FWIW......from KS today........RDX TECHNOLOGIES—RDX-TSXV; RGDEF-PINK First off, I taped the call and will post the transcript to the Members Centre once it’s completed (usually 2 day turnaround). CEO Dennis Danzik gave a (very) brief presentation to start the call. Their water services contract is with a division of Concho (CXO-NYSE). Using RDX technology, Concho will be using completely recycled water—up to 1.1 billion gallons. The RDX system has a capacity of 81,000 gallons per hour, or 46,000 barrels a day. Danzik has sourced about 65,000 bopd water from different sources—all of it waste water from either Concho itself, other oil and gas producers or waste water from municipalities, the state of Texas etc. NO FRESH WATER will be used. All of the water will be used by Concho for fracking. Total capital cost to RDX is roughly $1 million including permitting and pipelines. There is one mile of Right-Of-Way and 16 miles of water pipeline. EBITDA per year should be $2 million—a great return. He said gross margins are 65%-70% and operating margins are about 30%. Danzik says he is saving customers about 50% on their water bill. It’s a take or pay contract that started March 1. So even though the pipeline is not yet operational, the Concho sub is paying about $11,000 a day. The Concho subsidiary is guaranteeing a minimum volume per day for 3 years, which is two million gallons a day. There are three terms—the 2nd five year term (optional) is worth a minimum $22 million total, and the 3rd five year term (optional) is worth a minimum $24 million. The minimum revenue for the first three years is $18.5 million, up to $24 million, and $14.6 million of that is guaranteed. Danzik says transporting water in Texas needs a permit, and getting that permit takes a long time—creating a barrier to entry for others. Danzik does expect more contracts in the area, and that he can expand to 6,000,000 gallons a day from the current 2,000,000 on his current property. He did say he would have all his water capacity contracted by June 15 so I don’t know if that means shareholders should expect two more Concho sized contracts by then? And although RDX will incur some capex for extra contracts, the Right-Of-Way for example is already paid for etc. so it will be a lot less per mile or per gallon or barrel of water used. It was interesting to me that the first question asked was obviously from someone with deep local knowledge in the west Texas-Midland area. They wanted to know if RDX was to be moving into specific nearby areas where Pioneer or Anadarko are operating. I still have questions so I don’t have all the answers I want yet. Getting off topic of this oil and gas contract and moving over to franchises, Danzik says they are negotiating with 56 potential franchise locations in the USA, and have started preliminary talks with groups in Canada and Europe. I will update this update when I get more details. I want to tell everybody--I still don't know enough about this space. I'm quite sure the big services companies have some kind of water recycling services but haven't been able to dig into it deeply enough. There are other companies like Ecosphere, (ESPH-OTCBB) GreenHunter (GRH-AMEX). Here is a slide from GreenHunter's powerpoint on what they consider the economics of water in the energy sector. RDX--GRH water cost estimates by play in US - Keith