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OriginOil, Inc. (OOIL) Teams Up With CWT And PACE To Bring Revolutionary Hydrocarbon Wastewater Separation System To Market

|Includes: OriginClear, Inc. (OCLN)

OriginOil, Inc. (OTCPK:OOIL) Teams Up with CWT and PACE to Bring Revolutionary Hydrocarbon Wastewater Separation System to Market

OriginOil is ready to blow the doors off the water remediation side of the hydrocarbon recovery industry, using the same revolutionary technology behind the company's already successful algae feedstock dewatering systems (a boon to algae growers who produce superb end products like oil and the feedstock for everything from fuel and chemicals to food additives), announcing recently preparations for a huge commercial roll out of the oil/gas wastewater clean-up systems in partnership with wastewater treatment specialists, Clean Water Technology, Inc. (creators of the Gas Energy Mixing or GEM system) out of Los Angeles.

Think about it, the same technology that lets algae farmers extract the oil from algae in a single step will let oil and gas operators do the same for wastewater, an increasingly large component of the overall enterprise when we are talking about horizontal drilling and hydraulic fracturing. The biggest single environmental concern for hydrocarbon developers is often water remediation and here we have a batch process, single-step solution that is easy to implement.

This manufacturing arrangement will also incorporate the 3D engineering and technical skills of another California-based entity, civil engineering firm PACE, who will assist in developing the initial commercial units along the same lines as the already successful single step algae oil extraction systems (like the one's recently worked on by PACE and OOIL that were shipped to MBD Energy in Australia for their Algae from CO2 project). These first commercial systems will be designed to process up to one barrel of frac flowback water per minute (that's 60k gallons a day).

We have a technology here that was recently reported (Apr 25) in third party testing to show an incredible 98% of hydrocarbons recovered from a test run on some frac flowback water, done at a site down in West Texas (just in the first stage of what is ultimately a multi-stage treatment process). This is paradigm-shattering technology that could allow hydraulic fracturing some much needed breathing room, really accelerating the pace of energy resource recovery across the re-emerging domestic hydrocarbon landscape. Think of what is possible from a full process treatment when 98% is removed in the first step alone and through a simple, one-step batch process, with throughput of 60k gallons a day nonetheless (and this tech could easily be scaled up for much larger systems/installations if needed).

Clean Water Technology (NYSE:CWT) has extensive experience in such manufacturing (wastewater systems) and has worked with OOIL in the past to develop some of the company's algae oil separation units, making CWT the ideal partner, who can shorten time to market by simply adapting the shells of its production-run wastewater units (many of which are already on-hand on the manufacturing floor or in inventory). This is an extremely exciting opportunity for investors to get in, right as these production/design elements come together to create a logistical bonanza.

CEO of OOIL, Riggs Eckelberry, hailed CWT for their exemplary performance on the most recent Australian algae harvesting pilot program's execution. The client couldn't have been more satisfied and CWT was able to go from drawing board to manufactured unit in short order. Moreover the modularity of the OOIL system dovetails quite well with the existing manufacturing process setup to do wastewater treatment units at CWT, something COO of CWT, Wade Morse called a "design plus," since the OOIL units can basically be quickly adapted to the wastewater units; very little additional manufacturing time or change to procedure is required.

A Memorandum of Understanding has been signed with PACE to work together on operations in Texas and elsewhere. OOIL is well-positioned to deliver units rapidly via CWT, and the immediate potential for hydrocarbon operators is abundant. This is a perfect storm of vectors and the component vector is easily resolved when we look at the accelerating rate of new hydrocarbon development in the U.S.

For every barrel we pull out of the ground in the U.S., as many as 50 barrels of water can be contaminated (DOE statistics), leading to huge, increasing costs for E&P's engaged in fracture stimulating, with something like $3 to $12 spent per barrel on disposal costs, we are looking at a global market in the neighborhood of $300b to $1T a year. That is a pretty nice neighborhood to be in and OOIL shareholders aren't going to miss a beat.

This is excellent news for the company which looks more and more like a young Halliburton or Schlumberger, developing process advancements for algae and now wastewater recovery, just as such major players did for the oilfield services industry (creating an economic empire n the process).

For more information on these revolutionary systems, or to learn more about OriginOil, Inc., please visit the company's website at: OriginOil.com

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