OOIL: The company's technology can be used in the $100 billion aquaculture industry to remove toxins.
By Ian Gilson, CFA
Origin Oil (OTC Markets:OOIL) has announced that its Solids out of Solution (SOS) technology is capable of significantly reducing the concentration of ammonia in water, achieving a 99% in ammonia concentration in a test sample containing 30 ppm of ammonia. Ammonia is produced in the putrefaction of animal (or Piscean , the fishy smell) matter. It is poisonous to fish and has to be removed in aquaculture.
The company has agreed to develop a cooperative partnership with WeFeedUs, a Pennsylvania based aquaculture company, to test and validate the control of ammonia and bacteria in aquaculture. This is a $100 billion plus industry worldwide and algae is currently used as a fish food.
This is another example of Origin Oil's strategy of providing unique applications of its technology across many industries. Unfortunately there is a lag between the inventions, their applications and the generation of royalty revenue to the company. This lag has had an impact of the stock price and this may continue. As a result we have decided to reduce our recommendation from Outperform to Neutral and we will reassess this as the applications move closer to revenue generation.
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