Coretrack Limited is acquiring new oil well technology

Source: ProactiveInvestors; Published: Monday, 30 June 2014

Coretrack Limited (ASX:CKK) has received strong results from independent third party expert laboratory testing undertaken on a new batch of Ecopropp proppants, which are required during fracking operations.

These proppants are expected to produce good flow rates from deep oil and gas wells in comparison to others on the market.

Coretrack has agreed to acquire Ecopropp subject to certain conditions precedent being met and Ecopropp meeting an agreed milestone.

The tests, which were conducted by US based Global Energy Laboratories show exceptionally high pressure thresholds for the
Ecopropp proppants.

The aim of the tests was to determine whether the new mix design with significantly reduced bauxite had a marked effect
on compressive strength.

Testing at 14 000 PSI resulted in 8% of the proppant being crushed compared to the ISO standard of 10% at 4,000 PSI.

A crush ratio of less than 10% is the generally accepted market threshold which means the Ecopropp proppant could potentially test at even greater strengths than 14000 PSI.

Whilst most traditional proppants are manufactured from clay and bauxite, Ecopropp have developed a proppant made mostly from the bi-product of coal fired power stations, flyash, which is mixed with a small amount of bauxite and other materials.

In a secondary test designed to determine the bulk density of the Ecopropp proppant, a reading of just 1.45 grams per cubic centimetre was returned.

This result is significantly below that of some of the major proppant market participants and should deliver cost savings
to Ecopropp customers because it will result in a higher volume of proppant being delivered for an equivalent weight.

Ceramic Proppants are a sand like commodity that are often the single most expensive cost item when hydraulic fracturing a unconventional oil and gas well.