Club Mulgoa

Friday, September 21, 2012

HDX and ELK

At the last forum, I liked HDX best.  The business model and management seem impeccable.  But in fact, it was my other investment, ELK, that jumped within 2 days by nearly 20%.  This mob used a recent but not new technology to extract the remaining oil in the ground.  The method has been around for a while but you need access to carbon dioxide source (in the ground) and a pipeline to the oil field, and machinery to force the oil up to surface using the compressed carbon dioxide which is recycled.  Fracking is a more recent trick.

I have not read about this process but I suspect the CO2 is extracted, pressurized (?into liquid or solid), and then expanded (?by heat) to push the oil to surface.  The gas is recaptured and recycled.  As the oil is pushed out, some CO2 remain in the ground to replace the volume of oil extracted.  Not all the oil can be extracted by it gives the 'exhausted' oil field a new lease of life.  Interesting but Uncle Bob might not like it.


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