Think again! Those that understand the oilfield also understand the following: Drilling programs take months and sometimes years of planning. Seismic evaluation, Environmental Impact Studies, Core Drilling, Formation/Reservoir Analysis, Downhole Equipment Identification/Purchasing, Local-State-Federal Permitting Process, Surface Equipment Identification/Mobilization, Safety Cases, etc, etc, etc…
If I were a gambler (which I am) I would bet that the “series of infield wells” planned by the JV were actually planned for by Paluca Petroleum (Humphreys) well in advance of the “1 Million Gallon Minimum Annual Supply Agreement”.
Mr. Grieco and Mr. Humphreys, being the visionaries they are, probably saw the opportunity to expand both Maverick Energy Services and Paradigm Convergence Technologies Limited using the fluids.
Add to the mix a PhD in chemistry with decades of industry experience (Holcomb) and a little “disruptive” technology and you will most likely see some new patented applications.
Everything written in this post is in the public domain. Fast Forward to Today…
Keeping in mind that PCTL’s Catholyte is a mild, All Natural (aka: GREEN) Alkaline Ant-Oxidizing Industrial Grade Surfactant used in the Enhanced Oil Recovery process, why would Maverick have made a “1 Million Gallon Minimum Annual Supply Agreement” with PCTL for Hydrolyte?
Here is a hint…
Water used for the drilling/fracturing of NEW (hint, hint, wink) oil and gas wells can be treated with PCTL’s Hydrolyte (not Catholyte) to manage bacteria that cause all sorts of problems in the surface and subsurface operating environment. Bacterial control is very important in protecting the fracturing fluids and gels used in the drilling of a new well to ensure polymer and improved performance.
PCTL’s Hydrolyte removes scale and slime build-up from pipes (surface and subsurface) and other drilling equipment, and the water in cooling systems can be kept free of biomass which improves heat exchange values and eliminates the corrosion caused by microbial induced corrosion (MIC). Additionally, produced water (water coming back from the well bore) can be treated with PCTL’s Hydrolyte so that it does not have to be sent off for treatment/disposal but can be treated on site and reused in stimulation fluids or water floods which produces costs savings for the contractor/operator.
Those that want to know about savings, find out what it costs to 1) purchase drilling water, 2) transport the water to the drill site, 3) transport produced water back to a facility and 4) the cost per gallon to treat it at an approved facility. That equals just one of the “potentials to reduce costs”.
I invested in PCTL to make a return on that investment, period! So, for those that want the real answer on the forward guidance given for 2021, I suggest you research the following…
1.What does a gallon of ORQ Biocide cost? 2.How much Hydrolyte is needed to treat a gallon of water? 3.How many gallons of water will be used to drill 1 well? 4.How many gallons of produced water will be generated from the well? 5.How much Hydrolyte will be needed to treat the produced water for reuse?
Do the math, come to your own answer, take that answer and multiply it x 5 = $$$ generated for PCTL.
That is the money generated to PCTL on the DRILLING side for the first 5 wells. The drilling side has massive potential in and of itself.
How many new wells are drilled a year in the US: in 2017 22,000 wells were drilled, and in 2018, the number is estimated at approximately 25,000. With depleting production, the energy industry partially locked down for the last year and a reopening of business and industry in 2021, how many new wells are needed going forward?
Now go back and do the same for the ENHANCED RECOVERY and REVITALIZATION side of the equation with a little variance on the questions.
1.What does a gallon of ORQ Surfactant cost? 2.How much Catholyte is needed to treat a marginal well? 3.How many gallons of produced water will be generated from the well? 4.How much Hydrolyte will be needed to treat the produced water so it can be reused? 5.How much Catholyte will be needed for weekly/monthly maintenance treatments (hint, recurring revenue) since that POOL of subsurface oil will need regular maintenance to keep the producer swimming in $$$?
Again, do the math, come to your own answer, take that answer and multiply it by whatever percentage of market share you think the company can obtain and that is the $$$ potential for the EOR side.
How many marginal wells are there in the US: 760,000 stripper wells are in production – about 400,000 oil and 360,000 natural gas wells.
On another subject…
The CEO: Gary Grieco is an entrepreneur and a visionary but he is also human and prone to mistakes/missteps just like the rest of us.
The Financier: Brett Rosen is a Venture Capitalist. He is here to make coin like the rest of us. The difference between him and a toxic/predatory lender (Hudson Bay comes to mind) should be clear but in case it is not, he is here to make money off the back of the company, not off the backs of shareholders, period.
Enjoying my weekend. Hope my friends and fellow investors are doing the same. Future of PCTL is bright… may need to get some darker shades.
DE
Anything written herein that you find Misspelled, Objectionable, Incoherent, Dim-Witted, Plagiarized or Legally Actionable should be attributed to the Keyboard Manufacturer, Russian Hackers, the CCP or Jack Daniels (the drink not the person).
