CHATSWORTH, CA – (NewMediaWire) – June 15, 2023 – Cavitation Technologies, Inc.(“CTi” or the “Company”) (OTCQB: CVAT), a leading ESG company, which designs and manufactures innovative flow-through nano-technology systems for fluid processing applications worldwide, is pleased to announce that it has entered into a Letter of Intent to acquire Eagle Ford Silica Sand, LLC (“Eagle Ford”), former Proppant Tech LLC, at a valuation of approximately $20 million, which CTi anticipates funding through equity and debt financing. Eagle Ford owns approximately 180 acres of land near San Antonio and a producer of silica sand which is an essential component used in fracking operations in the oil and gas extraction industry. Eagle Ford operates silica sand extraction plant at approximate daily rate of 2,000 metric tons per day (MTPD), with available daily capacity of 8,000 MTPD. In its mining operations, Eagle Ford utilizes between 4,000 and 5,000 gallons per minute (GPM) of fresh water essential in cleaning the sand prior to usage in oil & gas fracking. CTi’s chemical-free water treatment technology will reduce mining operating costs and mitigate environmental impact once incorporated into the existing operation of Eagle Ford.
Cavitation Technologies provides a proprietary, chemical free water treatment technology that is used to clean and recycle water used in the fracking process and is currently targeting many of the same customers that Eagle Ford already supplies sand. This dynamic provides synergies for both companies that will allow for increased economies of scale and is anticipated to increase growth opportunities for a combined company.
Total Annual Usage: Estimates from industry sources suggest that the total sand consumption for fracking operations in the U.S. ranged from 40 to 80 million tons per year during the peak years of shale oil and gas development.
Cavitation Technologies, Inc.