SUF - Sector: Basic Materials --- Industry: Independent Oil & Gas

[setravis]

Removes sulphur from crude oil.
With the price of oil at current levels, this looks to me as a good bet.
Recent major contract.
Support @ $4.58...4.31...3.99
Resistance @ $4.79...5.29...6.01
Above the 50 and 200-day MA...50-day MA is crossing over the 200-day MA
MACD is bullish
Stochastic is bullish

Technicals
Close Above the 13-day EMA
Percentage Gainer

Last Price Quote is:
3.23%above 13-day EMA
10.34%above 50-day EMA

[setravis]

Profile Get Profile for: 




Sulphco Inc.
850 Spice Islands Drive
Sparks, NV 89431
Phone: 775-829-1310
Web Site: http://www.sulphco.com

DETAILS   
Index Membership: N/A
Sector: Basic Materials
Industry: Independent Oil & Gas
Full Time Employees: 13


BUSINESS SUMMARY   
SulphCo, Inc., a development stage company, engages in the development and commercialization of technology for upgrading and desulfurizing of crude oil and petroleum products. Its Sonocracking process is based upon the use of ultrasonics that include the application of energy and frequency sound waves to effect beneficial changes, such as reduction in the weight percentage of sulfur, as well as a reduction in the parts per million of nitrogen in the chemical composition of crude oil. The company's target customers include crude oil producers and refiners. SulphCo has a collaboration agreement with ChevronTexaco Energy Technology Co. to develop and commercialize Sonocracking ultrasound technology. The company is headquartered in Sparks, Nevada.

[setravis]

Form 10QSB for SULPHCO INC


--------------------------------------------------------------------------------

11-Aug-2005

Quarterly Report



Item 2. Plan of Operation
Our Business

We are engaged in the business of developing and commercializing our patented and proprietary technology for the upgrading of crude oil. Our patented and proprietary process, which we refer to as Sonocracking, is based upon the novel use of high power ultrasonics the application of high energy, high frequency sound waves to effect beneficial changes in the chemical composition of crude oil. These beneficial changes include an increase in the gravity of the crude oil and a corresponding increase in the amount of lighter oils that can be recovered during refining processes. Other beneficial changes to the crude oil as a result of the Sonocracking technology include a reduction in the weight percentage of sulfur as well as a reduction in the parts per million of nitrogen. Although our primary focus has been the application of the Sonocracking technology to crude oil, we believe that beneficial changes to other petroleum products and chemicals are also possible.

The initial markets for our Sonocracking technology and our Sonocracker units are expected to be crude oil producers and refiners. The economic value of crude oil is driven largely by both the gravity of the crude and sulfur content. Because our technology is expected to increase the gravity of the crude oil and at the same time reduce the sulfur content in a cost-effective way, the successful commercialization of our technology can be expected to produce economic benefits to future customers in these markets.

References in this report to we,us,our company and SulphCo refer to SulphCo, Inc., a Nevada corporation.

Development and Commercialization Activities

We have been developing our Sonocracking technology on an ongoing basis since January 1999. Testing has been done through in-house facilities, and more recently by ChevronTexaco Energy Technology Co. (ChevronTexaco), a unit of ChevronTexaco Corp. Beginning in mid-2002 our development activities have centered around re-designing, upgrading and testing of laboratory scale prototypes utilizing more powerful ultrasonic generators, and redesigning these prototypes to accommodate the more powerful generators. Substantially all of the development work to date has been conducted by SulphCo personnel.

In January 2005 ChevronTexaco installed a 2,000 bbl/day Sonocracking system in its pilot plant at the Richmond Technology Center in Richmond, California, using components owned by us to further evaluate our technology. Our collaboration agreement with ChevronTexaco expired by its terms on July 6, 2005. We are unable to predict when or if we will enter into any new business agreements with ChevronTexaco or the terms of any such agreements.

