Shares of Sionix Corp (OTC:SINX) took off this morning as the waste management Company said today it had signed a Water Treatment Agreement with services provider McFall Inc for a major oil and gas exploration and production company it represents in the famous Williston Basin which contains the Bakken Shale which stretches across North Dakota, Montana, South Dakota, Manitoba and Saskatchewan.
SINX will deploy a fully-equipped Mobile Water Treatment System (“MWTS”) consisting of de-watering, DAF, filtration, and de-salination components for operation alongside a specific drilling rig.
What’s significant about this deal is: 1) SINX bringing in future revenues from working in the Bakken; and 2) Word of mouth. Once SINX is up and running, it can approach other service providers and oil drillers and point out its cost efficiency, environmental record, and the Company’s ability to rapidly react to a new contract. Sionix expects to deploy the MWTS to the worksite in four to six weeks.
Sionix systems are intended for use in energy, government facilities, healthcare facilities, emergency water supplies during natural disasters, agribusiness, housing development projects, and subterranean fracturing used in oil and gas drilling.
Mobility was everything to making the deal…
SINX expects to treat from 4,800 to 9,600 barrels of contaminated water per day at specific drill sites. Drilling cycles run approximately 25 days, with 8 days allocated for teardown and set-up at the next drilling site, or approximately 11 drilling cycles per year. The Sionix MWTS will be embedded with a specific drilling rig and will be transported to successive sites together.
Said James Currier, Sionix Corp CEO, “We are pleased and excited to provide our unique patented and proprietary technology to support large scale operations in a critical American oil field.” SINX will be compensated on a per gallon basis.
“This ‘fee per barrel’ model will create substantial value for our shareholder base both in the short and long term,” said SINX President and CFO David R. Wells.
Shares of SINX were trading in the $0.04 range on Friday, shot up to $0.09 this morning on the news, and have settle back down to the $0.06 range. From $0.04 to $0.06 represents a one day gain of 50%. Congrats to long-term shareholders.
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.