PR Newswire
ZELIENOPLE, Pa. and PITTSBURGH, April 24, 2024
- 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", commentedDavid 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.
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