We are completing construction of our first commercial 5,000 bbl/day Sonocracking unit at our facilities in Sparks, Nevada. Construction of the unit is a culmination of months of testing of the internal components of the unit at our facility. The 5,000 bbl/day unit is designed to be modular in order to facilitate both scalability and maintenance. We intend to configure five of the 5,000 bbl/day units to make up a single 25,000 bbl/day unit.

SulphCo is continuing its Sonocracking development work on crude oil, primarily through data generated from its pilot plant located at its headquarters in Sparks, Nevada. SulphCo is also developing and testing improved ultrasonic probes and associated electrical components at the same facility.



--------------------------------------------------------------------------------
During the next 12 months we intend to continue development and commercialization activities currently underway and to explore new activities. In this regard:
We completed design and engineering work for a 25,000 bbl or more per day Sonocracker unit during the second quarter of 2005. Once the design and engineering work for the 25,000 bbl unit is fully tested, we intend to manufacture two initial 25,000 bbl units in anticipation of receipt of a customer order.

We plan to continue to engage in development and testing activities, both at our facility and in collaboration with other parties.

We expect to continue to explore partnerships, joint ventures, licensing and other relationships conducive to the further development and deployment of our Sonocracking technology.

In February 2005 we entered into an agreement with OIL-SC, Ltd (OIL-SC) based in Seoul, South Korea, which provides for the sale by us to OIL-SC of a Sonocracker pilot plant utilizing our Sonocracking technology for $1 million and the appointment of OIL-SC as our marketing representative for oil refiners in South Korea. The pilot plant, which is expected to have a processing capacity of up to 2,000 bbl/day, will be located in South Korea, and is intended to both serve as a demonstration unit for our Sonocracking technology to South Korean refiners and to upgrade petroleum products which OIL-SC purchases on the open market. We recently completed construction and testing of the plant components and expect to deliver and assemble the Sonocracker unit in South Korea in August 2005. We will also provide start-up assistance in connection with OIL-SCs operation of the pilot plant.

The agreement with OIL-SC calls for the $1 million purchase price for the pilot plant to be paid to us in installments. The initial installment of $300,000 was paid to us on March 15, 2005 and the second installment of $200,000 was paid to us on June 30, 2005. Additional installments of $50,000 and $450,000 are payable on September 1 and December 1, 2005. This agreement also provides that OIL-SC is entitled to a full refund of all payments if the pilot plant does not operate within agreed specifications within 90 days of the installation of the pilot plant. These specifications call for the pilot plant to upgrade a specified grade of medium weight crude oil (Arab Medium Crude) by increasing its gravity (API) by 9.8%, reducing sulfur weight content by 29.4%, and reducing nitrogen content by 29.9%. As the payment of the $1 million purchase price is refundable if the pilot plant does not meet the agreed specifications, no portion of the purchase price has been or will be recorded as revenue in our financial statements until the pilot plant is successfully installed and tested under the agreement with OIL-SC.

In July 2005, we entered into a Manufacturing Agreement with Jaie Haour Group of Taiwan (JH Group) which provides for the manufacture by JH Group of major structural components for our Sonocracking units. The agreement specifies that JH Group will manufacture, the frames, tanks, piping and certain other components for the Sonocracking units, as well as provide component sourcing, technical design and development assistance. JH Group will also assist SulphCo by providing personnel for equipment installation support. JH Group has constructed components for a Sonocracking unit for our customer, OIL-SC, in South Korea.

In May 2005, we entered into a Manufacturing Agreement with Märkisches Werk GmbH (MWH) which provides for the manufacture by MWH of our Sonocracking probe assembly and reactor (Equipment). Under the terms of the Manufacturing Agreement we are required to purchase Equipment we may require from time to time exclusively from MWH, so long as MWH is able to meet certain requirements as to price, quality and delivery schedules. The Manufacturing Agreement has a term of five years, subject to earlier termination upon the occurrence of specified defaults.

In February 2004 we formed a joint venture with two Kuwaiti nationals to engage in the marketing of our technology in Kuwait. To date, marketing activities by the Kuwait joint venture have been limited to exploring sales of demonstration units in Kuwait. We have not licensed our Sonocracking technology to the joint venture and we are unable to determine at this time what activities, if any, the Kuwait joint venture will undertake in the future.



