Scidev Ltd - SciDev chemistry to be trialled in the Canadian Oil Sands industry
Scidev Ltd (ASX:SDV)

SciDev chemistry to be trialled in the Canadian Oil Sands industry

Highlights

What's happened?

SciDev Limited (ASX:SDV, "SciDev") have received a trial purchase order with Syncrude, one of Canada’s largest operators in the oil sands industry.

What are the key highlights?

  1. The trial is anticipated to last for approximately 2 weeks and is scheduled to occur late in FY2020.
  2. The trial represents AUD$1m of revenue for SciDev and will focus on the utilisation of SciDev’s chemistries in Syncrude’s full-scale Tailings Centrifuge Plant
  3. Fluid tailings management is an area of increasing regulation in the Canadian Oil Sands industry. Government agencies, such as the Alberta Energy Regulator are introducing and tightening regulation around limiting the amount of fluids passing into tailings dams in order to manage and reduce environmental risk and liability.

What does this announcement mean?

Erik Bergseng CFA® from Mawson Graham provides perspective on this recent announcement.
Erik Bergseng CFA®
Written by Erik Bergseng CFA®
Published Mar 03, 2020

This trial appears to be a result of SciDev's expansion plans into the North America oil & gas sector following its recent strategic acquisition of U.S. firm Highland Fluid Technology. SciDev continues to demonstrate the versatility of its technology by generating trial orders across a variety of market verticals, such as the recent Las Bambas Copper Mine trial announced in January. As these trial orders mature through SciDev's pipeline, they could become significant longer-term orders similar to SciDev's A$8-12m deal with mineral sands company Iluka Resources. Because Syncrude is one of Canada's largest oil sands producers, a longer-term commercial order of SciDev's chemistry from Syncrude could represent a significant amount of revenue to SciDev in the event this trial is successful.

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Managing Director's Summary

Lewis Utting

“The order from Syncrude represents SciDev’s first entry into the oil sands sector, a significant potential area of growth for SciDev. We are pleased that our offering is continuing to be recognised in the oil and gas sector, which we believe is an exciting area of growth for the Company.”

Lewis Utting
Managing Director, Scidev Ltd

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