FORT LAUDERDALE, Fla., Feb. 10 /PRNewswire-FirstCall/ -- 2009 proved to be a significant year for Enviro Voraxial Technology, Inc. (OTCBB: EVTN). Despite the challenges presented by negative global economic conditions, EVTN posted its best year in terms of revenues and completed projects. In the first 3 quarters of 2009, revenues increased by 300% as compared to the entire year of 2008. The percentage increase will increase further once the company's 4th quarter revenue is included. This increase in revenues and project opportunities coincides with the dissemination of the impressive results received from prior installations of EVTN's proprietary Voraxial Separators.
EVTN is now engaged in discussions with more than thirty current and potential customers regarding applications for the Voraxial. Most of these pending sales opportunities are with multi-national corporations with at least five ranked among the ten largest industrial companies in the world. These projects which are predominantly from the oil industry range in value from approximately $75,000 to over $4 million. Many of these projects would require initial Voraxial purchases in excess of the company's entire 2009 sales volume. These sales opportunities were developed by working directly with the oil companies and leveraging our relationships with oil service companies. As we continue to deploy Voraxials and build our relationships with both customers and service companies, we expect our sales volume to accelerate.
Our current backlog of inquiries and potential projects are at record levels, setting the foundation for similar percentage growth in fiscal year 2010. We believe that additional sales will be developed through our relationships with oil service companies. Conservatively, we believe that revenues in 2010 should fall between $1.5 – 2 million. This estimate does not include certain new opportunities we anticipate will materialize during 2010.
An example of the growing recognition of the Voraxial technology is EVTN's recent presentation to the 20th Annual Produced Water Society Seminar in Houston, TX. EVTN was invited to present a paper that demonstrated the enhanced performance data for the Voraxial® Separator, resulting from significant engineering developments. Data was presented regarding the Voraxial Separation System performing produced water separation on both an offshore oil platform and onshore production facility. The data was extremely well received by the attendees, and led to numerous inquiries from both oil production and oil service companies.
Along with EVTN, other selected presenters included: Chevron, Shell, the EPA, Saudi Aramco, Argon National Labs and 2 Universities. The US Dept. of Energy estimates more than 55 billion barrels of Produced Water resulting from Oil Production (water combined with oil, solids and other contaminates), is generated each year. This is just one of the many, multi-billion dollar, global market sectors in which EVTN's separation technology has the potential to play a significant role. EVTN believes that the company's inclusion as a presenter during the Seminar provides further evidence of the credibility EVTN's Voraxial® Separation technology has achieved in global business and scientific communities.
EVTN continues to develop our relationships with prominent oil service companies. The company anticipates signing additional agreements in the near future which will expand the market and sales opportunities for the Voraxial. We are working on an increasing number of projects with diverse customers in multiple industries. In the past year the company completed projects for: offshore produced water, wastewater treatment, waste-to-energy/bio-fuel extraction and tar sands projects. Although EVTN is focused on the produced water market, companies with separation needs in other markets are requesting the Voraxial based on the related economic benefits. In the upcoming year, EVTN will seek to facilitate expansion on projects within these markets.
The economic benefit of the Voraxial is significant for our customers. The cost of the Voraxial, including installation and operation, offers our customers immediate and long-term savings. This is the key reason customers in diverse markets seek out the Voraxial. The modular characteristics of the Voraxial provide it with the flexibility for use in multiple areas, or stages, within a separation system; which greatly expands market opportunity. The Voraxial can be included in new separation systems or installed as a retrofit to existing separation systems. This adaptability contributes to EVTN's ability to pursue a wide variety of project applications.
In 2009, EVTN successfully completed an offshore produced water project with the Voraxial 4000 Separator, the second largest model the Company manufactures. The Voraxial 4000 Separator was deployed on the offshore oil platform off the coast of Trinidad. The results of this deployment further validate the Voraxial as a cost-effective solution for produced water separation. The Voraxial reduces the installation and operational costs while generating efficient separation, allowing operators to meet discharge specifications at a reduced cost.
As previously mentioned, the Produced Water market represents a substantial opportunity for EVTN and the Voraxial Separator. Produced water is a significant issue for both offshore and onshore oil producers. A brief explanation of produced water follows below:
Produced water comprises over 98% of the total waste volume generated by the oil and gas industry, making it the largest volume waste stream associated with oil and gas production. The need for effective produced water (oil/water) separation is a major issue for both offshore and land-based oil production facilities. Oil reservoirs frequently contain large volumes of water. As oil wells mature, and oil reserves diminish the amount of required produced water increases. In the continental US, it is estimated that more than 10 barrels of water are produced for each barrel of recovered oil. According to the American Petroleum Institute (API), about 18 billion barrels of produced water were generated by US onshore operations in 1995. Worldwide, the total amount of produced water generated in 1999, according to Khatib and Verbeek, was approximately 77 billion barrels. To put this in perspective, it is estimated that the amount of produced water generated in 1 year is equivalent to the amount of water flowing over Niagara Falls over the course of 9 consecutive days. Produced water is an important issue for each oil platform or oil production facility. The Voraxial offers these customers a more cost-effective method to treat and discharge the produced water.
Handling produced water on an offshore platform is problematic. Offshore platforms are inherently limited in the amount of space they may dedicate to treating produced water. As produced water volumes increase, operators are faced with increasing challenges to treat the fluid stream given the limits of available space, weight and energy. The issue becomes progressively more challenging for operators if the fluid pressure is low. The Voraxial's small footprint, light weight and low energy requirements effectively addresses these issues.
This past year, we installed a Voraxial Separator in a waste-to-energy plant. The Voraxial is being used to separate valuable bio-fuel from the process fluid. While providing efficient separation, the Voraxial System also allows the plant to use less energy and space while concurrently lowering maintenance costs. The water that is separated is reused by the plant, while the high-grade oil recovered by the Voraxial is used to create 2 mega watts of power. Our customer has plans to build approximately 15 additional plants, with most, if not all, requiring the Voraxial Systems.
We are excited at the increasing market acceptance of the Voraxial and believe that we are approaching a tipping point in terms of sales acceleration. This confidence is based on our success in 2009 and the growing list of potential projects requiring the Voraxial. We believe our sales will accelerate as we continue to build relationships with both oil companies and oil service companies since these companies have the ability to purchase a significant number of units.
We thank you again for your continued support.
Safe Harbor Disclosure -- This Press Release contains or incorporates by reference "forward-looking statements," including certain information with respect to plans and strategies of Enviro Voraxial® Technology, Inc. For this purpose, any statements regarding this announcement, which are not purely historical, are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including Enviro Voraxial® Technology, Inc. beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and based on information available to Enviro Voraxial® Technology, Inc. as of such date. There are a number of important factors that could cause actual events or actual results of Enviro Voraxial® and its subsidiaries to differ materially from those indicated by such forward-looking statements.
Company web site: http://www.evtn.com
SOURCE Enviro Voraxial Technology, Inc.