The positive news regarding the new SonCav Technology developed by Lithium Exploration Group Inc (OTCMKTS:LEXG) continues to indicate a favorable outlook for its application for providing possible solutions to solving long-standing water pollution problems that have plagued the oil drilling industry.
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused testing the Sonic Cavitation Ltd. technology and the acquisition of oil and gas related assets in the US and Canada.
Lithium Exploration Group has initiated prototype testing of its SonCav Technology on water feedstock while the first commercial oil unit is being produced. The objective of these tests is to identify similar flow ratings and power consumption to the testing performed on crude oil unit last fall and spring. The tests will be structured in such a way as to analyze the organic degradation that occurs during the cavitation reaction. A team from Texas A&M Corpus Christis Core Isotope Lab has been engaged to perform the laboratory analysis of the water samples. A brief period of testing will take place in June, and will provide some much-needed data on the water treatment applications that are being explored. Lithium Exploration Group’s CEO Alex Walsh commented:
“The ability to eliminate these harmful organic biological compounds from wastewater streams is a huge part of the long-term initiative that Sonic Cavitation LTD has for their technology. These organics in brackish and light waste streams are harmful to the oceans when they are dumped into the sea, and harmful to humans when they are consumed. This testing effort is going to be quick and simple compared to our efforts with crude oil, but every bit as valuable. The degradation of organics in fluid is critical to many industries and humanitarian efforts and, with the help of the folks at TAMU-CC, we will be able to point to some very specific problems that we can solve as we hit the market.”
In other recent news, Lithium Exploration Group announced on June 14, 2017, that its partners at White Top Oil and Gas have discovered an overhang on the edge of a salt dome at the Company’s Louisiana oilfield that has 800 feet of prospective oil pay at a depth of only 3,000 feet.
A company that has storage caverns inside the salt dome on the property, recently cooperated with Lithium Exploration Group by sharing a new well they drilled believed to be inside of the salt dome. In the course of drilling to a much deeper target depth, an 800-foot zone of sandstone was discovered, at a depth of only 3,000 feet, which is in the historically rich Miocene oil formation. The initial indications of oil rich sandstone have been confirmed by independent analysis of the well log commissioned by Lithium Exploration Group and their partners at White Top.
In conjunction with the Louisiana oilfield discovery, Lithium Exploration Group announced on June 15, 2017 that its partners at White Top Oil and Gas have reached a verbal agreement on a $14 million investment that would fund the final acquisition of the field in Louisiana, and fund the first six drilling targets. According to Lithium Exploration Group’s CEO Alex Walsh:
“as soon as the acquisition is finalized, we begin to collect checks on our 3% overriding royalty. As they drill additional wells that royalty stream goes up. The recent discovery of the overhang has significantly expedited the funding process and we are all excited to move this project forward.”
LEXG stock price continues to slide. At the time of our last review the stock was trading at $.0031. It is now trading at $.001 The financial statements still lack revenue of any sort. Current market capitalization comes in at $2.62 million, on 2.39 Billion shares outstanding as of June 15, 2017.
Although the price chart and financial statements are not very appealing to investors, Lithium Exploration Group ’s new SonCav Technology seems very promising. Recent news appears to indicate that the Company has a strategy, and is making every effort to execute it. However, until the new technology translates to revenues, LEXG will remain in the “wait and see column.” We will keep a close eye on the development of the SonCav Technology. Its implementation could be a major step forward both for the Company, and for the cause of a cleaner environment in general. We will be updating our subscribers as soon as we know more. For the latest updates on LEXG, sign up below!
Disclosure: We have no position in LEXG and have not been compensated for this article.
Image courtesy of Linda Flores via Flickr.