TSXV:WEE.H - Post by User
Comment by
BenVest99on Oct 15, 2009 6:37pm
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Post# 16392055
RE: Edmonton Journal article
RE: Edmonton Journal article"The local makers of a pulsating device proven to push fluids through a reservoir say an oilpatch client could soon be allowed to book more reserves after extending the life of a section of an oilfield."
"Given these results, we would expect the client will be able to book more reserves with its IQRE (Independent Qualified Reserves Evaluator) representative," he said."
If this company is able to increase its reserves based on WEE's results this could be huge for both WEE and its clients. First, my understanding is that oil companies have access to credit margins that are backed by their oil reserves. If they increase their reserves, they have access to more $$ to do their development projects. Of course, this is in addition to the bigger profits they get from the increase in production.
Secondly, if the company is able to increase its reserves based on increased recovery due to Powerwave, they should have to demonstrate that they will be able to use this technology for a period long enough to get the extra oil out of the ground. This should translate in long term contracts for Powerwave and a stable revenue pipeline for WEE.
GLTA (speculators for the moment)