First Third Party Iodine Extraction and Collection Agreement
Iofina, the gas and iodine production company, is pleased to announce that it has signed its first third party Iodine Extraction and Collection Agreement with The Termo Company, a California based oil & gas company, for the iodine rich Los Angeles (LA) Basin of California.
This Agreement is a significant step in Iofina's stated strategy of providing a full service fee based solution to resource operators, such as Termo, who are generating brine streams associated with oil and natural gas production.
The Deployment of Iofina's proprietary Wellhead Extraction Technology (WET®) units is now underway and will see Iofina establishing the first iodine recovery operation in California for fifty years. The initial WET® being deployed will be able to process 1,500 barrels (bbls) a day of 77 parts per million (ppm) brine and has the potential to ramp up to over 30,000 bbls a day when other modular POD units required for the process are deployed.
Over 1.5 million barrels per day of iodine rich brine is currently produced in the LA basin, without a single iodine recovery plant currently in operation. Brines sampled by Iofina in the LA Basin have concentrations ranging from 50 to over 100 ppm of iodine. As such, Iofina expects to re-establish additional iodine operations with other major producers across the LA Basin.
Iofina has conducted extensive work on its third party brine operations. The company continually contacts operators to receive samples, perform full testing to calculate production costs and potential yields. In the US the company has already identified over 350 operations that have tested over 50 ppm, with a number reaching up to 2000 ppm.
Commenting on today's announcement, Lance Baller, Iofina's CEO, said:
"We are delighted to be announcing our first third party iodine extraction and collection agreement with Termo. With high iodine content having ben identified in the LA Basin, this is expected to be the first of a number of significant brine stream opportunities for Iofina. Furthermore, it is an important milestone in the future development of the company."
David E. Combs, The Termo Company's President, CEO, and Chairman of the Board of Directors said:
"The Termo Company is excited about the potential of adding revenue from what is otherwise considered to be a waste stream. Termo is constantly seeking ways to maximize the value for our stakeholders and not afraid to try new technologies as a means to that end. Iofina has presented Termo with an opportunity that we look forward to exploiting."
For further information, please contact:
Lance Baller, CEO
Tel: +44(0)20 3006 3135
James Harris/Angela Peace
Strand Hanson Limited
Tel: +44(0)20 7409 3494
Mirabaud Securities Limited
Tel: +44(0)20 7878 3360
Pelham Bell Pottinger
Tel: +44 (0)20 7337 1524
Notes to Editors
Iofina is involved in the exploration and production of both iodine and natural gas with complete vertical integration into the specialty chemical iodine derivatives business. It also provides third party brine stream operators with a turnkey fee based solution to extract iodine. The presence of both iodine and natural gas has been discovered on acreages which the Company holds through its wholly owned subsidiary Iofina Natural Gas, Inc. The presence of both iodine and natural gas allows the Group to generate dual revenue streams over a single cost structure.
Iofina is traded on the London Stock Exchange's AIM Market under the ticker: IOF
Wellhead Extraction Technology® and WET® are registered trademarks of Iofina Natural Gas, Inc.
About The Termo Company
The Termo Company based in Long Beach, California is an independent oil and gas company with a rich oil and gas history in southern California oil "scene" rooted in the discovery of oil in Signal Hill in 1921. The Company was incorporated in 1933 and is currently run by the grandson of the founder. They have operated properties and enjoyed many successes in the Los Angeles Basin area including active involvement as operator in the Huntington Beach, Wilmington and Long Beach Fields. Termo was also involved in the discovery and development of the Brentwood Field in Contra Costa County which, at the time, was the northern-most oil field in California.
The Termo Company holds an interest in six fields in the Los Angeles Basin. The Company's interest involves 2,800 net acres and includes 48 producing wells with over 900 BOEPD to the 100% interest. Four of the fields have development drilling potential that could greatly enhance their value. The Seal Beach property has potential in several wells for recompletions in existing zones and adding zones that have not yet been tested. The Aliso Canyon and Oat Mountain Fields have some infill and stepout locations. The Termo Company operates fields in the Ventura, San Joaquin and Sacramento Basins of California, the Powder River Basin in Wyoming and in Louisiana.
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