Hydrocarbon Dynamics secures a $165,000 repeat order from Dubai and closes a rights issue raising $808,582, while advancing multiple global trials of its HCD Multi-Flow product.
- Repeat purchase order of $165,000 from Dubai distributor Sichem LLC
- Rights issue closed raising $808,582, fully underwritten by Peloton Capital
- Ongoing treatments and trials across Africa, Australia, Canada, North Sea, and Gulf of Mexico
- Cash reserves stand at $770,000 with no debt
- Exploration of new upstream energy and energy technology investment opportunities
Global Sales Momentum
Hydrocarbon Dynamics (ASX: HCD) has reported a solid quarter marked by a repeat purchase order from its Dubai-based distributor Sichem LLC, valued at approximately $165,000. This order for the HCD Multi-Flow product is destined for an African operator aiming to clear paraffin deposits ahead of smart pigging operations on an oil transfer pipeline. The company anticipates that a successful outcome here could unlock further opportunities with both the distributor and the client.
Meanwhile, in Australia’s Cooper Basin, HCD has fulfilled a prior repeat order worth around $123,000 for seasonal paraffin control treatments. The company has also quoted for a potential additional order of 80 drums valued at approximately $242,800, signaling ongoing demand in this mature market.
Diverse Geographic Footprint and Trials
Beyond Dubai and Australia, HCD’s Multi-Flow product continues to see application in Alberta, Canada, where 21 wells are currently treated, though recent updates remain sparse. In the Gulf of Mexico, a previously successful offshore subsea pipeline treatment was paused due to scheduled maintenance, with no new developments reported this quarter.
In the North Sea, a high-profile trial on a platform plagued by severe paraffin deposition has commenced after delays. This platform, operated by a large national oil company, faces significant production losses due to paraffin buildup. However, the trial has encountered a setback with a pump failure causing a temporary shutdown. If successful, a second platform with similar issues could follow suit, representing a meaningful commercial opportunity.
Financial Strength and Strategic Outlook
On the financial front, Hydrocarbon Dynamics successfully closed a non-renounceable rights issue on 8 November 2024, raising $808,582 before costs. The offer was fully underwritten by Peloton Capital Pty Ltd, with new shares issued at 0.3 cents each and accompanying options exercisable at 0.5 cents expiring in November 2025. This capital injection has bolstered the company’s cash reserves to $770,000, with no debt on the balance sheet, providing a solid runway for ongoing operations and strategic initiatives.
The company continues to explore new investment opportunities primarily within upstream energy and energy technology sectors, including remote energy generation and storage. Financing options for its chemical business remain under consideration, spanning joint ventures and private equity avenues.
Laboratory Validation and Corporate Governance
Laboratory testing conducted by Core Labs Malaysia confirmed the efficacy of HCD Multi-Flow in liquefying tank sludge, reinforcing the product’s value proposition. The company’s governance remains robust, with the Board of Directors authorizing this release and maintaining transparent communication with shareholders.
Bottom Line?
With fresh capital and expanding global trials, Hydrocarbon Dynamics is poised to convert promising opportunities into tangible growth — but operational hiccups and market adoption remain key watchpoints.
Questions in the middle?
- Will the North Sea platform trial overcome technical setbacks and lead to expanded contracts?
- How quickly can Hydrocarbon Dynamics convert its investment assessments into new revenue streams?
- What is the timeline for the anticipated additional orders in Australia and other regions?