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  • ERF Wireless Inc. (ERFB) Doubles Down In Massive Cline Shale 0 comments
    Sep 24, 2013 5:39 PM | about stocks: ERFB-OLD

    ERF Wireless, which has become an undisputed heavy-hitter among domestic oil and gas operators by establishing the largest terrestrial network of advanced wireless broadband capabilities in the sector, announced today that they have substantially beefed-up high-bandwidth broadband Internet and data services with the rapid deployment of ten trailer-mounted, high-performance, and fully owned VSAT (Very Small Aperture Terminal) nodes that will provide coverage for extremely remote operating sites.

    This is the game ERFB has made its name in, providing mission critical data throughput of exceptional quality to unconventional and difficult to reach energy development customers. The recent (Sept 12) positive financial guidance issued by ERFB ahead of their Q3 filings, showing solid projections of 20% revenue growth over last year's Q3 figures, really drove home the increasing number of rigs being serviced by the company's Energy Broadband subsidiary. One look at the coverage map says it all, and ERFB looks to further dominate in the sector by rolling out this fleet of self-acquiring VSATs, which will get tied into the main grid via one of the company's massive fleet of 134 MBT (Mobile Broadband Tower) units.

    COO of ERFB, Tim Maxson, spoke warmly of the relationship with customers in the new Cline Shale region of the Permian, for whom initial units have already been deployed, further citing the incredible demand emanating from this roughly 1.6M-acre West Texas play as offering ERFB a strong future consumer base for their services. Maxson emphasized how these VSAT units are perfect for the job of branching coverage to the area and how, given the lack of competition from any other broadband providers, ERFB is set up nicely to fully leverage their geographical hardware footprint and give these operators the connectivity they need to get the job done, especially in difficult or remote spots.

    One of the biggest shale plays to be discovered in North America (largest discovery in the Permian in the last 50 years according to U.S. EIA) and a huge source of future revenue for ERFB, so the company is wasting no time doubling down for customers on the cutting edge of developing this resource. Maxson further extolled the economics of utilizing the VSATs in this fashion, as the company-owned units generate virtually parallel revenues to the main business model while constituting a no-brainer logistical solution for even extremely remote operators. It is a nice, robust coverage overlay which (because these VSTA units are operated on one of the world's larger satellite networks) sweetens the take on an already profitable terrestrial network, driving an economy of scale advantage for the company's existing footprint, while providing better overall system utilization and reduced operating costs.

    EIA data suggests the Cline Shale could be bigger than all the oil in Mexico and Venezuela combined, with some predictions suggesting a whopping 30B bbls recoverable. An enormous future for ERFB if they get the broadband coverage equation right and it looks like they really know how to cultivate their clientele here. These self-deploying VSATs are top of the line and blow the typical, smaller VSAT units so common in the sector for decades, completely out of the water, offering vastly superior technical capabilities and the best pre-terrestrial network connectivity possible prior to constructing fixed networks.

    This move really shows the attentiveness of ERFB to the needs of their clients in this difficult business where the last thing you need is one more problem and it is clear that ERF Wireless is planning on staying ahead of the game both in terms of coverage and hardware.

    More information on ERF Wireless, visit ERFwireless.com

    Please see disclaimer on the QualityStocks website: disclaimer.qualitystocks.net

    Stocks: ERFB-OLD
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