News blog

TXO

• BY: Andrew Hore |
• POSTED: 07/11/2013 |

Oil recycling services provider TXO has acquired a 15.1% stake in Oil Recovery Services Ltd (ORS) and has options to take stake to 49.9%.

The initial stake has cost £300,000 in shares at 0.3p each – a large premium to the market price. TXO can pay £200,000 for a further 10% by the end of 2013 and £2.48m for 24.8% up until 1 May 2014.

ORS (www.oilrecoveryservices.com) has developed technology to reprocess waste oils and remediate dirty water. The technology can also be used to enhance recoveries from upstream oil production. The technology will be offered as a service to turn waste into fuel oil. ORS is a new company but the technology has been developed over an eight year period. ORS has acquired the IP and taken over ongoing contracts worth £650,000.

ORS founder Ian Roos will join the board of Morgan Oil Marine (Bahamas) and the ORS technology will be used in the hydrocarbon recovery plant in Freeport. There is also potential for other plants around the world. Oil producer Morgan Oil USA will use the ORS technology to improve production at existing wells.

TXO has acquired a 20% stake in Athabasca Resources, which is acquiring a 50% farm-in interest in the Athabasca oil sands in Canada. The ORS technology could help to make these interests more commercial.

At 0.19p a share, up 0.03p, TXO is valued at £2.74m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFOctober2013_49.pdf