Utek Corporation and Avalon Oil and Gas negotiates for some of UW’s intellectual property.

August 14, 2006 - The University of Wyoming has just concluded negotiations with Utek Corporation and Avalon Oil and Gas for an exclusive license to some of UW’s intellectual property.  Specifically, Dr. Brian Towler, head of the Chemical and Petroleum Engineering Department has invented a way to remove wax deposition on pipes and other surfaces (a common problem in oil fields) using ultrasonic waves.  UW has filed two patent applications on this – one in the United States and one in Canada.

UTEK Corporation, a specialty finance company focused on technology transfer, and Avalon Oil and Gas, Inc., an oil and gas company engaged in the acquisition of oil and gas producing properties with multiple enhancement opportunities, recently announced that Avalon Oil and Gas, Inc. has acquired Ultrasonic Mitigation Technologies, Inc. (UMTI), a wholly owned subsidiary of UTEK, in a stock transaction.

UMTI holds the exclusive worldwide license for the mitigation of paraffin wax deposition from crude oil using ultrasonic waves. Varying ultrasonic frequency generating devices are positioned in production tubing walls as a means to inhibit the wax from attaching to the pipes. The technology, developed by Towler, helps prevent precipitates from forming on the pipes, and also breaks wax bonds thereby increasing flow rates and production efficiency.

“Wax deposition in crude oil pumping equipment is an enormously expensive problem for nearly all oil producers around the world,” said Mr. Kent Rodriguez, Chief Executive Officer of Avalon Oil and Gas, Inc. He added, “We believe this technology will help us to maintain optimal oil viscosity and increase production efficiency.”

“We are very enthusiastic about working with Avalon Oil and Gas, Inc. as they help to develop and commercialize our new ultrasonic paraffin wax mitigation technology,” said Bill Gern, Vice President for Research and Economic Development at UW.