Cyclo Mill Technology

CYCLO-MILLING PROGRAM WITH EDC ENGINEERING

Eagle has obtained a proprietary technology to recycle oil mud slurries, and mining tailings from its associate, EDC Engineering Inc. The product line allows a continuous conversion of a hazardous material into a profitable sales commodity. The recycled material can be reused by the producer of the waste stream, or sold to other users of the product.

For over 45 years, oil well service companies have been pumping tons of special sand down well bores and into tight and depleted hydrocarbon-producing formations. This process is generally called hydraulic formation fracturing. In the past, special sand was used as the propping agent (proppants), but sand deposits are limited and shipping the sand to the markets has become expensive. The sand is used as a propping agent to enter the fissures of the fractured formation and to remain after pressure is released, thus preventing the formation from closing back to its original condition.

One innovative aspect of the Micro Pelletized Clay (MPC) process is that micro-pellets can be formed using many waste materials that otherwise resists treatment and disposal. Eagle’s process represents one application wherein hazardous wastes in liquid and sludge form are used as the binding agents to form the micro-pellets.

The immediate application that presents the greatest return is the use of depleted drilling mud as the solid constituent with pre-treated water and /or liquid wastes as the binder. Current prices of proppants range between $500 and $600 per ton delivered to the wellheads. Approximately 50% of the price is considered freight and handling. This disparity between F.O.B. and delivered prices indicates the need for multiple MPC plants as portable as Ready-Mix units that can be moved into close proximity to both feed stock and end user. Annual international use of propping agents, all kinds, is approximately 300,000 tons. With a market of $180 million, Eagle believes our plan will have sufficient warrants for success. Another source of revenue will be the fees charged the waste generator for disposal if the generator is different from the end user of the new product.