--------------------------------------------------------------------------------
The nature and timing of our activities over the next 12 months and beyond cannot be predicted with certainty, as they are dependent upon a number of factors, including the timing of completion of development and commercialization milestones and the business requirements of third parties. We do not expect to generate any revenues from the sale of Sonocracker units or the licensing of our technology until at least the second half of 2005.
Liquidity and Financial Results

As of July 31, 2005, we had $7,138,457 in available cash reserves. Included in this amount is $500,000 in refundable installment payments (unearned revenue) received related to the pending delivery of a pilot plant by us to OIL-SC. Additional refundable installments of $50,000 and $450,000 are payable on September 1 and December 1, 2005. We believe our current cash reserves, excluding the unearned revenue noted above, are sufficient to meet our current obligations and fund our operations for the next 12 months.

We currently have a total of $1,000,000 due to related parties that is payable December 31, 2005 and carries an 8% interest rate. We also have a $7,000,000 note payable to a related party due December 31, 2007 with a variable interest rate of LIBOR plus .5% adjusted quarterly, based on the one-month LIBOR rate (See Financing Activities below). We currently use the proceeds to fund our day to day operations and meet our current obligations.

We are a development stage company and have not generated any material revenues since we commenced our current line of business in 1999. We do not anticipate generating any material revenues on a sustained basis unless and until a licensing agreement, sale of an initial production scale unit, or other commercial arrangement is entered into with respect to our technology.

As of June 30, 2005, we had an accumulated deficit of approximately $27.0 million, which includes approximately $6.9 million of stock-based compensation. For the six months ended June 30, 2005, we incurred losses of $4.7 million, of which approximately $1.1 million represents stock-based compensation payable to directors, officers and consultants.

These losses are principally associated with the research and development of our upgrading and desulfurization technologies, development of pre-production prototypes, and related marketing activity, and we expect to continue to incur expenses in the future for development, commercialization and sales and marketing activities related to the commercialization of our technologies.

The $4.7 million loss for the six months ended June 30, 2005, also includes: (1) approximately $760,000 of accrued late registration fees payable to investors in our June 2004 private placements resulting from delays in an SEC registration completed in June 2005 (See Financing Activities below);
(2) a $234,000 loss on impairment of asset, as we have determined that a previously capitalized prototype no longer reflects the value of our commercially viable technology.



--------------------------------------------------------------------------------
Our estimated monthly cash outflow, or cash burn rate, as of the date of this report, for fixed and normal recurring operating expenses, is approximately $400,000 per month, as follows:

                    Salaries and consulting expenses   $ 177,000
                    Plant and property leases             37,000
                    Professional fees                     60,000
                    R&D Expenses                          31,500
                    Interest expense                      26,000
                    Office, phone, utilities               8,000
                    Patent costs                          30,000
                    Travel and entertainment              23,500
                    Miscellaneous                          7,000


                       Total                           $ 400,000




The foregoing amounts represent fixed and normal recurring cash operating expenses, and are exclusive of non-recurring items such as capital expenditures. Additional funding requirements during the next 12 months may arise upon the placement of an order by a future customer for one or more Sonocracker units. We expect that funding for the cost of manufacturing of any particular unit would be available either from current cash reserves or from potential customers before we commence manufacturing the unit. In addition, as we are unable to determine the precise timing of development activities or receipt of customer orders, monthly cash outflow may increase significantly as we increase our research and development activities, and prepare for additional assembly and manufacturing duties associated with the deployment of the Sonocracking technology.

Salary and consulting expenses represents salary and payroll costs for all of our full time employees and consulting payments.

Monthly fixed and recurring expenses for Plant and property leases of $37,000 represents the monthly lease payment to an unaffiliated third party for our facility located at 850 Spice Islands Drive for approximately 93,000 square feet of executive offices, research facilities and manufacturing space.

