Chimera Energy Corp., a Houston-based company that says it has developed a new, non-hydraulic shale oil-and-gas extraction technology, has offered little substance to bolster its claims. Establishing definitive proof of the company's technological claims or the business relationships touted in its press releases is about as easy as finding an actual example of the company's namesake, a Greek mythological creature with a lion's head, a goat's torso and a snake's tail.
ENR recently mentioned Chimera as one of a number of energy-services firms that eliminate or greatly reduce the volume of water required in the controversial hydraulic-fracturing shale-gas extraction process. The company's chairman, Charles Grob, e-mailed ENR saying he did not have time to discuss specifics. "We plan to address the recent issues and concerns in an upcoming press release," he added.
This summer, Chimera claimed to have signed a memorandum of understanding with PEMEX to use its "revolutionary" technology on three wells in Mexico's Chicontepic basin. But the state-owned energy giant says no contract exists, and any current arrangement is limited to technology testing.
SEC filings show that Chimera, an over-the-counter stock, incurred a net loss of about $102,900 with "limited operations" since the firm's inception in 2011.
Seeking Alpha, a stock tracking and analysis website, has run a series of articles claiming that Chimera is deliberately misleading potential investors. A recent post read, "We urge investors to stay away from [Chimera]."
ENR queried numerous industry sources about Chimera. Most were unfamiliar with the firm. Those who had heard of the company said they did not know whether its technology would work or be cost-effective. Chrisopher Robart, principal with PacWest Consulting Partners, Washington, D.C., a market research and consulting firm, raised questions about the firm's technology.
Grob, in a letter to shareholders, says he is the "target of a blatant misinformation campaign."