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???