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Then there is this:
https://assets.geoexpro.com/uploads/ae4f459f-8ead-4c06-a7aa-3a89cbd5e3f1/S%C3%A3o_Tom%C3%A9%20_Pr%C3%ADncipe_Exclusive_Economic_Zone_STP-EEZ_PGS_Seismic_Multi_Client_Africa.jpg
And this Map:
https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.erhc.com%2Feez%2F&psig=AOvVaw2mVcSb1Vt7uoK7DF4CQiX_&ust=1583520174010000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCODArLr-g-gCFQAAAAAdAAAAABAD
oldoil.....Displaying update 1 of 1 updates February 14th 2017
Seismic survey work starts
http://country.eiu.com/article.aspx?articleid=295111813&Country=S%C3%A3o%20Tom%C3%A9%20and%20Pr%C_3
On February 6th Orlando Sousa Pontes, the director of São Tomé's Agência Nacional do Petróleo de São Tomé e Príncipe (ANP), announced that US-based Kosmos Energy and Portugal's Galp Energia had started 3D seismic surveys as part of exploring for oil in blocks 5, 6, 11 and 12 of the country's exclusive economic zone (EEZ).
Analysis
The beginning of survey work comes nearly a year after Kosmos and Galp Energia publicly presented a study on the environmental impact. According to Mr Pontes, the surveys—which form part of the initial exploration phase stipulated in the firms' production-sharing contracts (PSCs) with the ANP—will last for about nine months. If the results are favourable, the oil companies can decide to drill exploration wells in the acreage in the following exploration phase, although any such drilling work is unlikely to occur before 2019.
It is not yet clear whether there are commercially viable deposits of oil in the EEZ. Certainly, developments in the two other blocks with a PSC have been disappointing. In 2016 a Nigerian company, Oranto, the operator of block 2, asked the ANP to extend its phase-one exploration period, and in December the ANP rescinded the PSC with Sinoangol STP for EEZ block 2, claiming that the company had repeatedly failed to accomplish its contractual obligations. In addition, although Equator Exploration, an 81.5% subsidiary of a Nigerian firm, Oando, carried out a 3D seismic survey in part of block 5 in 2015, the results have not yet been revealed. The government's collaboration with its Nigerian counterpart on oil exploration in the two countries' offshore joint development zone (JDZ) will continue, but since 2013, when Total become the fourth major oil company to abandon the JDZ owing to poor exploration results, São Tomé has focused its oil-production hopes on the EEZ.
Impact on the forecast
The start of seismic surveying in the four EEZ blocks will not affect our economic growth forecast for 2017-18, as any actual production will take place beyond the forecast period. There is also a continued risk that low oil prices will hinder efforts to attract investment into the country's nascent hydrocarbons sector.
oldoil.....Here is what i found: 2015 to Present Day – Continued Awards and Revived Exploration:
This is the most exciting period of exploration for the STP-EEZ, initiated by the award of Block 6 to Galp Energia in 2015, an agreement that included a 45% stake for Kosmos Energy, who earlier that year had farmed-in to Equator Explorations Block 12. Kosmos Energy then expanded its block licence footprint in 2017 by farming-in to Block 5, taking over the operatorship from Equator Exploration, followed a year later by their farm-in to Block 11, to take over all licence rights from ERHC. The latter agreement saw Kosmos partner with Galp Energia, with whom they already held a partnership in neighbouring Block 6. In 2018 Kosmos Energy completed its most recent activities by licensing, together with BP, Blocks 10 and 13 before the acquisition of extensive 3D seismic surveys with a focus over the eastern blocks.
Why São Tomé and Príncipe is a Hot Oil and Gas Exploration Area
The PGS MultiClient data library over the region now includes the 2D survey acquired for ExxonMobil in 1999, together with the later 2D seismic, gravity and magnetic surveys acquired by PGS in 2001 and 2005. These three surveys have recently been reprocessed as a coherent dataset to allow seamless interpretation. In addition, the PGS MultiClient library contains the well data from Ubabudo-1 together with the eight exploration wells and one appraisal well drilled in the JDZ waters.
