“Oil and gas is one of the fastest-growing sectors worldwide. As the developing economies such as China and India experience rapid growth, the demand for oil and gas skyrockets in tandem.”

Overview

Wescorp Energy (NASDAQ: WSCE, Stock Forum) is an oil and gas operations solution company focused on commercializing technologies that overcome tough operational challenges facing oil and gas operators today. Wescorp combines its intellectual capital, oil and gas industry experience, best practices methodologies, and its market offerings to deliver these solutions in a timely, economic, and environmentally friendly manner. Wescorp's main focus technology is its Water Remediation and Purification Technology, wholly owned through a subsidiary, Total Fluid Solutions Inc.

The Water Remediation and Purification Technology based offerings by Wescorp can remove hydrocarbon contamination content from water and soil and can prove an effective tool in meeting environmental, regulatory, and safety issues facing the world’s energy industry today and in the future. Conventional technology removes hydrocarbon contamination content down to 0.5% to 3% (5,000 to 30,000 parts per million) – Wescorp removes hydrocarbon contamination content down to 0.005% (50 parts per million).

WSCE investor highlights

• WSCE announced that Flowstar Technologies, a wholly owned subsidiary, has signed an agreement with a Canadian-based oil and gas operator to deploy well-head measurement and communication equipment and associated web host services to an operating gas field. Under the terms of the agreement, a minimum of 200 existing wells will be outfitted with specialized communication panels and appropriate Electronic Flow Meter (EFM) upgrades.
• In March 2008, Ubika Research rated Wescorp Energy Inc. a "speculative buy" with a 90-cent, 12-month target price.
• The newly constructed Total Fluid Solutions water remediation unit is capable of remediating 2,000 barrels per day, and has been in full field operations in Alberta, Canada, since February 2008. Results to date have been excellent. The Total Fluid Solutions also reduces oil remains in produced water and spent drilling fluids to fewer than 0.005%, or 50 parts per million (PPM), a fraction of what traditional water remediation technologies accomplish. Using standard industry water remediation and cleaning practices, approximately 0.5 to 3% (5,000 to 30,000 PPM) oil remains in the separated water.
• There are over 800 producing oil companies in western Canada alone, ranging from a one-well producer to producers with thousands of wells. There are in excess of 17,000 batteries that are storage facilities for contaminated formation water that requires remediation prior to re-injection into the oil reservoir just in the province of Alberta. These batteries range in storage capacity from 200 to 50,000 barrels of toxic water. Wescorp's technology can have a significant economic and environmental impact on virtually all oil-producing fields.
• Wescorp Energy Inc. announced in early March 2008 that it signed an agreement with a leading developer of Canadian oil sands to deploy Wescorp's NAVIGATOR Process Management Services to enhance scheduling and logistical issues for its properties in western Canada. Wescorp's NAVIGATOR services will help streamline operations for a project that is currently valued in excess of $1 billion by independent assessments.
• Pressure from regulatory and environmental compliance organizations has accelerated the adoption and acceptance of new technology within the oil and gas industry.
• Wescorp's existing customers include leading oil and gas companies.
• Wescorp Energy is backed by a strong and experienced management team and board of directors.  Mark Norris, former Minister of Economic Development for the Alberta Provincial Government was recently announced as the Chairman.
• The VISCOSITOR, jointly developed in Norway by Wescorp and its partner Ellycrack AS, is a prototype designed to upgrade heavy oil to light oil on site, thus enhancing the value of the oil and reducing transportation, processing, and refining costs. Using the Ellycrack process, heavy can oil can be upgraded to medium crude oil and can fetch US$40 to US$50 more per barrel in price. The company has secured a patent in the U.S. for the process (USA patent #6660158). The process is also low temperature and low pressure, and therefore low cost.

Profile

Oil and gas is one of the fastest-growing sectors worldwide. As the developing economies such as China and India experience rapid growth, the demand for oil and gas skyrockets in tandem. Heavy demand for oil and gas in recent years has coincided with dwindling supply sources. Years of miserly investments into the oil and gas sector during the eighties and early nineties, when oil and gas prices were very low, has today come back to haunt the sector in poor infrastructure, a paucity of new technologies, and few, if any, incentives for professionals.

Now with demand soaring for oil and gas and easier sources of supplies drying up, production has become increasingly complex. Oil and gas companies today are operating under a very different set of conditions. A rush of new investment has resulted in the mushrooming of new projects that are putting tremendous pressure on resources. Increasingly, companies are also facing regulatory and environmental issues, as rapid growth in the oil and gas industry attracts environmental concerns. All these factors combined are causing major operational challenges for oil and gas companies.

Operating in this context, Wescorp Energy is an oil and gas operations solutions company focused on finding innovative technologies and solutions that can solve practical operational problems faced by oil and gas companies. The company achieves this by putting together innovative and effective solutions for solving tough field challenges and by cutting operations costs for oil and gas companies globally.

The company finds and acquires new patented and proprietary technologies and focuses on commercializing those technologies that cater to solving operational challenges facing oil and gas operators worldwide. The company’s total fluid solutions focused on water and soil remediation remains its main focus; however, other technologies in Wescorp’s portfolio are gas metering, measurement, and management solutions as well as heavy oil upgrading technology solutions.

Enhanced recovery methods, which include water flood in conventional oil reservoirs, steam-assisted gravity drainage, and cyclic steam stimulation in oil sands, all require that massive amounts of fresh water be injected into reservoirs. The result is that injected water produced with the oil is contaminated and must undergo remediation.

The goal of most producers is to remove waste water from the site and process it to make it potable and usable for agriculture irrigation. Existing water remediation and cleansing technologies include initial treaters – holding tanks that let gravity do the work of separating out contaminants, followed by electrostatic systems and the use of chemicals or heat – all of which use a lot of energy. These methods also leave approximately 0.5% to 3% of residual oil in the separated water. That water must be disposed of, an objective that is frequently accomplished by injecting the water back into the reservoir or leaving it on the surface in toxic tailing ponds.

Wescorp Energy provides a solution that will reduce the amount of oil in the residual water waste to 0.005%. This safe and effective process for remediating oil and gas field contaminants at the well site is suitable for conventional oil production, enhanced oil recovery, steam-assisted gravity drainage, and cyclic steam stimulation.

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Growth drivers

• Heavy investment in the oil and gas industry.
• Escalating operational and production costs.
• Severe shortage of experienced personnel and other resources.
• Growth in unconventional oil and gas sector.
• Escalating environmental demands.

Recent news and press releases

Wescorp's Flowstar Technologies Secures Record Breaking Order Estimated to Be Over $1 Million
Wescorp's Flowstar Technologies Launches Proprietary IFMWorks Web-based Hosting Solution
Wescorp Energy Inc.: Mark Norris Appointed Chairman of the Board

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