Quadrise PLC (AIM:QED) recovered ground as it confirmed its partner Valkor will carry on with a pilot programme to drill for heavy oil in Utah even though a much wider and larger drill programme was rejected last week by the local authorities.
Valkor plans to use Quadrise’s patented MSAR technology to produce less environmentally damaging shipping and other fuels, with the pilot the first step to establishing an operation at Asphalt Ridge in Utah.
Around US$15 million in financing is needed to get the project going, with Valkor saying it expects funding to be arranged in the “coming weeks”.
Jason Miles, Quadrise chief executive, said: "We are delighted that Valkor and their partners are commencing heavy oil drilling activities in Q4 2023 and working towards the conclusion of project financing arrangements.
“The Quadrise team are looking forward to working with Valkor in Utah to support the project and to deliver sales of MSAR and bioMSAR fuels produced from lower carbon heavy sweet oil."
Shares in Quadrise were up 15% at 1.02p.