The interpretation of these data along with industry feedback have indicated that there are four key reasons for the recent interest in the area.
Four Key Reasons to be Excited About the Hydrocarbon Potential in the STP-EEZ
Reason 1: Continental and Transitional Crust Provides Source and Structure
Historic geological interpretations predicted that the waters of the southern Gulf of Guinea, including the Niger Delta, were underpinned by oceanic crust. Revised crustal observations and models now suggest these areas instead contain a mélange of continental, transitional and oceanic crustal types controlled by extensional then compressional transform fracture zones. These revised crustal models have highlighted the potential for syn-kinematic sediments deposited in restricted marine conditions that can provide source rock deposits and accompanying structural plays.
Reason 2: PGS Basin Modelling Suggests Cretaceous Sediment Fill Mature for Oil
Source rock basin modelling results showing vitrinite reflectance, indicating source rock maturity.
PGS have recently conducted a basin modelling study based on these revised continental and transitional crustal models. Temperature and source rock data from wells within the JDZ and offshore Gabon were also included. The study modelled three pseudowell locations in STP-EEZ to test the maturities of both the early post-kinematic sediments (Cenomanian-Turonian) and syn-kinematic source rocks. The results show that both potential source rocks are mature for oil and gas and are able to have charged the multiple sandstone reservoirs of the thick Cretaceous and Tertiary clastic successions. These results appear complementary to the presence of oil seeps onshore northern São Tomé at Uba Budo that have been typed to a Cretaceous source rock (ANP-STP).
Reason 3: Long-Lived Fluvial Systems Provide Thick Clastic Reservoir-Quality Successions
The Gulf of Guinea forms the sink for numerous fluvial systems: to the north lies the Niger Delta whilst to the northeast the Cross and Sanga River systems feed the Douala and Rio del Rey basins of Cameroon. To the south-east lies the Rio Muni Basin fed by the Mbini River of Equatorial Guinea and the Ogooué River of north Gabon. These rivers are believed to be long-lived, evident from Cretaceous sections interpreted on seismic data. The influence of these fluvial systems is witnessed by the preservation of unusually thick successions of distal fluvial outflow sediments with differing provenances and varying points of sediment input.
Reason 4: New Sub-Akata Shale plays in the Distal Parts of the Niger Delta
An arbitrary line through Nigeria and the JDZ showing the sub-Akata Shale synkinematic structure and stratigraphy. The potential for a sub-Akata petroleum system has excited Niger Delta explorers and operators.
The prolific plays of the Niger Delta are encountered in Tertiary siliciclastic reservoirs that are charged by the Eocene Akata Shale source rock. An exciting new play concept, which has captured the recent attention of operators and explorers, lies beneath the Akata sedimentary succession of the distal or outboard parts of the Niger Delta. Here, a thinned Tertiary succession lies atop continental or transitional crusts. This play, as yet untested, predicts that the syn-kinematic source rocks are mature for oil and charge clastic reservoirs beneath the Akata Shale that acts as a seal rock. This new Niger Delta play is interpreted to continue southwards into the outboard Gulf of Guinea, including the STP-EEZ and the deep waters of Gabon.
Oil and Gas Potential in the STP-EEZ Revealed
The surge in activity would appear to be a consequence of changes in geological understanding rather than for sociopolitical reasons. Modern processing of vintage seismic has provided compelling evidence that the crust beneath the STP-EEZ is a melange of continental, transitional and oceanic types influenced by transform tectonism. The overlying sedimentary wedges that fill the associated kinematic basins have the appearance of isolated basins. When these syn-kinematic sediments are applied to basin models, the results suggest that they are mature for oil and gas, results that are supported by the presence of hydrocarbon seeps onshore São Tomé Island. The post-kinematic stratigraphy is dominated by multiple long-lived fluvial systems that likely provide reservoir quality sand bodies that onlap and drape the transform structures providing structural and stratigraphic traps.
