Graphene NanoChem (LON:GRPH) has received a firm commitment for PlatSurF, its oilfield recovery additive, from a Middle Eastern oil and gas company to use on oil wells in Turkmenistan.
It is the first contract for the product in the country with the order worth US$119,000 just for one trial well. Graphene said the unnamed customer has 110 wells in Turkmenistan.
If the trial is successful, negotiations will start for these oil wells to be treated over the next 12-24 months.
PlatSurF is a nano-emulsion fluid that can clean drill holes and get oil flowing more smoothly by removing residues and oil blockages.
It can also improve production rates in previously damaged oil wells by reducing wastes and residues generation.
Jespal Deol, Graphene’s chief executive, said: “Our latest commercial win is a further testament to the commercial benefits and quality of our products range.
“This new contract marks another significant milestone for the Group as we continue to gain market validation and traction for our products.”
In May, Graphene won a US$200,000 order from Myanmar, for a 16-18 well drilling programme in Myanmar, which was PlatSurF’s first commercial contract.
The company also makes a more environmentally friendly drill fluid, Platdrill, which is being sold into China as an alternative to traditional oil based mud (OBM).