14 Jun 2010 07:00
Quadrise Fuels International Plc
Interests in Canadian ventures
14 June 2010
Quadrise Fuels International plc ("QFI"), the producer of emulsion fuel as a low cost substitute for heavy fuel oil for use in power plants and industrial diesel engines, advises that resulting from its 19% holding in Quadrise Canada Corporation ("QCC"), it now holds a 16.4% interest in each of two new Canadian energy sector companies, Sparky Energy Corporation ("Sparky") and Porient Fuel Corporation ("Porient"). QFI is the largest single shareholder in these companies.
At its Annual General Meeting on 3rd June 2010 in Calgary, QCC advised shareholders of its success in developing new technologies and application opportunities by exploiting the intellectual property built up by QCC itself over a number of years. Shareholders approved the Plan of Arrangement by which QCC Shareholders were allocated shares in the both of the new energy sector companies on a pro rata basis to their fully diluted holding in QCC. The shareholdings were allocated at no cost to QFI.
Sparky will focus on enhanced heavy oil recovery (EOR) initially in Alberta, in a 50:50 joint venture with a Canadian oil production company which owns primary heavy oil assets, land, wells and associated facilities in the Lloydminster area. The licensed QCC EOR technology has the potential to increase the percentage of oil recovered from discovered and developed heavy oil reservoirs. Joint venture terms provide for Sparky to participate in the value of the incremental oil production. The QCC EOR technology has potential for selective global application.
Porient will apply QCC derived technology to create Synthetic Fuel Oils from oil sands bitumen and sell this product on the Canadian west coast as marine fuel oil, power station fuel or as high value intermediate feedstock export for Pacific Rim refineries.
QCC's role in the marketplace will now include operating, incubation, licensing, manufacturing and research support to its licensees. Sparky and Porient will pay royalties to, and have research support contracts with QCC.
Both of the new companies intend to raise additional funds in the near future.
Commenting on these important developments, the CEO of QCC, Alfred Fischer, said "We are very excited about the potential of enhanced oil recovery using new technologies developed by Quadrise Canada and soon to be commercialised by Sparky Energy Corp, especially given the prospects for near term operations in existing producing oil fields. Porient Fuels Corp aims to fill the long standing opportunity to export marine fuels made from Alberta bitumen to the extensive Pacific Rim markets".
QFI's Chairman, Ian Williams, said: "QCC management has done a remarkable job in identifying and crystallising these very exciting new business opportunities. QFI's 16.4% shareholding in Sparky and in Porient are significant additions to the QFI asset base with potential for material future value in their own right. Licensing of QCC proprietary technologies and providing related services to these and other companies will also enhance the value of QCC itself".
QFI holds 3.68 million shares in QCC.
Enquiries:
Quadrise Fuels International plc Tel: +44 (0)20 7550 4930
Bill Howe, Chief Executive Officer
Fairfax I.S. PLC Tel: +44 (0)20 7598 5368
Simon Bennett/Katy Birkin
Capital MS&L Tel: +44 (0)20 7307 5330
James Madsen