Since 2012 the number of contaminated drinking water emergencies stemming from polluted source water in China has skyrocketed, while the residents of China’s biggest cities are losing confidence in the safety of their drinking water. In fact, in the first quarter of 2013, nearly 8,000 pig carcasses were found discarded in the Haungpu River. Concern over the potential health risks involving contaminated source water has prompted the China’s leaders to move forward on a 5-year, Trillion dollar (that’s right, trillion with a “t”) initiative aimed at cleaning up the water.
Nickolas Eckleberry, OriginOil (OOIL) co-founder and Chief Invention Officer, just returned from a trip to Harbin, China to demonstrate OriginOil’s CLEAN-FRAC technology, which boasts successful removal of oil and contaminants from flow-back water at the rate of 1000 barrels per day. Origin’s technology could prove to be an instrumental part of the clean water equation, as energy service providers are feeling the pressure from the Chinese government to find ways to safely reuse their frac-water. After successful lab tests at the Harbin Institute of Technology, OriginOil has plans to send out another unit into the field that will be monitored by PetroChina, a Chinese oil and gas company that is a listed arm of the state owned China National Petroleum Corporation.
“They are sucking up new technology like a sponge” said Nicholas Eckleberry in a discussion with OriginOil CEO and brother, Riggs Eckleberry upon his return home from China. However due to the problematic nature of entering China’s markets with respect to licensing and validation, not everyone will have access to a slice of this trillion dollar pie. During an interview on the Big Biz Show, Riggs Eckleberry, commenting on the prospects of entering this market, said, “Not to telegraph our plans too much, but it looks like some kind of joint venture structure for the entire country.”
This news is coming of the heals of the recent announcement of another giant deal with STW Resources (STWS), a water reclamation company out of Texas, as well as a deal with multi-million dollar oil service business, Gulf Energy. OriginOil has literally exploded over the last few months, with deals that will capitalize on domestic markets as well as those in the Middle East and North Africa, however the opportunity in China just may be the big break that will catapult this company into superstardom. “Once you do [business in] China at that level, you have the rest of Asia,” said Nicholas Eckleberry. OriginOil is a company that refuses to sleep on opportunities and has the technology to put its money where its mouth is. This is one rising star that you will want to keep a careful eye on.
Since the beginning of September, the average daily liquidity has surpassed 1 million shares per day or roughly $220k in dollar volume. This has been a consistent trend as well. There are many OTC companies that can only dream of achieving a third of that kind of activity per day and to the benefit of Origin, the company has the business operations and continued development to give the investment community a reason to keep watching.
OriginOil’s focus has been on an aggressive licensing and private label strategy as opposed to a simple equipment sales program. According to management, they see this as much more fruitful long-term revenue generation strategy and for early investors, this could mean much larger upside potential once the company moves forward with new contracts for future licensees.