Scidev Ltd - Canadian Oil Sands Trial Update

What happened?

What's happened?

SciDev Limited (ASX:SDV) has advised that its maiden Canadian oil sands trial is progressing, with chemistry product having been shipped from China to Alberta, Canada during the month of June.

What are the key highlights?

The trial is anticipated to last for approximately two weeks and was initially scheduled to occur late in FY2020.
The trial requires the mobilisation of SciDev’s staff to site to deliver the associated professional services and ensure a successful offering for Syncrude.
COVID19 currently represents an unacceptable level of risk for SciDev employees travelling to North America therefore the trial is anticipated to commence in the second half of calendar year 2020.
The Syncrude trial represents ~AUD$1m of revenue for SciDev which is anticipated to be realised in the second half of calendar year 2020.
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.

For further information, please refer to the announcement linked below.

Managing Director's summary

Lewis Utting Managing Director of Scidev Ltd has provided a statement.

Lewis Utting

Managing Director, Scidev Ltd

“The order from Syncrude represents SciDev’s first entry into the oil sands sector and whilst the project has been delayed, both Syncrude and SciDev remain committed to the project. The health and safety of our staff continues to remain my core priority and the trial will only commence when it is safe for our people to travel. The oil and gas sector is an exciting area of growth for the Company and we will continue to update the market on our activities in this sector.”