New York, NY -- (SBWIRE) -- 08/25/2014 -- Recently OriginOil (OTCQB:OOIL) announced that the company's GEN 2 Clean frac system landed in LA. After realizing major success from its smaller GEN 1 system, OOIL has stepped the game up in a BIG way! This new system can process more than 10,000 barrels of oil- and chemical-laden frack water each day showing that OriginOil's CLEAN FRAC system is not only scalable but still small enough in comparison to other frac treatment systems to actually fit into a 40ft container according to the company.
Furthermore, the company recently reported that it had found even more favorable results from the demonstration of its CLEAN FRAC system and how its energy saving ability is far superior to what the market currently offers. "We knew from early internal lab tests that CLEAN-FRAC™ has outstanding capabilities. Now those results have been verified in a demonstration-scale system by Lizard Analytical Laboratories, an independent laboratory located in Grand Junction, Colorado. We are now scheduling multiple customer site trials and intend to continue to publish performance results and case studies from these test sites.," stated Lee Portillo, VP of Engineering for OriginOil.
Of note, the CLEAN FRAC system was able to remove: 99.5% Turbidity 90.3% Suspended Solids 90.5% Oil & Grease EWS It wasn't that long ago when the company was just beginning to gain traction in the market for clean fracs technology and since then OriginOil has been increasingly growing by leaps and bounds. OOIL has created a system once capable of cleaning up to 1000bpd and successfully scaling it up to handle more than 10X the processing capacity and roughly half a million gallons of dirty, oily water per day! Bear in mind that it's not just how much the system can process but actually how it processes. OriginOil announced earlier this year that in company testing, EWS was found to efficiently generate chlorine dioxide (CLO2) an important pre-treatment step for frack flowback, produced water and other applications. The company intends to make this process part of its standard CLEAN-FRAC™ product offering.
The major advantage of this is that through OOIL's process, the system can actually help in the process of turning sour crude into sweet crude and in the case of the oil industry, sweet crude commands up to $15 more per barrel. This is an obvious advantage for fracking companies to utilize the OOIL CLEAN FRAC system before others and give a competitive edge to the company. Furthermore, OriginOil has stated that its Electro Water Separation™ technology can be utilized to continuously remove oils, suspended solids, insoluble organics and bacteria from produced or 'frack flowback' water and can save as much as $200,000 per frack job. As far as the overall EWS process is concerned, the main advantage for Origin is its ability to treat water using much less energy why also making it possible to re-use this water for future frack operations.
A Wall St. Journal article cites that companies are racing to find ways to recycle the water used in hydraulic fracturing, chasing an emerging market that could be worth billions of dollars. It takes between 70 billion to 140 billion gallons of water to frack 35,000 wells a year, the industry's current pace, according to a 2011 report by the Environmental Protection Agency and the costs of actually providing the original water could be in the 6 figure range as one Oklahoma City-based oil driller demonstrates. According to Continental Resources Inc. fresh water delivered to a drilling site costs between 10 and 14 cents per gallon, which alone can cost upward of $400,000 per fracturing attempt.
And on the flip side such as in the Northeast, oil companies have to pay up to $8 per 42-gallon barrel to contractors to haul waste-water for disposal elsewhere! Now that OriginOil has not only found a successful way to clean frack water for its reuse on site, the company has done so using far less energy per barrel. This offers fracking companies a 1-2 Punch for cost savings and Eco-friendly operations while giving them an opportunity to achieve a "sweeter" result when talking about the quality of crude produced. According to the U.S. Department of Energy, an average of 3 barrels of contaminated water is generated for each 1 barrel of oil produced.
In the United States, the average is 7 barrels of water. Greentech Media reports "energy companies pay between $3-$12 to dispose of each barrel of produced water, implying a potential world market value between $300 billion and $1 trillion per year." Now OriginOil has kicked things into high gear with its new, scaled up CLEAN FRAC system, which opens massive market opportunity for the company, in my opinion. Furthermore, OriginOil's EWS system has shown to be very energy efficient as well. Halliburton (NYSE:HAL), for example is a much larger company with a multi-billion dollar market cap and a share price nearly 370 times higher than OOIL, however not only is OOIL's system half the size of HAL's but pound for pound or should I say barrel for barrel, the EWS CLEAN FRAC technology buries the competition's energy efficiency by more than 60% with all other variables remaining constant.
The EWS technology both saves money through cleaning frack water flowback and it also curbs energy usage on project sites by more than half that of the major market players. The company has been undertaking intense research and development during the first half of the year to quickly build on its EWS technology as noted by the most recently filed quarterly report. 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 signs new contracts for future licensees.
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About OriginOil, Inc.
OriginOil has developed a breakthrough water cleanup technology for the oil & gas, algae and other water-intensive industries. Unlike other technologies, the company's patent-pending Electro Water Separation™ process rapidly and efficiently removes organic material from large quantities of water without the need for chemicals. For the oil & gas industry, OriginOil is helping clean up produced water and recycle fracking water, to reduce harm to the environment and lower costs. For the emerging algae industry, OriginOil is making large-scale harvest possible. And in aquaculture, OriginOil is helping improve yields and making seafood healthier by dramatically reducing the levels of toxic ammonia and bacteria in water. For a world short on clean water, OriginOil is the lower-cost and cleaner answer.
To learn more about OriginOil®, please visit our website at www.originoil.com
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