QFI.L Regulatory News (QFI)

5 Oct 2006 10:27

Quadrise Fuels International PLC05 October 2006 5 October 2006 Quadrise Fuels International plc ("Quadrise" or "the Company") Statement re Orimulsion(R) Quadrise Fuels International plc (AIM: QFI) has noted the recent statement madeby Venezuela's Ministry of Energy and Petroleum regarding the termination of theuse of Venezuela's extra-heavy crude to produce Orimulsion(R), the firstemulsified fuel available to worldwide markets, and the cessation of productionof Orimulsion(R) by the end of 2006 by Sinovensa, the joint venture businessbetween China National Petroleum Corporation and Petroleos de Venezuela SA("PDVSA"). Full details can be recovered from the PDVSA web site www.pdvsa.com. As previously anticipated, this development now leaves Quadrise as the onlypotential provider of bulk quantity oil in water emulsion fuel through themarketing and manufacture of MSAR(R) fuel in the exclusive territory in which itoperates under its licence agreement with Akzo Nobel. This territory covers allcountries excluding Canada, Mexico, the United States, Japan and the PeoplesRepublic of China. In the United States, Quadrise operates through its associatecompany Quadrise Fuels US LP, in which it has a 50% interest. Commenting on this development, Bill Howe, Chief Executive Officer of Quadrise,commented: "Quadrise now has the added opportunity to actively engage with existingOrimulsion(R) customers with a view to developing new production bases for MSAR(R) fuel. This opportunity arises at a time when we are actively progressingagreements to source refinery residue feedstock in our chosen target marketswhere high quantities of oil fired power generation capacity exist. Our currentstudies suggest a strong synergy between oil refiners and power generators whereQuadrise can act as a sink for uncut, refinery vacuum residues." MSAR(R), a second generation emulsion fuel, has the following advantages overOrimulsion(R): • MSAR(R) is a more finely dispersed emulsion and achieves a superior carbon burnout.• MSAR(R) can be produced using feedstock from a variety of sources allowing flexible multi-sourcing and on-site manufacture.• MSAR(R) can be manufactured to customer specification (eg low sulphur). For further information, please contact: Quadrise Fuels InternationalBill HoweCEOT: +44 (0)20 7550 4930 Smith & Williamson Corporate Finance LimitedAzhic Basirov+44 (0)20 7131 4000 Parkgreen CommunicationsSimon Robinson /Victoria Thomas+44 (0)20 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange