PCT Ltd (PCTL)

[aandt]

Here are some of my thoughts on a day where I don't feel like going too deep into the details.

- Yes EOR has costs involved. All the EOR methods do. No one is saying that cost is not a factor. So yes... the company needs to show that their method beats or is competitive with other methods. I am sure that is a part of the process being undertaken by Holcomb and Humphreys ETC.

- Catholyte and Hydrolyte both work in their oil field applications. This has never been a question. There are studies and global case studies that prove it (in the general sense- electrolyzed water). PCT did not go into this wondering if it would work. They already knew that that product works in a general sense. The issue in the past has not been efficacy but rather production and practicality. PCT believes they have solved for some of these barriers with their machine breakthroughs. Also the Maverick partnership is key for the logistics needed (transporting fluids and other infrastructure).

-Nanobubbles are a relatively new breakthrough being applied to a few different applications in the industry. They are proven in other settings to enhance fluid penetration and efficacy. Therefore the combination with PCT fluids is a a new application that takes two products already with known success individually and puts them together, hoping for enhanced results (sounds like it is proving to be the case).

-The testing has been necessary to build the data portfolio required by producers. Even though it was expected to be effective, PCT did not have the data specific to their fluids. Same with the Nanobubble combination. They can't just say we know it works.... they had to prove it with field trials and data.

Are their barriers? Costs? Sure there are. EOR in general was nearly shut down for the most part for several years as the cost vs. price benefit was not worth it. But now it's an entirely different story.

Even before the current crisis, EOR was being picked up again and explored on multiple fronts. There's all kinds of initiatives being taken to encourage it. There's even a tax credit being provided by the IRS to encourage it. The current crisis and spike in oil prices just accelerates the push to enhance domestic production.

Of course there is a burden of proof on PCT to come through and deliver. But the fact that they have already been developing this for a year is a very good thing. They are now in the final stages of the process to produce actionable results with multiple formations in their portfolio. The assumption of failure is premature IMO. Both Doug Humphreys and David Holcomb are quite well respected and connected. I find it hard to believe they would continue on with this if it wasn't worth pursuing.

Anyways... that's already much longer than I intended for my "short post". Happy weekend everyone.