It is fair to say that the WTI crash is the reason Excelyte is not taking off as it should be. Drilling is one aspect of the Excelyte treatment, but when re-fracking is done, once the IP become an awful EUR, Excelyte treatment is again used. It is also true that there are hundreds of wells waiting to be fracked to start to produce IP rate. Some believe that 1600 wells are on stand by for the WTI index to make it profitable to add wells to production.
Managing LTO-Shale is very much different that standard reservoir production. Many LTO EP’s keep on drilling but do not frack. Excelyte is used in the drilling side of LTO, but once the drilling is achieved the fracking has to take place for the production to start. Excelyte neutralize the H2S of the crude or gas produced. Excelyte treats the drilling mud from H2S for easy disposal.
Bottom line the WTI index has to stabilize around high $40s for Excelyte to take off. Patience is not an easy practice. My guess, 4th quarter 2016 is the earliest possible IEVM bump, up to $0.03 max. Could go to $.05 or $.06 should the WTI index stabilize in the high $50s. I am not including the new pipeline treatment.
ALDW has expanded its refinery reformer and alkylation units that produce high-octane components. The main reason for these refineries improvement is the growth in premium gasoline sales. The high octane as to do with average fuel economy (CAFE) standards enacted by Congress in 1975. That mandate increases the average miles per gallon required to be achieved by new cars and trucks. One of the most significant technologies for greater fuel efficiency is the use of turbocharged engines to improve fuel economy and engine performance. That means, for example, your Ford F350 V6 pickup truck engine comes with an “EcoBoost” option that is a turbocharger. Manufacturers of turbocharged engines generally either require or recommend the use of premium gasoline because it contains higher octane that helps the engine run smoother and more efficiently. ALDW is ready to provide high octane premium gasoline. ALDW is staying competitive; the high octane gasoline will fetch higher retail prices.
I cannot blame you, 10 years is a long time. My investment is 18 months old and happen in 3 purchases to lower my share cost bases. I am afraid that the drilling market will see an upside with crude oil above $50. I call my IEVM investment my poker hand. I only want the shares to go to $0.1 than I will have to decide, take my profit or double up?? Until than, I can live with the volatility.