Graphene Nanochem (LON:GRPH) has picked up its first order in China for its drilling fluid Platdrill.
Worth about US$360,000, the order is to service two wells in Changning in the southwest of the country, an area where 300 shale gas wells are expected to be drilled over the next five years.
Graphene and its partner Scomi are also marketing Platdrill as a more environmentally friendly alternative to traditional oil based mud (OBM) in south east of China where drilling contractors are expected to use 80-120,000 of synthetics as a replacement for OBM.
Jespal Deol, Graphene’s chief executive said the order was a continuing validation of its product especially now that oil is expected to be "lower for longer".
“Further, our partnership with Scomi has enabled the Group to reduce marketing cost and adoption risk and continue to service our orders through working capital financing provided by Scomi whilst we continue to strengthen our financial position."
Graphene has restructured its business to focus on nanofluids (oil field chemicals), water treatment and enhanced building materials.
Shares in the AIM-listed group resumed trading last week after a £2.5mln convertible loan was arranged.
Shares soared 27% to 11.8p.
--updates for share price --