TomCo Energy plc (LON:TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, is pleased to announce that Greenfield Energy LLC, the Company’s recently formed 50/50 joint venture with Valkor LLC, has entered into a commercial trial agreement with Quadrise Fuels International plc.
TomCo, together with its JV partner Valkor, and Quadrise, believe that the use of Quadrise’s MSAR® technology can add significant value to the development of heavy and paraffinic oil deposits in Utah. Pursuant to this, the parties have planned a phased implementation of the MSAR® technology that covers:
· a commercial trial of MSAR® technology at the Petroteq Oil Sands Plant (“POSP”) located in the Asphalt Ridge Facility in Utah, USA, (“Phase 1”) that is now being managed and operated by Greenfield; and
· the development of commercial MSAR® plants of up to 10,000 barrels oil per day (“Phase 2”) located at Utah facilities owned or operated by Greenfield.
The Agreement covers Phase 1 and comprises the following activities that are planned to be completed during the remainder of 2020, subject to completion of preparatory works at the POSP facility by Greenfield:
· proof of concept formulation and test work at Quadrise’s research facility using oil samples supplied by Greenfield;
· the loan of Quadrise MSAR® commercial production equipment and MSAR® test equipment and supply of MSAR® additives; and
· the supply of specialist services to assist Greenfield in completing the commercial scale demonstration trial to produce over 600 barrels (100 tonnes) of power grade MSAR®.
The parties intend to continue to cooperate in good faith to agree the commercial terms of a conditional MSAR® licence and commercial supply agreement for the production of MSAR® fuel under Phase 2. Such a conditional licence, which is now envisaged would be provided directly to Greenfield (rather than to Valkor and assignable to Greenfield as had been previously envisaged) will only be finalised upon, and following, inter alia, satisfactory results of Phase 1, the agreement between the parties as to Phase 2 commercial terms and the entry of binding agreements.
Further updates will be provided in due course as appropriate.
John Potter, CEO of TomCo Energy, commented: “The Agreement represents an important milestone in the proposed upgrade and test programme to be undertaken at the POSP, as Greenfield seeks to complete its proof of concept work and commercial scale demonstration trial later this year utilising the Quadrise MSAR® technology to produce a premium, heavy fuel oil product suitable for retail sale. These are exciting times for TomCo and I look forward to providing further updates in due course.”