H2Omaxx ReportIn this issue we will explore the diversification of the H2Omaxx technology.
Marine Bilge
The second generation H2Omaxx, while in the Vancouver area, has demonstrated that it is useful not just for the oil
and gas industry it was initially developed for. Bilge water, brought in by tanker, was treated by the H2Omaxx. The
results achieved were better than 15 parts per million (ppm); sufficient for the cleaned water to be discharged back
into the ocean. These promising results support Wescorp and Allied Holding’s belief that the H2Omaxx technology
can achieve marine certification for use aboard a ship
Reverse Osmosis (RO)
Reverse osmosis (RO) is a filtration method that can remove large molecules and ions from solution when pressure is
applied on one side of a membrane or filter. The membranes or filters used in reverse osmosis water treatments are
prone to clogging due to the hydrocarbons in the waste water. The H2Omaxx can play a key role when paired with a
RO system. The H2Omaxx can provide the front–end mediation needed to clean the waste water to a level suitable
for discharge back into the rivers, lakes and harbours. The H2Omaxx provides potential customers the opportunity to
reduce expensive filter replacements and the time savings of downtime that the clogged filters present.
Water remediation is very important. In the Vancouver area, industrial waste water is discharged into the Fraser
River. The river dumps about 20 million tons of sediment into the ocean each year. Governments and industries are
aggressively looking at initiatives to reclaim water used in industrial applications. There is new water discharge
regulations aimed at industry along the Fraser River to be implement for January, 2012.
Hydraulic Fracturing
Fracking has come under widespread criticism due to the large quantities of water used to produce the natural gas, as
well as the perceived environmental impact of the chemicals seeping into the ground water and streams. It has been
estimated that 2-4 million gallons of water is used for the drilling and fracturing of each gas well. The returned
mixture or flowback water is generally not cycled but hauled off to treatment facilities.
In the U.S., President Obama and the Department of Energy has formed a panel of academic and environmental
experts to recommend safety and environmental improvements to fracking. Within six months, the panel will be
making recommendations on extraction processes to ensure public health and environmental protection.
At the annual shareholder’s meetings of ExxonMobile Corp and Chevron, approximately 30 % and 40% respectively, of
the shareholders, demanded disclosure regarding the environmental risks of fracking and how the company plans to
minimize these risks.
Around the world – in Eastern Europe, China and Australia – there are shale gas plays. Shale gas is one of the new
sources of energy on the planet. The amount of water used in fracking is also making water consumption and disposal
a major concern for the environment. New standards for local surface water disposal and new approaches to water
reuse is being developed. Significant opportunities exist for new technologies that can cost effectively assist the oil
and gas industry in meeting these water related challenges.
The mobile, compact, on-site treatment capability of the H2Omaxx can provide potential customers the option of
treating the frack water and the produced water on site rather than shipping it to costly off-site facilities. Some of the
cleaned water can then be re-used in the continued fracking operation, reducing the draw on fresh water delete up to
here
Other News
The second generation H2Omaxx has completed demonstrations in Vancouver and will be heading to Saskatchewan.
Scheduled to arrive mid-June, the unit will be testing hydrocarbons removed from a polymer flood produced water.
These are controlled trials established by the customer. The unit will also serve as a demonstration and test platform
for interested customers.
The first generation H2Omaxx continues be located in Northern Alberta where it is testing a number of contaminated
waste streams. This unit will operate at this customer facility for various applications to demonstrate the versatility of
the H2Omaxx to other potential customers.
Wescorp has contracted Viewpoint Securities LLC, headquartered in San Diego, to assist in securing corporate and
equipment financing options. Viewpoint’s advisory services will also identify potential partners and opportunities that
fit Wescorp’s H2Omaxx technology. The team at Viewpoint brings, combined, decades of experience in investment
banking within the oil and gas, water, and greentech industries.
Wescorp continues to seek a Canadian listing on the CNSX (Canadian National Stock Exchange). Following the filing of our quarterly 10K filing with the U.S. Securities Commission, we are now able to proceed with the formal paperwork
filing with the Alberta Securities Commission. We are now anticipating a listing on the CNSX no earlier than Fall, 2011.
Hydraulic fracturing (fracking) is the process of creating fissures or fractures in underground deep shale
formations to allow natural gas and oil to flow. A high pressure mixture of water, sand and chemicals is injected
into the formation to release the hydrocarbons. The return water (also known as flow back water) is recovered
along with the hydrocarbons and the produced water in the well. Typically, the flow back water and the
produced water are sent off-site by tanker to a treatment facility. The mobile and on-site treatment capability of
the H2Omaxx will allow the customer the option of recycling and reusing the flow back water and the produced
water in its operations.