NBT Equities Research: Initiating Coverage on MCW Energy Group, Inc. (MCWEF):
Game Changing Disruptive Technology for Environmentally Friendly/EPA Approved High Margin Oil Sands Recovery
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NBT Equities Research: Initiating Coverage on MCW Energy Group, Inc. (MCWEF)
MCW's oil sands processing costs have now been projected downwards to $ 28.00 USD per barrel, mainly due to lower costs of the petroleum products being used in the extraction process, such as solvent blends, diesel fuel, liquefied propane, heating oil and natural gas condensates.
All of these energy/processing component prices have fallen in tandem with the current dramatic fall in world oil prices. Condensate prices are down 50%. Solvent blend, diesel fuel and propane prices are down an average of 40%.
"Unlike the high production costs and lower energy efficiency levels associated with the mega oil sands projects in Alberta, MCW is in a unique position to take advantage of this unexpected 'silver lining' of lower petroleum product prices," stated MCW's CTO, Dr. Vladimir Podlipskiy, who provided the Company's newly projected processing costs. He added, "Not only have we reduced the costs of these components by 18%, we've also enhanced the automation of our proprietary extraction process, which effectively reduces our labor costs by 20%."
Key Point: At @$28 CAPEX/OPEX cost per barrel of light sweet crude oil (@32 API) for MCWEF vs. $40-$60 per barrel processing costs for much of the Canadian oil sands heavy crude production (which also sells at 20-30% discount to WTI crude oil due to higher transportation and processing costs) and/or recently developed shale oil resources, we estimate MCW’s Utah per barrel oil production is more profitable than 95% of shale oil being produced and virtually 100% of existing oil sands production.
Really Key Point: With their 5000 barrel a day production coming on line in 2016/2017…investors have to use 2016 WTI futures pricing (currently $62.72) to come up with cash flow forecasts. In addition, MCWEF’s 5000 barrel a day plant plan includes the purchase of the Temple Mountain oil sands lease as part of the plant development project.
We estimate this reduces feedstock costs another $4-$5 a barrel.
Here is our Initial Report on MCWEF and our exclusive video.
Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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