Quadrise Fuels International Plc (LON:QFI) has told investors it has now agreed in principle to the deployment of MSAR trial equipment for a project managed by Valkor in Utah.
Valkor is partner with AIM-quoted Tomco, in Utah, for the enhancement of a oil sands plant which will be retooled for a production trial.
This project is incorporating Quadrises MSAR technology which can be used to treat heavy oil products to create a low-cost alternative fuel.
Quadrise said it agrees to the MSAR deployment during Phase 1 of the project for a price of US$150,000 and it agrees to work in good faith with Valkor to finalise the process design and trial agreement.
It added that it has agreed with Valkor that any licence ultimately granted to Valkor will be limited to the deployment of MSAR technology in Utah, in connection with the processing of sweet heavy or paraffinic crude oil, and will be capable of being assigned to Valkor group joint ventures in the future.
A conditional licence will only be finalised following satisfactory results of the Phase 1 testing, along with the agreement over Phase 2 commercial terms and the entry into binding agreements.
"We look forward to continuing our discussions with Valkor and to progressing the trial in Utah with Valkor and their partners, including TomCo, to demonstrate the effectiveness of our technology in enabling the sweet heavy or paraffinic oil deposits there, and the subsequent commercial development," said Mike Kirk, Quadrise chairman.
Tomco trading suspended
Elsewhere, in a separate statement, Tomco said the trading of its shares are suspended on AIM and noted that it is in talks with its broker regarding the status of the share placing it announced yesterday.
It comes after Quadrise on Wednesday issued a statement to say it had not, at that time, agreed to licence Valkor to use MSAR for hydrocarbons produced from oil sands in Utah or for any other purpose – though it acknowledged that evaluation work was underway which may lead to the granting of a conditional licence.
Quadrise added it had not had any direct discussion with TomCo or any of Valkor's partners in Utah to date.
Today, in a statement, Tomco updated investors to note that Valkor does have a does have a binding memorandum of understanding with Quadrise, setting out steps to put a licence in place for MSAR, but, Valkor does not however, have the ability to grant such a licence to the Greenfield joint venture vehicle at the current time.
Detailed in Wednesdays statement, Tomco Read More – Source
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