Hydrocarbon Dynamics selling Utah oil sands project
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Hydrocarbon Dynamics (ASX:HCD) has reached an agreement to sell its interest in the Utah oil sands project to Valkor Technologies for US$500,000 ($668,790) and a 2% revenue-based royalty.
While the sale is scheduled to be concluded towards the end of September, it will not mark the end of the company’s association with the oil sands project.
Valkor has also committed to testing HCD’s Phaseshift technology in three wells in the project well within six months of the completion of the sale.
The Phaseshift technology uses a small, specially engineered, carbon-based molecule that is intended to shift hydrocarbon accumulations from a solid to a liquid phase.
This could potentially improve oil production by reducing viscosity, making it easier for the oil to flow – a outcome that is particularly valuable for heavy oil deposits that often requires heating methods such as steam flooding to facilitate production.
It could also reduce the reliance on traditional solutions of heat, solvents and mechanical pigging to provide flow assurance for pipelines and assist with cleaning transport and storage facilities.
The company recently started a six-month paraffin pilot test using its technology to control paraffin deposition in flowlines, tanks and an export line for a mid cap producer in Australia’s Cooper Basin.
Success in the pilot is likely to result in an increase in the scope of work and create opportunities with other producers in the region.