REG - Quadrise PLC - Valkor Project Update

QuadriseAnnouncement

29/08/2023 07:00

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RNS Number : 5468K  Quadrise PLC  29 August 2023

29 August 2023

Quadrise Plc
("Quadrise" or the "Company")

Valkor Project Update

Further to the announcement on 24 August 2023, 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.

As announced on 12 June 2023, Quadrise and Valkor signed a Site Licence
Agreement ("SLA"), conditional on receipt by Valkor of drilling and
underground injection permits for the Primary Project Site ("PPS") from
the Utah Board of Oil, Gas and Mining (the "Board") and upon the receipt by
Valkor of project financing in an amount of at least US$15 million.

Valkor's pilot development programme was approved by the Board in December
2022 on standard 40 acre spacing, and Valkor has been conducting field surveys
and other tasks required for the completion of permit applications. The
drilling permit is expected by Valkor to be issued by Utah's Department of
Oil, Gas & Mining ("DOGM") in early September 2023, with drilling
scheduled by Valkor in October 2023. Upon issue of the drilling permit, Valkor
can file Underground Injection Control ("UIC") permit applications for the
injection of steam to stimulate the drilled wells. DOGM has estimated UIC
approvals will take approximately 8 weeks in accordance with the schedule for
Valkor's planned October drilling. Under the current Board approvals and
following the issue of the drilling permit, Valkor is able to drill up to 12
wells under the pilot development plan.

Separately, Valkor is seeking 2.5 acre down-spacing of the wells (compared
with the standard of 40 acres) to allow drilling of 111 wells within the same
area. Based upon advice received, Valkor sought a hearing for a unitisation
plan, treating the pilot area as a single unit with revised spacing as desired
by Valkor ("Unitisation"). At the recent hearing on 23 August 2023, the Board
did not grant the Unitisation but instead requested that Valkor drill at least
one pilot well and update the plan using the data from that well before
seeking approval again. Unitisation by Q1 2024 will be targeted, to stay on
schedule for the full development plan of 111 wells.

Valkor has advised Quadrise that the Board ruling of 23 August 2023 does not
impact the PPS development plan and has confirmed that Valkor's financing is
not dependent upon UIC or Unitisation approvals. With the drilling permit
condition now in hand, Valkor and Quadrise have agreed under an addendum dated
25 August 2023, that the SLA is now only conditional upon the receipt by
Valkor of project financing in an amount of at least US$15 million.

Valkor is continuing to work with Heavy Sweet Oil LLC and AC Oil LLC to secure
the required project financing to establish the Asphalt Ridge Enhanced
Recovery Unit for the in-situ production of heavy oil, and to licence
Quadrise's technology for the agreed sum of US$1.5m (comprising US$1m upon
satisfaction of the financing condition and US$0.5m on the date on which a
Quadrise MSAR® Manufacturing Unit and associated equipment are delivered to
the Primary Production Site).

A further update will be provided upon conclusion of Valkor's project
financing and subsequent award by Quadrise of the conditional site license to
Valkor.

Steven Byle, CEO of Valkor commented:

"Whilst the unitisation decision by the Board on 23 August 2023 was
disappointing, it was understandable, and we had scheduled the hearing well
ahead of our project requirement for down-spaced pilot wells to be drilled.
Our pilot development project is unaffected, and our plan is to proceed with
the drilling programme under the current Board approvals. The wells will
evidence the substantial heavy oil deposits surveyed in the area and support
our further unitisation application early next year. We look forward to
securing funding with our project partners during the coming weeks and to
working with Quadrise to implement its unique technology in Utah to produce
lower carbon fuels in the near future."

Jason Miles, CEO of Quadrise added:

 

"We are delighted that Valkor and their partners are commencing heavy oil
drilling activities in Q4 2023 and working towards the conclusion of project
financing arrangements. The Quadrise team are looking forward to working with
Valkor in Utah to support the project and to deliver sales of MSAR® and
bioMSAR™ fuels produced from lower carbon heavy sweet oil."

 

 

For additional information, please contact:

 

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

 Jason Miles, Chief Executive Officer

 Nominated Adviser
 Cenkos Securities plc                                    +44 (0)20 7397 8900
 Ben Jeynes
 Katy Birkin
 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

 

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

 

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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