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Re: joedebull post# 489

Monday, 07/13/2009 7:46:03 PM

Monday, July 13, 2009 7:46:03 PM

Post# of 5511
I talked with IR this morning and was told this very same thing that bobwinds posted on the yahoo board.I was told to keep it off the boards because BP and Southwest don't want their competitors knowing what they spend and thus is why no number projections in PR's[insiders and smart money knows] but since he already made it public here is what ESPH could theoretically make in revenues as just part of their business.
"Re: How does ESPH get paid for operating 13-Jul-09 06:14 pm talked with IR last week.

Each machine is capable of treating 600 gallons per hour of fluid.

They get paid .50/gallon for pretreating the water prior to the frac. This pretreating allows for the removal of several chemicals that are ordinarily added to the frac fluids. This makes the fluids safer to underground freshwater supplies. In addition, the pretreatment has provided up to 20% greater production vs comparable wells that were fracced with the chemicals in the water. They don't produce more than comparable wells but have a slower decline rate so that after a few months, they are producing more.

This is one of the main economic reasons for the ESPH advantage.

ESPH gets 1.50/gallon for flowback water. 1/3 comes back up in 2-4 weeks and then the rest is produced over time with the gas.

As a result of the pretreatment and the big flowback right after the well is completed, the revenue stream from the machines should have a very short payback period.

There are a lot of variables that will affect how much revs each machine generates but it looks like it could easily be over a million dollars for each machine over it's lifetime on a productive well.

Bobwins

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