(Alliance News) - Shares in Quadrise Fuels International PLC rose Thursday as it unveiled a new partnership with Aleph Commodities Ltd, which it already works with in Kuwait.
Quadrise was trading 8.6% higher on Thursday morning in London, at 4.48 pence a share.
The deal will see Aleph provide services to Quadrise related to the use of its emulsion technology MSAR in Saudi Arabia. Quadrise sees MSAR as a low-cost alternative to heavy fuel oil.
The deal could see Quadrise issue up to 65 million warrants to Aleph, based on various milestones being achieved. They would be issued in up to four tranches.
Aleph would also get royalties from any gross revenue achieved by Quadrise from work secured via Aleph.
UK-based Aleph, Quadrise said, has recently been set up by a small group of commodities traders with "significant" experience in the Middle East.
Quadrise Executive Chair Mike Kirk said: "I am pleased that we have been able to enter into this new services agreement with Aleph to cover the Saudi Arabian opportunity.
"This builds on the work that we are doing with Aleph in Kuwait and provides the structure to deliver a coherent approach in two major markets in the region and increase the efficiency of both our business development and project related activities."
"As Quadrise shareholders know well, Saudi Arabia is a market in which we have substantial experience and Aleph, together with our new local partner Al Khafrah, will enable us to build on this in a positive way," Kirk continued.
