PCT Ltd (PCTL)

[DesertEagle]

O&G is moving forward…

and I am still around and still hold a position in PCTL. The fact that we are making changes to the business and working with other established names in the industry to adapt the business to a changing marketplace should be no surprise.

With 3 vaccines now on the market to address CoVid-19 and the relaxed CDC guidelines on hard surface disinfection, the shift to Oil, Gas and Agriculture makes sense from a business standpoint.

I previously posted my views on the use of Hydrolyte in the fracing industry and the impact it could and will have in regards to PCTL. Hydrolyte is also a fluid proven to combat H2S or Hydrogen Sulfide, a major hazard to workers in the Oil and Gas industry.

Now the company has released initial results in regards to the use of their Catholyte fluid in a EOR (Enhanced Oil Recovery) system for marginal wells. Based on the initial results, the math shows that this could and will be a significant revenue source for PCTL going forward. A larger operator could lease equipment from PCTL and produce their own fluids on site while a smaller operator could order fluids from a distributor as needed.

Background information on the O&G project is below…
Grassy Creek Overview
PCTL Oilfield Testing Results

According to public data from the IOGCC (Data Link) there are an estimated 777,357 marginal wells in the US of which 396,023 are oil and 381,334 are natural gas. As an FYI, a marginal well is a well that produces 10 barrels of oil or 60 Mcf of natural gas per day or less.

As of the date of the last report (2016), the average production from a marginal oil well in the US is 1.97 bbls/day and the average production from a marginal gas well is 13.5 Mcf/day.

When PCTL and Maverick started their testing in Grassy Creek, MO the baseline established for the test wells (oil) was 99/1 (99 parts water to 1 part oil). In a 90-day period, through constant and controlled adjustments to the well treatment protocols, that ratio has improved substantially to 60/40 (60 parts water to 40 parts oil) using PCTL's Catholyte fluid.

With the current WTI price of $65.00 per barrel, the benefit of treating older wells with Catholyte following protocols established by PCTL and Maverick through the current well testing program is evident… increased production of oil (revenue) and decreased cost of treating/transporting produced water (savings).

For an operator (using the average of 1.97 bbls/day from the current data), that would mean going from $128.05 to $4,993.00 per day/per well. This of course is based on currently reported results and national well averages. The potential benefit of treating wells with Catholyte should be obvious.



Additionally, with the recent halting of new state and federal drilling permits along with the new rules and regulations which came into effect on Jan 15, 2021 in regards to the same, PCTL is in a prime position to take advantage of marketing their patented systems and fluids to the operators of these marginal wells (with the data to back it up).

The fluids generated by PCTL’s patented equipment also have many applications in Agriculture (cannabis/produce/livestock) and I would expect to be hearing something in regards to that market in 2021 as well. Check the tweet on May 5th in regards to this at: Randall Waters and Agriculture

Bottom line is that PCTL’s fluids are making an impact across multiple markets and the SP will reflect this in due time as more data and information is released and the company puts new protocols and procedures in place.

Based on the initial PR from the company in regards to the testing in Grassy Creek, “Testing continues and PCTL will release the findings in a technical report within thirty (30) days.” Once this data is released, independent producers will be our focus going forward and we are adjusting to serve this industry accordingly.

In my opinion, PCTL is adapting to take advantage of growth opportunities in other marketplaces while maintaining and growing their core position in the HAI marketplace with their patented Annihilyzer system. Change won’t happen overnight but, from what I see, change is happening.

Looking forward to continued growth and record revenues.

GLTA