19 April 2024
Quadrise
Plc
("Quadrise" or the
"Company")
Valkor Project
Update
Quadrise Plc (AIM: QED), the
supplier of innovative energy solutions for a cleaner
planet, provides an update on its project with Valkor
Technologies LLC ("Valkor") in Utah, USA, which targets the supply
of low sulphur MSAR® and bioMSAR™ to the marine and power
sector.
Further to the Company's
announcement of 2 October 2023, Valkor has now confirmed that their
project partner, Heavy Sweet Oil LLC ("HSO"), has received
multi-million dollar funding and approval for their Application for
Permit to Drill ("APD") from the Utah Division of Oil, Gas and
Mining.
The Company understands that Valkor
intends to commence drilling of the initial oil well at the Asphalt
Ridge in Utah next week, with completion before the end of April.
This oil well is expected to yield between 20 and 40 barrels per
day of heavy sweet oil. Samples from the first well will be treated
to remove impurities and then sent to Quadrise for conversion to
MSAR® and bioMSAR™ and for testing. Commercial marketing to the
marine, utilities and industrial sectors is expected to commence
before the end of Q2 2024 once samples have been received and
tested at QRF.
In support of the drilling
programme, HSO plans to submit further drilling and Underground
Injection Control permit applications for the injection of steam
for enhanced recovery with optimised oil well spacing. The
latest applications, if approved, will allow for multiple wells to
be drilled from the same drill pad, the results of which should
enhance the oil field unitisation application for approval of the
larger project.
Valkor is managing several
conventional oil sands and drilling exploration projects in Utah.
With this initial drilling program funded for 3-4 wells, they
expect to conclude full project financing and approvals by mid-2024. As previously
advised, once a minimum of US$15 million project finance is raised
by Valkor, they will pay Quadrise US$1.0 million under the terms of
the Site License and Supply Agreement concluded in June 2023. A
further US$0.5 million is then due upon delivery of an MSAR®
Manufacturing Unit to the project site in Utah, followed by
quarterly technology transfer payments of US$75,000.
Commenting on the update,
Jason Miles, Chief Executive Officer of Quadrise,
said:
"We are delighted to see that Valkor has reached another
operational milestone and look forward to the commencement of their
drilling operations and the receipt of new heavy sweet oil samples
for testing at the Quadrise Research Facility.
The adoption of Quadrise energy decarbonisation technology
combined with Valkor's low carbon extraction methods is expected to
result in highly marketable low sulphur fuels with compelling
economics and environmental credentials."
Steven Byle, Chief Executive
Officer of Valkor, added:
"We are very pleased to announce to project stakeholders that
the drilling programme is commencing imminently in Utah. We are
looking forward to supplying larger samples of heavy sweet oil to
commence testing and marketing of MSAR® and bioMSAR™, and to
conclude state approvals and project financing of the first
production site."
About the Valkor Project
The use of low-carbon extraction
methods by Valkor in Utah for HSO and other developers is expected
to result in heavy sweet oil with a very low well-to-tank carbon
intensity. MSAR® produced using this oil is calculated to have a
15-20% lower well-to-wake (or well-to-stack) carbon intensity than
conventional very low sulphur fuel oil (VLSFO). The production of
bioMSAR™ using renewable glycerine or other biofuel feedstocks
would then further reduce fuel carbon intensity. The project is
well located to supply local industrial and powerplant consumers,
and marine consumers in the west and gulf coasts of the USA via
rail, in line with the Company's shipping decarbonisation
strategy.
For additional information, please
contact:
Quadrise Plc
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+44 (0)20
7031 7321
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Andy Morrison, Chairman
Jason Miles, Chief Executive
Officer
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Nominated
Adviser
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Cavendish Capital Markets Limited
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+44 (0)20
7220 0500
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Ben Jeynes
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Katy Birkin
George Lawson
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Joint
Brokers
Shore Capital Stockbrokers Limited
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+44 (0)20
7408 4090
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Toby Gibbs, Rachel Goldstein
(Corporate Advisory)
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Fiona Conroy (Corporate
Broking)
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VSA
Capital Limited
Andrew Raca (Corporate
Finance)
Andrew Monk (Corporate
Broking)
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+44 (0)20
3005 5000
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Public & Investor
Relations
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Vigo Consulting
Patrick D'Ancona
Finlay Thomson
Peter Jacob
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+44 (0)20
7390 0230
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About Quadrise
Quadrise is the supplier of MSAR®
and bioMSAR™ emulsion technology, fuels and biofuels, providing
innovative solutions to reduce energy costs and greenhouse gas
emissions today for clients in the global power generation,
shipping, industrial and refining industries.
Learn more at: www.quadrise.com
Follow us on social media:
LinkedIn: @Quadrise
Plc
X (formerly Twitter):
@QuadrisePlc
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR") and is disclosed in accordance with
the Company's obligations under Article 17 of
MAR.