A letter of intent to use STWA, Inc.'s (OTC.BB: ZERO.OB) Applied Oil Technology™ (AOT™) by LG Partners sent shares of STWA soaring Wednesday, with the company closing up over 26 percent on the day.
The press release said this, "LG Partners is currently developing the $2.5 billion, 900-mile pipeline to transport medium and heavy crude oil to markets currently experiencing a lack of diverse pipeline suppliers. This multinational pipeline is designed to be 42" in diameter, with a transport capacity of 30 to 60 million tons of crude oil per year, or approximately 600,000 to 1.2 million barrels per day."
Also described in the press release was the technology STWA has designed for improved costs and efficiencies of pipeline operations:
"STWA's Applied Oil Technology™ (AOT™) is designed to allow pipeline operators to temporarily reduce the viscosity of the crude oil within their pipeline(s) to reduce the fluid-drag (also known as friction-loss) between the fluid and the pipeline. By reducing the friction loss, pipeline operators' pump systems require less energy to maintain a constant flow rate, thereby directly reducing daily operation costs."
The significance of this isn't simply making a potential deal, but because of the ability to make the deal, it appears the company is subtly announcing the trial phase of the Applied Oil Technology is over, and commercialization is ready to begin.
STWA closed Wednesday at $0.46, up $0.09, or 26.03 percent. They traded as high as $0.49 before pulling slightly back. They've trading in a 52-week range of $0.18 to $0.49, and have a market cap now of $52.08 million.
Trading volume Wednesday was almost ten times the average 3-month volume.
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