THOR vs Traditional EOR Methods

March 24, 2025

Thermal Oil Recovery - Economic Advantages

Enhanced Oil Recovery (EOR)

Heavy oil production raises environmental concerns, including increased greenhouse gas emissions from injected substances, high water consumption, and waste generation. Operators continuously strive to optimise recovery while maintaining cost efficiency.

Thermal Enhanced Oil Recovery

Cavitas Energy’s THOR technology presents a groundbreaking solution, significantly enhancing production rates and delivering greater long-term value compared to conventional methods.

Unlocking Potential

THOR unlocks the field development of stranded assets with several operators exploring extracting multi billion barrel fields only economically accessible with THOR. Typically these are heavy oil fields either too deep or too shallow for steam to be practical.

THOR vs. Traditional Wells

The impact of THOR (THermal Oil Recovery) technology is evident when comparing a well utilising THOR heating to one operating without it over a five-year period.

Higher Initial Production Rates: THOR starts with an initial production rate of 200 stb/d, significantly outperforming a conventional well, which begins at just 60 stb/d. This strong early output sets the stage for superior cumulative recovery.

Enhanced Cumulative Production: Over five years, THOR produces 0.322 million barrels (MMstb) of oil, this is over three times more than a non-THOR well, which produces just 0.097 MMstb.

Comparable Decline Rates, Higher Total Recovery: Both well types experience a decline rate of 5% per year, but due to THOR’s sustained heating and efficiency, the overall production remains significantly higher.

The Economic Advantage: Maximising NPV

THOR technology not only increases production but also boosts the financial viability of heavy oil wells.

Capital Investment: While the CAPEX for a THOR well is slightly higher ($3.5 million vs. $3.0 million), the return on investment far outweighs this marginal cost difference.

Net Present Value (NPV) Gains: The NPV of a THOR well at a 12% discount rate is an impressive $16.4 million, compared to just $2.6 million for a conventional well – a staggering $13.8 million increase in project value.

Full Field

THOR heating a full field development amplifies this effect. A 400 well heavy oil development recovers 128 mmbbl as opposed to cold 38.6 mmbbl across 5 years of operation, equating to $3.1 billion increase in NPV (@ 12% discount).

Transforming Field Development with THOR

The results speak for themselves, THOR technology is a game-changer for heavy oil production. By enabling higher recovery rates, better long-term performance, and superior financial returns, THOR offers operators a competitive edge in maximising well value.

For those looking to unlock the full potential of their heavy oil wells, THOR presents a proven and innovative solution that transforms production economics.