Hydrocarbon Dynamics Faces Trial Delays Amid Critical Capital Raise
Hydrocarbon Dynamics Limited reported ongoing sales and expanded trials of its HCD Multi-Flow product worldwide, alongside plans for a fully underwritten rights issue to bolster its financial position.
- Repeat purchase orders and payments received from Australian and Dubai distributors
- Trial expansion in the USA targeting multiple wells following initial success
- New opportunities explored in Indonesia and Pakistan for flow assurance treatments
- Fully underwritten 1-for-3 rights issue announced to raise up to $718,000
- Advancement of soil remediation technology trials in Australia
Global Sales and Trial Progress
Hydrocarbon Dynamics Limited (ASX – HCD) has reported steady progress in the June 2025 quarter with continued sales and trial expansions of its flagship HCD Multi-Flow product across multiple international markets. The company secured repeat purchase orders from its Australian and Dubai distributors, reflecting sustained demand for its paraffin control technology in established regions.
In the United States, a small Californian operator successfully tested HCD Multi-Flow on one well, prompting an order to expand the trial to two wells. With approximately 400 wells in the producer’s portfolio, this trial could pave the way for significant future sales if results remain positive.
Emerging Opportunities in Asia and Canada
Beyond these markets, Hydrocarbon Dynamics is actively exploring new applications in Indonesia and Pakistan. In Indonesia, bench tests with local crude oil samples have shown promising results, supporting potential field trials involving eight wells. Meanwhile, discussions in Pakistan focus on a flow assurance treatment trial for three large oil transfer pipelines, a project that could require over 2,000 drums of HCD Multi-Flow if approved.
In Canada’s Alberta oil fields, distributor Quadra Chemical has identified three new client opportunities for HCD products, including paraffin-affected wells and pipeline treatments, signaling growing interest in North American markets.
Operational Challenges and Soil Remediation Pivot
Some operational delays have been reported in the Gulf of Mexico and North Sea trials due to maintenance and personnel changes, but Hydrocarbon Dynamics is actively engaging new contacts to resume momentum. Meanwhile, the company is advancing its soil remediation technology in Australia, targeting salt-affected farmland with its HCD Salt Reducer product. This pivot leverages an environmentally friendly organic chelant acquired in 2018, aiming to improve soil quality and crop yields, potentially opening a new revenue stream.
Financial Position and Capital Raise
Financially, Hydrocarbon Dynamics ended the quarter with $607,000 in cash reserves and no debt. To support ongoing operations and growth initiatives, the company announced a fully underwritten 1-for-3 rights issue to raise up to $718,000 before costs, with directors underwriting a significant portion. This capital injection is expected to provide the necessary runway to advance trials, expand sales, and explore further upstream energy and technology investments.
Related party payments during the quarter were disclosed, reflecting routine royalty and director fee payments. The company continues to assess joint ventures, private equity, and other financing avenues to strengthen its chemical business and technology portfolio.
Bottom Line?
With global trials expanding and a rights issue underway, Hydrocarbon Dynamics is positioning itself for growth; but upcoming trial results will be critical to sustaining momentum.
Questions in the middle?
- Will the expanded US trials convert into significant commercial contracts?
- How will operational delays in the Gulf of Mexico and North Sea affect long-term prospects?
- What impact will the soil remediation technology have on the company’s revenue diversification?
