Hydrocarbon Dynamics Limited has entered voluntary suspension pending a major transaction announcement while continuing global trials of its Multi-Flow product. A new auditor appointment and board leadership change mark a period of strategic transition.
- Voluntary suspension due to proposed transaction
- Auditor changed to Nexia Australia Audit Pty Ltd to reduce costs
- Multi-Flow product trials ongoing across multiple international sites
- Board chairman role shifts to Ray Shorrocks post-quarter
- Cash reserves stand at $770,000 with no debt
Voluntary Suspension and Proposed Transaction
Hydrocarbon Dynamics Limited (ASX, HCD) has entered a voluntary suspension of its securities as it finalises a proposed transaction, announced on 19 December 2025. This move, in line with ASX Listing Rule 17.2, signals a significant corporate development that the market awaits with interest. While details remain under wraps, the company and its advisors are actively working towards completion, promising an update once procedural requirements are met.
Auditor Change Reflects Cost Management
In a strategic effort to streamline costs, HCD has appointed Nexia Australia Audit Pty Ltd as its new auditor, replacing Pitcher Partners. This change, effective from November 2025, was approved by ASIC and is set for ratification at the upcoming annual general meeting. The board’s decision underscores a focus on financial prudence amid ongoing corporate activities.
Global Progress on Multi-Flow Trials
HCD’s flagship product, Multi-Flow, continues to be trialled internationally with mixed but promising results. In Australia’s Cooper Basin, seasonal paraffin control treatments are expected to resume in the cooler months, with a potential order for 80 drums anticipated in the April-June quarter. Dubai’s distributor Sichem has quoted a repeat order worth approximately $240,000, though confirmation is pending.
In North America, the USA trial has expanded from one to two wells following initial success, while Canadian distributor Quadra Chemical has identified three new opportunities in Alberta’s oil fields. Independent lab tests in Canada showed a 50% reduction in operating pressure, prompting discussions for field trials. Meanwhile, in Southeast Asia, Indonesia’s PT AIM has reported encouraging bench test results, and PetroVietnam is conducting flow loop laboratory tests with potential field trials on the horizon.
However, challenges remain. The North Sea client is reconsidering operations due to low oil prices, and a management change in Pakistan may delay a significant 2,000+ drum trial. Malaysia reported no new developments this quarter.
Corporate and Financial Updates
Corporate activity is currently focused on the proposed transaction, with new investment assessments on hold. HCD plans to exit a small joint venture with Arrow Exploration to avoid further costs, expecting reimbursement of approximately $27,000. Post-quarter, the board announced a leadership change, Ray Shorrocks will assume the chairman role from 1 February 2026, with Stephen Mitchell transitioning to a non-executive director position.
Financially, HCD ended the quarter with $770,000 in cash reserves, no debt, and $40,000 in listed shares. Related party payments amounted to $73,000 in royalties. The company continues to explore funding options to support its oilfield chemical business during this transitional phase.
Bottom Line?
As HCD navigates a pivotal transaction and global trial developments, investors await clarity on the deal’s impact and future growth prospects.
Questions in the middle?
- What are the specifics and strategic implications of the proposed transaction?
- How will the change in board leadership influence HCD’s operational and financial direction?
- Can Multi-Flow trials convert into substantial commercial contracts amid volatile oil markets?