TSXV:WEE.H - Post by User
Post by
everswannon Mar 20, 2010 1:30pm
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Post# 16906393
WEE Biz Model
WEE Biz Model
WEE is a small cap with limited cash reserves.
Penetrating the huge oil market is ressources intensive (expertise, time and cash)
The model is threefold:
1- Supplier to major players by rented out Powerwave Units generating fix stable cash flow.
a) WEE has their own sale staff.
2- Farm in agreement with Geographical partners (Greentree) to access oil field and use their personel to do the ground work. Rev. from oil sales is devided and quick rate is perform for the first years so WEE can recoup as quickly as possible amounts invested.
3- WEE to do generate oil by itself by going after land.
Extra - Env. biz
WEE provide Primawave for dealer in Env. sector to find client themselves and sale primawave for a small comm.
As you can see, the model is extremely powerful.
Adoption of the technology is a no brainer for oil executive.
You should them the profit, the quick payback and the low risk and all will jump on WEE for but one major obstacle.
Oil projects will go along as long as their is credit to fund them and as long and long term growth is there.
We had a credit crash and an oil price crash in 2008....
It's all over now and as you can see, traction is accelerating.
In a nutshell, WEE is not partnering with Cernovus but supplying the tech for Cernovus.
I suspect they have a non compete secret agreement for that area.
Blue skies ahead, no clouds for the braves!