These are some excerpts from the latest quarterly report. Full report: http://biz.yahoo.com/e/111114/108525410-q.html?legacy=1
Here is some info on what MWD downhole tools encompass: http://en.wikipedia.org/wiki/Measurement_while_drilling
HII Technologies, Inc. is a Texas based energy field services company which intends to focus on measurement while drilling (MWD) downhole tools. We entered the development stage on May 10, 2011 upon the consummation of the sale of substantially all of the assets of KMHVC, Inc. (f/k/a Hemiwedge Valve Corporation), our wholly owned valve design and production subsidiary. We retained approximately $300,000 in net cash at closing.
We currently employ 1 person. Our executive offices are located at 710 North Post Oak Road, Suite 400, Houston, Texas, 77024. Our telephone number is (713) 821-3157 and our Internet address is www.HWEGstockholder.com.
Plan of Operation
Below is a brief description of our planned activities over the next 12 months:
Months 1 through 3 (August 2011-October 2011)
Continue data gathering of current down hole tool projects known, summarizing our internal data and historical customer feedback and conclude discussions with oilfield inventors and patent attorneys about any inventions that need a commercialization partner.
Months 4 through 6 (November 2011-January 2012)
Review above data to finalize design and development plan of down hole tool or other green energy technology. Conclude budgeting and costs for development plan and align applicable suppliers and outside consultants.
Months 7 through 9 (February 2012-April 2012)
Manage the outside manufacturing of several prototypes for the purposes of validating design and concepts.
Months 10 through 12 (May 2012-July 2012)
Continue development of technology, refining items that didn't perform, start search for bigger company partnering deals once proof of concept is finalized with prototype.
Trends, events and uncertainties
The primary driver for our current business as well as our prior contract mining and machining and engineered valve product business, is the demand for oil and gas The status of the global economy impacts oil and natural gas consumption.
During the latter portion of 2008 and throughout much of 2009, there was a substantial decline in oil and natural gas prices and demand for our services due to the worldwide recession. Since then, oil prices have rebounded. According to the International Energy Agency's (IEA) January 2011 "Oil Market Report," 2011 world petroleum demand is forecasted to increase 2% over 2010 levels. Emerging economies continue to be a significant factor in the recovery, while mature economies play a lesser role. The outlook thus faces uncertainties, as the global recovery continues to remain somewhat fragile. However, we believe that, over the long term, any major macroeconomic disruptions may ultimately correct themselves as the underlying trends of smaller and more complex reservoirs, high depletion rates, and the need for continual reserve replacement should drive the long-term need for our products and services.
A decrease in oil and gas prices causing an industry wide slowdown may result in certain companies to bring in-house the manufacturing of certain component parts otherwise made at outside machining and manufacturing companies. This practice directly impacted our prior contract mining and machining and engineered valve product business. As we intend to sell fully assembled products (and not just components) to end-users, we believe this particular practice will not affect our business.