SinoTech Energy Limited (NASDAQ: CTE $2.80) claims it is “using leading edge technologies, include certain patented lateral hydraulic drilling, or LHD, technologies,” And that CTE, has it “an exclusive right to use their technologies in China.”
CTE claims that Jet-Drill Well Services, LLC has given it an exclusive right to the Landers patent that it called its “base patent.” (See the patent diagram here). However, there are at least three companies providing LHD services in China. Two of CTE’s Chinese competitors are joint ventures with U. S. companies that use the Landers patent. One is a former owner of the Landers patent that retained rights use to the patents in China. The other is the current owner. Below is a description of the three companies doing business in China.
One of CTE’s competitors in China is Shanghai Witsun Jetdrill Enhancement Services Co., Ltd (“Witsun”). Witsun’s website states that the company is an industry key player specializing in LHD services. To see their website click here.
Witsun is an exclusive partner of Well Enhancement Services (“WES”). To see WES’ website click here.
Yantai Jereh Oilfield Services Group Co., Ltd. (“Jereh”) is a company also located in China that has a joint venture with Radial Drilling Services, Inc. (“RDS”) to provide Jereh with LHD equipment and support services. To see their websites click here and here. RDS is recognized to be the world’s largest LHD manufacturer and operator. RDS using the patented technology that includes the Landers patent that CTE claims to be their “base patent.”
Jereh, and RDS are beginning their venture with only $1.5 million. CTE, has already purportedly spend $120 million on the 20 LHD units. A press release detailing the venture between the two companies can be seen here.