All the elements of a working petroleum system appear to be present in the waters of the STP-EEZ. As exploration advances and wells are planned, it may only be a matter of time before we see the fruits that these new play concepts may bear.
References:
Basedau, M. & Mehler, A. (eds.) Resource Politics in Sub-Saharan Africa. Hamburg African Studies, Institute for African Affairs, 2005
https://www.geoexpro.com/articles/2018/12/sao-tome-and-principe-exclusive-economic-zone
LMLT....Thanks for the message about that interesting recent post on ERHC.
Chevron Counting on Permian to Yield $80 Billion for Investors
by Bloomberg|Kevin Crowley|Tuesday, March 03, 2020
Chevron Counting on Permian to Yield $80 Billion for Investors
The Permian targets show faith in a basin in which many operators are struggling to generate cash.
(Bloomberg) -- Chevron Corp. plans as much as $80 billion in dividends and share buybacks over the next five years, boosting distributions by 20% compared with the most recent pace of payouts as the U.S. oil giant ramps up production and returns from the Permian Basin.
Mike Wirth, who took over as chief executive officer little more than two years ago, promised shareholders a mix of cost-cutting and measured production growth to offer attractive financial returns even as customers and policymakers demand lower-carbon fuels. Production from the Permian in Texas and New Mexico will double over the next five years and eventually account for a third of its global output.
The targets, unveiled by Chevron at its investor meeting in New York on Tuesday, are illustrative of the high-wire balancing act facing Big Oil. The industry’s largest companies are being asked to reinvest in future production, reward shareholders, and, at the same time, work through an energy transition that may spell the end of fossil fuel growth within a decade.
Chevron’s projected investor returns “look well supported by the balance sheet,” RBC analyst Biraj Borkhataria said in a note to clients. The presentation “looks more like evolution than revolution, and continues the prior mantra around lower for longer capex, and a steady uptick in Permian performance.”
Chevron said it will save $2 billion by cost cutting and margin improvements while holding annual capital spending to no more than 10% above current levels. Returns on capital will increase to more than 10% by 2024, up a third from current levels.
Returning cash to shareholders is “our number one priority,” Wirth said. “This doesn’t rely on higher oil prices. It relies on self-help to greater cost efficiency, continued capital discipline and effective portfolio management.”
Chevron’s returns have languished in recent years, far below where they stood a decade earlier. Exxon Mobil Corp. has seen a similar deterioration.
The Permian will be a key driver of Chevron’s plan to improve performance, offering more than 20% profit for each dollar invested, said Jay Johnson, head up upstream. Production will flatten out at 1.2 million barrels a day by the mid-2020s with capital spending of about $4.5 billion a year.
The Permian targets show faith in a basin in which many operators are struggling to generate cash after taking on bigs debts during the past decade. Chevron believes it’s unaffected by those challenges, with a superior land position inherited from its merger with Texaco Inc. in 2001 and the financial firepower to out-muscle smaller rivals through troughs in oil and gas prices.
With a strategy of emphasizing cash returned to investors over production growth, Chevron is following the path laid down in recent years by another U.S. rival, ConocoPhillips. It recognizes that the world doesn’t need ever-increasing amounts of oil and that shareholders need to be rewarded for owning fossil fuel producers.
Chevron’s new target of shareholder distributions suggests a significant increase from what the American oil giant has been doing until recently. Last year, Chevron returned $13 billion in dividends and buybacks, equivalent to $65 billion if repeated over a five-year period. The new goal of $75 billion to $80 billion in returns is equivalent to about 45% of its current market value.
“To the general portfolio managers out there, if you’re looking for cash, Chevron is the place to be,” Chief Financial Officer Pierre Breber said at the presentation.
