Chemical technology developer SciDev (ASX: SDV) is gaining traction in the US market, announcing its first major order for friction reducers in the oil and gas sector.
The company has developed and commercialised several solids-liquid separation technologies for the mining, dairy and food product industries, as well as for the treatment of industrial wastewater and sewerage.
Using its proprietary OptiFlox technology, the company’s US subsidiary SciDev (US) LLC developed chemistry that significantly reduces friction for both proppant and oil hydraulic transport.
In an announcement today, SciDev said its targeted push into the US market is starting to pay off with orders placed for delivery in August and September, to generate a total revenue of more than $1 million.
The friction reducers are expected to be destined for the Permian Basin, which covers parts of Texas and New Mexico and is considered one of the world’s most productive oil basins.
According to the company, order volumes are “expected to continue to grow, with further commercial and field evaluations to be undertaken in order to determine the potential financial returns to SciDev from this very large market”.
“The company is finding that there is significant demand and support for its bespoke chemical solutions, which augers well for the success of the US initiative,” it stated.
This announcement of first sales follows the company’s June post advising it is on track for record revenues of more than $1 million for the June quarter and more than $3 million for the 2019 financial year.
“When viewed quarter on quarter against FY2018, the growth is greater than 100%, which gives us great momentum as we move into FY2020 and begin to realise additional business development efforts,” SciDev chief executive officer and managing director Lewis Utting said.
Tartana Resources IPO
SciDev also holds a 19.9% stake in zinc and copper explorer Tartana Resources, which is planning its ASX debut under the ticker code TNA in mid-August.
Tartana lodged an initial public offering prospectus in late June and is looking to raise up to $6 million to undertake drilling on its copper and zinc mining leases in Queensland, advance its Zeehan zinc slag project in western Tasmania and commence initial exploration at its Mt Hess copper-gold and Amber Creek molybdenum-tin-tungsten projects in Queensland.
The company has firmed up an indicated resource for the Zeehan zinc slag project of 469,000t at 13.3% zinc, 1.7% lead and 53 grams per tonne of silver.
It also recently announced JORC 2012-compliant open pit exploration targets for its three copper-zinc projects in north Queensland, comprising up to 3Mt at 10% zinc for 290,000t of contained zinc from the Queen Grade zinc project and a high target of up to 47Mt at 0.8% copper for 376,000t contained copper from the copper sulphide open pit (including the Valentino prospect).
SciDev believes its holding in Tartana will give its shareholders exposure to the “exciting upside at all Tartana’s project areas”.