MGX announces continuous operations at Oilsands project
29 August 2019
MGX Minerals Inc. announced that the engineering partner PurLucid Treatment Solutions (PurLucid) has reported commissioning of its first high salinity brine treatment system. The system was extensively tested in early 2019 at an independent research facility on an extensive array of wastewaters from the heavy oil industry in Alberta and proved its treatment capabilities for three potential industry clients. USD 4.6M in costs was recouped from a combination of consortium partner contributions over the completion of Milestone 2 of the three-milestone Project.
The Project has entered Milestone 3 with the system subsequently installed and commissioned at a mid-sized producer location in Northern Alberta, a consortium partner where a commercial contract has already been negotiated for activation following performance acceptance during Milestone 3. Commercial-scale continuous operations commenced July 25, 2019. Once Milestone 3 is completed and the Project transitions to the commercial contract expected revenue is USD 1.8M with an estimated net profit of $270,000 over a three-year contract.
Additionally, PTS has completed its first high-pressure system and is in the process of moving it to the consortium partner site. A commercial contract has been signed with the consortium partner that, similar to the first unit, will generate revenue of approximately USD 2M with an estimated net profit of $300,000 over a three-year contract once it transitions to commercial operations in early 2020.
Engineering for a third and larger system will be completed in fall 2019 for installation at a third consortium member site in early 2020.