CHATSWORTH, CA, Feb. 01, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Cavitation Technologies, Inc. (OTCQB: CVAT) (BERLIN: WTC) announced that in Mid-January the Company reopened its operations in the Permian Basin treating produced water from fracking operations in the basin.
In collaboration with its water services partner, Cavitation Technologies (CTI) deployed its first cavitation reactor in the Permian Basin in early 2020. However, subsequent dramatic declines in oil prices coupled with the onset of the Covid19 pandemic, led to drastic reductions in Permian production and as a result, demand for the Company’s innovative frack-water mitigation technology. As a result of improving oil prices, production in the Permian Basin is returning, which has led to increased demand for CTI’s clean water technology.
Regarding the recent restart in the region, the Company notes that its first returning customer is utilizing the initial stationary infrastructure that manages a flow of approximately 7,500 barrels per day (“BPD”). However, they are also preparing to deploy their first mobile water treatment unit, which is being deployed the first week of February. Along with their mobile advantages, these water treatment units also support greater throughput capacity of 12,000-15,000 BPD. Cavitation is in the process of building its second mobile water treatment system utilizing the most recent inventions and expects operations in early March. The Company believes it can quickly build and deploy additional units as demand dictates. As a point of reference, management anticipates that each 10,000 BPD of processing should result in approximately $150,000 worth of annual free cash flow to Cavitation, although actual results will depend on subsequent demand and associated pricing for their technology.
On other fronts, the Company continues to develop its technology to address both their legacy food processing business, as well as its emerging water treatment business. As of the aforementioned restart in Texas, they are now generating revenues from each. More specifically, they continue to pursue new opportunities in the vegetable oil and food processing industry with their new Low Pressure Nano Reactor (“LPN”) technology and they believe those efforts will be additive to the business in the future.
About Cavitation Technologies, Inc.
Founded in 2007, the company designs and manufactures innovative flow-through devices and systems, as well as develops processing technologies for use in edible oil refining, renewable fuel production, water treatment, and alcoholic beverage enhancement. The company's patented Nano Reactor® systems and various technologies have over 40 patents issued and filed both domestically and abroad. http://www.ctinanotech.com/
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Forward-Looking Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as ''may,'' ''should,'' ''potential,'' ''continue,'' ''expects,'' ''anticipates,'' ''intends,'' ''plans,'' ''believes,'' ''estimates,'' and similar expressions, and include statements such as, management anticipates that each 10,000 BPD of processing should result in approximately $150,000 worth of annual free cash flow to the Company. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties, certain of which are beyond the Company's control. Actual results could differ materially from these forward-looking statements as a result of a variety of factors including, among others, our ability to perform the installation as anticipated, the state of the economy, the competitive environment and other factors described in our most recent Form 10-K and our other filings with the SEC, including subsequent periodic reports on Forms 10-Q and 8-K. In light of these risks and uncertainties there can be no assurances that the forward-looking statements contained in this press release will in fact transpire or prove to be accurate. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Jessica Steidinger
jessica@ctinanotech.com