17th Aug 2015 09:47
LONDON (Alliance News) - Mycelx Technologies Corp Monday said it plans to be cash neutral in the second half of 2015 after further slashing its costs in light of the fall in oil prices,as it continues to progress trialling its technology in three key locations around the world.
The technology company that serves the oil industry is focused on "solving the world?s toughest oil removal problems" using the patented Mycelx polymer which removes oil from water "far beyond what conventional systems have ever achieved".
On Monday, the company said it has made progress in its three key geographies where it has its technology installed to be trialled by customers.
Mycelx said it installed its first installation for full water recycle and reuse for hydraulic fracturing in West Texas on a lease-to-purchase basis. Following successful trials, the system was installed to reduce operational costs through the production of high-quality recycled water necessary for the fracturing process, it said.
In Saudi Arabia, Mycelx has commenced a trial to treat wastewater from a petrochemical maintenance operation, which it believes will further "bolster its prior successes in the turnaround market and accelerate project awards".
At its third key location in India where the company's technology is being used to enhance oil recovery, Mycelx said it has successfully completed a third trial at a major producer's site.
The company also has been focused on reducing costs after warning back in July that trading conditions will remain challenging throughout the second half of 2015 and that it had lost a major project it was pursuing.
On Monday, the company said its cost reduction includes all of the board and key management "participating in a reduction in cash compensation until further notice". Mycelx said that will lead to its cost base for the 2016 financial year falling below USD9.0 million.
"These measures will enable the company to be cash neutral from operations in the second half of 2015 and supports Mycelx's target to be operationally cash generative in 2016," it said in a statement.
"The company will continue to actively monitor costs in order to respond to changing market conditions. All cost reduction initiatives have been carefully targeted to preserve the company's cash position whilst not impinging on Mycelx's ability to successfully convert its existing pipeline," it added.
By Joshua Warner; [email protected]; @JoshAlliance
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