- New entity, operated by Deep Well Services, to
leverage CNX proprietary technology along with Deep Well's
domain expertise to provide industry leading automation
solutions
- Collaboration creates efficiencies in the flowback process
that lowers costs, improves safety, reduces environmental impact,
and minimizes associated methane emissions
ZELIENOPLE,
Pa. and PITTSBURGH, April 24,
2024 /PRNewswire/ -- Deep Well Services (DWS) and CNX
Resources Corp. (NYSE: CNX) today announced a joint venture to
launch AutoSepSM Technologies (AutoSep), a
new oilfield service company providing step change improvement to
conventional flowback operations. The new entity will benefit from
the technological development capabilities of CNX and the service
quality standard that DWS provides to the industry. As a standalone
company operated by DWS, AutoSep will have the flexibility
and autonomy to provide automated flowback solutions to the oil and
gas industry.
As the first product offering, the partnership brings an
automated flowback system for modern, high rate, and erosive
unconventional shale wells. The new, highly compact system can be
deployed in a fraction of the time and requires less labor, while
reducing costs, improving safety, and lowering the environmental
impact associated with conventional flowback operations.
The market potential for this product solution across domestic
and international oil and gas basins is significant. Each year
20,000 wells are flowed back in the
United States, and 60,000 wells are flowed back globally.
Compared to the advancements in drilling and completion operations,
flowback operations have remained largely unchanged as they
continue to be costly, labor intensive, and prone to methane
emissions. This joint venture aims to upend the status quo.
"Leveraging CNX's proprietary and patent pending technology,
AutoSep's flowback solution simplifies and automates this
early production phase significantly, reducing the footprint, hard
iron connections, manpower required, and any inherent safety risks
involved in performing such tasks", commented David Mulvihill, Chief Strategy Officer of Deep
Well Services. Mr. Mulvihill continued, "Additional benefits
include remote operation and monitoring through SCADA and
closed-circuit cameras that feed to a central control center
located outside of safety red zones. This also automates data
collection, allowing customers to access data in real-time through
DWS's industry leading BoreSite® system."
AutoSep's automated control unit allows for a
fully sealed flowback that effectively eliminates methane
emissions, including that of sand trap blowdowns. This is
considered to be the market's first readily available solution for
capturing methane vapors, including during simultaneous operations.
DWS and CNX believe the technology is applicable for drill out
operations as well and intend to market the technology to operators
across domestic and international oil and gas basins that seek to
lower capital costs while reducing emissions.
Ravi Srivastava, President of
CNX New Technologies commented, "CNX has been hard at work
developing proprietary, game-changing technologies and processes to
advance the state-of-the-art across the industry. With this
collaboration, DWS and CNX are unlocking step change improvements
in completions operations that check all the boxes – lower
emissions, lower costs, and a safer process. Successful tests have
been conducted on several recent CNX flowback operations, and we
see enormous market potential for this solution and are excited to
begin promoting the benefits of this new, innovative oilfield
service across the U.S. and beyond."
Officially launched in 2021, CNX New Technologies business unit
develops proprietary technology for vertical and horizontal
business growth that is rooted in the company's extensive legacy
asset base, intellectual assets, and innovative tradition. The
group is focused on waste methane capture and abatement, as well as
forging strategic partnerships for the use of low carbon intensity
feedstocks and the creation of derivative products in
transportation fuels, manufacturing processes, and other
markets.
Cautionary Statements
We are including the following
cautionary statement in this press release to make applicable and
take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 for any forward-looking
statements made by, or on behalf of us. With the exception of
historical matters, the matters discussed in this press release are
forward-looking statements (as defined in 21E of the Securities
Exchange Act of 1934 (the "Exchange Act")) that involve risks and
uncertainties that could cause actual results to differ materially
from projected results. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. These forward-looking statements may include
projections and estimates concerning the timing and success of
specific projects and our future production, revenues, income, and
capital spending. When we use the words "believe," "intend,"
"expect," "may," "should," "anticipate," "could," "estimate,"
"plan," "predict," "project," "will," or their negatives, or other
similar expressions, the statements which include those words are
usually forward-looking statements. When we describe a strategy
that involves risks or uncertainties, we are making forward-looking
statements. The forward-looking statements in this press release
speak only as of the date of this press release; we disclaim any
obligation to update these statements. We have based these
forward-looking statements on our current expectations and
assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies, and uncertainties, most
of which are difficult to predict and many of which are beyond our
control. Specific factors that could cause future actual results to
differ materially from the forward-looking statements are described
in detail under the captions "Forward-Looking Statements" and "Risk
Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2023 filed with the
Securities and Exchange Commission (SEC) and any subsequent reports
filed with the SEC. Those risk factors discuss, among other
matters, pricing volatility or pricing decline for natural gas and
NGLs; local, regional and national economic conditions and the
impact they may have on our customers; the impact of events beyond
our control, including a global or domestic health crisis;
dependence on gathering, processing and transportation facilities
and other midstream facilities owned by others; conditions in the
oil and gas industry; our current long-term debt obligations, and
the terms of the agreements that govern that debt; strategic
determinations, including the allocation of capital and other
resources to strategic opportunities; cyber-incidents targeting our
systems, oil and natural gas industry systems and infrastructure,
or the systems of our third-party service providers; and changes in
safety, health, environmental and other regulations.
ABOUT CNX RESOURCES
CNX Resources Corporation (NYSE:
CNX) is unique. We are a premier, ultra-low carbon intensive
natural gas development, production, midstream, and technology
company centered in Appalachia, one of the most energy abundant
regions in the world. With the benefit of a 160-year regional
legacy, substantial asset base, leading core operational
competencies, technology development and innovation, and astute
capital allocation methodologies, we responsibly develop our
resources and deploy free cash flow to create long-term per share
value for our shareholders, employees, and the communities where we
operate. As of December 31, 2023, CNX
had 8.74 trillion cubic feet equivalent of proved natural gas
reserves. The company is a member of the Standard & Poor's
Midcap 400 Index. Additional information is available at
www.cnx.com.
ABOUT DEEP WELL SERVICES
Deep Well Services (DWS) is
an API/Q2 registered technology and training company that
specializes in high-pressure, long lateral, and multi-well
completion and intervention operations. Established in 2008, the
DWS family has grown from our small-town Appalachian roots to
becoming the premier OFS company for over 70 different E&Ps
across North & South America.
Driven by patented data analytics systems and IADC globally
accredited training programs, DWS is focused on the continued
development and innovation of the most advanced Hydraulic
Completion Service on the market today – HCU Technology. Additional
information is available at www.deepwellservices.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/deep-well-services-cnx-resources-partner-to-launch-autosep-technologies-a-transformational-oilfield-service-solutions-company-302125194.html
SOURCE CNX Resources Corporation