Quadrise rns7 Jul 2023 13:48
Utah
In June 2023, QIL signed a Site License and Supply Agreement with
Valkor Technologies LLC ("Valkor"), under which QIL has granted
Valkor the exclusive right and licence to use its technology at
the Primary Project Site ("PPS") at Asphalt Ridge in Utah, USA
and to market the fuel on a non-exclusive basis from Utah.
In exchange, Valkor will pay QIL US$1.0 million conditional on
receipt of drilling and underground injection permits for the
PPS from the Utah Department of Oil, Gas and Mining and the receipt
by Valkor of project financing in an amount of at least US$15
million for the PPS. Valkor will pay QIL a further US$0.5 million
upon delivery of a MMU to the PPS.
Following Valkor's receipt of the MMU, QIL will provide engineering
and other support services for a minimum of two years, and for
which Valkor will pay QIL a quarterly retainer of US$75,000. Valkor
may then purchase QIL's technology and MMU for US$1.0 million.
A non-binding Heads of Agreement has also been entered into between
the parties which sets out the basis on which QIL and Valkor will
seek to agree a conditionally exclusive Sub-License Agreement
to be granted to Valkor covering the state of Utah, as well as
the terms on which the resulting net profit generated will be
shared between QIL and Valkor.
Valkor is leading activities for the award of drilling permits
at Asphalt Ridge, following successful exploration drilling in
2022. The oil sands reserves at Asphalt Ridge comprise billions
of barrels, with Valkor having interests in multiple projects
at this location. Oil samples supplied by Valkor were successfully
converted to both MSAR(R) and bioMSAR(TM) by our RDI team at QRF
in 2022.
Valkor expects the necessary drilling and underground injection
permits to be awarded for the PPS in August 2023, with drilling
to commence as soon as weather permits, with produced heavy oil
available for conversion to bioMSAR(TM) and MSAR(R) for trials
later in 2023.
These trials would then be expected to lead to commercial supply,
subject to discussions with stakeholders to finalise agreements.
Through the application of CO(2) sequestration and proprietary
new enhanced oil recovery technology in Utah, the extracted heavy
oil is anticipated to have a lower carbon intensity than conventional
oils. In addition, the very low sulphur content and properties
of this heavy oil allow it to comply with the International Maritime
Organisation's regulations on marine fuel once converted to MSAR(R)
or bioMSAR(TM), without the need for carbon-intensive oil refining.
This heavy oil would therefore be a low carbon, low sulphur MSAR(R)
or bioMSAR(TM) option for potential use in the industrial, power
and marine sectors.
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