Quadrise Plc (LSE:QED) has reported progress on its collaboration with Valkor Technologies at the Asphalt Ridge project in Utah, with drilling underway at two new pilot wells and the remaining US$950,000 site licence payment expected by the end of October 2026.
The drilling programme follows a core study that validated an enhanced oil recovery approach for the project. Valkor plans to drill eight wells later this year, targeting production of approximately 1,000 barrels of oil per day in 2027.
Installation work is also progressing on a 500-barrel-per-day oil sands pilot plant, which is scheduled to begin production in the first quarter of 2027.
Following the achievement of project milestones during the third quarter, Valkor expects to pay the outstanding US$950,000 site licence fee by the end of October. Receipt of the payment will trigger shipment of Quadrise’s 600-barrel-per-day Multifuel Manufacturing Unit to the Utah site.
The unit is intended to support the production of Quadrise’s proprietary emulsion fuels using oil produced at Asphalt Ridge.
A sample of heavy sweet oil from the project has already been delivered to Quadrise’s research facility. The company plans to undertake formulation work during the fourth quarter of 2026 to assess its suitability for producing MSAR® and bioMSAR™ fuels.
Quadrise and Valkor have also begun joint marketing activities for the fuels in Utah as part of their collaboration.
The project combines Valkor’s planned oil sands production operations with Quadrise’s fuel manufacturing technology. Further progress will depend on the completion of the planned drilling and plant installation activities, alongside the outstanding licence payment and subsequent equipment shipment.
Quadrise develops and supplies MSAR® and bioMSAR™ emulsion fuel technologies for applications including shipping, power generation, industrial operations and refining. The company aims to provide alternatives to conventional fuels with lower production costs and emissions.
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