Grph12 Sep 2017 11:03
Have a good read
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.