Business
Sparky Energy Corp & Optimal
Sparky Energy Corp & Optimal.
About this update from Quadrise Plc
[{"type":"text","content":"\n RNS Number : 9476Y Quadrise Fuels International PLC 05 January 2011 \n \n\nQuadrise Fuels International Plc (\"QFI\" or \"the Company\")\n \nAmalgamation of Sparky Energy Corporation and Optimal Resources Inc. \n \n5 January 2011\n \nOn 14 June 2010, the Company announced that, resulting from its 19% holding in Quadrise Canada Corporation (\"QCC\"), it held a 16.4% interest and was the largest single shareholder in Sparky, a new junior oil company formed to utilize novel proprietary Enhanced Oil Recovery (\"EOR\") technology developed and owned by Quadrise Canada Corporation (\"QCC\"). QFI also announced on 18 August 2010 that it had invested C$ 1 million to acquire 2 million additional new issue shares in Sparky in a placing which closed on 31 August 2010. This increased QFI's shareholding holding to 17.85%.\n \nSparky has a 50/50 joint venture (\"JV\") with Optimal Resources Inc. (\"Optimal\") itself a producing oil company with secured reserves in the Lloydminster area in Alberta, Canada. This JV combines the assets, resources and expertise of the two companies for the purpose of increasing oil production from the JV's current and future reserve assets, by applying EOR technology licensed to the JV by QCC.\n \nDetails of the phased programme to be progressed by the JV were included in the announcement dated 18 August 2010. This programme started with the first pilot oilfield application of the EOR technology during December 2010 which has progressed as planned. While the field programme is still limited, early stage results and findings are generally in line with expectations, supporting the view that selective application of the EOR technology could have considerable commercial potential. \n \nDuring the last quarter of 2010 the respective boards of Sparky and Optimal considered the merits of progressing from the JV relationship to a full amalgamation of the two companies. This amalgamation became effective on 1 January 2011. The name of the amalgamated company is Optimal Resources Inc. (\"ORI\") and QFI remains the largest single shareholder in ORI holding 5,682,500 shares representing 9.6% of the shares in issue on completion. \n \nORI is a specialised oil production company combining the initial oilfield assets and production development capability contributed by Optimal, with t...