Quadrise Fuels International PLC Greenfield MSAR Commercial Trial Agreement (4353W)
August 18 2020 - 2:22AM
UK Regulatory
TIDMQFI
RNS Number : 4353W
Quadrise Fuels International PLC
18 August 2020
18 August 2020
Quadrise Fuels International plc
("Quadrise", "QFI", the "Company" and together with its
subsidiaries the "Group")
Greenfield MSAR(R) Commercial Trial Agreement
Further to the Company's announcement of 18 June 2020 relating
to ongoing discussions with Valkor Technologies LLC ("Valkor"),
with whom Quadrise concluded an MOU in February 2020, Quadrise
provides the following update on entry of an MSAR(R) Commercial
Trial Agreement (the "Phase 1 CTA") with Greenfield Energy LLC
("Greenfield"), the joint venture ("JV") between Valkor and Tomco
Energy plc ("TomCo").
Quadrise, Greenfield and its JV partners, Valkor and Tomco
believe that the use of MSAR(R) technology can add significant
value to the development of heavy and paraffinic oil deposits in
Utah. Pursuant to this the parties have planned a phased
implementation of MSAR(R) that covers, as previously announced:
-- a commercial trial of MSAR(R) technology at the Petroteq Oil
Sands Plant ("POSP") located in the Asphalt Ridge Facility in Utah,
USA, that is managed and operated by Greenfield ("Phase 1");
and
-- the development of commercial MSAR(R) plants of up to 10,000
barrels oil per day ("Phase 2") located at Utah facilities owned or
operated by Greenfield.
The Phase 1 CTA now entered into has a commercial value to
Quadrise of US$150,000 and comprises the following activities that
are planned to be completed during the remainder of 2020, subject
to completion of preparatory works at the POSP facility by
Greenfield prior to Quadrise personnel accessing the site in Utah
later this year:
-- Proof of Concept formulation and test work at the Quadrise
Research Facility using oil samples supplied by Greenfield.
-- Loan of Quadrise MSAR(R) commercial production equipment and
MSAR(R) test equipment and supply of MSAR(R) additives.
-- Supply of specialist services to assist Greenfield in
completing the commercial scale demonstration trial to produce over
600 barrels (100 tonnes) of power grade MSAR (R) .
Quadrise, Greenfield and its JV partners, Valkor and Tomco will
continue to cooperate in good faith to agree the commercial terms
of a conditional MSAR(R) licence and commercial supply agreement
for the production of MSAR(R) fuel under Phase 2. Such a
conditional licence, which is now envisaged would be provided
directly to Greenfield (rather than to Valkor and assignable to JVs
as had been previously envisaged) will only be finalised upon, and
following, inter alia, satisfactory results of the Phase 1 CTA, the
agreement between the parties as to Phase 2 commercial terms and
the entry of binding agreements.
Further announcements will be made, as appropriate, in due
course.
Mike Kirk, Chairman of QFI said:
"We are delighted to have concluded the MSAR(R) Commercial Trial
Agreement with Greenfield. We are looking forward to being able to
take our technology to site and demonstrate its effectiveness in
enhancing the value of the sweet heavy or paraffinic oil deposits
in Utah. We will also be providing our expertise to the Greenfield
team from joint-venture partners Valkor and Tomco to assist with
the subsequent commercial development of the facilities there."
Steven Byle, Director of Greenfield and CEO of Valkor said:
"We see the MSAR(R) technology from QFI to provide a real
opportunity to take advantage of the huge and unique resource of
undervalued heavy sweet and high paraffin oil in Utah. The
effective implementation of a commercial MSAR(R) plant may unlock
the economics of heavy sweet crude derived from oil sands as well
as high paraffin crude from other sources. We will use this
commercial trial to attempt to demonstrate a viable retail product
direct from site. We will be seeking markets for this product at a
premium above WTI pricing. If successful, this effort could provide
outstanding economics for oil sands production through ordinary
price regimes while enabling profitability through low or even
crisis crude pricing. We will also look at the application to high
paraffin crude to allow conventional transport and superior
economics."
For further information, please refer to the Company's website
at www.quadrisefuels.com , or contact ir@quadrisefuels.com or
phone:
Quadrise Fuels International Plc
Mike Kirk, Chairman +44 (0)20 7031 7321
Jason Miles, Chief Executive Officer
Nominated Adviser
Cenkos Securities plc
Ben Jeynes
Katy Birkin +44 (0)20 7397 8900
Joint Brokers
Peel Hunt LLP
Richard Crichton +44 (0)20 7418 8900
David McKeown
Shore Capital Stockbrokers Limited
Toby Gibbs
Fiona Conroy +44 (0)20 7408 4090
Public & Investor Relations
FTI Consulting
Ben Brewerton +44 (0)20 3727 1000
Ntobeko Chidavaenzi Quadrise@fticonsulting.com
Notes to Editors
QFI is the supplier of MSAR (R) emulsion technology and fuels, a
low-cost alternative to heavy fuel oil (one of the world's largest
fuel markets, comprising over 450 million tons per annum) in the
global power generation, shipping, industrial and refining
industries.
The information communicated within this announcement was deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 prior to the release of this
announcement. Upon the publication of this announcement, this
inside information is now considered to be in the public
domain.
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END
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