Graphene Nanochem surges on maiden oil and gas order

Shares in Graphene Nanochem surged after the AIM-listed company announced it first commercial order of its Confi-Gel additive into the oil and gas sector, together with progress on its debt restructuring plan.

Confi-Gel is used as an additive in base-drilling fluids, reducing fluid loss to the well surroundings and increasing stability during drilling. Its structure, the company says, enables precise customisation and integration that results in cost savings.

The product was developed using Graphene Nanochem's patented cavitation technology, SimPlat 5.

A US$33,300 order followed six months of comprehensive testing and full lab trials by Scomi Oiltools, for inclusion into its supply chain to service global market requirements.

The product will be deployed for use in Scomi's existing contract in Pakistan and gradually into further markets in Turkmenistan, Indonesia, Thailand, Vietnam, Myanmar and India.

Viscosifiers form a significant component of drilling fluids and enables the Group to address Scomi's current order book and a market valued today at approximately US$20.0 million.

Jespal Deol, chief executive of Graphene NanoChem, said: "Today's news marks another milestone for the Group and is in line with our strategy of developing the mainstream market for our products range. The oil and gas market has suffered significant downturn from the volatility of oil prices and the fact that our product addresses the industry pain-points has generated significant traction in the commercialisation of our oil and gas product range."

He added that the company's debt-restructuring plan is still progressing and an announcement will be released in due course.