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TXO PLC (TXO)

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Monday 20 October, 2014

TXO PLC

OTR to form Joint Venture in Kuwait

RNS Number : 6860U
TXO PLC
20 October 2014
 

 

TXO PLC
("TXO" or the "Company")

OTR to form JV in Kuwait

TXO, the AIM-quoted energy resource and clean technology investment company, announces that its investee company, Oil Tech Royalties Inc. ("OTR"), has signed a non-binding letter of intent with Abdulaziz Abdulmohsin Al-Rashed Sons. W.L.L. ("AlL Rashed"), one of largest and most respected private commercial enterprises in Kuwait to form a joint venture ("JV") in order to promote and commercialise OTR's technology in the State of Kuwait.  TXO has a 30% shareholding in OTR.

Oil Tech Royalties Inc ("OTR") is a joint venture company with a licence to commercialise a proprietary acoustic flow reactor valve.  OTR will provide their proprietary technology and technical know-how for the pilot tests to establish the efficacy of the technology in its potential use at power generation facilities and for use in the treatment of heavy oil in Kuwait.  Al Rashed will assist in providing the introduction of OTR to potential customers and in identifying locations and resources required for the test.

Al Rashed have extensive operations in the power generation sector and are a supplier to the Kuwait Oil Company.  Kuwait's Al Doha powerplant (2400 MW), which powers half the country, runs on heavy fuel oil.

The OTR technology has commercial application to the reduction of pour point and other properties in heavy oil (at a substantially reduced cost), and is used to create fuel emulsions from heavy fuel oil to feed power generation plant.  The technology that OTR is looking to use in Kuwait and other Gulf States has been independently proven by the IP holders, which are independently commercialising the technology with success in Latin America.

Whilst there can be no certainty of a successful conclusion to the pilot tests, in the event the results are positive, the parties would look to complete a definitive JV agreement following the conclusion of testing. 

In June 2013 the Kuwait Oil Company announced plans to start drilling for heavy oil so that the Gulf state can produce up to 60,000 barrels per day (bpd) of heavy oil by 2017, with nearly 1,200 wells being drilled in total to produce potentially 270,000 bpd by 2030.  Kuwait has a light crude oil production capacity of 3 million barrels per day.

Tim Baldwin, Chairman and CEO of TXO, commented:

"This is a substantial step forward for OTR.  The technology is proven elsewhere on heavy oil and fuel used in power generation, and we are pleased to enter Kuwait to work with such an influential partner to further exploit the technology.  Heavy oil is the growth area of production in Kuwait and is where the major investment is going, proportionately it will take an ever bigger piece of the production cake.

"OTR is also in advanced discussions with parties in Saudi Arabia, and we hope to be able to update shareholders shortly.  In 2013 both Saudi Arabia and Kuwait announced the development of their heavy oil fields."

20th October 2014

For further information, please contact:

 

TXO PLC
Tim Baldwin, Chairman                                     +44 (0) 207 518 4300

 

Northland Capital Partners Limited                +44 (0) 207 382 1100
John Howes / Alice Lane

Sales and Broking

 

Edward Hutton / William Vandyk

Nominated Adviser

 

Lothbury Financial Services Limited
Michael Padley / Chris Roberts                       +44 (0) 203 440 7620

 

 

Editors' Note

TXO PLC, the AIM quoted oil and gas investment company, has four main investments namely: The Grand Bahama Group Limited ("GBG") which is establishing a waste oil collection facility and Hydrocarbon Recovery Plant in the Bahamas at Freeport and also produces oil from its leases in Western Kentucky, USA; Oil Recovery Services Limited ("ORS"), which has proprietary technology for the reprocessing of contaminated oils and the remediation of dirty water; Oil Tech Royalties Inc ("OTR"), a joint venture company with a licence to commercialise a proprietary acoustic flow reactor valve; Athabasca Resources Limited ("Athabasca Resources") which has signed an agreement to acquire a 50 per cent. farm-in interest in certain Alberta Crown Leases covering 7,936 hectares in the Athabasca oil sands in Alberta, Canada.  TXO also has an interest in Tasmania Oil and Gas Limited ("TOG") a joint venture company set-up to exploit a gas and oil opportunity in Tasmania, Australia, which is non-core.

TXO currently holds a 35.67 per cent. interest in GBG, a 25.1 per cent. interest in ORS, a 30 per cent. interest in OTR  and an 18.8 per cent. interest in Athabasca Resources. It retains a 25 per cent. interest in TOG.

Ends


This information is provided by RNS
The company news service from the London Stock Exchange
 
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