Hunting PLC (LSE:HTG) has acquired a new technology, Organic Oil Recovery (OOR), in a deal worth $17.5 million.
The deal includes over 25 patents, global distribution rights, and a California-based laboratory.
OOR is an enhanced oil recovery solution that improves oil recovery rates, reduces capital expenditure, lowers water cut and hydrogen sulfide levels, and extends the lifespan of oil fields, Hunting highlighted.
The London-listed oil and gas services engineer now holds the global rights to OOR and it aims to accelerate its commercialisation.
“Hunting now has the ability to deploy this remarkable technology globally,” chief executive Jim Johnson said.
“The technology is currently being evaluated by many blue-chip customers, with the benefits to the operator clear.
“For Hunting, the business will be margin accretive and strongly position the Company to reach its Hunting 2030 Strategy targets in the medium term as commercialisation accelerates."
The company noted that the deal terms for OOR include a 15% royalty, payable on revenue generated from OOR over the next 15 years.
Field trials are ongoing with major exploration and production companies in North America, Europe, the Middle East, and Asia Pacific.