Acceleware Ltd V.AXE

RE:RE:What is holding the SP back?

[Lurker11]

• goggles once again provides nothing of value.  The only thing I got out of his all negative spin is that the pilot is critical to prove the technology and commercialization potential (DUH) and financing is a concern (DUH)  
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• can cut the costs in half for setup and production of oil sands producers

This is not proven it is simply a statement from them
Duh, that's what pilot tests are for

• can greatly reduce the environmental footprint and impact of operations in the oil sands

See above comment
See above comment

• is patented (1 complete, 6 pending, 9 more applications)

Then what is Harris piloting with Suncor?
Nope do some more research

• can reduce the time for greenfield to production to under 2 years

See first comment
See first comment

• has been proven to work with a real world test (small scale)

Yes the concept of RF heating has been out there for decades
See first comment


Associated Companies

• partnered with GE who have their own vested interest in developing and proving next-generation technology for higher-efficiency / lower cost power generation

Bet I can tell GE is a shitshow right now trying to sort themselvesout.  Would be suprised if they even have a direct contact there anymore.  they are talking about selling out of O&G like 2 years after buying BH
LOL nothing but useless hyperbole

• worked with Chevron during initial test and presentations regarding RF technology

The why is Chevron not the partner?
DUH. Didn't check all the boxes to best benefit AXE.

• agreement with Prosper for a commercial scale test. Prosper is a smaller company that:
  • has a significant corporate interest in RF success and bringing Rigel into production quicker at a reduced cost
  • does not have all the competing interests and internal administration that major producers have
  • has already obtained approval to move forward with the Rigel project
  • is partnered with PetroLama on the Rigel project

And has got pretty much nowhere on their project since buying it off Koch a few years ago
DUH, been over this already, aren't you paying attention, can't do anything without approvals which they just received.

RF Strategy

• research, design and develop the technology (done)

Conceptually yes but running a tool down a 1000m well without breaking it is a different story
See first comment

• strategic alliances with significant corporations e.g. Chevron, GE (ongoing)

Co-authoring a paper is hardly an alliance, see above on GE
Alliances vary in scope and scale and see above comments on GE

• real world proof of concept / field test (done)

It was sand full of water in a ditch.  Not exactly a reservoir test
See first comment

• don’t go it alone, setup a board with all the required expertise and experience (done)

Unless these guys each dropped 20% of their net worth into the project and have downside risk I am skeptical about this.
Who cares about downside risk, they are providing their expertise which is what they are there for.

• commercial scale test (beginning)

Planned - hardly beginning
Again, just got the approval.  The only thing you know about this is based on google earth

• commercialization of RF

LOL
See first comment

Financial

• existing revenue steady through 2016-2017 at $1.3 mil, however has declined quite a bit since 2013. They have spent significantly on R&D and they need to be able to start generating additional revenue in the next couple of years to get to a positive cash flow position
• have $10 mil non-repayable funding expected to be available by end of July
• only 100 mil shares out
• opportunity to recoup RF test costs from bitumen sales from commercial test
• opportunity for ongoing revenue if the operation continues after the initial test

LOL again
Nothing useful

Risks

• Prosper unable to provide the required infrastructure at Rigel. Difficult to gauge the exposure to this risk from an investor perspective as they are a private company and do not need to publically report financials. However, the company/opportunity was vetted by an experienced board and Prosper has a partnership with PetroLama on this project

Yup huge risk here.  Maybe the Lama invested so they could come and see Jagr paly for the Flames.
Nothing useful here

• GE technology fails. GE has already invested a significant amount of time and effort in the R&D of the technology, they have broad funding capabilities and expertise and a vested interest in seeing the success of their technology

GE might see this as non-core going forward and walk
See above comments on GE

• RF does not meet expectations/fails. The technology has already been tested and exceeded expectations in a smaller scale test (1/20 scale). There are always risks when the scale is expanded however they have significant expertise and access to additional support through their strategic company alliances

RF will heat conate water but will the oil drain at commercial rates that is the question
See first comment

• Unable to fund the commercial scale test. They expect the test to cost between $16-$20 mil and have access to $10 mil in non-repayable funding. They are pursuing additional participants in the consortium to help with funding and support. If needed they should be able to raise additional funds in the market without substantial dilution

Huge risk here and whoever pays is going to screw the existing shareholder as the share price didn't exactly skyrocket on announcement
Financing is obviously a critical piece

• Takeover. In my mind there is a significant risk that the company could be bought out before they realize their full potential. While this would undoubtedly provide a quick return on our investment, IMHO it would significantly cut the investment gains that I hope to realize with this company

I doubt it would be a takeover just massive dilution by incoming investors
See above comment