How does the SIS hole de-gas a greater area than a regular horizontal? “When we put two wells into a chevron pattern, you start to get absorption between the V at the start of the well,” Mitchell said, describing the Dymaxion process. “Once you get the wells done, in a V with each other, you start to get better flows, a bit more gas and greater increasing gas in a slow decline.”

Mitchell’s website does admit the old technologies may be suitable for deeper drilling, “In the case of very deep deposits, up to 3000 meters underground, a vertical well may be adequate to create sufficient water table pressure to liberate and bring to the surface large quantities of methane gas.” Because of the greater surface area draining the underground gas in the coal seams, the same website is quick to point out, “SIS drilling also provides valuable exploration data on seam rolls and faults, allowing greater certainty in mine planning and development.”

The SIS process begins by using modified, multipurpose mineral drill rigs with specially designed bottom hole assemblies. In the SIS technique, a hole is drilled at 60 to 90 degrees from the surface. It is then steered through a medium radius bend to horizontally enter the target coal seam. The 96 millimeter hole is steered in the seam toward a previously drilled vertical production well. A homing device is lowered down the vertical well to the target seam, which helps the horizontal hole intersect the production well. The vertical well dewaters the seam. Once the hydrostatic head has sufficiently been lowered, gas flows to the surface.

MITCHELL’S WORLDWIDE EXPANSION

Developing the Dymaxion® technology in the late 1990s, the first test took place in Australia in the year 2000. Now, going on nearly seven years later, the company has drilled more than 250 wells in Australia, another 30 to 50 wells in India with another 70 more to drill, and has moved on to both Kansas and China. Mitchell talked about Kansas, “We finished our first well, but we don’t really want to be a contractor in the United States. We don’t see a lot of benefit to handing over our technology, but we would be interested in doing some sort of equity deal or partnership with clients.” He believes that in the right areas, what Mitchell has got is “exceptionally good.”

So where did Mitchell first make an equity deal? “The two big powerhouses of the world for the future are going to be China and India,” he noted. “Both of them will have energy problems in the future. Mitchell’s first equity deal came about with Pacific Asia China Energy. “We just astounded them with what was happening in Australia,” Mitchell laughed, “to see this small compact rig drilling 2000 meter holes of a well and making it work at $2 gas.” He explained that although rigs were cheaper in China, the logistics, the costs of roads and access for trucks and pumps, gear and equipment, costs start to go up. “It like a U.S. aircraft carrier,” Mitchell compared with a drilling operation, “you have 40 planes on deck but it takes 70 people to run it.” Even in China, costs can go up when running these logistics. The deal with Pacific Asia China Energy involves reduced drilling costs and a 50/50 arrangement for income produced through the use of the Dymaxion® technology in China. The joint venture company has exclusive use to this technology in the world’s largest coal producing country, China.

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