Included in professional fees are estimated recurring legal fees paid to outside corporate and patent counsel and ongoing litigation expenses, audit and review fees paid to our independent accountants, and fees paid for investor relations.

We anticipate that our existing capital resources will be sufficient to fund our cash requirements through the next 12 months. The extent and timing of our future capital requirements will depend primarily upon the rate of our progress in the development and commercialization of our technologies, the terms of any future commercial arrangements, and the timing of future customer orders.

To date we have generated no material revenues from our business operations. We are unable to predict when or if we will be able to generate additional revenues from commercial activities or the amounts expected from such activities. These revenue streams may be generated by us or in conjunction with collaborative partners or third party licensing arrangements, and may include provisions for one-time, lump sum payments in addition to ongoing royalty payments or other revenue sharing arrangements. However, we presently have no commitments for any such payments.

In the past we have financed our research and development activities primarily through debt and equity financings from our principal shareholder, Dr. Rudolf W. Gunnerman, and other parties. Sources of additional capital include the exercise of additional investment rights and warrants issued to investors in the June 2004 private placements, and funding through future collaborative arrangements, licensing arrangements and debt and equity financings. We do not know whether additional financing will be available on commercially acceptable terms when needed. If we are unable to secure such additional financing when needed, we may have to curtail or suspend all or a portion of our business activities. Further, if we issue equity securities, our shareholders may experience dilution of their ownership percentage.



--------------------------------------------------------------------------------

Financing Activities
As of June 30, 2005, a short-term promissory note in the amount of $500,000 was outstanding and payable to Dr. Gunnerman. The note is due December 30, 2005 and carries an interest rate of 8 percent per annum. The agreement provides for mandatory prepayments from revenues we receive from the sale of our products or the licensing of our technology or otherwise, and from the amount of unrestricted loan or equity financings we receive.

As of June 30, 2005, a short-term promissory note in the amount of $500,000 was outstanding and payable to Erika Herrmann, the sister-in-law of Dr. Gunnerman. The note is due December 30, 2005 and carries an interest rate of 8 percent per annum. The agreement provides for mandatory prepayments from revenues we receive from the sale of our products or the licensing of our technology or otherwise, and from the amount of unrestricted loan or equity financings we receive.

In June 2004 we conducted two private placements with institutional and other third party investors for the sale of units consisting of our common stock, warrants, and rights to acquire additional stock and warrants, generating net cash proceeds of approximately $2.3 million. Additional cash proceeds of $2.3 million were generated as of November 2, 2004, when investors in the June 2004 placements acquired the remaining unpurchased units pursuant to the terms of the June 2004 placements, and up to $15.2 million may be generated upon exercise of warrants and rights if investors in the June 2004 private placements exercise all available warrants and rights. The rights expire on March 15, 2006, and warrants expire three years from the date of their issuance.

As of June 30, 2005, we were obligated to pay approximately $760,000 in the aggregate to investors in the private placements as late registration fees. Our agreement also provides for interest to accrue on this amount at the rate of 18% per annum. We have had informal discussions with some of the private placement investors who have expressed interest in receiving restricted shares in lieu of cash fees and we expect that we will reach agreement with most of the investors to pay these fees with restricted shares in lieu of cash. However, as of the date of this report no formal agreements have been entered into with any investors to pay these fees by issuing additional restricted shares.

In December 2004 Dr. Gunnerman advanced $7 million to us as a loan. The loan is evidenced by a promissory note which bears interest at the rate of 0.5% above the 30 day LIBOR rate, adjusted quarterly and payable annually, and the entire principal amount is due and payable in December 2007. The LIBOR rate, which stands for London Interbank Offered Rate, is a reference rate for short-term loans between banks in the London interbank market. The initial loan rate under the promissory note on December 31, 2004, was 2.9% (0.5% above the LIBOR rate), and the interest rate under the note is adjusted quarterly. The LIBOR rate as of June 30, 2005 was 3.34%, making the interest associated with the note 3.84%.

