I don't work for the company, but I do a lot of research such as how oil is extracted and what is involved in salt water disposal. Right now we only have the salt water disposal well, but down the line we will be getting actual oil/gas wells. I've also looked at silver/gold mining and uranium mining, but I couldn't find any companies that really looked good. IPRC looks the best of any company by far, even after having relooked at other companies over the last few weeks. In my previous post just before this one, I was trying to emphasize that oil/gas companies in the Barnett Shale area have been improving their techniques, especially with multiple drilling and so their outputs have been significantly climbing and at the same time the returning salt water has been substantially increasing and they are scrambling to find salt water disposal wells to take their excess salt water production and instead of just hauling it once a day they now make several runs a day.
In looking at court cases where disposal companies were seeking approval for their wells, one of the judges gave that quote about the environmental agency saying salt water wells were a good option. The judge even went on to say that it was a better option than trying to recycle the salt water which some companies try to do by removing salt and contaminates by steam separation or reverse osmosis. So it looks like we won't be facing competition from companies that try offer water recycling, that is just too expensive.
Also some of the disposal companies that have been in business for awhile say that they are getting over 1% of oil from the salt water that they receive because they have tweeked their process over time so that they now get far above the .25-.50% that had been considered optimum. from our new press release it sounds like we will be getting over 1% oil extration and that would be a cash flow of over 4 million dollars a year just from the skimmed oil.
Considering that the oil drillers are increasing their salt water production, soon we will reach our full capacity. Some salt water disposal companies are now permitted to dispose 50,000 barrels a day and with two ramps we could accomidate this rate. Even though the company hasn't mentioned this, we might get a permit for 50,000 barrels a day and then we would be approaching a cash flow of $850,000 a month. With that kind of money we can do a lot of things, not only develop our other properties, but acquire new ones.
So for the last few weeks I have been acquiring shares at .063 and have now doubled my number of shares again. This by far is my largest holdings of any stock. Over the long run I think this is going to go to well over a dollar a share. You might want to consider at least buying a few shares. It is going to be several months before the company gives an official quarterly report on its earnings plus its debts and expenses. I would think that it will show a positive cash flow, but until we get that statement, the stock might not do anything. So now is the time to buy.
