According to the CEO of IEVM David LaVance the brake even would be when 385 wells are under treatment with Excelyte. This would provide revenues of $185K per month from an Excelyte production of 130K USG per month. The retail price of Excelyte is $1.42 per USG. The average volume of Excelyte per well is 338 USG, the actual volume will depend on the depth of each wells, average is all I have.
What will it takes IEVM shares to get to $0.10 or even $0.50?
We know there are 508 million diluted shares having a value of $10 160 000 at $0.02 per share. The value of the 508 million diluted shares at $0.10 is $50 800 000.
The required volume of Excelyte for 500 wells is 168 831 USG per month a revenue of $2 883 166 per year, using $1.42 per USG. The share value would be $0.0057 per share.
Increasing the number of well under treatment to 1 000, using the same methodology, the yearly earnings would be $5 766 233 per year, $0.0114 per share.
Earning for 9 000 wells under treatment $51 896 103 per year, $0.1022 per share.
From the CEO statement, the new 3 Master Service Agreement customers operators manages a total of 7 000 wells, 2 000 wells is only 28%. Excelyte treating 1 000 wells is feasible as it is 14%. The potential according to David LaVance is that the gross number of wells within the territory serviced by Excelyte is 31 000 wells from 40 potential customers. 2 000 wells is an increase of 110 wells per month over 18 month. To reach $0.50 per share Excelyte would need to treat 50 000 wells, this would be a national quantity. I agree 50 000 wells in 18 month is too generous, Let’s stay with 2000 or 3000 wells.
The elephant in the room is the crude oil index price. The consensus appears to be $50 per barrel by the end of 2017. My perspective is that Excelyte has an excellent potential to be very profitable within 18 to 24 month. Once the reputation, which is everything in the O&G business, of Excelyte is known the new added number of wells per month will accelerate 200 to 300 would not surprise me.
Microbiome which Excelyte is one product is getting interest. The article below is a good read. Treating and neutralizing microbiome in the crude oil and natural gas is a positive for IEVM. These new treatments will have to compete with Excelyte which will have the advantage of an history and a low price. It does take long, too long but the future is positive!
Oil, Gas Operations Can Benefit from Microbiome Research
Lately I have the syndrome of possession. I buy it goes down, than I sale and it goes up! The culprit must be Hillary; she is such a pathologic liar. She gives me the believing syndrome. She is so convincing, I have to possess it? Bill must have the same problems, except that he dumps them! I do the same but I lose, but not him!!! What is his secret???
IEVM has a total of 600 000 000 shares available to be traded of which 320 571 000 are outstanding. This means that IEVM has 62% of its available shares outstanding.
The principal debenture of $670 577 represent 67 057 700 shares priced at $0.01.
I believe IEVM has the financial means to weather this market crash. While many EPs are in bankruptcies, IEVM is hanging on. This management is the first that has O&G experience and has been heading IEVM for a little more than a year. The previous management had no experience in the EP market. They concentrated in hospital and food production. The Excelyte reputation within the O&G industry is practically 18 month old of which 6 month was with the old management. The reputation of any product in the EP industry has to be earned. IEVM, from what I read is earning it. I cannot emphasize that price combine with efficiency will earn the competence of Excelyte. Once Excelyte is used on 500 wells the gross will be $500 000. I believe it is achievable.
You have to assume that the management and employees of IEVM want to succeed and have employment for as long as possible. The management which own common shares and or warrants want to cash in and make money. I have own IEVM for 18 months and I got cut in the O&G crash just like many of us.
The fundamental question is the effectiveness of Excelyte to neutralize the effect of H2S, and what is the competition. So far the competition is Chlorine which is 10 times more expensive but still presents a serious disposal even though the H2S is neutralized.
The LTO-Shale market by enlarges, will survive this crash and will provide Excelyte with many potential customers. The O&G market subcontracting is based on historical accomplishment. IEVM did not have a history on which to build accomplishments. According to the latest memoranda the buzz has started. IEVM has been taken in this crashing market like many others; IEVM still has enough financial resources to be successful. Been in the OTC market in a gamble, nothing knew!
We have to assume that Mesabi Iron Ore is loaded at the Silver Bay harbor only. There are 2 other harbors on Lake Superior: Duluth and Two Harbors but do not load Mesabi iron ore.
The Great Lakes Trader/ Joyce L. Van Enkevort on July 15 is to load 35,500 Ts of Iron ore pallets. This ship is 740 feet long although I cannot find the capacity, The Bichglen ship is 730 feet long and has a capacity of 34,300 Ts, 10 feet longer should increase the capacity by 200 Ts.
