REG - Hunting PLC - Acquisition of OOR technology for $17.5 million

HuntingAnnouncement

07/03/2025 07:30

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RNS Number : 8016Z  Hunting PLC  07 March 2025

 For Immediate Release  7 March 2025

 

 

Hunting PLC

 

("Hunting" or the "Company")

 

Acquisition of Organic Oil Recovery technology for $17.5 million

 

Hunting PLC (LSE: HTG), the precision engineering group, today announces the
acquisition of the Organic Oil Recovery ("OOR") technology from its founding
shareholders, for a consideration of $17.5 million.

 

Hunting has acquired the entire portfolio of intellectual property, comprising
over 25 discreet patents, the distribution rights for the technology, and the
laboratory located in California, US. Following the acquisition, the Company
will hold the global rights for the OOR technology and is now well placed to
further accelerate commercialisation across North America and the rest of the
world.

 

OOR is an enhanced oil recovery technology, which provides the following
benefits to operators:

 

·           It improves ultimate recovery of oil reserves from a
well;

·           Is a cost-efficient technology that reduces capex
requirements and is simple to deploy;

·           Lowers the water cut during end-of-life production;

·           Lowers hydrogen sulphide levels in production offtake;
and

·           Extends the life and increases the economic returns of
a producing field.

 

The consideration for the acquisition is $17.5 million, with Hunting agreeing
to pay a 15% royalty to the sellers on revenue earned for a period of 15
years, post-completion.

 

Field trials of the OOR technology are currently underway with numerous
blue-chip exploration and production companies across North America, Europe,
the Middle East, and Asia Pacific.

 

As previously announced in 2024, Hunting secured up to $60 million of orders
from operators in the UK North Sea, with a strong pipeline of opportunities
likely to be secured in the coming years, as the oil and gas industry embraces
the production benefits of this enhanced oil recovery solution. With
additional geographic opportunities, as a result of the transaction, the
outlook for expansion is robust.

 

Hunting is also looking to build its presence in the Middle East with the
construction of a small laboratory in the UAE to service clients in the
Eastern Hemisphere. With the establishment of this laboratory, the sample lead
time and overall analysis time will decrease as a result of closer proximity
to the customer.

 

Following the acquisition, all technical employees of the OOR business will
join Hunting either as an employee or long-term consultant.

 

Commenting on the acquisition, Jim Johnson, Chief Executive of Hunting, said:

 

"Following the acquisition of this exciting business, Hunting now has the
ability to deploy this remarkable technology globally. The technology is
currently being evaluated by many blue-chip customers, with the benefits to
the operator clear. For Hunting, the business will be margin accretive and
strongly position the Company to reach its Hunting 2030 Strategy targets in
the medium term as commercialisation accelerates."

 

For further information please contact:

 

 Hunting PLC                        Tel: +44 (0) 20 7321 0123

 Jim Johnson, Chief Executive

 Bruce Ferguson, Finance Director

 Buchanan                           Tel: +44 (0) 20 7466 5000

 Ben Romney

 Barry Archer

 

or

 

lon.IR@hunting-intl.com

 

About Hunting PLC

 

Hunting is a global, precision engineering group that provides
precision-manufactured equipment and premium services, which add value for our
customers. Established in 1874, it is a listed public company, quoted on the
London Stock Exchange in the Equity Shares in Commercial Companies ("ESCC")
category. The Company maintains a corporate office in Houston and is
headquartered in London. As well as the United Kingdom, the Company has
operations in China, India, Indonesia, Mexico, Netherlands, Norway, Saudi
Arabia, Singapore, United Arab Emirates and the United States of America.

 

The Group reports in US dollars across five operating segments: Hunting Titan;
North America; Subsea Technologies; Europe, Middle East and Africa ("EMEA"),
and Asia Pacific.

 

The Group also reports revenue and EBITDA financial metrics based on five
product groups: OCTG, Perforating Systems, Subsea, Advanced Manufacturing and
Other Manufacturing.

 

Hunting PLC's Legal Entity Identifier is 2138008S5FL78ITZRN66.

 

 

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