MIAMI, Oct. 10, 2013 (GLOBE NEWSWIRE) -- Abakan Inc. (OTCQB:ABKI) ("Abakan"), an emerging leader in the advanced coatings and metal formulations markets, today announced that Powdermet's portfolio company, Terves Inc., has secured a $75,000 award from the Innovation Fund, founded by the Lorain County Community College Foundation. Abakan will provide a 100% leverage to the awarded amount by committing an additional $75,000 to complete prototype development of frac-balls that respond (rapid disintegration) to environmental stimuli such as temperature, pressure, pH, etc. once they serve their purpose of isolating a well section for hydraulic fracturing.
"Ohio not only has one of the lowest cost of doing business in the nation, but also has several financing programs to support early stage material science companies. Terves's TervAlloy™ reactive materials are a class of patented materials that can be cast into net shapes to perform their role in isolation, perforation, and completion of shale reserves; and once its job is done, it would respond in a controlled fashion to change in environment and deliver the desired outcome which can be disintegration, increase in size, etc.", said Abakan CEO, Robert Miller. "One of the product that we are developing with these reactive materials, is a self-disintegration frac-ball, which unlike the completion should be able to handle substantially higher pressures (~15,000 psi), and also be able to dissolve within minutes instead of hours or days. These frac-balls should enable oil and gas companies to significantly reduce the downtime losses caused by slow disintegration of the currently used frac-balls; allow multi stage fracturing enabling better efficiency and faster throughput; reducing the time to drill a well by up to 70% leading to operational cost reduction and higher EBIT; allow economic production from wells that have low production wells and wells with pressure differential between stages; and additionally enable the use of higher pressures for fracking which the current frac-balls are unable to withstand."
Abakan expects the completing prototype demonstration of TervAlloy™ frac-balls over the next 6 months, and would then utilizing the TervAlloy™ materials platform begin the development of other products such as reactive tooling and casing that disintegrate after use thereby reducing downtime and maintenance risks, and reactive self-swelling proppants that enable higher throughput.