Umbra Applied Technologies Group Inc (OTCMKTS:UATG) Stock In Focus After Announcing Up To $17.2M Contract With Texas Oil Company
There are a number of companies which are expected to come into focus among investors today and one of those is likely to be the Umbra Applied Technologies Group Inc (OTCMKTS:UATG).
On Thursday, UATG stock slid 25% to $0.0090 with 26.25 million shares, compared to its average volume 3.37 million shares. The stock moved within a range of $0.0084 – 0.0140 after opening trade at $0.0130.
UAT Group’s Subsidiary, H2O Processing, Announces Up To $17.2M Contract with Texas Oil Company
The company was in the news yesterday after it announced that its subsidiary unit H20 Processing had won a contract from Pinto Red Gathering Company for the purpose of treating iron in contaminated crude oil. As per the terms of the agreement between the two parties, H20 Processing is initially going to deal with 60 bbls/day over the course of the first 60 days of the contract. Subsequently, it can go up to as much as 1200 bbls/day depending on existing production.
However, that is not all. There is a specification in the contract which states that the iron contamination would need to be reduced to the minimum of under 10 ppm. It is the necessary threshold so that the product could be retailed through pipelines in the United States.
The new contract that was signed by H20 Processing also specifies a rise in production to as much as 1200 bbls and if that happens that annual value of the service contract would touch $3.24 million.
H2O Processing Chief Executive Officer, Stan Abrams stated, “H2O continues to receive requests from customers to extract iron from their oil so they can meet oil refinery requirements. The proprietary extraction process has proven to be an important process for the sellers of crude oil to obtain the maximum price benefit thus reducing high penalties or the inability to even sell their oil. H2O is excited to bring this technology to the crude oil industry”.