| In November 2013, the Company successfully acquired HydroFlame technology, which is a new heavy oil extraction technology that burns a fuel directly inside a rotating stream of water. Because of the direct contact between the flame and water, very high heat transfer coefficients are achieved which render the HydroFlame devices as quite compact and highly efficient heat transfer systems. HydroFlame has been first developing a compact and efficient downhole steam generator (“DHSG”) for heavy oil recovery applications. High quality steam and fuel gases from HydroFlame DHSGs are injected into the heavy oil reservoir resulting in natural sequestration of carbon dioxide. In addition, with its unique heat transfer features, HydroFlame DHSGs can use produced water from oil fields with minimal pre-treatment. As such, the HydroFlame technology reduces the emission of greenhouse gases and water treatment need and heat losses which in turn increase efficiency.
The HydroFlame technology has yet to be commercialised, but has several new engineering process applications including hot water heaters, compact steam generators, produced water treatment processes and efficient power generation systems. It has successfully passed the surface test at an abandoned well with very promising results. The Company is working toward performing downhole tests at local oil wells in the United States and will endeavor to develop and commercialize the HydroFlame technology both for oil extraction as well as other applications in near future.