Programme Updates

RNS Number : 8327T

Quadrise Fuels International PLC

13 December 2011

 



13 December 2011

Quadrise Fuels International Plc

("QFI" or "Quadrise" or the "Company")

Programme Updates on Marine MSAR® and Canadian Interests

Quadrise Fuels International plc is the emerging supplier of MSAR® emulsion fuels, a low cost alternative to heavy fuel oil in the shipping, refining and power generation markets.

Marine MSAR® Programme 

Further to the announcement on 27 September 2011 regarding the closing of contracts with A P Moller-Maersk ("Maersk") to commence sea trials of Marine MSAR®, QFI is pleased to advise that:

·       The Marine MSAR® fuel was produced at the AB Orlen Lietuva refinery and transported to a coaster vessel at Klaipeda.

·       The fuel was then shipped to Rotterdam and was transferred ship-to-ship into a segregated bunker fuel tank on the Maersk nominated vessel.

·       Maersk will manage the programme to completion of the fuel evaluation report.

·       The switch to Marine MSAR® from conventional fuel oil will commence when all the performance evaluation equipment is commissioned and will be timed to ensure specialists from Maersk, Quadrise and the engine manufacturer can join the vessel and monitor the initial operations, first hand.  

·       The report on Marine MSAR® fuel evaluation is anticipated to be completed in the second quarter of 2012.

Canadian Interests

QFI has investments in several associate companies active in the Canadian energy industry, including Quadrise Canada Corporation ("QCC") and Optimal Resources Inc. ("Optimal").

As previously advised, Optimal is conducting an oilfield based pilot trial of the QCC Enhanced Oil Recovery ("EOR" or "E²EOR") application in their Lloydminster field. QCC has provided management, technical and operations support services to Optimal for this programme.

QCC has recently distributed a letter to its shareholders providing an update on its own activities, including the development of Synthetic Fuel Oil ("SFO"), and certain aspects of the Optimal programme.  Key extracts are as follows:

Regarding Optimal:

"Optimal has been conducting the test since Q3 2010 using the company's proprietary E²EOR and TED technologies and has achieved encouraging results. These results moved to a higher plain this summer when Optimal recompleted a fifth well which went on production at a relatively high oil rate. The well has now been on production for two months at a controlled rate and the oil cut continues to remain at a high level. This is of particular importance as the well had previously watered out and had been abandoned. The appearance of good volumes of oil in the well is very promising and suggests that the Company's technology for mobilising heavy oil in depleted reservoirs is working."    

Regarding Synthetic Fuel Oil:

"A clear development plan to bring the asphaltene based SFO to market is now apparent and the company is working with strategic partners to advance the opportunity."

"The company is also advancing discussions with several Central American diesel engine based power stations that could use SFO and recognise its value potential as early as Q3 2012."

Commenting on these developments, Ian Williams, Chairman of Quadrise, said:

"The development of MSAR® fuel continues to make solid progress, particularly for marine application, and we expect to continue to make significant strides forward in our managed project programmes in 2012. We are also very pleased to have received advice on progress being made by our two principal investments in Canada."

A presentation made to shareholders attending the Annual General Meeting on 12  December 2011 is available on the Company's website.

-ENDS-

For further information, please refer to the Company's website at www.quadrisefuels.com or contact:

Ian Williams, Executive Chairman Hemant Thanawala, Finance Director Quadrise Fuels International Plc	[phone]
Dr Azhic Basirov / Siobhan Sergeant Nominated Adviser Smith & Williamson Corporate Finance Limited	[phone]
Dermot McKechnie / Petre Norton Broker Westhouse Securities Limited	+ 44 (0)20 7601 6100
Philip Dennis / Nick Lambert / Rollo Crichton-Stuart Public & Investor Relations Pelham Bell Pottinger	[phone]

 

END

 

 

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