QFI.L Regulatory News (QFI)

21 Sep 2006 16:29

Quadrise Fuels International PLC21 September 2006 Quadrise Fuels International plc ("Quadrise" or "the Company") AIM : QFI Update on Activities Following the Company's admission to AIM in April 2006, Quadrise has undertakencomprehensive business development activities and is pleased to announce thefollowing update. The Company's business is to manufacture and market low cost superior qualityfuel oil emulsions (MSAR(R)) from the least desirable elements of the oil barrel- namely the heaviest and most viscous fractions, which can be purchased at lowcost. These fractions are available to Quadrise by a number of means including: •Splitting heavy fuel oil, or heavy crude in its own facilities •Sourcing ultra heavy crude/bitumen and manufacturing MSAR(R) at the point of production •Purchasing vacuum residues from existing oil refineries Following admission, a comprehensive strategy review has been undertaken tore-appraise the Company's focus and target markets, of which a key result hasbeen a shift into larger projects, using as feedstock oil residues availablewithin existing oil refineries. Quadrise has selected the following markets astargets arising from its initial analysis: •Far East/South East Asia (Korea, Japan, Taiwan, China, Singapore) •Southern Europe & Mediterranean, including Italy, Greece & Turkey •NW Europe, including the UK •USA •Central America and Caribbean •Specific countries in Africa A programme of refinery visits has been initiated consistent with the selectedgeographic strategy. Specifically, formal submissions have been made to two FarEast refiners and one refinery in NW Europe. Positioning MSAR(R) within theserefineries' processing configurations offers the respective oil companiessignificant benefits - both reducing capital expenditure to process heavyresidues, and increasing operating flexibility and profit margins. Significantbenefits have been demonstrated for certain options already studied, andQuadrise has further new processing concepts in the pipeline. The Company's strategy is to offer a sink to refiners for their residues inorder to permit them to take advantage of these benefits, whilst providingQuadrise its feedstock for MSAR(R) manufacture and subsequent sale to therespective regional power generating markets. The Company's initial analysis in this area is very positive and a technicalpaper on the concepts developed by Quadrise will be presented at a major globalrefining conference dealing with bottom of the barrel conversion technologyduring the course of October. Effective in October, the Quadrise management team will be joined by JasonMiles, as Business Development Manager. He has previously led a number ofsuccessful commercial efforts for the sale of Orimulsion, which is the Company'sonly commercial competitor. Commenting on the hire, Bill Howe, CEO, stated "Jason brings excellentexperience and is conversant with a number of potential MSAR(R) consumers and webelieve he will strengthen our capability to close the power plant sales side ofour business deals." In parallel with the focused regional marketing activities, preliminary marketstudies are underway or planned in the Middle East, Russia, India, and SouthEast Asia - through to the end of 2006. A major island based power plantrefuelling opportunity is being pursued in the United States through QuadriseFuels US LP. Quadrise Canada Fuel Systems Inc. ("QCFS") has now secured its first commercialcontract for the Surmont SAGD (Steam Assisted Gravity Drainage) project forParamount Resources in northern Alberta, Canada. It will initially involve thesale of 3,000 BPD of MSAR(R), rising to 13,000 BPD, with the planned start upfor late 2009. QCFS have a number of other interesting prospects in hand andexpectations are positive regarding their participation in the growing SAGDdevelopments in Canada. Quadrise recently increased its shareholding in QCFS by0.6%. Bill Howe stated, "Going forward the Quadrise management team is extremelypositive about its operations and the attention the business development effortsare receiving from the market after this initial five months of activity." A statement regarding the Company's activities, from which the information inthis announcement has been extracted, has been circulated to shareholders and isalso available on the Company's website at www.quadrisefuels.com/news. For further information, please contact: Quadrise Fuels International plcBill 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 21 September 2006 This information is provided by RNS The company news service from the London Stock Exchange