Quadrise PLC (AIM:QED), which is developing cleaner fuels for shipping and heavy industry, said Valkor Technologies has confirmed the receipt of "multi-million dollar" funding for its Utah-based project partner - a company called Heavy Sweet Oil.
The cash allows the permit-approved drilling to begin next week at Asphalt Ridge, aiming to produce 20 to 40 barrels of heavy sweet oil per day.
Samples from the first well will be treated to remove impurities and then sent to Quadrise for conversion to MSAR and bioMSAR and testing.
Commercial marketing to the marine, utilities and industrial sectors is expected to commence before the end of this quarter once samples have been received and tested.
Once Valkor has raised a minimum of US$15 million in project finance it will pay Quadrise $1 million. A further $500,000 is due once an MSAR manufacturing unit is delivered to the project site in Utah, followed by quarterly technology transfer payments of US$75,000.
Quadrise chief executive Jason Miles said: "We are delighted to see that Valkor has reached another operational milestone and look forward to the commencement of their drilling operations and the receipt of new heavy sweet oil samples for testing at the Quadrise Research Facility.
"The adoption of Quadrise energy decarbonisation technology combined with Valkor's low carbon extraction methods is expected to result in highly marketable low sulphur fuels with compelling economics and environmental credentials."