OriginOil Inc. developer of Electro Water Separation™ (EWS), the high-speed, chemical-free process to clean up large quantities of water announced today that it intends to pursue growth through acquisition of one or more service companies with proven ability to treat frac flowback and produced water in the oil and gas industry.
“We are happy with the progress of our licensing activities,” said Riggs Eckelberry, OriginOil CEO. “At the same time, we believe we can grow revenue in the booming water treatment services sector of the oil & gas industry, through acquisition of companies with strong capabilities.”
“We believe Pay Per Barrel is such a compelling revenue generator that we want to use it in our own operations, not just for our licensees”, said Bill Charneski, General Manager of OriginOil’s Petro Division. “To expedite revenue streams, we plan to acquire one or more service companies to implement this powerful program.”
In October 2013, Colorado-based Industrial Systems Inc. (ISI) became OriginOil’s pioneer customer for its Pay per Barrel program. Since then, ISI has become a full-fledged licensee, and Pay per Barrel is an integral part of the commercial toolkit for all OriginOil licensees.
OriginOil’s acquisition plans are presently limited to service companies in petroleum and industrial waste. The company plans to remain committed to serving licensees through technology transfer in these and other areas, such as algae harvesting, aquaculture and organic waste treatment.
While it is making such plans, OriginOil has not identified any acquisition candidates nor has it any arrangement, agreement or understanding with respect to engaging in any acquisition. There can be no assurance that OriginOil will be successful in identifying and evaluating suitable acquisitions or in concluding any acquisitions and there is no assurance that OriginOil will be able to negotiate acquisitions on terms favorable to it. Even if OriginOil completes an acquisition, there can be no assurance that any such acquisition would result in increased revenue and growth.
Adapted from a press release by David Bizley
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/14052014/originoil_to_pursue_growth_through_acquisitions_of_service_companies/