The company’s investment in this pipeline is approximately $3m while its current share is valued at $27m. The company’s compressor uses the power of the oil pump itself to drive the compressor, which eliminates all fuel cost. The end result is an increase in oil and gas flow of as much as 10:1.
Recently, the JV partner has notified its intention to develop the other pipelines they have identified as part of the properties to be included in the joint venture. There are currently four similar pipelines identified and the JV partner has identified several similar opportunities.
The JV agreement contains provisions that prevent the company’s 50% participation from being diluted. The technology is expected to increase the value of the recently announced acquisition, the Sierra Pipeline.
