Thunderbird Energy Corp. (TSX-V: TBD and OTC Other: TBDYF) announced today that the Southwest Regional Partnership on Carbon Sequestration’s (SWP) Carbon Capture and Storage (CCS) deployment phase (Phase III) to be sited at Thunderbird’s Gordon Creek natural gas project located in Carbon County, Utah, is moving forward with field operations.
In a letter out to shareholders this morning, Thunderbird CEO, Cameron White wrote:
We are very pleased to report that we have received formal approval to proceed with the South West Partnership’s carbon sequestration project situated at our Gordon Creek site. A tremendous amount of design, analysis and planning have gone into the project over the last two years and we are very excited to see these efforts come to fruition.
This project, combined with our recently announced $25 million Sandstorm development financing agreement will mean that over $50 million will be spent at Gordon Creek with no dilution to our shareholders.
There are multiple benefits to Thunderbird. I would group them into 3 general categories:
1. Assets and Knowledge – Nearly $25 million of DOE funding will be invested in seismic, drilling new wells, surface equipment and infrastructure that we will inherit and we can use for future natural gas development. In addition to the tangible assets and equipment, it will greatly add to our existing Gordon Creek information and knowledge base.
2. CO2 Reserves – One of the main reasons for situating this project at Gordon Creek is that historical drilling has established the existence of known pools of CO2 at a depth of roughly 12,000 feet below surface. Various studies conducted by the DOE, the USGS and various academic institutions have estimate the CO2 reserve potential anywhere from 140 Bcf to 1.3 Tcf. It is hoped that the deep CO2 source wells to be drilled can help convert these resource estimates into booked reserves. There are various markets for CO2, but one of the largest is for enhanced oil recovery from mature oil fields and there are a number of large oil fields near us in Utah that are potential candidates. For those of you who are interested in learning more about this business, you might want to have a look at one of the leading players – Denbury Resources, Inc. (NYSE:DNR)
3. CO2 Sequestration – In the event that the need for CO2 sequestration becomes a commercial reality, we will have a huge competitive advantage in terms of capitalizing on the opportunity. The barriers to entry – ranging from acceptable geology, through to obtaining all required federal, local and environmental approvals – are immense.
In summary, this represents another important milestone for Thunderbird. As always, please do not hesitate to give us a call if you would like to learn more about the project or any other aspect of our operations.