Quadrise PLC - London-based residual oil technology that produces synthetic heavy fuel oil MSAR - Says site licence agreement with Valkor Technologies LLC for heavy oil project in the US state of Utah now is conditional only on Valkor’s receipt of project finance of at least $15 million. The comment by Quadrise comes after a decision by the Utah Board of Oil, Gas & Mining on Wednesday last week to not grant a unitisation request by Valkor. This would have treated the pilot drilling area as a single unit with closer spacing of wells. Valkor says the regulatory decision doesn’t harm the primary project site development plan, nor its ability to raise finance. With a drilling permit expected to be issued by the Utah Department of Oil, Gas & Mining in early September, the financing is the only remaining condition for Quadrise to award the conditional site license to Valkor. It expects Valkor to start heavy oil drilling activities in the fourth quarter of this year.

‘Whilst the unitisation decision by the [Utah regulatory] board...was disappointing, it was understandable, and we had scheduled the hearing well ahead of our project requirement for down-spaced pilot wells to be drilled,’ says Valkor Chief Executive Officer Steven Byle. ‘Our pilot development project is unaffected, and our plan is to proceed with the drilling programme under the current board approvals.’

Current Quadrise stock price: 1.15 pence, up 30% in London on Tuesday

12-month change: down 9.7%

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