E-T Energy Ltd

E-T Energy is a private, Calgary-based company focused on bitumen extraction from the oil sands through the use of its proprietary, highly economic and environmentally friendly ET-DSP™ process.E-T Energy was incorporated under the Canada Business Corporations Act on August 4, 2004.E-T Energy was initially formed pursuant to an agreement between McMillan-McGee Corp. and WillMac Canada, L.P. dated July 26, 2004, as the vehicle to Field Test and commercialize the Electro-Thermal Dynamic Stripping Process, ('ET-DSP™') for the in situ production of bitumen from oil sands deposits. ET-DSP™ is a patented and commercial electro-thermal process that couples electrical heating with heat transfer by convection and conduction, using a drilled grid of electrode and extraction wells. The process has been used extensively for in situ environmental remediation of contaminated sites and has only recently been applied by E-T Energy to the heating and production of bitumen from oil sands.E-T Energy obtained the necessary regulatory approvals to conduct the Field Test in March 2006 and has been carrying out the Field Test since that time. E-T Energy holds a 100% working interest in 16.5 sections covering 10,560 acres it acquired in 2004, 2005 and 2007. See Lease Locations under the Operations tab for more information.

E-T Energy's strategy is to develop the commercial production of bitumen in phases to maximize capital efficiency and provide early cash flow. Our goal will be to produce the bitumen as quickly as possible (within a year after installing the process in a given area) and move on to the next production area.Ongoing field testing of the ET-DSP™ method of in situ production is proving both the technical and commercial applicability of ET-DSP™ to the heating and production of bitumen. Performance metrics such as scalability, kilowatt hours of electricity required per barrel produced, total recovery factor, equivalent steam oil ratio, capital cost efficiency, operating cost per barrel, water usage, bitumen production per employee and carbon credit generation are being confirmed.E-T Energy had completed a coring program in 2007 and 2008 on the company's oil sands leases to further delineate the resource base.Several pre-2009 field testing programs were undertaken at small scale to define basic design parameters for subsequent larger scale facility demonstration testing.  Early results were encouraging.  Design improvements were made to ensure future facilities would be more reliable at a larger scale.In 2010, the Company completed extensive field testing (Step 2-Field Test) to demonstrate the reliabilty of newly designed electrodes and sub-surface electrical connections.  Failure rates in the seventy-five precent range were encountered in some prior field trials.  Step-2 achieved failure rates of less than 5 percent.In January 2012, the Company commissioned its Step-3 Field Test which is intended to allow more definitive heat and material balances to be determined in a facility that is approximately twenty times as large as any previous test program.