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%.

MCW Energy Group, Inc. (MCWEF) updated the market Monday Dec 26th on their new oil sands production plant in Vernal Utah and progress on major joint venture projects globally.

More importantly, some back-of-the-napkin math updating their of their oil production cost assumptions makes MCW Oil Sands Recovery by our calculations by far the lowest cost unconventional oil producer in North America…and quite possibly the world ex-Venezuela.

MCW Energy Group, Inc. (MCWEF) updated the market Monday on their new oil sands production plant in Vernal Utah and progress on major joint venture projects globally.

MCW Oil Sands Recovery LLC has begun the final phase of commercial production mode which will have an anticipated capacity of at least 250 bbl/day. Pursuant to this next step, an exemption for an Air Quality Permit has been filed. A Groundwater Permit Application has also been completed. These permits from Utah will authorize the plant's operation up to an anticipated production capacity of 250 bbl/day.

We just reviewed an excellent article by Erik Sherman and CBSNews.com on MCW Energy Group’s disruptive oil sands recovery technology.

A few tidbits from the article…

“…the company uses a patented closed-loop technology that treats the sands with a solvent that helps remove the oil. The oil and solvent are separated, with the latter recycled for the next batch of production. According to CEO Gerald Bailey, the finished sand is 99.9 percent clean and can be put back on the ground.

Would have been nice to include the US OTC Ticker!   MCWEF Doh!

Says Bloomberg…. 

“It’s not just cleaner, MCW says, it’s also cheaper. Processing a barrel of oil will cost MCW about $38, compared with roughly $75 for oil from Alberta. Its plant can handle only about 250 barrels a day, but its small scale could be a model for oil sands projects around the world, especially as lower oil prices keep companies from making huge investments in traditional oil sands operations."

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%.