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Nawar Alsaadi  

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  • Gasfrac's Fracturing Process Gets Coveted Chevron Endorsement [View article]
    Major win for Gasfrac in NY this morning, could be the first process to be allowed for fracking in NY:

    http://bit.ly/HgHOcH

    May do an article on that sometime down the line.

    Regards,
    Nawar
    Mar 28, 2012. 04:22 PM | 2 Likes Like |Link to Comment
  • Gasfrac's Fracturing Process Gets Coveted Chevron Endorsement [View article]
    Thanks for your comment valk. The company is listed on the Toronto Stock Exchange (TSX) under the symbol GFS; they also plan to list next year in the US in a major market such as the NASDAQ.

    Regards,
    Nawar
    Mar 28, 2012. 02:06 PM | 2 Likes Like |Link to Comment
  • Gasfrac's Fracturing Process Gets Coveted Chevron Endorsement [View article]
    Hi There,

    The company mentioned in the March CC that they are considering working with an industry partner to develop a propane recovery unit. It is worth noting however that not all customers require such units, several have access to gas processing plants where the propane is being recovered.

    I agree the equipment needs to be on location, however building a market for a whole new fracturing method is a herculean job; a massive education and information efforts are needed to familiarize the industry with the LPG fracturing process; the company is certainly making steady progress, but not as fast as they market expected in my opinion.

    Regards,
    Nawar

    Mar 28, 2012. 09:14 AM | 1 Like Like |Link to Comment
  • Gasfrac's Fracturing Process Gets Coveted Chevron Endorsement [View article]
    Craig,

    This is not a charity endorsement, as a matter of fact your second paragraph pretty much answers the first one; the fact it took them that long to vet and test the technology before endorsing it, should give further credence to that endorsement.

    As for the stock price, I don't believe the price reflects the significant progress the company experienced over the last 12 months; if it did, it wouldn't be an attractive investment at those levels.

    Furthermore, choosing to focus on the 12 months performance is quite disingenuous and arbitrary, if we were to look at share price performance since their IPO in August 2010, the stock is up 35%, one gets the sense that there is something right with the company or the process.

    Regards,
    Nawar
    Mar 28, 2012. 12:57 AM | 2 Likes Like |Link to Comment
  • Gasfrac's Fracturing Process Gets Coveted Chevron Endorsement [View article]
    Philipp, there is no one article, I will provide you with three links however that may help:

    Unconventional fracturing fluids by Satya Gupta, Baker Hughes:
    http://1.usa.gov/HcJl4w

    Waterless fracking by Luca del Forno:
    http://bit.ly/HcJlkM

    Thesis by Vispy F. Bharucha
    http://bit.ly/HbcesS

    Regards,
    Nawar
    Mar 27, 2012. 06:11 PM | 4 Likes Like |Link to Comment
  • Gasfrac's Fracturing Process Gets Coveted Chevron Endorsement [View article]
    SM, Gasfrac has filed international patents to protect its process, I am unsure how many have been issued, but they are certainly working to protect themselves abroad.

    My understanding is that should they be selected to work in South Africa, they would go there in co-ordination with Shell to service this particular project and not necessarily to establish a permanent base of operations.

    Internationally there are a lot of basins that lack access to fresh water for fracking; I believe longer term this could be a key growth driver for the company, and another reason why a larger service provider maybe interested in acquiring them.

    Regards,
    Nawar
    Mar 27, 2012. 06:01 PM | 3 Likes Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    GA, Gasfrac is the sole player in this space, and to my knowledge no other player has entered the field or at least publicly expressed an interest in entering their space.

    In terms of safety, I advice checking the latest presentation by the company CTO on February 15th (starting slide 30):

    http://bit.ly/Hhvwyp

    Regards,
    Nawar
    Mar 27, 2012. 03:50 PM | 1 Like Like |Link to Comment
  • Gasfrac Energy Services: Fracturing Game Changer [View article]
    This is version 1.0 of my investor presentation for the company:

    http://slidesha.re/GXbO9e

    Regards,
    Nawar
    Mar 24, 2012. 03:01 PM | Likes Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    This cannot be Gasfrac LPG fracturing, since the company does not operate at night for obvious safety reasons. To my knowledge they have had no issues operating in Texas.

    Regards,
    Nawar
    Mar 23, 2012. 02:23 PM | 1 Like Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    Evan, Gasfrac can not be compared to HEK, HEK is focused on another segment of the market; Gasfrac main advantage is increasing the oil and gas production of O&G companies; their technology has also the environmental advantage of no water use, and no waste products, but this is a secondary benefit.

    Regards,
    Nawar
    Mar 22, 2012. 07:35 PM | Likes Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    Hi there,

    Glad my articles are of interest.

    In regards to your questions:

    1. Yes, the picture shows the equipment they usually have at a fracturing site.

    2. They do the fracturing themselves.

    3. In total they have 17 patents between issued and applied (I believe 13 issued so far); those patents are related to the system they developed to fracture with LPG; no other company has developed a system such as theirs; the patents makes it harder for someone to copy their system. Of course, it is always conceivable that a competitor may try to work around the patents or even violate the patents; but beyond the patents the company has extensive experience and know how in working LPG fracturing for the last several years, this is an asset no one can replicate.

    The current stock price has is not reflecting the progress the company has experienced over the last few quarters; however we invest in companies, not stocks; as long as the company underlying business is going in the right direction and value is created for shareholders, the stock price will eventually follow.

    Regards,
    Nawar


    Mar 21, 2012. 12:23 PM | Likes Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    Actually they did not say they will do a secondary. In the CC, they were asked if they are going to list in the US, in the response they mentioned that this year is not likely, since they would like their business to grow further, however they mentioned it is possible that a listing could be envisaged in 2013; furthermore should that listing take place it would be ideal to do it with a share offering (the logic being they would pick up brokerage coverage).

    This is comment had nothing to do with the decline in the shares; furthermore should any share offering take place in 2013 it can not be evaluated without examining management plans for the raised funds, as long as the return on those funds is higher than the resulting dilution, current shareholders stand to benefit.

    Having said that, the current management has indicated that they have no immediate plans to increase the set count beyond the current 10; the current focus is on increasing utilization, enhancing margins and increasing cash flows, this makes it highly unlikely that any shares would be offered in the near future.

    Regards,
    Nawar
    Mar 21, 2012. 12:06 PM | 4 Likes Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    You either believe in efficient market theory, and thus this there is something wrong, or you believe in inefficient markets and hence this is a buying opportunity. I obviously believe the latter.

    Regards,
    Nawar
    Mar 20, 2012. 09:06 PM | 4 Likes Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    Good observation. The big players however don't have a licence nor have the tools to pump liquid petroleum gas in the formation. Major companies in any industry have often purchased smaller competitors if they offered them a technological or commercial edge. Gasfrac wont be any different.

    Regards,
    Nawar
    Mar 20, 2012. 09:04 PM | 3 Likes Like |Link to Comment
  • Gasfrac Energy: The Prize Of Waterless Fracturing [View article]
    So far the decline in natural gas have had no major impact on them since virtually most of their business is focused on liquids (either crude or natural gas liquids). Overall Gasfrac is better positioned than other industry players, since they have a technical solution that cannot be replicated; thus even if frac pricing was to weaken they would not be necessarily be impacted; as a matter of fact the pricing they received in Q4 was significantly higher than what they achieved in prior quarters.

    Regards,
    Nawar
    Mar 20, 2012. 05:59 PM | 4 Likes Like |Link to Comment
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