Quadrise PLC (AIM:QED) and Valkor Technologies have amended the terms of their deal in Utah so that it is now only conditional on the receipt of at least US$15 million in project financing.
The change follows the rejection of a unitisation plan for the heavy oil deposit by the Utah Board of Oil, Gas and Mining, but a pilot drilling programme has already been approved and will go ahead.
Steven Byle, Valkor’s chief executive, said: "Whilst the unitisation decision by the board on 23 August 2023 was disappointing, it was understandable, and we had scheduled the hearing well ahead of our project requirement for down-spaced pilot wells to be drilled.
"Our pilot development project is unaffected, and our plan is to proceed with the drilling programme under the current board approvals.
"The wells will evidence the substantial heavy oil deposits surveyed in the area and support our further unitisation application early next year.
"We look forward to securing funding with our project partners during the coming weeks and to working with Quadrise to implement its unique technology in Utah to produce lower carbon fuels in the near future."
The deal between the companies will see Quadrise's alternative shipping fuels MSAR and bioMSAR produced and sold from Valkor’s heavy oil asset in Utah for 10 years.