Chevron’s shares rose 0.3% at $96.86 at 10:11 a.m. in New York. Brent crude rose 1.8% to $52.81 a barrel.
Chevron has declined 20% this year, almost mirroring the fall in Brent and showing that investors are not giving the oil giant much benefit for its refineries and chemical operations that usually cushion the impact of low prices.
--With assistance from Javier Blas.
To contact the reporter on this story:
Kevin Crowley in Houston at kcrowley1@bloomberg.net
To contact the editor responsible for this story:
Simon Casey at scasey4@bloomberg.net
I have about 60 different names on my watch list. There are currently only 7 of them that are showing a gain for today. The largest % gainer is MMTIF by quite a lot. The volume is low but it seems to me to be setting up for another run to the upside. The late DEC, to early FEB. run was 400%.
With news the next one can be even bigger than than the 400%. So still advising buying shares at these soon to be bargain prices.
And BTW, i am seeing some very good signs in the over all market of a beginning to bottom process.
Vela700....Wind Turbine Power is quickly becoming a big business. And the maintenance of them is expensive and is well suited for sensors to provide
advance warnings of impending problems. JMO!!!
MY 2 cents.....Consolidating in fine manner. More upside to come. JMO!!!
Vela700....It is not the oil that causes Maint. problems, it is the foreign substances in the oil ...like metal fragments from bearings and etc. JMO!!!
Vela700....A RT type lube unit could be used for early warning of a need for Maint. in the wind turbine gear box, imo.
PJ007....Well tell me. INFO please.
Attention MMTIF Management....The Following is a big opportunity for MMTIF:
Spain: Repsol to develop 26 new wind farms in Aragon in northern Spain, totaling 860 MW
01 Mar 2020
The new project, named Delta 2, will be built and operated by Repsol’s electricity and gas subsidiary, and will be developed over the next three years.
The wind farms will be located in the northern Spanish region of Aragon, in the provinces of Huesca, Zaragoza, and Teruel, where Repsol is also developing the 335 MW Delta wind farm project.
Repsol already manages low-emissions assets with a total installed capacity of 2,952 MW. Planned renewable projects under development total another 2,045 MW.
The company has seven renewable projects underway, located in the regions of Andalusia, Aragon, Castile and León, Castile-La Mancha, and Extremadura, as well as in Portugal.
Delta 2 will contribute to reaching the target that Repsol has set to reach net zero emissions by 2050, being the first company in its sector to set this ambitious goal.
Repsol has added a new 860 MW wind farm project in the northern Spanish region of Aragon to its renewables portfolio. This allows the company to progress towards its goal of becoming a net zero emissions company by 2050 and to consolidate its position as a leading player in the generation of low-emissions electricity in the Iberian Peninsula.
The project, named Delta 2, is made up of 26 wind farms located in the provinces of Huesca, Zaragoza, and Teruel. They will be built and operated by the subsidiary Repsol Electricidad y Gas and will be developed over the next three years. When fully operational, they will be able to supply electricity to around 1.8 million people, which is more than the whole population of Aragon. At the same time, the renewable power they will generate will annually avoid the emission of more than 2.6 million tonnes of CO2 into the atmosphere, compared with electricity produced with coal.
Delta 2 is added to the other renewable projects that Repsol has underway in the regions of Aragon, Castile and León, Castile-La Mancha, Andalusia, and Extremadura: el the Delta wind farm, in the provinces of Zaragoza and Teruel, where work began last December, with 89 turbines totaling 335MW. This wind farm is expected to be operational towards the end of this year; the PI wind farm, located between Palencia and Valladolid with a total installed capacity of 255 MW; a 204 MW photovoltaic park in Cádiz (Sigma);,the 264 MW photovoltaic project in Valdesolar (Badajoz); and the recently added 126.6 MW Kappa photovoltaic park near Ciudad Real. The company is also participating in the Atlantic WindFloat floating wind farm, off the north coast of Portugal, with a total installed capacity of 25 MW of which 5 correspond to Repsol.
