Jason Donville
Wavefront Energy & Environment Services
WEE-X
DON'T BUY
Oct 17, 2011
Their enhanced oil recovery technology looks pretty good. There has been a massive valuation that this stock has had to grow back into. Revenues are not going to be anywhere close to what is required to make this a good holding.
Increasing stimulation and getting more oil out of reservoirs. Had some good contracts and the stock has been getting a lot of attention and it could be a big winner as they prove things out.
Well stimulation and have been working with Encana (ECA-T) for the last couple of years. Increase in production and decline rates have come down using this technology. Market cap of $175 million and revenues are only a few million. Too expensive for him.
Technology that uses water stimulation for better oil recovery. Rents the equipment out and usually is out for 7 years. 4-month rental pays for the tool. With 150 tools in the ground and working, they end up with a phenomenal revenue stream. Very speculative.
Technology to increase reservoir oil production. Recently got a big contract. Now basically is when does the next big contract come in? Technology has proven itself and pays for itself in a very short period of time.
Well stimulation to increase oil production. Seem to be getting quite a bit of traction and expects they will become profitable in the next couple of years. Doesn't have a lot of revenue presently.
Technology is amazing if it will do what they promise but it has held out this promise for about 3 years but hasn't gained much traction. People are waiting for sales to appear.
Friday 4pm press releases. A lot of Canadian companies do it at noon and it is a big price shock. Doesn’t think 4pm is a strategy. It’s heading down. If it can jump above $0.60 then it might break out.