1) The stock is nearly 30% off its high....from just a couple of days ago.
2) Despite the recent drop, WSCE's upside volume has been dwarfing its downside volume. This suggests heavy accumulation
3) The MACD is in a strong up trend and is well above the "0" line suggesting a "Strong" Bullish trend
4) The stochastics is in an intermediate-term up trend but is no longer overbought.
Before we tell you about the company, we are going to tell you why WSCE exists.
The reality for oil and gas companies is that for every barrel of oil produced, statistics indicate that there are as many as THREE barrels of wastewater produced. Oil and gas producers either pump a highly acidic salt/water into the ground and retrieve it with the gas/oil produced or it is lying in deep pockets in the ground and comes up when the oil/gas is pumped. By all accounts is extremely contaminated and cannot be returned to streams or wells without significant processing.
The oil industry calls it "produced water" and it is a big problem. WSCE's mission is to use their PATENTED technology to address this issue!
Now that we've examined the "technical" picture of the stock, you understand what the problem is...NOW, what exactly does the company do? Read on...
Wescorp Energy Inc. (WSCE) specializes in providing solutions (equipment and know-how) on a global basis for oil and gas companies that overcome regulatory, environmental and operational challenges. Those challenges are called "produced water" and represent a $50 Billion industry
Wescorp Energy Inc. (WSCE) focuses on improving its clients' operational efficiencies by deploying environmentally-superior intelligent solutions that will optimize their field operations including reducing operating costs, increasing operating efficiencies, increasing production, meeting government regulations and tapping new sources of revenue. For every barrel of oil produced at the wellhead, THREE barrels of oily/salty wastewater are "produced".
Wescorp Energy Inc. (WSCE) holds a patented aeration technology called H2OMAXX that employs microscopic bubbles several orders of magnitude smaller than conventional technology. This allows the Company to provide clients with cleaner produced water while reducing processing operational expenses.
Wescorp Energy Inc. (WSCE) maintains a proprietary Hydrocarbon Extraction Technology (HCXT) that can make use of bio-degradable chemicals that separate and clean drilling cuttings -transforming them from solids that would be waste product to solids that are approved by environmental agencies for commercial use as gravel or fill.
The Preacher thinks this technology is exciting as it greatly reduces the ongoing liability for the maintenance and transportation of contaminated materials that could accompany the conventional disposal of drilling solids.
And just a few weeks ago...
WSCE reported that, further to the joint venture partnership with Cancen Oil Canada Corporation, construction of the first two Wescorp remediation units has commenced.
Wescorp and Cancen engineers and field personal have completed remediation facility assessments and detailed engineering drawings. Both management teams have agreed the remediation units will be deployed to Cancen's existing waste processing facility in New Sarepta Alberta, Canada. The remediation units are scheduled to be installed and operational in the first quarter 2010. Cancen believes so strongly in the technology that they are fronting all costs for the manufacture of these units (approx. $1MM)!
WSCE has a 50% revenue interest from this joint venture and it is estimated that this agreement alone will generate $4.6 million in revenues in 2010 for WSCE and $12.1 million for 2011.
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