PCT Ltd (PCTL)

[DesertEagle]

A little more $PCTL Oil & Gas info…

Pretty busy this last week but wanted to drop by and drop some more info into the conversation that seems to be taking place regarding the move into the Oil and Gas sector.

As Paradigm Convergence Technologies is a relatively new company with little to no data to support efficacy claims in regards to fracing of new wells or EOR on existing wells, the move into the Oil and Gas sector is a big undertaking but one that is certainly underway as evidenced by the recent contract with Maverick Energy Services for Hydrolyte® and testing of Catholyte Free™ for EOR in Missouri.

People do not seem to understand that you cannot say product XYZ has the same benefits as product ABC because they are similar in nature. You must have product specific data to backup any claims made and that is what the testing underway is meant to provide. I would be keeping an eye on the updates from PCTL as they are released.

Regarding the future…

In the spreadsheet below is the typical well parameter information from three plays in the Permian Basin located in West Texas. The info presented is the average well parameters for each of the three plays averaged out.



So, let’s say (hypothetically) that PCTL captured 1% of the market share for new wells in the Permian Basin. Based on labeled usage they would have to generate 1,887,765 gallons of Hydrolyte® annually to cover demand. As noted, running during normal working days at 75% capacity they could generate 1,957,500 gallons to cover leaving them with 69,735 gallons.

The drawback to this scenario is that it does not leave much room for provision of fluids to other (existing) sectors such as Healthcare and Agriculture.

To gain market share and ensure you can supply existing customers you need to 1) build out a distribution network and 2) increase capacity.

In 2019, Paradigm Convergence Technologies had two (2) Level 3 distributors plus their facility in South Carolina. In 2020, seven (7) additional Level 3 distributors were added to the network and capacity in their South Carolina facility was doubled. In 2021 an additional fluids facility will be opened in Ft. Wayne, Indiana which should again double their capacity and my guess is they will add several more Level 3 distributors in key areas to cover their bases.

Say what you will, in my view Mr. Grieco and the team at PCTL are doing exactly what they need to do in order to capture a percentage of the lucrative Oil & Gas market.

Also keep in mind that the above just relates to fracing of new wells in one part of the country and does not take into account treatment of produced water from those wells. It also does not take into account the uses of the fluid(s) in the Secondary or Tertiary recovery cycle of the wells.

On a national level in the US, an average of about 10 barrels of water is produced for each barrel of oil. Considering an average of 11.34 million barrels of oil are produced per day in the US (Source: IEA 2020 Estimates), a total of 113.4 million barrels of produced water needs to be treated each day. As there are a multitude of treatment options, and for the sake of this post, let’s say only .01% of the market would consider treatment with Hydrolyte®. That market would equate to an additional requirement of 10,216 gallons of Hydrolyte per day based on EPA label requirements or 3,728,995 gallons annually.

I could bore you with the rest of the numbers for treating wells with Hydrogen Sulfide (H2S) or what it takes for a water flood injection of a well, but I think you get the point of this post. For PCTL to capture even a fraction of the market share in the Oil & Gas sector is, as several posters have continued to point out, a major deal.

Data is what PCTL needs and it is what they are getting now in field trials. With the data in hand proving the efficacy and cost effectiveness of Hydrolyte® and Catholyte Free™ in Oil & Gas well operations, it won’t take long for PCTL to start capturing market share.

And, with the “Green Agenda” in play, it will happen sooner rather than later in my view.

Food for thought while you are enjoying your Super Bowl LV Weekend!