All these projects are located in areas with very favorable conditions for electricity generation with either wind or photovoltaic technology, with the land locations and grid connections secured. The energy generated will supply the needs of the company and of its current electricity and gas customers, which have surpassed the one million customer mark in less than a year.
Repsol’s renewable assets under development have a total capacity of 2,045 MW. Together with the 2,952 MW of installed capacity that the company already possesses, they consolidate Repsol as a leading player in the generation of low-emissions electricity in the Iberian Peninsula.
In order to develop these assets, Repsol has a growing team specialized in renewable energy with extensive experience in the sector, demonstrating the company’s firm commitment to this business.
Repsol's electricity generation assets and projects
Net zero emissions by 2050
The addition of this new wind farm project consolidates Repsol’s commitment to lead the energy transition and contributes to its stated goal of becoming a net zero emissions company by 2050.
On December 2, 2019, Repsol announced that it was focusing its strategy to become a net zero emissions company by 2050, making it the first company in its sector to set this ambitious target. In accordance with the Paris Agreement, it aims to limit global warming to below 1.5 degrees Celsius, compared to pre-industrial levels.
To achieve this target, Repsol is envisaging new intermediate goals to reduce its carbon intensity indicator, using 2016 as the baseline: 10% by 2025, 20% by 2030, and 40% by 2040, in order to advance towards net zero CO2 emissions in 2050.
These goals will serve as the basis for the 2021-2025 Strategic Plan that will be presented to the market and to investors on May 5, 2020.
Original article link
Source: Repsol
LongMMTI....I agree.
I don't think the K you found is even approved for use with humans.
Anyone think we could get news next week? Just curious.
Someone just bought 15,000 @ .0894 cents. That was a money maker buy, imo.
PB..... Will you volunteer to be the victim?
I was hoping for much better price and volume today. We nee someone who is a thought leader to get behind and be vocal about B to really attract the big investors, and that has not happened Yet!! I have forwarded to such a person the Press Release from the last several months and did receive a thank you response, but nothing in print yet. All JMO!!!
So far today the only thing wrong with buy the dips is there are not any substantial sellers. So either wait [ which is dangerous ] Or buy any decent size offer under .09 cents that shows up. JMO!!!
VELA.... I agree with EVE. BUY THE DIPS is the best course of action....Make a lot of money. JMO!!
Vela700.....Better check your math. If we go up today MMTIF shares will be
Back over .12 cents....LOL!!!
RE MMTIF....The small sell off in share price of MMTIF is a gift. Take advantage...Buy...You will be glad you did. Solid news coming...Cash flow and Earnings.
RE MMTIF....The small sell off in share price of MMTIF is a gift. Take advantage...Buy...You will be glad you did. Solid news coming...Cash flow and Earnings.
RE MMTIF....The small sell off in share price of MMTIF is a gift. Take advantage...Buy...You will be glad you did. Solid news coming...Cash flow and Earnings.
RE MMTIF....The small sell off in share price of MMTIF is a gift. Take advantage...Buy...You will be glad you did. Solid news coming...Cash flow and Earnings.
LongMMTI......I think [JMO ] Chevron will help MMTIF succeed. And the licensing the product to various end users greatly lowers the need for staff. Note what has happened so far with Romgaz. There will be several different manufacturers of the product contracted to the oil and gas companies who have been licensed. But i do not rule out an eventual sale of MMTIF; i just think it will have to be a successful company before it can be sold for top dollar.
And any further sell off because of the market weakness is a GIFT to the buyers as the timing of news of POs could hit at just the right time when the market begins to recover from the present weakness brought about by the uncertainty of the present moment. ALL JMO!!!!
