Sabien Technology Group PLC (AIM:SNT) shares jumped 35% higher in Wednesday's early trade, gaining 2.5p to 9.5p, after announcing plans to advance to a strategic agreement with City Oil Field (COF).
It follows an earlier memorandum of understanding with COF and a recent visit to COF’s newly commissioned regenerated-oil plant in Jeongeup, South Korea.
The proposed agreement sees Sabien acquire a minority shareholding in COF in exchange for COF taking an interest in Sabien.
Also, an existing exclusive UK sales agency agreement with COF will be extended for ten years and expanded to additional international territories, subject to contract and regulatory processes.
"The Proposed Strategic Agreement is expected to bind Sabien and COF in joint enterprise to ensure mutual success." said Sabien executive chair Richard Parris.
It also includes a shared intention to explore international trade opportunities for sustainable oil products produced at the Jeongeup plant.