Valkor update

Quadrise’s Utah project advances, but key production and revenue milestones remain months away.

What the company is saying

Quadrise Plc reports that Valkor Technologies has started drilling two new pilot wells at the Asphalt Ridge site in Utah, integrating findings from a Core Laboratories study that confirmed technical viability. The company highlights ongoing site installation for Valkor’s 500 bpd oil sands pilot plant, with production targeted for Q1 2027. An eight-well drilling programme is scheduled to begin later in 2026, aiming for 1,000 bpd output in 2027. Quadrise emphasizes that the outstanding US$0.95 million site licence fee is expected from Valkor by the end of October 2026, contingent on project funding due next month. The shipment of Quadrise’s 600 bpd Multifuel Manufacturing Unit to Utah is tied to this payment. The company also notes that a heavy sweet oil sample has been sent for MSAR® and bioMSAR™ formulation work in Q4 2026, and joint marketing of these fuels is underway in Utah. The tone is optimistic, focusing on technical progress and upcoming milestones, but most operational and financial outcomes are still forward-looking.

What the data suggests

Drilling at two new pilot wells has commenced, and site installation for a 500 bpd pilot plant is in progress, establishing that early-stage operational activity is underway. The eight-well programme, targeting 1,000 bpd in 2027, remains a projection rather than a realised outcome. The only disclosed financial figure is the US$0.95 million outstanding site licence fee, which has not yet been paid and is dependent on Valkor securing project funding next month. Quadrise’s 600 bpd Multifuel Manufacturing Unit will not be mobilised until this payment is received. Production from the pilot plant is not expected until Q1 2027, and no current production, revenue, or profitability figures are provided. The shipment of a heavy sweet oil sample for MSAR® and bioMSAR™ formulation work is a technical milestone, but commercial impact is not yet demonstrated. Disclosures are operationally specific but financially limited, with most value-driving events still pending.

Analysis

The announcement adopts a positive tone, highlighting operational progress such as the commencement of drilling at two pilot wells and site installation works for a pilot plant. However, the majority of key claims are forward-looking: the eight-well programme, targeted 1,000 bpd production in 2027, and the start of pilot plant production in Q1 2027 are all projections rather than realised outcomes. The only financial figure disclosed is the outstanding US$0.95 million licence fee, which is itself contingent on future project funding. No revenue, profit, or cash flow metrics are provided, and the timeline for material benefits (production, commercialisation) extends beyond 12 months, placing execution in the long-term category. The capital intensity flag is triggered by the disclosed licence fee and equipment mobilisation, both of which precede any earnings impact. The gap between narrative and evidence is moderate: while some operational steps are underway, the most material benefits remain speculative and unproven at this stage.

Risk flags

• ●Execution risk is high: the commencement of full-scale drilling and production is contingent on Valkor securing project funding and paying the US$0.95 million licence fee by the end of October 2026. Delays or failure to secure this funding would stall equipment mobilisation and subsequent project phases.
• ●Revenue and production targets are unproven: the 1,000 bpd production goal for 2027 and Q1 2027 pilot plant output are projections, not backed by current output or sales. If technical or operational challenges arise, these targets may not be met.
• ●Financial disclosure is limited: aside from the pending licence fee, there is no information on total project costs, funding sufficiency, or expected profitability. This lack of financial transparency makes it difficult to assess the project's economic viability or the company’s ability to withstand delays.

Bottom line

Quadrise’s update signals operational progress in Utah, with drilling and site works underway and technical viability confirmed by third-party studies. The project’s commercial impact remains speculative, as the key US$0.95 million licence fee payment and subsequent equipment mobilisation are both dependent on Valkor’s ability to secure funding in the coming weeks. Production and any associated revenue are not expected until at least Q1 2027, leaving investors exposed to execution and funding risks over the next several months. The absence of broader financial data or evidence of current cash flow means investors must rely on management’s projections rather than demonstrated results. The most important near-term event is Valkor’s payment of the licence fee; failure to achieve this milestone would undermine the project’s timeline and credibility.

Announcement summary

(AIM:QED) Quadrise Plc provided an update on its project with Valkor Technologies LLC in Utah, USA. Valkor has commenced drilling at two new pilot wells, incorporating findings from a Core Laboratories study that confirmed the technical viability of its modified enhanced oil recovery project at the Asphalt Ridge site. An eight-well drilling programme is expected to commence later in 2026, targeting production of approximately 1,000 barrels per day in 2027. Site installation works for Valkor's 500 bpd oil sands pilot plant are underway, with production expected to commence in Q1 2027. Valkor has advised Quadrise that it expects to pay the outstanding US$0.95 million balance of the site licence fee by the end of October 2026, upon receipt of project funding due next month. Quadrise's 600 bpd Multifuel Manufacturing Unit and associated equipment will be shipped to Utah for mobilisation on site following receipt in full of the outstanding licence fee. A heavy sweet oil sample from Valkor's new pilot plant has been shipped to the Quadrise Research Facility for MSAR® and bioMSAR™ formulation work scheduled for Q4 2026. Joint marketing of MSAR® and bioMSAR™ is underway in Utah. Andy Morrison is Chairman of Quadrise Plc. Peter Borup is Chief Executive Officer of Quadrise Plc. Jason Miles is Chief Technology Officer of Quadrise Plc.

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