MMTIF...shares down from recent high...The latest report had some good clues of the future....1] For example "no going concern clause" from the auditors....Thank about that and ask yourself WHY???? 2] Chevron has an approved amount in their 2020 budget for the purchase ARTRA units..... 3] there will be two cash flows and revenue flows from the Romgaz units ie the royalty on the units and a royalty from the Analytics of the data. And not the least was 4] that Chevron helped get Romgaz on board.
Further more, imo, there will be other oil and gas companies that will purchase these units. So the only sensible course of action is to buy shares.....After all the share price is still less than the per share cash flow this year..... Not many companies' shares sell for less than the per share cash flow.
RE MMTIF shares pullback....The latest report had some good clues of the future....1] For example "no going concern clause" from the auditors....Thank about that and ask yourself WHY???? 2] Chevron has an approved amount in their 2020 budget for the purchase ARTRA units..... 3] there will be two cash flows and revenue flows from the Romgaz units ie the royalty on the units and a royalty from the Analytics of the data. And not the least was 4] that Chevron helped get Romgaz on board.
Further more, imo, there will be other oil and gas companies that will purchase these units. So the only sensible course of action is to buy shares.....After all the share price is still less than the per share cash flow this year..... Not many companies' shares sell for less than the per share cash flow.
Vela700.....And i repeat.....Buy ....The latest report had some good clues of the future....1] For example "no going concern clause" from the auditors....Thank about that and ask yourself WHY???? 2] Chevron has an approved amount in their 2020 budget for the purchase ARTRA units..... 3] there will be two cash flows and revenue flows from the Romgaz units ie the royalty on the units and a royalty from the Analytics of the data. And not the least was 4] that Chevron helped get Romgaz on board.
Further more, imo, there will be other oil and gas companies that will purchase these units. So the only sensible course of action is to buy shares.....After all the share price is still less than the per share cash flow this year..... Not many companies' shares sell for less than the per share cash flow.
Vela700....Thanks for your opinions. I do not agree. But you did provide one third party opinion ie....."(my bank won't let me buy micromem shares)"
THAT IS A BUY SIGNAL, if i EVER saw one. Find an online broker, open an account, and buy.. My Best Advice.
Do you all remember the Y2K scare....Looks like we are having a replay with a different name.
cechpoa.....I disagree. The sell off is the results of no announced PO of ARTRA units Yet. There are signs of definite progress is the reports that were filed yesterday, but no announced Purchase Orders yet. So the previous huge increase in share price and no news brought on profit taking. And of course the precipitous fall in the stock market over the last 2 days just added fuel to the fire.
But this pull back is a gift to those wanting to buy shares....All JMO!!!
MMTIF share prices today are a gift.....Buying opportunity....Just watch.
VELA....Who is trying every dirty trick in the book? Explain your statement, please.
Let me present the statements denoting REAL PROGRESS from MMTIF's filings yesterday:
1] We anticipate
positive developments with respect to commercialization of this technology with Chevron as they have advised on their intent to commercialize.
We are advised by Chevron that they will adopt the technology as required in future and that they
have earmarked funding for commercial units in their 2020 fiscal year budget.
2] A. Romgaz has communicated that it is proceeding
with purchase orders to acquire initial units of the ARTRA technology and
B. to have the
Company develop a fully integrated software analytics solution for Romgaz use and application.
B above is a second source of revenue that will be ongoing,imo.
3] ) Repsol S.A.: We have negotiated a draft final contract with Repsol relating to the RT
Lube Analyzer technology. The Company intends to proceed with this project in 2020.
The Company intends to proceed with this project in 2020 pending finalization of the final
development contract. A visit to the Repsol offices in Spain is intended for this purpose in calendar 2020.
4] )The use of convertible debentures has served to increase our outstanding number of shares
over the past few years. The Company plans to deemphasize or eliminate this complex
and expensive source of financing in future as it develops and grows its business and is
better able to secure more conventional, lower cost financing.
