Strata Oil & Gas Inc. has entered into a Letter of Intent with Petrosteam LLC ("Petrosteam") to obtain an exclusive license to deploy patented and field tested proprietary technologies utilizing steam generation applied to bitumen and heavy oil recovery (the "Petrosteam Technology") in the Provinces of Alberta and Saskatchewan (collectively the "Territory"). Under the exclusive license, Strata has the exclusive right to use the Petrosteam Technology to produce within the Territory from its own properties and from those of others.
Petrosteam is the exclusive owner of the patented Petrosteam Technology on a global basis. The Petrosteam Technology utilizes an oil steam generation system (patented), the High Temperature Mixed Gas Generator (HTM2G), utilizing patented Immersed Combustion Technology (ICT) to minimize emissions and waste heat as no combustion gases are released to the atmosphere. Produced gases are injected into the formation along with the steam providing additional energy to the reservoir in the form of compressed nitrogen (N2) and CO2.
The Petrosteam Technology results in greater than 99% thermal transfer energy efficiency and also greater than 99% combustion efficiency and is virtually zero emission. The Petrosteam Technology also has a substantially smaller surface footprint than conventional steam generation technologies; and is highly mobile.
The Petrosteam Technology also includes a proprietary Cyclic Steam Stimulation computer model, which generates expected production increases from target reservoirs using available parameters such as pay thickness, porosity, permeability and crude API.
The Petrosteam Technology is patented and has been field tested.