Some opinions are jaded by the long hard road LEXG has endured. Some people look to the future strengthened by their due diligence and the belief in a new, game changing technology. Some people are traders and just want to manipulate the price for a short term gain.
Why are ultra-longs excited about the UCG technology and LEXG distribution rights in Canada? I believe it has been stated by LEXG that the water unit can process 35 cubic yards of water an hour. That is 7086 gallons or 168 barrels. The avg amount of water needed to Frack a well is 3-8 million gallons. At 42 gallons/barrel, it takes about 100,000 barrels of water to frack a well. It costs about $7/bl to transport it and $3/bl to dispose of it after its used, (not to mention the cost of the water in the first place that is in the $millions). The tech could save oil and gas companies serious money ($2mil/ well or $20/barrel of water) therefore it will be in high demand and if LEXG places a minimum of 5 units/yr as contracted and gets, let's just say 20% of the savings,$4 per barrel of water per unit, we are talking serious income, One unit can recycle 100,000 barrels of water in 25 days or one month (with transportation and periodic maintenance). So income of $400,000/mo/unit and if a unit costs say, $250,000 (plus 10% of the savings in royalties to SonCav), LEXG should be able to easily place a minimum of 5 units per year and within one year be up to $2mil per month.Just a little informal analysis but the real numbers should be out in the next couple of months.
AI