My comment is above statement shows confidence that the company will have revenue and earnings this year.
5] In last year’s report we indicated that the Company was engaged in dialogue with an
established private company that has engineering and manufacturing capabilities and
commercial revenues in North America. In 2019 we actively pursued those discussions and
those discussions continue at the date of this report. In addition, we have been provided
guidance in terms of product development and commercial roll out strategies. We anticipate
that a formal working relationship may materialize in 2020.
Merger or partnership in MMTIF's future?
MMTIF TODAY said in their year end report:
Chevron has advised that the results of the testing that has been completed to date have met with
their expectations and requirements and that the performance of the technology in the onsite pilot
and in the subsequent lab sample testing has been validated.
We are advised by Chevron that they will adopt the technology as required in future and that they
have earmarked funding for commercial units in their 2020 fiscal year budget. To date, Chevron
has not released commercial orders for the technology.
MMTIF Today in Year end report:
Chevron has advised that the results of the testing that has been completed to date have met with
their expectations and requirements and that the performance of the technology in the onsite pilot
and in the subsequent lab sample testing has been validated.
We are advised by Chevron that they will adopt the technology as required in future and that they
have earmarked funding for commercial units in their 2020 fiscal year budget. To date, Chevron
has not released commercial orders for the technology.
From MMTIF Annual report and MICROMEM TECHNOLOGIES INC.
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED OCTOBER 31, 2019
PREPARED AS OF FEBRUARY 24, 2020
Highlights
Business Developments in 2019:
(a) Chevron: In March 2019, we advanced the Chevron project to onsite field trials of the
ARTRA technology. These in field trials have served to validate the technology. Chevron
continues to test samples from these trials with ongoing successful results. We anticipate
positive developments with respect to commercialization of this technology with Chevron
as they have advised on their intent to commercialize.
(b) Romgaz: We engaged in discussions with Romgaz in mid-2019 with respect to the
ARTRA technology. Romgaz and Chevron have discussed the results of the Chevron field
trials in November – December 2019. Romgaz has communicated that it is proceeding
with purchase orders to acquire initial units of the ARTRA technology and to have the
Company develop a fully integrated software analytics solution for Romgaz use and
application. Pending the completion of these two initial undertakings, Romgaz has
communicated their commitment to commercializing the technology with manufacturing
to be completed in Romania.
(c) Repsol S.A.: We have negotiated a draft final contract with Repsol relating to the RT
Lube Analyzer technology. The Company intends to proceed with this project in 2020.
(d) Other: In 2019 the Company evaluated other potential opportunities and participated in
a number of technical trade shows across North America
Update of Product Development Activity at October 31, 2019
The current status of our active development projects is as reported below:
Chevron: In 2019 we continued to engage with Chevron personnel and with our engineering
subcontractor, Entanglement Technologies Inc. (“Entanglement”). We met with the Chevron team
members in their Houston offices on seven occasions to continue our dialogue and measure our go
forward path. We also met directly with Entanglement on three occasions for these purposes.
The field testing of the onsite pilot program was coordinated between Chevron, Entanglement and
the Company and commenced in March 2019 at a California-based oil well site operated by
Chevron. The initial on site testing was conducted over a period of approximately 6
weeks. Thereafter sample testing from the onsite well continued in both the Entanglement and
Chevron laboratories.
Chevron has advised that the results of the testing that has been completed to date have met with
their expectations and requirements and that the performance of the technology in the onsite pilot
and in the subsequent lab sample testing has been validated.
We are advised by Chevron that they will adopt the technology as required in future and that they
have earmarked funding for commercial units in their 2020 fiscal year budget. To date, Chevron
has not released commercial orders for the technology.
In 2019, under the terms of the preexisting Joint Development Agreement with Chevron, they paid
$77,597 relating to the cost reimbursements that the Company invoiced for the ongoing pilot tests.
