RLE,V-RGDEF nice post on Ridgeline on Silicon investor-From: Ed Ajootian 1 Recommendation of 177856
Celtic, Ridgeline (RLE.V) --- great to see that the 800 lb. gorilla (that would be EOG for those of you scoring at home) has looked at RLE and stuck its thumb in the air. I believe most folks (including me, frankly) had assumed that RLE's treatment facility at EOG's New Mexico site was not a commercial success. This PR removes any concerns about that and instead indicates that it has been so successful that EOG wants RLE to double the water processing capacity there. This represents the first market validation of RLE's ability to treat water related to oil & gas operations (i.e. frac flowback and produced water) that was based on an extended period of actual commercial operations. I believe this will turn out to be a critical development in the history of RLE.
Great to see them also get a foothold in the Marcellus. With $4 natty, there's going to be a ton of drilling over there in the coming years. Water disposal costs are very high over in PA because I believe PA does not believe in having SWD wells and all water needs to be trucked over to Ohio or other states.
I guess now we know why they did that very dilutive equity raise a month or 2 ago. If they wanted to show EOG (and the rest of the oil & gas world for that matter) that they were serious about offering a water treatment solution they had no choice but to jump when EOG stuck its thumb up in the air.
I understand that RLE is going on a promotional tour up in Canada next week, which is perfect timing given the recent news and given how the stock has responded. No doubt they are working on revising the presentation on their website, which is now way obsolete (having last been modified in November). Hopefully they will share the new presentation with the rest of us at some point.
And so we are told this is the golden age
And gold is the reason for the wars we wage U2
