Update on Optimal Resources Inc.

RNS Number : 1829O

Quadrise Fuels International PLC

14 September 2011

 



14 September 2011

Quadrise Fuels International Plc

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

Update on Optimal Resources Inc.

Encouraging preliminary results from Enhanced Oil Recovery field trial

QFI has investments in several associate companies active in the Canadian energy industry, including Quadrise Canada Corporation ("QCC") and Optimal Resources Inc. ("Optimal"). QFI is presently the largest shareholder in both Optimal (9.45%) and QCC (20.4%).

Optimal is a junior oil production company which holds an exclusive license for the application of innovative Enhanced Oil Recovery ("EOR" or "E²EOR") technology owned and developed by QCC.

The EOR technology is the product of extensive research and development during 2009/10. The technology enabled recovery of up to 30% of oil in place in laboratory simulations on clastic heavy oil reservoir conditions. In comparison, Canadian heavy oil producers seldom recover more than 10% of oil in place from primary production. A large number of 'depleted' reservoirs exist in Canada and other international locations with remaining certified reserves that are candidates for Optimal EOR technology.

Since February 2011, Optimal has been pilot testing the EOR technology in its Lloydminster oil field in Alberta. This has involved characterising the field and the reservoir's response to injections of the EOR solvent and evaluating the movements of fluids and oil through the field from the injection well to two fully equipped production wells.

On 2 September 2011, Optimal provided an update letter to shareholders on key developments and on 12 September issued a press release on progress in its Lloydminster EOR oil field trial programme.

Results to date have been sufficiently encouraging for Optimal to inform shareholders and the media as follows:

·           The EOR 'solvent 'is mobilising oil in the reservoir;

·           'Oil cut' from the production wells increases with increased 'solvent' injection;

·           'New oil' is being recovered from 'dead reservoirs' and is being sold by Optimal; and

·           Optimal is encouraged by recoveries trending towards the 30% achieved in the tests on simulated reservoirs in the laboratory trials

Optimal CEO, Alfred Fischer, commented in the press release:

"We have demonstrated that E²EOR mobilises and recovers oil from a depleted conventional 12 API heavy oil reservoir in the Lloydminster area which still contains significant remaining volumes of in place oil.

The field results support the highly successful laboratory development and results achieved at the Alberta Innovates Research facilities and the work of our scientific advisory team.

We are optimistic that further development and application of our E²EOR technology will lead to important increases in recoverable reserves both in Alberta and internationally."

The press release also advised that Optimal plans to progress towards a commercial project in Lloydminster. At the same time the company will selectively approach industry in Canada and internationally to jointly apply the technology to qualifying mature heavy oil reservoirs with large remaining in place resources. Research work is continuing on alternative reservoir applications to expand its applicability.

In addition, Optimal advised shareholders of its plan to raise additional equity funds to complete the pilot programme. The funds to be raised will also be used to test several enhancements and proceed to a commercial scale pilot development with full production facilities with a suitable joint venture partner.

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

"QFI has supported this initiative since inception and we are very encouraged by the results achieved in the Lloydminster pilot programme. We congratulate the Optimal management on their results to date. Success on a commercial scale would add significant future value for QFI shareholders."

-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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