Business
First Third Party Iodine Extr
First Third Party Iodine Extr.
About this update from Iofina Plc
[{"type":"text","content":"\n RNS Number : 9261I Iofina PLC 22 March 2010 \n \n\n \n 22 March 2010\nIofina plc\n (\"Iofina\" or \"the Company\")\n \nThe following replaces the announcement released on 22 March 2010 at 07.00 under RNS number 9114I. \n \nThe full text of the amended announcement can be read below.\n \n \nFirst Third Party Iodine Extraction and Collection Agreement \nIofina, the gas and iodine production company, is pleased to announce that it has signed its first third party Iodine Extraction and Collection Agreement with The Termo Company ('Termo'), a privately held California based oil & gas company, for the extraction of iodine from Thermo's brine streams in the Los Angeles (LA) Basin of California (the \"Agreement\"). \nThe Agreement represents a crucial milestone towards Iofina's stated strategy of providing a full service fee based solution to resource operators, such as Termo, which is generating brine streams associated with oil and natural gas production. Through partnering with Iofina, operators' brine streams, which have historically been a cost base, can now be monetized and turned into a new revenue source which, in many instances, can completely alter the economics of existing operations and furthermore make other operations commercially viable for the first time.\nThe Deployment of Iofina's proprietary Wellhead Extraction Technology® (WET®) units are now underway and will see Iofina re-establish the first iodine recovery operations in California for fifty years. The initial WET® being deployed will be able to process 1,500 barrels (bbls) a day of c.77 parts per million (ppm) brine and has the potential to ramp up to over 30,000 bbls a day when other modular POD units are deployed.\n \nAll the iodine extracted will be exclusively marketed to Iofina Chemical at a market rate for like kind of quality and purity of iodine. Iofina Chemical will then vertical integrated into various types of iodine chemical derivatives. \n \nWith the first iodine extraction agreement now in place as a new industry benchmark, management intend to accelerate discussions with other operators in the area to further exploit the opportunity. Over 1.5 million barrels per day of iodine rich brine is produced in the LA basin, without a single i...