UAT Group’s Subsidiary, H2O Processing, Announces Up To $17.2M Contract with Texas Oil Company
Umbra Applied Technologies Group's subsidiary, H2O Processing, has secured a contract with Pinto Red Gathering Company (PRGC) to treat iron contaminated crude oil. The initial contract involves treating 650 barrels per day, escalating to 1,200 barrels daily, with a target to reduce iron content below 10 ppm for pipeline retailing. The contract is expected to generate approximately $3.24 million annually, with potential total service contracts reaching $17.2 million. This deal marks H2O Processing's third contract this month, totaling nearly $50 million annually, highlighting its growing significance in the crude oil sector.
- Contract with PRGC valued at approximately $3.24 million annually.
- Potential total service contracts could reach $17.2 million with increased production.
- Three contracts announced in December total nearly $50 million annually.
- None.
Denver, CO, Dec. 15, 2022 (GLOBE NEWSWIRE) -- Umbra Applied Technologies Group, Inc’s (OTC Pink: UATG) subsidiary, H2O Processing, announced today that it has been contracted by Pinto Red Gathering Company (PRGC) to treat iron contaminated crude oil. Under the agreement, H2O Processing will treat an initial 650 bbls/day for the first 60 days and 1,200 bbls daily every day after based on existing production. The contract specifies a reduction in iron contamination to under 10 ppm minimum so that product may be retailed to a U.S. pipeline. The newly signed agreement outlines an increase in production to 1,200 bbls a day totaling an estimated
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”.
H2O Processing is a manufacturing, research and engineering company, with extensive experience in the water treatment industry. With an expanding portfolio of intellectual property, the H2O team has just recently begun its expansion as a full-provider and manufacturer of mobile on-site and fixed commercial water and oil treatment solutions.
PRGC is a crude buyer/seller based in Edinburg TX with longstanding operations within the state. PRGC is yet another U.S. oil company effected by oil refineries recent move to significantly restrict the iron content and oxygenates of crude oil they accept. H2O Processing’s entrance into this sector introduces a much-needed solution, offering a reprieve to many oil producers that, until now, were unable to sell their oil into the pipeline. With H2O Processing’s proprietary treatment systems, the iron content and oxygenates contained in the crude can now be reduced and sold.
The mobile platforms are fully automated and can be managed remotely by either H2O Processing from their headquarters in Denver or managed by the Company’s authorized service provider. Both mobile platforms to treat crude oil and contaminated water, are ready for commercial production and are now being delivered to market.
Chairman of H2O Processing parent company, UAT Group, Alex Umbra commented, “It is an incredible opportunity to onboard PRGC for iron mitigation services as it is with every client we have already added and continue to add. Additionally, it is very humbling to be in a position to assist companies with such critical services with global and significant economic implications. The demand is high but, we as a Company, will meet the expectations of our clients and an entire industry during these challenging times”.
For more information about H2O Processing, Inc. visit: https://h2oprocessing.com/
For more information visit www.uatgroup.com
Investor and Media Contact: info@uatgroup.com
About H2O Processing, Inc.
The Company is located in Denver, CO, and is an advanced water and oil treatment technology company.
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Forward-Looking Information
This news release may include "forward-looking statements" including forecasts, estimates, expectations, and objectives for future operations including but not limited to its ability to conclude a business combination with a third party, sale of assets, return of capital or initial public offering and/or a secondary listing as a result of aforementioned and its ability to fund the exploration of its assets through the raising of equity or debt capital or through funding by a joint venture partner that are subject to a number of assumptions, risks, and uncertainties, many of which are beyond the control of H2O Processing including but not limited to capital markets and securities risks and continued development success on technology. There can be and are no actual or implied guarantees that any of the above activities will be completed or completed on terms acceptable to the Company and its shareholders or approved by any regulatory authority having jurisdiction. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. H2O Processing does not assume the obligation to update any forward-looking statement, except as required by applicable law.
