Quadrise (AIM:QED), the AIM-listed manufacturer of lower cost, lower emission replacement fuels and biofuels for shipping and heavy industry, said Valkor Technologies has commenced drilling at two new pilot wells at the Asphalt Ridge site in Utah.
The move follows a Core Laboratories study confirming the technical viability of Valkor's modified enhanced oil recovery project.
An eight-well drilling programme is expected to begin later this year, targeting production of approximately 1,000 barrels per day (bpd) in 2027.
Site installation for Valkor's separate 500 bpd oil sands pilot plant is underway, with production due to start in the first quarter of 2027.
Valkor has told Quadrise it expects to pay the outstanding $0.95 million balance of the site licence fee by the end of October, once it receives project funding due next month.
Quadrise's 600 bpd Multifuel Manufacturing Unit will ship to Utah for site mobilisation once that fee lands in full.
A heavy sweet oil sample from Valkor's new pilot plant has already been sent to the Quadrise Research Facility for MSAR and bioMSAR formulation work scheduled for the fourth quarter, while joint marketing of both fuels is underway in Utah.
News Intelligence what this means for the company
Valkor has begun drilling two pilot wells at its Utah oil sands site following a Core Laboratories technical viability study, with an eight-well programme and a 500 bpd pilot plant both targeting 2027 production. Quadrise's role is to supply its 600 bpd Multifuel Manufacturing Unit for fuel formulation work once Valkor pays the outstanding $0.95m site licence fee (expected by end-October), and to conduct MSAR and bioMSAR trials on heavy oil samples from Valkor's pilot plant in Q4. This advances the partnership toward commercial fuel supply, but remains in pilot phase with no revenue yet.
The pilot drilling and plant commissioning timelines remain on track for 2027 production, which would validate Quadrise's MSAR technology in heavy oil recovery and unlock a potential new revenue stream. However, Quadrise's asset base is technology and IP-led rather than production-asset-led, so the company's returns depend on securing commercial supply agreements and licensing fees from Valkor's eventual output, not on owning the wells or plant.
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