SCOTTSDALE, AZ, United States, via ETELIGIS INC., 01/15/2015 – – Lithium Exploration Group Inc. (OTC Pink: LEXG) (PINKSHEETS: LEXG), CEO Alex Walsh discusses ongoing business activity in his January newsletter:
As we move into 2015, our focus is squarely back on the development of the technology on which we have been working for the past four years. We are ready to ship the oil treatment unit from Houston any day now, and, with the approval of our partners at SonCav, will be posting pictures of the unit shipping and arriving at Tero on our website for all of you to see. We hope to initiate testing at Tero this month and to continue that testing of various oil types through the first quarter to gather operational data from its performance.
We are still in discussions with various financial and strategic partners for the Morinville facility. As stated last month, we had hoped that we would be in a position to raise the development capital for the project, but we need to keep our capital focused on the cash flow at Tero and the commercialization of the ultrasonic technology.
Morinville continues to operate under its Class II designation — taking produced water from a number of customers in the area and selling the skim oil that comes from that production. While we thought we would be further along by now in the facility’s expansion, our team has done an amazing job in bringing the well back to life over the last year and making it a viable competitor in the region. The facility will continue to operate ‘as is’ while we look at options on financing the expansion plans that we have been working on for the past six months.
We were set to close on the financing to acquire an additional 25% of Tero Oilfield Services in December, but the investor that was in place to complete the financing was unable to fund the investment. The option that we have to purchase the additional 25% does not expire until the end of February, so we are exploring other financing sources to complete the transaction. This has no impact on our commitment to the future success of Tero or to our partnership with their team.
I had a conversation with the CEO of a company in Texas earlier this week that I found very interesting. This is an oil services company very similar to ours, in that they started by developing a technology that had applications in oil services. They then bought their first service company as a way to assist in the deployment of that technology. They now have multiple technologies that they have brought to market and three divisions of their service business and are projecting to do over 50MM in revenue in 2015. They are the company that we are trying to become over the next few years, and the growth opportunity will be spearheaded by the ultrasonic technology. We are bringing a technology to market that will revolutionize the way that oil is treated in the field prior to being sent to the pipeline, and we have an existing footprint to test, market, and deploy this technology all over Canada through our partnership with the guys at SonCav and their team in Texas.
It has been a long few months, retiring the debt from the Tero acquisition and getting the oil unit ready for shipment