The Ramp up processAs the process for this is very similar to a mining process in the sense that you mine the sands, then you process it to get what you want out of it.
so like a mine, there will be a ramp up process (as mentioned in some press releases)
typically, this is done to iron out any flaws in the process. during this process, the company will learn how the plant operates, and during this time you will have numerous shutdowns to fix things, you will burn out components etc etc until you figure out the most efficient way to operate the plant.
this will likely take 3 months, but can happen more quickly or take longer depending on the process. As this is a small plant, it may not take that long, but I'm planning for it.
during this time period, I'd expect we will start at 500 BPD and ramp up to 2000 BPD over this time period. But due to the lower production and the shutdowns, I'd expect the cost per barrel produced wont be very efficient. My guess is $65-$85 per barrel to start, and those costs will gradually decline until the cost per barrel is below $55 when they reach full capacity. (the reduction to less than $50 per barrel will come in the months after reaching full capacity)
That's why they will need extra cash. to cover losses during the startup period. I think it is fair to expect some of the warrants outstanding will come into play, but most of the finincing will ikely come from a line of credit which will be secured in the near future. Im not sure if the line of credit they secured earlier (but didnt use) is still available, but this would be the logical way to go.
I'd expect an announcement on this within 3 or 4 weeks (but quite possibly sooner)