Oil and gas management and finance
Difficult oil to sell
Arctic technology
Implementation of Novel Technology for renewable energy

Eboroil's roots track back to 1977 when Anthony Patrick Haynes founded Eboroil SA (ESA) to provide technical and financial project management and consultancy services to the upstream oil and gas industries. The emphasis was on drilling fluids, their transportation, semi submersible and platform rig designs and the resulting financings and tax agreements. The main clients were Burmah Oil Development /BNOC, Mobil Exploration Norway, Chevron North Sea, and Amoco Oil Company Norway as oil companies and as contractors Wilh. Wilhelmsen/Wilrig, TransCanada Pipelines and Haugesund Mek Verksted.

In the period 1977-1991, the company did USD 4 billion of project and contract work without going over budget or being late with only one installation failing on initial start up. That project was a turbine installation that overheated due to insufficient air in 1978.

Mr Haynes retired in 1991 due to ill health but continues to do inventing for the company and recently has been able to get more involved where maths, physics and chemistry can be applied in solutions.

In 1995/8, Eboroil had received contracts from Genciu Nafta and Minijos Nafta in Lithuania and the developments involved organising oil sales to make the projects viable. Jet pumps were employed and an underbalanced sand jetting of one well for Genciu Nafta resulted in a thousand fold increase in production. For Minijos Nafta, production increased from 1,100 bopd to 11,500 bopd by underbalanced drilling where one well increased production 17 times from 200 bopd to 3,500 bopd between an Over Balanced leg and an Under Balanced leg.

One of the oil buyers in Lithuania introduced the Udmurt Oil Company to the management and led to the formation of a new company in 1999 to deal with projects in the CIS. Eboroil Udmurtia Inc (EUI) was founded to handle the development of the three fields in Udmurtia with ESA receiving an agreement to provide the management and providing $85 million of finance. The original project was shelved after Sidanco bought 80% of the client and therefore EUI (now re-named EborEnergy Ltd. Inc.) has started to look for other projects.

At the same time, Mr Haynes patented the concept of performing offshore underbalanced drilling from a dynamically positioned tanker that led to the formation of Multi Operational Service Tankers Inc (MOST). The UK Authorities approved an Environmental Impact Statement in 2005 after a 90 day public hearing period and it is expected that this field will go into production 2012/13. The technology allowed the recoverable reserve to be increased by a factor of 2 (say 48 million barrels) over the field lifetime. The company was given a 50% interest in block 9/21 containing the Skipper field in the UK 25th Licence Round.

Eboroil SA was wound up in Switzerland with no external liabilities in 2005. Now incorporated in the Isle of Man, Eboroil Limited will be the holding company for Mr Haynes's family and some investors.

In 2008, Mr Haynes negotiated the corner-stone agreements to float the investments on the stock market. Firstly a frame agreement was signed in March with a major oil company to sell the production from its projects based on netback value of the oil. i.e. based on the yields and product values. Secondly on 15th May 2008, the Swiss investors committed to a 20 year USD 600 million Financing Facility. Further fundings of USD 800 million are proposed for oil shale or tar sands developments.

At the EGM in EborEnergy Ltd Inc 14th April 2010, it was decided to split the company into three :

- Conventional oil and gas

- Renewables

- Tar sands

Mr Haynes and Eboroil IOM will interact with the new companies on a commercial basis and providing consultancy services or licensing technology on an arm’s length basis.

The Future

How Eboroil IOM evolves will be dependent on our investors. The agenda is for a new Eboroil company in Norway where external investors will be invited. Already Promas AS and Fenno Caledonian Holdings have committed to invest and three other groups have options that expire in July 2010. The new company will contain :

- development of biodegradable solvents for bagasse and wood chippings

- infrastructure projects to provide bio-char and char for agriculture growth enhancement

- demonstration projects without severe environmental consequences on shallow tar sands and oil shale using closed loop processing to produce diesel distillate

- the catalyctic cracking of syncrude from tar sands or oil shale with Ozmotech

- the use of DFPSO technology - Drilling Floating and Production Storage and offloading units

Eboroil’s economic model is to not to develop the technology and make it available for a licence fee but to produce the commodities to sell. Therefore we are prepared to look at investing substantial sums of equity in each project.

Co-operation with Governmental Bodies

In 1980 Eboroil entered into the Executive Inter-Change programme with the Canadian Government and received the Deputy Minister of Energy, Mines and Resources on secondment for three years in Europe. Later it led to being involved in the Hibernia grant package and a joint venture with Canarctic Shipping. With the renewed interest in the Arctic, opportunities to use the technology developed in the Canarctic will be sought. Similar alliances are sought again.

Research

From 1975 until 1991, Mr Haynes sponsored research at Birmingham University and in Canada. These projects included pumping analysis for the Thistle SALM installation, epoxy resin development for pipeline coatings repair and low temperature applications, drilling fluid polymers, underwater wet welding, clean coal technology, waste treatment in Russia, ship design to break a path in ice wider than the ship, hovercraft development to break ice, amphibious lifeboats and transient zone seismic units.

Approaches are being made to sponsor a number of 7-year fellowships. The areas of interest for these fellowships are in platform chemicals from biomass such as bagasse and wood chippings, and the conversion of coal in-situ to generate electricity.

25th April 2010

Mr Haynes and Mr Andrey celebrating signing the Financing Facility with their Swiss investors (click on photo to expand)