determine their natural flow rate.
According to the company, wells that warrant a permanent infrastructure will be equipped accordingly, and depending on each project and the level of effort and investment, the new JVP will retain a percentage of the net revenue from the resulting production.
The JVP also calls for an initial $1.5m financing arrangement to be provided for target properties.
Terms of the JVP will include a mutually agreed restricted stock swap and the JVP is subject to final negotiations and proper due diligence.
