Quadrise PLC (AIM:QED) has updated its licensing deal with Valkor, in Utah, with new terms that see first revenues before the end of this month.
It comes as Valkor has confirmed it has secured $15 million of project finance to develop its Primary Project Site (PPS) at Asphalt Ridge, Utah, for its heavy oil project – which will use Quadrise technology as part of its on-site processing.
"We are delighted that Valkor has secured the necessary project finance for the first heavy sweet oil project, following successful Utah state approvals and subsequent subsurface oil drilling during 2024,” Quadrise chief executive Jason Miles said in a statement.
“The continued operation and production from the oil wells by Valkor and partners will assist the next phase of customer acquisition and sales.”
The new deal kicks off with the first of the agreed phased payments this month, with $350,000 due, followed by $650,000 at the start of December. From April, Valkor will pay $75,000 per quarter for Quadrise’s engineering, commissioning, and compliance support services.
Valkor must also pay $200,000 for a 600-barrel-per-day (bpd) Multifuel Manufacturing Unit (MMU) by 1 December, before $300,000 for a ‘full size’ 6,000 bpd MMU.
The partnership’s other terms, including Valkor’s rights to Quadrise’s MSAR and bioMSAR™ technology at the site, remain unchanged.
“We are thrilled with the confidence shown by Valkor in investing in our technology at an early stage,” Miles said.
“Supply of the smaller MMU to Valkor for their 2025 demand is ideal for both parties, providing Valkor with a 600bpd emulsion system to produce client volumes for trials, and Quadrise with additional commercial production flexibility during the year.”
Miles added: “The award of our first technology licence in Utah is another pivotal moment for the company and complements Valkor's low carbon enhanced oil recovery and production methods planned there.
“When combined, our respective technologies will provide very attractive low sulphur fuels and biofuels with compelling economics and environmental credentials starting in 2025."
Steven Byle, Valkor chief executive, meanwhile, commented: “Securing the Quadrise technology license for Utah is important to demonstrate higher value markets are available for heavy sweet oils when blended to Quadrise emulsion fuels and biofuels.
“We look forward to working with the Quadrise team to market these fuels and implement their technology in the USA."
He added: "After years of effort, we are very pleased about recent progress in Utah's Uinta Basin. We have received additional drilling approval from the state of Utah, we are expanding our drilling program, and we are engineering our first mined oil sands plant after successfully securing project finance.
“During 2025 we are planning to increase oil production through the drilling of additional wells and bringing our first mined oil sands plant online.”