DGAP-News

American Oil Company Awards Micromem Second Development Contract

DGAP-News: Micromem Technologies Inc. / Key word(s): Miscellaneous
American Oil Company Awards Micromem Second Development Contract

05.03.2015 / 20:37

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Toronto, Ontario & New York, New York--(Newsfile Corp. - March 5, 2015) -
Micromem Technologies Inc. (CSE: MRM) (OTCQX: MMTIF) ('Micromem') ('the
Company') through its wholly owned subsidiary Micromem Applied Sensor
Technologies Inc. (MAST), is pleased to announce that the Company has been
awarded a second Joint Product Development Agreement 'JPDA' by the American
based Oil company ('Oil Co.'), the agreement is valued at US $9,200,000.
Under the terms of the Agreement the Oil Co. and Micromem will design,
build and demonstrate a cement integrity sensor prototype for use in cement
pumped down oil well boreholes to depths of 15,000 feet. The sensor will be
mixed into the wet cement and form part of the structure. The Company
expects to deliver the first prototype by June 2015. Under the agreement,
once deployment begins Micromem will also benefit from royalty/license
based income.

The sensor will measure temperature, moisture, stress levels and listen for
the presence of flow in micro fractures to advise the operator in real
time, of the condition of the cement surrounding the casing of an oil well.
These sensors will remain useful for monitoring the conditions of the
cement over the lifetime of the structure. The clients' objective will be
to deploy these sensors in their oil wells globally. For oil companies to
be able to detect and analyze issues well in advance of fractures
developing has many advantages to predict and prevent dangerous spills from
failing cement. The system will be connected wirelessly throughout the well
network and will in essence make oil wells 'smart'. This new technology
will create a new paradigm when it comes to smart, integrated systems and
building a smart infrastructure. The current estimate of the total number
of producing oil and gas wells around the globe that could benefit from
this technology is 950,000 with more than 530,000 of them located in the
United States.

This technology encompasses systems and methods for detecting and/or
monitoring the integrity and condition of cement structures including, for
example, highways, bridges, buildings, and wellbores using
Nano-Electro-Mechanical System (NEMS) based and/or Micro-Electro-Mechanical
System (MEMS) based data sensors.