Research and Development

For the six months ended June 30, 2005 we incurred approximately $443,000 related to research and development of our Sonocracking technology. Of this amount, approximately $130,000 was paid to our engineers as wages and related benefits for the design and testing of the pilot plant being sold to OIL-SC. Also included in this amount is approximately $142,000 for the procurement of control panels, probes, centrifuges, and generators related to the development of the 2,000 bbl/ unit for OIL-SC and the 1,000 bbl / unit currently located at our Sparks, Nevada facility used for test purposes. The remainder of our research and development costs in this six-month period relate to outside labor costs and recurring monthly expenses related to the maintenance of our warehouse facilities. We continue to design, test, and purchase parts that we expect to use in the production of a large scale commercial unit.



--------------------------------------------------------------------------------
We intend to continue our research and development program during the next 12 months in order to expand the development of the design and manufacture of commercial Sonocracker units which embody our proprietary technology. Management anticipates that our research and development costs, including a portion of salaries for full time employees, will be approximately $50,000 per month, or $600,000 during the next 12 months.
Employees

As of July 31, 2005, we had 17 full-time employees and a consulting agreement with RWG, Inc., for the full-time services of our chairman and CEO, Rudolf W. Gunnerman. We do not expect any material changes in the number of our employees during the next 12 months unless required to service future customer orders.

[gott2roll]

What do you make of the press release of  the Installation of the 2000bbi/day Sonocracking Plant in Korea on Sept.26,05?  Can be viewed on yhr SLPH home page.

[setravis]

Press Release Source: SulphCo, Inc.


SulphCo Approved for Listing on the American Stock Exchange
Monday October 3, 7:00 am ET


SPARKS, Nev., Oct. 3 /PRNewswire-FirstCall/ -- SulphCo, Inc. (OTC Bulletin Board: SLPH - News) today announced that the American Stock Exchange (AMEX) has approved its application for listing the Company's securities. SulphCo will trade on the AMEX under the symbol SUF. The transition before SulphCo begins trading on the American Stock Exchange is expected to take several days, and in the interim SulphCo will continue to be traded on the OTC Bulletin Board. This approval is contingent upon the Company being in compliance with all applicable listing standards on the date it begins trading on the AMEX, and may be rescinded if the Company is not in compliance with such standards.


"We are very pleased to be approved for listing on the American Stock Exchange, and believe that this listing should significantly increase the visibility of SulphCo, attract analyst coverage on Wall Street, as well as provide trading liquidity for institutional investors," said Dr. Rudolf W. Gunnerman, Chairman and CEO of SulphCo.

About SulphCo, Inc.

SulphCo has developed a patented safe and economic process employing ultrasound technology to desulfurize and hydrogenate crude oil and other oil related products. The company's technology upgrades sour heavy crude oils into sweeter, lighter crudes, producing more gallons of usable oil per barrel.

From time to time, the company may issue forward-looking statements, which involve risks and uncertainties. This statement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as actual results could differ and any forward-looking statements should be considered accordingly.




--------------------------------------------------------------------------------
Source: SulphCo, Inc.

[setravis]

  
SulphCo Approved for Listing on the American Stock Exchange
Monday October 3, 7:00 am ET

[setravis]

Update the move to the American Stock Exchange
Brought with it ticker symbol change,
From (SLPH)......To (SUF)

Technicals
Record Price High
Most Actives
Percentage Gainer

[Ramsburg]

Moved from Peny Stock Picking... (not OTCBB anymore )

Btw, great pick setravis applaud !

[Terliso]

Update the move to the American Stock Exchange
Brought with it ticker symbol change,
From (SLPH)......To (SUF)

Technicals
Record Price High
Most Actives
Percentage Gainer

Very nice setravis... you always found the good stuff

[setravis]

Moving on up this morning....
+12.50%.......Volume @.......282,900

[setravis]

 
SulphCo Approved for Listing on the American Stock Exchange
Monday October 3, 7:00 am ET

I'm loving this! 
Going hog wild, since it's deal with the Oil Emirates
This one made it's move to the American Stock Exchange,
and is doing very well.

