(Alliance News) - Quadrise PLC on Friday said its Valkor project has received new funding and drilling permission.
The London-based supplier of innovative clean energy solutions said its project partner Heavy Sweet Oil LLC has received multi-million dollar funding and approval for its 'application for permit to drill' from the Utah Division of Oil, Gas and Mining.
The specific figure for the funding is not given, but Quadrise said that full-project funding and approval is expected to be received by mid-2024.
Quadrise's project with Valkor Technologies LLC in Utah, US, targets the supply of low sulphur MSAR and bioMSAR to the marine and power sector. MSAR is a synthetic fuel oil developed by Quadrise, and bioMSAR is a renewable version of MSAR.
This comes as Heavy Sweet Oil plans to submit further drilling and 'underground injection control' permit applications, so it can inject steam into optimised oil well space to enhance its recovery. The latest applications would allow multiple wells to be drilled from the same drill pad.
This initial drilling program will fund three to four wells, and full project financing and approvals are set to be concluded by mid-2024. Once Valkor Technologies has raised a minimum USD15 million in project finance, Quadrise will receive a payment of USD1.0 million under the terms of the 'site licence & supply agreement' signed in June 2023.
A further USD500,000 will be paid to Quadrise when they have delivered an MSAR manufacturing unit to the project site, and then Quadrise will receive quarterly technology transfer payments of USD75,000.
Quadrise Chief Executive Officer Jason Miles said: "We are delighted to see that Valkor has reached another operational milestone and look forward to the commencement of their drilling operations and the receipt of new heavy sweet oil for testing at the Quadrise Research Facility.
"The adoption of Quadrise energy decarbonisation technology combined with Valkor's low carbon extraction methods is expected to result in highly marketable low sulphur fuels with compelling economics and environmental credentials."
Quadrise shares were up 2.2% to 1.43 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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Quadrise (QED)