OOIL: Successful completion of CLEAN-FRAC field test on producing oil well.

Zacks Small Cap Research


By Ian Gilson, CFA

OriginOil (OTC Markets:OOIL)
reported on Feb. 28, 2013 that its CLEAN-FRAC water treatment system has successfully completed a field test on a producing well near Bakersfield CA. The water from the well was contaminated with heavy crude oil and drilling residues. The organics in the water was reduced by 99% and suspended solids was reduced by 98%

This test shows that an operator can increase the oil produced and reuse the water, both of which are economic benefits that would offset the cost of the equipment used to clean the water. The CLEAN-FRAC system does not add any chemicals to the effluent.

Oil field operators are extremely conservative. Bonuses depend on production and any action that may reduce or slow down oil production is unlikely to be accepted. That means that extensive testing, on someone else's well, is not unusual

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