[setravis]

Zoom...Zoom...Zoom....   keeps pushing up today...
+16.11%.........Volume @.......1,363,500

Technicals
Record Price High
Most Actives
Percentage Gainer

[setravis]

SULPHCO INC (AMEX:SUF) Delayed quote data 

Pre-Market (RT-ECN): 9.90  0.60 (6.45%)

Last Trade: 9.30
Trade Time: Dec 13
Change: 0.00 (0.00%)
Prev Close: 9.30
Open: N/A
Bid: N/A
Ask: N/A
1y Target Est: N/A

  Day's Range: N/A - N/A
52wk Range: N/A
Volume: 11,600
Avg Vol (3m): N/A
Market Cap: 528.31M
P/E (ttm): N/A
EPS (ttm): -0.144
Div & Yield: N/A (N/A)


Press Release Source: SulphCo, Inc.


SulphCo to Supply Sonocracking(TM) Processing Equipment to Fujairah Oil Technology, LLC
Wednesday December 14, 7:00 am ET 
New Board makes first round of decisions


SPARKS, Nev., Dec. 14 /PRNewswire-FirstCall/ -- SulphCo, Inc. (Amex: SUF - News) announced that at a December 13, 2005 meeting of the shareholders of Fujairah Oil Technology, LLC ("FOT"), FOT elected a Board of Directors. SulphCo, Inc. is a 50% joint venture partner in FOT with Trans Gulf Petroleum Co., which is owned by the Government of Fujairah in the United Arab Emirates.


H.H. Sheikh Mohammed Bin Hamad Bin Mohammed Al Sharqi, the son of the current ruler of Fujairah, was elected as Chairman of the Board. Dr. Rudolf Gunnerman, Chief Executive Officer of SulphCo was named Vice Chairman. Mr. George Jamil Bajk, and Mr. Mohammed Saeed Al Dhanhani, the Emmiri Court Director, were also elected to the board. Mr. Ahmed Y. Barakat, the SulphCo Saudi Arabia representative, was named to the board and was also voted Executive Manager of FOT.

At the meeting, the Board of Directors of FOT issued a letter to SulphCo requesting an initial supply of SulphCo Sonocracking (TM) processing equipment capable of upgrading 200,000 bbl/day of oil no later than June 1, 2006. SulphCo, Inc. shall retain title to the equipment and FOT will be responsible for ongoing operations and maintenance.

In other action, the Board of Directors of FOT appointed Deloitte in the Middle East, part of Deloitte Touche Tohmatsu, as its auditor.

The Fujairah government has allocated approximately 40 acres of land adjacent to a large oil terminal which is ideally suited for SulphCo's application.

Rudolf Gunnerman, SulphCo chairman and CEO stated, "We are pleased at the cooperation of the board and the government of Fujairah and the swift manner in which this board acted. We intend to capitalize on these synergies and look forward to continue the commercialization of SulphCo's technology."

SulphCo's high-powered ultrasound process upgrades heavy sour crude oils into lighter sweeter crudes. It increases gravity and reduces sulfur, nitrogen and viscosity, producing more usable oil per barrel of crude.

About SulphCo, Inc.

SulphCo has developed a patented safe and economic process employing ultrasound technology to desulfurize and hydrogenate crude oil and other oil related products. The company's technology upgrades sour heavy crude oils into sweeter, lighter crudes, producing more gallons of usable oil per barrel.

From time to time, the company may issue forward-looking statements, which involve risks and uncertainties. This statement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as actual results could differ and any forward-looking statements should be considered accordingly.




--------------------------------------------------------------------------------
Source: SulphCo, Inc.

[setravis]

Breakout of the Symmetrical Triangle (continuation) Pattern,
in late November, into stacked G-Patterns.

Technicals
Record Price High
Most Actives
Gap Up
Percentage Gainer

[setravis]

Moving...

Technicals
Record Volume
Most Actives
Stochastic - Bearish
Percentage Gainer

Last Price Quote is:
15.24%above 13-day EMA