REG - Iofina PLC - Agreement with Western Midstream

IofinaAnnouncement

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RNS Number : 3650K  Iofina PLC  05 December 2025

 

5 December 2025

 

Iofina plc

("Iofina", the "Company" or the "Group")

(AIM: IOF)

 

Agreement with Western Midstream to Support New IOsorb® Plant

 

Iofina plc, specialists in the exploration and production of iodine and
manufacturers of specialty chemical products, announces that it has signed an
agreement with Western Midstream Partners, LP ("Western Midstream") (NYSE:
WES) to develop the Group's next IOsorb® plant in the Permian Basin, a large
sedimentary basin between Western Texas and Southeastern New Mexico.

 

Highlights of the new IOsorb® plant:

·    The agreement will use the Company's WET IOsorb® technology, along
with Western Midstream's produced water, to extract iodine for commercial
sale.

·    The new plant will be built, funded and operated by Iofina, with the
ability to process c.50,000 barrels of brine water per day, twice the capacity
of the current IOsorb® plants.

·    Iofina expects this new facility, which it estimates will cost
between $8-9m, to become the Company's largest producing plant with a target
annual production range between 170-220 metric tonnes of crystalline iodine.

·    Western Midstream will supply up to 50,000 Bbls/d of produced water
in exchange for a royalty fee on the plant's production. Once the iodine is
extracted, the produced water will be returned to Western Midstream to dispose
of, transport, and/or recycle.

·    Western Midstream has significant expertise in produced water
infrastructure, handling and disposal, and through its recent acquisition of
Aris Water Solutions, produced water recycling and beneficial reuse, making it
an ideal partner for the Company.

·    The world's largest oil basin, the Permian Basin, accounted for 48%
of total U.S. crude oil production in 2024, and has water-to-oil ratios
ranging from 3-times to up to 11-times, resulting in a significant amount of
produced water that needs to be handled to ensure flow assurance.

·    Groundwork is anticipated to start by the end of 2025, with the plant
expected to come online in H2 2026.

 

President and CEO, Dr. Tom Becker, commented:

"We are delighted to be partnering with Western Midstream, given their
respected expertise in produced water handling and recycling solutions. They
are the ideal partner for our latest plant construction, given the size and
scale of their produced-water infrastructure in the Permian Basin, which is a
new area for Iofina. This agreement provides the framework for potential
further expansion in the Permian."

 

"The ability to double the brine water capacity to 50,000 barrels per day will
be a step-change for Iofina and will help accelerate our crystalline iodide
production growth strategy. Based on our current timeline, we expect the new
IOsorb® plant to be fully operational in the second half of 2026."

 

Oscar K. Brown, President and Chief Executive Officer of Western Midstream,
commented:

 

"We are excited to be partnering with Iofina to accelerate our commitment to
scaling produced-water beneficial reuse technologies in the Permian Basin with
the first iodine extraction plant in the basin. The magnitude of produced
water coming from the Permian Basin will require an 'all-of-the-above'
approach to solutions, and this agreement is a critical step forward in
sustainably addressing the challenges within the basin. Currently handling
more than 2.7 million barrels of water per day, Western Midstream is one of
the largest produced-water midstream service providers in the basin and is
keenly focused on providing our producer customers with integrated solutions
to the produced-water challenges within West Texas and New Mexico."

 

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018.

 

Enquiries:

 

Iofina plc

Dr. Tom Becker

CEO & President

Tel: +44 (0)20 3006 3135

 

Nomad & Broker:

Canaccord Genuity Limited

Henry Fitzgerald-O'Connor/Harry Rees

Tel: +44 (0)20 7523 8000

 

Financial PR and Media Contact:

Yellow Jersey PR Limited

Charles Goodwin/Shivantha Thambirajah

Tel: +44 (0)7747 788 221/+44 (0)7983 521 488

 

About Iofina:

Iofina plc (AIM: IOF) is a vertically integrated company that specialises in
the production of Iodine and the manufacturing of specialty chemical products.
Iofina is the second largest producer of iodine in North America and operates
the manufacturing entities Iofina Resources and Iofina Chemical.

LEI: 213800QDMFYVRJYYTQ84

ISIN: GB00B2QL5C79

 

Iofina Resources

Iofina Resources develops, builds, owns, and operates iodine extraction plants
using Iofina's WET® IOsorb® technology. Iofina operates eight IOsorb®
plants in Oklahoma and consistently uses technology and innovation to improve
and expand its operations.

 

Iofina Chemical

Iofina Chemical has manufactured high-quality halogen speciality chemicals
derived from raw iodine, as well as non-iodine-based products. Iofina
Chemical celebrated its 40(th) anniversary in 2023 as a preeminent
halogen-based specialty chemicals company.

 

www.iofina.com (http://www.iofina.com/)

 

About Western Midstream

Western Midstream Partners, LP ("WES") is a master limited partnership formed
to develop, acquire, own, and operate midstream assets. With midstream assets
located in Texas, New Mexico, Colorado, Utah, and Wyoming, WES is engaged
in the business of gathering, compressing, treating, processing, and
transporting natural gas; gathering, stabilising, and transporting condensate,
natural-gas liquids, and crude oil; and gathering, transporting, recycling,
treating, and disposing of produced water for its customers. In its capacity
as a natural-gas processor, WES also buys and sells residue, natural-gas
liquids, and condensate on behalf of itself and its customers under certain
gas processing contracts. A substantial majority of WES's cash flows are
protected from direct exposure to commodity price volatility through fee-based
contracts.

 

For more information about WES, please visit www.westernmidstream.com
(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4548143-1&h=1437709582&u=http%3A%2F%2Fwww.westernmidstream.com%2F&a=www.westernmidstream.com)
.

 

 

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