Graphene NanoChem PLC Contract Win (8321S)

TIDMGRPH

RNS Number : 8321S

Graphene NanoChem PLC

28 December 2016

 
 For Immediate Release   28 December 2016 
 

Graphene NanoChem PLC

("Graphene NanoChem" or the "Group")

CONTRACT WIN

First commercial order and deployment of PlatDrill in China

Graphene NanoChem (AIM:GRPH), the international provider of nanotechnology performance enhancing solutions for global industries, is pleased to announce a significant contract win with the receipt of its first commercial order and deployment of PlatDrill in China, tapping into the new burgeoning market for shale gas development in the southwest region of China.

The initial commercial order of 4,000 barrels of PlatDrill, valued at US$359,678, is to service 2 wells in Changning, China, located at the southwest region where, in line with the China government policy to increase the development of its shale gas resources, more than 300 wells are expected to be drilled per year in the next 5 years, which is amongst the largest in terms of number of wells in Asia.

The Group is working closely with Scomi in expanding the deployment of PlatDrill in the southeast region which is expected to use between 80,000 - 120,000 tonnes of synthetic base mud to replace oil based mud ("OBM") for drilling. Through Scomi's local business partner in China, AntonOil Group, the Group is targeting approximately 20% of the market size in 2017. Together with its existing contract in Myanmar, which will re-commence drilling in Q1 2017, the supply into China market is expected to fill up the Group's order book for PlatDrill in 2017.

PlatDrill, a "smart" fluid, offers a unique integrated solution in drilling speed and quality as well as in environmental and economic performances that meets the requirement of this market that is underlined by cost and environmental considerations. The combined performance and low toxicity and biodegradability function of PlatDrill offers significant advantage as a viable alternative to OBM for shale drilling in the region in the immediate and long term.

Partnering with Scomi and its various local jurisdictional partners has enabled the Group to penetrate new market opportunities that would add significant value in the medium and long term and allows it to continue to build its revenue base, despite the current slowdown in the industry.

Jespal Deol, Chief Executive Officer of Graphene NanoChem, commented: We are pleased to announce the latest progress of our oilfield business and the continued support of Scomi during the challenging period for the industry. Our latest commercial order and its potential market opportunity is a continuing validation of our product value proposition especially now that oil is expected to be "lower for longer". Further, our partnership with Scomi has enabled the Group to reduce marketing cost and adoption risk and continue to service our orders through working capital financing provided by Scomi whilst we continue to strengthen our financial position."

For further information:

 
 Graphene NanoChem                     Tel: [phone] 
                                                 3080 
 Jespal Deol, Chief Executive 
  Officer 
 
 Panmure Gordon (NOMAD and Broker) 
 Adam James / Tom Salvesen               Tel: +44 (0) 
                                         20 7886 2500 
 
 Yellow Jersey PR Limited (Media)    Tel: [phone] 
                                              275 882 
 Dominic Barretto / Charles 
  Goodwin / Harriet Jackson 
 

About Graphene NanoChem

Graphene Nanochem plc (AIM: GRPH), is an international provider of nanotechnology performance enhancing solutions for global industries. The Group employs nanoprocesses and nanomaterials to design, engineer and enhance the performance of mainstream products for a wide range of industrial applications. It has established two major functional platforms in the energy and water sectors, and the Group, through partnerships with established industry players, is focused on building market opportunities in both sectors whilst continuing its developmental work in other strategic application areas of nanotechnology.

Headquartered in Malaysia, Graphene Nanochem was admitted to the AIM of the London Stock Exchange on 26 March 2013, following the reverse acquisition of Biofutures International plc, and trades under the symbol GRPH.L. To find out more, please visit www.graphenenanochem.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 28, 2016 02:00 ET (07:00 GMT)