Ocean Power Technologies, Inc. (NASDAQ:OPTT) Q1 2020 Earnings Conference Call Transcript
Sep 18, 2019 • 11:00 am ET
George H. Kirby
mid-term horizon posing significant opportunities for us. In recent weeks, we've seen some of these opportunities take shape for OPT.
In early August, we announced the successful deployment of the PB3 PowerBuoy in the North Sea for our customer, Premier Oil. This PowerBuoy is serving Premier Oil as an autonomous intelligent platform to provide surveillance services throughout the decommissioning process at Premier Oil's Huntington field offshore operations. During the deployment, we'll demonstrate the PB3 PowerBuoy capabilities, its ability to monitor the local environment and alert ships of the field's position. This deployment began the initial three month trial of its nine month lease. We're just over halfway through that initial trial with that PowerBuoy, operating flawlessly in very rough seas with average wave heights of over 17 feet. This lease also includes an option to extend the initial nine month period.
Before the voyage to the North Sea, the PB3 PowerBuoy was featured at a technology data event we held in Scotland, together with our partners Acteon and The Oil & Gas Technology Centre. Over two days, we had over 100 participants, including oil and gas industry leaders and media that met with our team and saw the PB3 PowerBuoy and its payloads up close to examine its uses and capabilities. The feedback we received was hugely positive, which helps elevate the profile of OPT in the oil and gas industry. The feedback suggests that we have the attention of the offshore oil and gas decommissioning world on this project and I believe our successful performance for Premier Oil can only help fuel opportunities for our solutions.
We recently announced the completion of another detailed feasibility study with a leading oil and gas operator to monitor subsea wells during decommissioning in the Gulf of Mexico. The results of the study were quite compelling. We were able to demonstrate that our solution can successfully provide power for well monitoring in the Gulf and water depths up to 3000 feet. We defined a solution, which can provide enough power to support the monitoring of two wells at once. This is a major development, because it enables us to decouple the decommissioning of subsea assets from that of surface assets such as platforms, which can provide significant cost savings to the customer. With the completion of this feasibility study, this represents a successful first step with this customer and could result in a field trial.
Our robust pipeline of opportunities reinforces our confidence in our long-term growth. Over the last few months, we've met with some of our top prospects and they continue to tell us how our solutions could be integral to solving some of their more difficult challenges. Our growing reputation as a leader in remote offshore power and communications is helping us to fill our opportunity pipeline, which now stands at more than 70 leads and opportunities, many of which are in various stages of the proposal process, discover subsea applications in the oil and gas, defense, security, science and