Quadrise (QED ) has provided an update on the project in Utah following the unanimous approval of Valkor’s plan to commercialise heavy sweet oil from oil sands allowing for tighter drill spacing versus pilot testing. This approval for larger scale production will provide greater quantities of suitable base feedstock for future commercial production of QED products and further testing is ongoing. Samples produced at this stage will be used by potential end customers in Utah for product qualification.
Valkor has highlighted that the approval enables them to drill over 100 production wells. This implies the need for additional finance and this should be easier to secure with the permitting now in hand. QED’s commercial arrangement is contingent on a minimum of US$15m of project finance being raised by Valkor. This will trigger a US$1m payment to QED with a further US$0.5m on delivery of a manufacturing unit.
Utah is one of three projects at an advanced stage and with the upcoming MSC shipping trial there are a number of key catalysts over the coming months which could bring QED a material step closer to commercial revenues.
Read the full note here...