Who is your customer?
Oil & Gas Operators who want to sell or sub-lease their Inactive Wells. There are currently over 630 operators who have Inactive Wells in Alberta. And any company (oil & gas operators, alternative energy, service companies) who want to buy or lease a well--i.e. who want to re-purpose a well.
The Licensees of the Inactive Wells (typically known as an Operator in Alberta) are the "seller" or "leaser" of the Wells. They are commercially motivated to convert their liabilities into productive assets. They will pay a fee to list their wells.
Potential buyers of Inactive Wells would subscribe to the Well Exchange in order to see tiered levels of recommendations (based on data analytics). The buyers are comprised of other oil and gas companies, alternative energy and banks.
What problem does this idea/product solve or what market need does it serve?
Alberta currently has over 82,000 Inactive Wells and another 2,000 that have been Orphaned by bankrupt companies. The cost to Abandon and Reclaim wells typically range between $100K and $300K each, representing $17 billion in total liabilities across the province.
These liabilities can inhibit an operating company’s ability to acquire new assets and grow their investment. Alberta also needs to diversity the economy and specifically, the energy sector. Transitioning from traditional hydrocarbon-based energy to clean tech, is fraught with challenges. Novel solutions are required.
What attributes will make this idea/product successful? Why do you believe that those features will create success?
The Well Exchange is an interaction platform, which connects buyers and sellers to create new value from inactive Wells.
Using advanced data integration and analytics techniques, The Well Exchange highlights wells with potential value for alternative purposes such as geothermal heat / energy. Buyers or leasers of such wells can efficiently evaluate opportunities within the platform.
The Well Exchange facilitates conversion of candidate wells from liabilities to productive assets. Operating companies, banks, the regulator, service companies and landowners would all benefit.
Note: The Alberta Energy Regulator is a key stakeholder in this process. Some of its directives might need to be altered in order to enable an easier exchange of well licenses.
Explain how you (your team) will execute to make this idea/product successful? What gives you (your team) an advantage over others already in the market or new to this market?
The Fuzeium team has extensive oil and gas experience, including engineering, geophysics, data management, data analytics, IT management, project and program management. They are able to effectively combine creative solutions with focused delivery; a rare combination, especially with early stage companies.