So far for July I counted 98,000 Ts of Iron Ore Pallets.
Are you saying that all wells producing in Uinta Basin have traces of H2S? I have read that some of the crude oil in the Uinta Basin is heavy and needs heated trucks. I have also read that some wells have H2S. Most of the Uinta Basin production is processed in Salt Lac City area, because it is heavy.
My last comments regarding IEVN and Excelyte were right on. What I said was that the current crash in crude and NG prices made it extremely difficult for producing wells to stay producing. Gushers are privileged; they are the money makers and are not caped.
The crude oil price has been a killer. IEVM is coming back from hell.
The US O&G market is volatile and will continue to be. With Crude oil prices at $50 and NG at $2.75 IEVM will start to be competitive. As Excelyte production increase the fix management cost will lower on a per gallon bases and profitability will be noticeable. Once the threshold of 250 wells treatments are achieved profits will be happening.
Having had O&G experiences, I can attest that H2S is a costly problem on the equipment and on the OSHA requirements. The forecast of long ago of IEVM share price of $0.50 is achievable within 18 months. I can project earning of $600K should 1000 wells are under treatment. 1000 wells is 1%, minimum, of the active well in the US. In Kazakhstan there are many wells with 30% H2S producing and making lots of money. Excelyte will have a good life, the hardest price is patience!
Yes it is!!! I am in Thailand and today for you is tomorrow for me. Thailand is 12 hours ahead of Texas?? Which means noon in Houston is midnight in Bangkok.
Very simple, on the Arrivals and Departures - Duluth/Superior web site you get the name of the ship what it transport and the date it goes through the locks, the from/to and the kind of load. If you look up the name of the ship it will give you the length and the tonnage. I made a spreadsheet with all the ships names some where around 30. Good luck to all??
You can add up the daily tonnage of all ships.
To start with H2S is an extra expense that may make the well unprofitable. or a H2S well to be treated it has to be a gusher. IEVM is getting by hoping to see prices back to $70/$80. IEVM is probably braking even waiting for the prices to increase. In the mean time your in for the long hold or you get out!
Excelyte is an outstanding cheap product to treat H2S. It is also the worst possible time to break the O&G EP business.
Many if not most independent EPs begin their drilling and production when fracking was a new technology without a known cost reference. The crude oil price was in the $100 per barrel. The banks were willing to loan capital with such high price. The profits were about $30 per barrel; loans were paid with little problems, all was well.
The 2014 crash has totally changed the fracking industry. The outcome is that only the most profitable production wells are producing. In the O&G industry H2S is a major additional expense, just the additional safety equipment that must be on location to satisfy the OSHA regulations is a negative. IET potential customers have evaporated unless the IP H2S wells are gushers meaning an additional $2 or $3 per barrel cost is manageable. Many LTO EPs are having a hard time to stay profitable, that $2 or $3 added cost is too much. Shutting down the well is preferable until!!!
The price of crude oil cannot stay down back to the $20s, it will cause major political up evil in the Middle East and Africa, cannot forget Venezuela. Once the US EP M&A will have been completed IET will rebound. By the end of this year IET should pick up more customers. Patience, hard to do!
These the time of years the auto industry start producing the new model. Should be good for iron ore and steel plate!
Thanks very good link. In calculating my crack average I scr__d up. I used the number of day less week end! I do not think the refineries are closed on week ends?? My new average for Q2 is $12.39.
Using the EIA published crack spread between April 19 and today the Crack is $8.41. I use the quarter starting date 30 days before the last Xdate or in this case what was supposed to be the last Xdate. The reason for this 30 days previous start date is that the market powers of be must receive the projected Xdate 10 days before the programed Xdate. I add to this the time it takes to prepare the report and to have it approved by the BOD. Still not too good but better and going up some what!
The over supplied of crude is starting to be an argument that may no longer be right. There is an analysis of the world production of crude, including OPEC that sees South America as the place that will see a 1MMBD drop in production. The producers having problems are: Venezuela, Colombia, Mexico, Equator and Brazil. Venezuela is on the verge of default. Brazil is in the midst of a political Armageddon. The others are having a hard time to find financing. The index price does no longer provide a profit after all expenses are paid. The crude price has seen bottom and will be in the high $40s if not $50s by Q4. The refiners crack spread is getting higher, in the teens. Patience is required?
It is quite interesting, I read that we have bottom out and we should see crude prices back to the high 40s or low 50s. I also read that a recession is coming so sell, sell, sell??
My guess is that the Saudis will not get their ways; the LTO-Shale will do better than expected. As for the recession it will all depend on the November election. If elected the democrats will tight the hands of business some more! Seems to be what they do best!