REG - Quadrise PLC - Valkor Project Update

QuadriseAnnouncement

19/04/2024 07:00

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RNS Number : 2352L  Quadrise PLC  19 April 2024

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                                             +44 (0)20 7031 7321
 Andy Morrison, Chairman

 Jason Miles, Chief Executive Officer

 Nominated Adviser
 Cavendish Capital Markets Limited                        +44 (0)20 7220 0500
 Ben Jeynes
 Katy Birkin

 George Lawson
 Joint Brokers

 Shore Capital Stockbrokers Limited

                                                          +44 (0)20 7408 4090
 Toby Gibbs, Rachel Goldstein (Corporate Advisory)
 Fiona Conroy (Corporate Broking)
 ( )                                                ( )   ( )
 VSA Capital Limited                                      +44 (0)20 3005 5000

 Andrew Raca (Corporate Finance)

 Andrew Monk (Corporate Broking)

 Public & Investor Relations
 Vigo Consulting                                          +44 (0)20 7390 0230

 Patrick D'Ancona

 Finlay Thomson

Peter Jacob

 

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
(https://url.avanan.click/v2/___http:/www.quadrise.com/___.YXAxZTpzaG9yZWNhcDphOm86ZDliYjk0YWMyYzJkMTg2OGJmODhlN2Y5YTIwMzEwOTc6Njo4MGY3OmNiOTg0OWU2Y2NlZWU0NGE3NzYwZTUyMmI4OGQ2ZDJmZWE2NzM1Mzc3YjRkNGYwMTQwMmVhY2E5ZTRkOGQzYjE6cDpU)

 

Follow us on social media:

LinkedIn: @Quadrise Plc
(https://uk.linkedin.com/company/quadrise-international-ltd)

X (formerly Twitter): @QuadrisePlc (https://x.com/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.

 

 

 

 

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