Graphene NanoChem PLC Contract Win (8321S)
December 28 2016 - 2:00AM
UK Regulatory
TIDMGRPH
RNS Number : 8321S
Graphene NanoChem PLC
28 December 2016
For Immediate Release 28 December 2016
Graphene NanoChem PLC
("Graphene NanoChem" or the "Group")
CONTRACT WIN
First commercial order and deployment of PlatDrill in China
Graphene NanoChem (AIM:GRPH), the international provider of
nanotechnology performance enhancing solutions for global
industries, is pleased to announce a significant contract win with
the receipt of its first commercial order and deployment of
PlatDrill in China, tapping into the new burgeoning market for
shale gas development in the southwest region of China.
The initial commercial order of 4,000 barrels of PlatDrill,
valued at US$359,678, is to service 2 wells in Changning, China,
located at the southwest region where, in line with the China
government policy to increase the development of its shale gas
resources, more than 300 wells are expected to be drilled per year
in the next 5 years, which is amongst the largest in terms of
number of wells in Asia.
The Group is working closely with Scomi in expanding the
deployment of PlatDrill in the southeast region which is expected
to use between 80,000 - 120,000 tonnes of synthetic base mud to
replace oil based mud ("OBM") for drilling. Through Scomi's local
business partner in China, AntonOil Group, the Group is targeting
approximately 20% of the market size in 2017. Together with its
existing contract in Myanmar, which will re-commence drilling in Q1
2017, the supply into China market is expected to fill up the
Group's order book for PlatDrill in 2017.
PlatDrill, a "smart" fluid, offers a unique integrated solution
in drilling speed and quality as well as in environmental and
economic performances that meets the requirement of this market
that is underlined by cost and environmental considerations. The
combined performance and low toxicity and biodegradability function
of PlatDrill offers significant advantage as a viable alternative
to OBM for shale drilling in the region in the immediate and long
term.
Partnering with Scomi and its various local jurisdictional
partners has enabled the Group to penetrate new market
opportunities that would add significant value in the medium and
long term and allows it to continue to build its revenue base,
despite the current slowdown in the industry.
Jespal Deol, Chief Executive Officer of Graphene NanoChem,
commented: We are pleased to announce the latest progress of our
oilfield business and the continued support of Scomi during the
challenging period for the industry. Our latest commercial order
and its potential market opportunity is a continuing validation of
our product value proposition especially now that oil is expected
to be "lower for longer". Further, our partnership with Scomi has
enabled the Group to reduce marketing cost and adoption risk and
continue to service our orders through working capital financing
provided by Scomi whilst we continue to strengthen our financial
position."
For further information:
Graphene NanoChem Tel: +603 2282
3080
Jespal Deol, Chief Executive
Officer
Panmure Gordon (NOMAD and Broker)
Adam James / Tom Salvesen Tel: +44 (0)
20 7886 2500
Yellow Jersey PR Limited (Media) Tel: +44 (0)7544
275 882
Dominic Barretto / Charles
Goodwin / Harriet Jackson
About Graphene NanoChem
Graphene Nanochem plc (AIM: GRPH), is an international provider
of nanotechnology performance enhancing solutions for global
industries. The Group employs nanoprocesses and nanomaterials to
design, engineer and enhance the performance of mainstream products
for a wide range of industrial applications. It has established two
major functional platforms in the energy and water sectors, and the
Group, through partnerships with established industry players, is
focused on building market opportunities in both sectors whilst
continuing its developmental work in other strategic application
areas of nanotechnology.
Headquartered in Malaysia, Graphene Nanochem was admitted to the
AIM of the London Stock Exchange on 26 March 2013, following the
reverse acquisition of Biofutures International plc, and trades
under the symbol GRPH.L. To find out more, please visit
www.graphenenanochem.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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