Hopefully, today's PR is a sea change in the way management is going to conduct itself in the future. One of the biggest criticisms has been lack of disclosure. According to the PR, there should be many newsworthy, and positive, events on the upcoming calendar.
HPGS also needs to clean up its balance sheet. Still too many liabilities, but wells should be brought on line cheaply, with near instant revenues. The infrastructure is still in place (wells, pumps, piping, etc.). Also, HPGS has additional infrastructure which is not being used, this from their poorly run (to date) construction and maintenance arm.
Another huge aspect of the company rests with their patented technology for enhancing production in certain types of wells (coal methane beds being one type). Their process is to inject microbes and water into wells. The microbes do what they do naturally and break down the organics (coal), and produce as a byproduct methane. This is an interesting technique, and eliminates the need for fracking and the pumping of masses of water into and out of wells. There would seem to be many environmentally friendly aspects to this: 1) No chemicals, 2) no waste water, 3) no fracking, and 4) enhances natural gas production making marginal wells profitable, and increasing the value of certain types of wells.
Today's news appears to be "BIG", with little reaction from the markets. I am hoping that much more good news will follow. I think I can see where the new management is going with HPGS, and I think they have a fairly good chance for success. If so, this could see many multiples in price appreciation to come.
I think past silence from management has hurt investor confidence. Hopefully, todays PR is the beginning of many to come. Getting current on their SEC documents, getting wells into production, possibly getting into new deals involving their microbe technology, new acquisitions, revenues, profits?, the list could be long indeed. Time will tell, but today is the beginning of something. Good, I hope.
AI
