Nuverra Environmental Solutions Inc (NYSE:NES), one of the largest U.S. providers of environmental solutions to the energy market, announced it has been awarded a $744,000scientific research grant by the North Dakota Industrial Commission Oil and Gas Research Council to demonstrate the beneficial use of recycled oil well drill cuttings through Nuverra’s TerrafficientSM process.
“We believe the conversion of drilling waste to valuable products that can be entirely reused will have a significant impact toward reducing the environmental footprint of oil and gas development, reduce material and transportation costs, and support environmental sustainability,” said Mark Johnsrud, Chairman of the Board and Chief Executive Officer.
“As the industry generates higher volumes of drill cuttings with multi-well pads and higher well densities, we identified the need for an alternative that will reduce the volume of waste and provide beneficial reuse options for the treated cuttings,” Mr. Johnsrud explained. “The Terrafficient process makes it possible to turn drilling waste into reusable products, and we intend to prove that out through three demonstration projects funded, in part, by this grant.
“We look forward to working with the State of North Dakota, McKenzie County, and a team of expert, independent researchers and scientists to demonstrate that Terrafficient is an environmentally sustainable, efficient and economical option for the industry and the community,” Mr. Johnsrud concluded.
The North Dakota Industrial Commission Oil and Gas Research Council grant program funds projects that support the Council’s mission to promote the growth of the oil and gas industry through research and education. The grant program revenue is generated from the state’s share of the oil and gas production tax and the oil extraction tax. Grants are awarded following a formal application and review process and based on criteria including promotion of wise and efficient use of energy and environmentally sound exploration and production methods and technologies.
Terrafficient is an integrated process that removes and recovers water and residual hydrocarbons and significantly reduces naturally occurring salt content in the drill cuttings. The resulting material has a variety of potential reuse applications, including gravel road resurfacing, general fill for use in road base, and municipal landfill daily cover.
The performance of the Terrafficient product will be evaluated using a combination of laboratory characterization and bench-scale studies, followed by field-scale demonstration tests to include:
- A road surfacing demonstration project in McKenzie County to evaluate the performance of road surface materials comprising Class 13 aggregate blended with treated drill cuttings.
- A road fill demonstration project located at Nuverra’s Environmental Treatment Center in McKenzie County.
- A landfill daily cover demonstration project at the McKenzie County Landfill.
It is anticipated the data collected will demonstrate the safe commercial implementation of Nuverra’s Terrafficient process and provide supporting data needed for the North Dakota Department of Health to establish quality regulations to ensure environmental protection.
The data and scientific research for this project will be collected and analyzed by an independent team consisting of theEnergy & Environmental Research Center (EERC), the Civil Engineering Department at the University of North Dakota, the Upper Great Plains Transportation Institute of North Dakota State University, and the North Dakota Department of Health. Additionally, McKenzie County and Knife River Corporation will partner with these organizations on selected demonstration tests by providing field support for material preparation and installation. Laboratory and bench-scale studies and field-scale monitoring will be led by EERC. (Original Source)
Shares of Nuverra Environmental closed last Friday at $6.19 . NES has a 1-year high of $21.29 and a 1-year low of $1.65. The stock’s 50-day moving average is $5.37 and its 200-day moving average is $4.23.
On the ratings front, Nuverra Environmental has been the subject of a number of recent research reports. In a report issued on May 12, Imperial analyst Scott Levine maintained a Hold rating on NES, with a price target of $5, which represents a potential downside of 19.2% from where the stock is currently trading. Separately, on the same day, Needham’s Sean Hannan reiterated a Buy rating on the stock and has a price target of $5.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Levine and Sean Hannan have a total average return of -5.4% and 8.6% respectively. Levine has a success rate of 51.9% and is ranked #3411 out of 3681 analysts, while Hannan has a success rate of 54.8% and is ranked #817.
Nuverra Environmental Solutions Inc formerly, Heckmann Corp provides environmental solutions to customers focused on the development and ongoing production of oil and natural gas from shale formations.