Meeting with Biles and Dalati and tour of K-LINEFriday I meet with Doug Biles and Richard Dalati at K-LINE in Abbotsford BC with a few other long term investors.
I’ll start with the 10,000 BPD unit that K-LINE is manufacturing. This unit sits on top of a custom built 48’ trailer. The internal components and most of the external fittings of the separator have been installed. This unit is made out of aluminum. I was told units sold to customer will be made to suit the environment that it is in, aluminum, high abrasion steels, stainless, ceramics or any combination thereof in order to optimize performance. When the unit is in its upright position on the trailer it stands about 25 feet high and is 8’-10’ in diameter. For transport it lays flat of course. It is raised and lowered with a large hydraulic cylinder that will only take few minutes to cycle. I do not know the status of the electrical or pump portion but systems have been purchased and I was told that everything is on schedule as of right now. Once the demonstration unit is on site it should only take a couple of hours connect and operate. I was extremely impressed by its size and the way it will presented.
The water industry is anywhere between 4-8 times larger than the oil sector. Each barrel of oil requires 4 to 8 barrels of water for extraction and transportation which must be cleaned. Oil companies have been sold many different technologies over the years; all of them have used filters and chemicals in order to achieve moderate results as we know WSCE does not. These chemicals and filters are extremely costly and cause regular shutdowns which also cost the company employee down time lost production while the H20maxx would not.
Again I was told WSCE will be putting focus into the gulf although the wheels are turning but it still takes time. Obama gave the attorney general 25 million to build a case against BP and identify other companies that may be responsible for the spill. So BP and these subsequent companies are not opening their doors as freely. Most require a corporate lawyer to be present to make sure their butt is covered. You also have to look at the Republican and Democratic states in the region. Federal money for cleanup is not going to come as easy for those Republican states. The wheels are turning though.
As we know past management did not quit meet our expectations. This meeting I felt that there seemed to be a clear focus for the future and with the completion of the mobile unit we should see a lot more interest. It is also a lot tougher dealing with 3rd party remediation companies than it is with the actual oil produces. Things should move quicker in the future.
Mlucci, I do not think that if the unit were to be delayed that this is in anyway involves management. This is a large unit, the first one to be produced and some systems have been beefed up in order to withstand the rigors of truck transport and show. If it were to be delayed, which I do not feel it will, it would be ready shortly after…..That is part of manufacturing process.
Teetogrn, sales I do not think will happen until the mobile unit struts it stuff. When an oil and gas company can look at the bill of goods, kick the tires, listen to the motors. That is when we should see results. We do not by new cars by just looking at the brochures but actually taking it for a test drive. We know almost right away if we are going make that purchase based on the performance.
Overall, after seeing the unit and talking with everyone I couldn’t be happier and at this point do not really care where the stock price is because there seems to be bigger things brewing and faster than we think.