Repsol S.A. (“Repsol”): We have previously reported on our initial activity with this Spanish
energy conglomerate in our 2018 report. The developments with Repsol in 2019 are as presented
below:
a) In Q1 2019 we submitted a proposed letter of intent (“Repsol LOI”) to the Repsol
engineering team with whom we have engaged since September 2018. The Repsol LOI
was intended to reset the go forward product development parameters, marketing efforts
12
and cost sharing arrangements for this project between the Company and Repsol. The
original Repsol purchase order submitted in 2017 was suspended as part of these current
discussions with Repsol.
b) In mid-2019, we began negotiations with the Repsol team towards a final development
contract. The discussions remain open at the date of this report.
The underlying technology for the Repsol initiative has been referenced in our 2018 report as the
RT Lube Analyzer. The initial development completed on this technology between 2016-2018
was undertaken by the Company and its engineering subcontractor, SBM Microsystems. In 2019
we moved the project to an engineering and manufacturing entity in Toronto Canada.
The Company intends to proceed with this project in 2020 pending finalization of the final
development contract. A visit to the Repsol offices in Spain is intended for this purpose in calendar
2020.
Romgaz: Romgaz is the state-controlled gas company in Romania. We initiated a dialogue with
the senior management team at Romgaz in May 2019. The opportunity developed as a result of
the progress that we had experienced with our Chevron initiative which, by that point, had
advanced to the onsite pilot program referenced above.
We continued our initial discussions with Romgaz thereafter and, in October 2019, we announced
that the Company had executed a letter of intent (“LOI”) with Romgaz which afforded the
Company the opportunity to sell the ARTRA technology units to Romgaz and to develop a robust
analytics solution for the technology. The key conditions to progressing this LOI were twofold:
a) Romgaz would continue with their due diligence on the ARTRA technology, and
b) Manufacturing of the commercial units in future would be completed, with the Company’s
input, in Romania.
Discussions and negotiations with Romgaz continued after the execution of the LOI. These
discussions involved Chevron whom the Company introduced to Romgaz as part of the Romgaz
due diligence process.
In December 2019 Romgaz put forward a series of questions to Chevron relating to the Chevron
experience with the ARTRA technology and the testing that Chevron had conducted in 2019. The
dialogue that the Company coordinated between Romgaz and Chevron was very positive and the
specifics of those discussions were approved by both parties and posted to the Micromem website
on December 20, 2019.
The Company is now anticipating a series of purchase orders from Romgaz with respect to:
a. The purchase of initial units of the existing ARTRA technology for training and education
purposes, and,
b. A proposal by Micromem to deliver a comprehensive analytics solution to Romgaz for the
technology, and,
c. Pending satisfactory completion of b. above, a purchase order for commercial orders for the
technology which is to be manufactured in Romania.
Based on the above sequence of events, the Company anticipates that it will report commercial
revenues related to Romgaz in 2020.
Other Developments:
a) In last year’s report, we discussed the Company’s participation in March 2018 in a conference
in Dubai .Mr. Van Fleet represented the Company at the conference; subsequently he prepared
a significant number of proposals for various companies in North America and abroad with
respect to the ARTRA technology which was showcased at the Dubai conference.
Since Mr. Van Fleet’s resignation in August 2018, we have pursed many of the proposals
submitted by Mr. Van Fleet to these prospective customers. As of this date, there have been
no commercial opportunities identified by the Company in these follow up efforts which the
Company has undertaken.
b) In last year’s report we indicated that the Company was engaged in dialogue with an
established private company that has engineering and manufacturing capabilities and
commercial revenues in North America. In 2019 we actively pursued those discussions and
those discussions continue at the date of this report. In addition, we have been provided
guidance in terms of product development and commercial roll out strategies. We anticipate
that a formal working relationship may materialize in 2020.
MY Comments.....Progress is being made on several fronts with revenue and earnings expected this year.
EVE4....May make it down to your target price today,because of the market selloff.