#United States #The Woodlands #Delaware Basin #Locus Bio-Energy #SUSTAIN

Locus Bio-Energy's Game-Changing Results in the Delaware Basin

Locus Bio-Energy has made headlines by revealing impressive results from a year-long trial conducted in the Delaware Basin. This trial focused on the company's innovative biosurfactant product, SUSTAIN®, designed to optimize oil recovery from new wells. The results from this controlled test in the Wolfcamp A formation show that wells treated with SUSTAIN® had significant performance advantages over their untreated counterparts.

Major Findings of the 12-Month Trial

The trial indicated that wells using SUSTAIN® achieved:

• - Approximately 20% higher cumulative oil production compared to matched untreated wells.
• - About 23% higher gas production, demonstrating improved gas recovery in addition to oil.
• - Lower water-oil ratio (WOR) by over 17%, offering a strong indicator of efficient production.
• - An estimated 15% expansion in Estimated Ultimate Recovery (EUR) per treated well, which is a critical metric for oil and gas operators.

These findings illustrate SUSTAIN®'s potential to shift the landscape of oil recovery, moving from theoretical capabilities to actual field performance.

A New Era for Oil Recovery

As the energy sector grapples with the challenges of maximizing production while minimizing costs and complexity, SUSTAIN® proves its worth. Unlike traditional surfactants that were not effective in today's complex pore networks, SUSTAIN® is tailored to meet those specific challenges. Megan Pearl, Vice President of Technology at Locus Fermentation Solutions, emphasized that traditional methods fall short when faced with modern geological formations, while SUSTAIN® was engineered to excel in those environments.

SUSTAIN® integrates seamlessly into existing frac programs, thereby increasing the efficiency of hydrocarbon flow through tight shale formations without complicating operational procedures. This not only aids in immediate production enhancements but also sustains those advantages over longer periods, as indicated by the trial's data.

Durable Improvements and Economic Impact

Locus Bio-Energy's 12-month data reinforces earlier findings from a six-month study, showcasing that the treatment's benefits persist even after the initial production surge fades. Marty Shumway, Senior Vice President at Locus Bio-Energy, pointed out the impressive aspect of sustained production rates, further dispelling the notion that early gains were simply anomalies or temporary acceleration.

The comprehensive field trial included six wells, three treated with SUSTAIN® and three untreated controls, ensuring accurate comparisons. Full-pad cumulative production asserts a positive trend corroborated by results at the six-month mark.

In addition to production uplift, cost-efficiency emerged as a key benefit, with estimates of under 30 days payback and 13-18 times return on incremental investment over the same 12-month leap. This has implications for operational expenses, likely reducing costs per barrel by $1 to $3 through lower expenses related to lifting, transport, and produced-water disposal.

The Financial Implications for Operators

Operators in the oil and gas sector often assess the value of unconventional wells based on EUR, which affects revenue, reserves, and capital allocation. Shumway acknowledged that a 15% increase in EUR could greatly enhance well economics, transforming what was previously viewed as a cost in completion budgets into a pivotal leverage point to boost overall asset value.

In closing, Locus Bio-Energy's SUSTAIN® represents a significant step in the evolution of oil recovery technologies, merging environmental considerations with advanced engineering to meet industry demands. As the energy market continues to evolve, innovations like SUSTAIN® will likely play a crucial role in shaping the future of oil and gas operations.

For further information, visit the official Locus Bio-Energy website at www.LocusFS.com.