Here are the FACTS, APJ...
Positive Operational Developments Noted by Management in the latest 10-Q:
1. The company significantly reduced operating costs and improved operating efficiencies. Still it’s not enough to stop the dilution of our stock investment due to the company’s need for cash, which runs dry in January of 2016 without more financing through stock sales or bank funding, all of which are on the table and could happen.
2. QS Energy Pool, the acquisition millionaires who’re now working with the company think they have several good oil & gas E&P prospects worth buying in the near future. This kind of acquisition potentially could provide us the cash inflow we need to avoid further stock dilution by management and to fund operations after January, 2016.
Status of Current Customers and Sales Prospects Reported by Management:
TransCanada Pipeline Lease – This deal was terminated Oct. 2014 due to several issues with the current design of the AOT. Management is committed to re-designing the AOT to resolve all engineering issues for their current and future customers. There’s probably not much hope this deal will revive itself until several months, perhaps years, down the road. Probably a lost oppty. ?
Kinder Morgan Pipeline Lease – The company tried to make (3) AOTs work on this pipeline, but there were problems with all three. Management and KM agreed to do further laboratory testing and effect any needed AOT system modifications and then install Unit 4 during the first quarter of FY 2016. Keep your fingers crossed on this one! ?
Newfield Exploration Lease – In October 2014, the company entered into a Joint Development Agreement with Newfield to test a commercial prototype of Joule Heat, and combined Joule Heat and AOT technology, on a crude oil pipeline serving the Greater Monument Butte oilfield located in the UT Uintah Basin. The Joule Heat lease, begun in June of 2015, is still operational. ?
Mexican Offshore Oil Transport (Prospect) – In August 2015, this customer’s offshore platform was assessed by company personnel for a potential deployment of the AOT viscosity reduction technology as a solution for super-heavy crude oil flow assurance. Following this site visit in Mexico, all parties executed an NDA and are proceeding to negotiate something. ?
Major Southern U.S. Oil Pipeline (Prospect) – RECENTLY, the company negotiated a preliminary agreement to deploy the AOT with a major pipeline operator in the southern part of the US. This could lead to a REAL SALE without previously required AOT testing.
Norway’s Statoil (Prospect) – RECENTLY, one of the company’s overseas partners report a potential deal with Norway’s Statoil to develop the AOT’s subsea capabilities under a government funding umbrella. Again, this could result in a fully tested AOT sale to a government customer. ?
Iraqi Oil Offloading Platform (Prospect) – RECENTLY, another company partner overseas have met with Basra officials (a second time) about installing the AOT on pipeline that serves this petroleum offloading facility in southeaster Iraq. This could result in a long-term AOT contract with a government customer. ?
Happy Thanksgiving to Everyone!
AI
