Angkor Resources Corp. on behalf of its subsidiary EnerCam Resources, witnessed the activation of its Solution Gas/Carbon Capture Project in Evesham, Saskatchewan last week. The Project is environmentally friendly as it collects unused gases and carbon emissions from oil wells, otherwise vented to the atmosphere, and converts them into clean natural gas.

The joint project between EnerCam and Eyehill Creek Exploration Ltd., collects various gases such as methane and carbon emissions from 24 oil wells across two sections (1280 acres) of farmland, all connected with underground pipelines. The product is then transported and processed into a clean, natural gas, and tied into a sales point operated by TransGas (a SaskEnergy company) and regulated by the Province of Saskatchewan. During the first weeks of operation, EnerCam aims for approximately 500,000 cubic feet (500 mcf) of captured gas per day.

It is typical and responsible to deal with reduced outputs in the early stages of startup on such projects. At the current market price, even at the reduced rates, the project would generate a netback (gross price minus royalties and expenses) of $3.50 - $4.00 per mcf during this period. The team is already working on future tie ins that can be incorporated once regular production is normalized.

As is, the project can accommodate 3 million cubic feet per day at current capacity. Weeks expects the project will, over time, also be eligible for carbon credit offsets. Angkor is already taking steps to research the evolving criteria for carbon credit trading and its very specific compliance requirements.

Typically, data must be compiled for a period of one year before being approvals for carbon credit trading can be granted.