Oil & Gas & Blockchain Synergies
Global Remote Technologies (CSE: RGT) is a technology company that specializes in oil and gas remote sensing and data aggregation device and software.
As most of you are aware, the market for oil and gas field services in Canada has been extremely volatile in the last few years, falling ~6% annually, due to declines in oil and natural gas price and overall demand for oil and gas field services.
Despite unfavorable market conditions, the company has established key business relationships and developed several patents in the oil and gas sector.
They have expanded their operations with new satellite offices in Denver and Houston to service its clients in the U.S. and New Mexico.
The company shares have been trading sporadically over in the last year with very low liquidity, until the last quarter, when the shares price shot up ~500%.
This uptick was due to a few key business relationships and the anticipated revenue streams associated with them as well as some new executive leadership appointments.
Another big factor is they announced that they are reviewing several blockchain, cryptocurrency and fintech acquisitions.
In mid November, they announced an LOI to acquire 1Linx Blockchain Tech and its proprietary Blockchain authentication platform and suite of Blockchain security services. 1Linx’s cutting-edge security and software solutions they intend to employ in the Oil & Gas services industry.
Their rationale is that they noticed that some oil and gas based clients systems are fragmented and disorganized, making data sharing a very difficult due to the disparate nature of the client’s internal systems.
But as blockchain can serve as a single shared ledger among various parties, this greatly simplifies that process by reducing the complexity of managing separate data systems.
This acquisition should help increase the profit margin for its clients through it lower liability for its assets and Project Management.
We think that the true value of the synergies between Blockchain and the Oil & Gas testing services is not fully reflected in the stock price and will continue to follow this story as it evolves.
Fortune Favours the Bold