Ian Gilson, CFA
OriginOil (OOIL) has announced that the first SSE Production System has been shipped.The first Single Step Extraction production system (announced in January 2011) has passed its acceptance tests and is being shipped to Australia by sea and should be installed and working at MBD Energy’s facility in December 2011.
The value of the purchase order was $150,00, of which $75,000 was received and booked as revenue and $37,500 is due now since the unit has shipped and the final payment of $37,500 will be due on installation. The transaction will be recognized in 2011. There are other services that will generate some revenue in 2011 and 2012.
The system should produce about 22 pounds of biomass, which is close to 10 gallons of algae oil, each day from close to 161,000 gallons of treated water. This unit will be used to prove out large scale production facilities.
