The Projected Percent Share Of The Market

Currently, with the established and available Enhanced Oil recovery technologies in India, the production has been increased cumulatively by about 15% or so. The competing technologies to Ultrasound have limitations for large scale use due to their environmental implications. Thus there are no equivalent production enhancement and environmentally friendly technologies available at this point of time.

If one is to look at the market from the Indian perspective, there is an immediate potential of 12,000 and odd wells which are redundant or stripper in nature. Some of these wells are very old but still marginally producing. Such wells are ideal candidates for ultrasonically assisted EOR. Even if one views this potential defensively, upon successful demonstration of the technology, we can safely assume about 5% share in the first year while progressively achieving a 50 % share in 5 years of operations.

We have worked out a simple Production Sharing Revenue Model to illustrate the attractiveness of the technology over the market segment. In the illustration, the key issues are:

• Demonstration of the technology on 15 wells and its returns
• Defensive rate of success - say out of the 15 wells selected only 5 may ultimately qualify for actual EOR.
• A production sharing mechanism from the EOR defensively put at 20% to the proposed venture