7th Mar 2025 11:09
(Alliance News) - Hunting PLC on Friday reported the acquisition of Organic Oil Recovery technology as it looks to deploy the "remarkable" technology globally.
The London-based supplier to the oil and gas industry said it acquired the technology from the Aberdeen-based firm's founding shareholders for a total consideration of USD17.5 million, with it agreeing to pay a 15% royalty on revenue earned for 15 years post completion.
The technology, said Hunting, provides several benefits to operators, such as improving the ultimate recovery of oil reserves from a well, lowering the water cut during end-of-life production and extending the life and increasing the economic returns of a producing field.
Under the deal, Hunting acquired the entire portfolio of intellectual property, with over 25 discreet patents, gaining distribution rights and its California-based laboratory.
Hunting said that acquisition positions it will to "further accelerate commercialisation" globally.
It noted that field trials of the technology are ongoing globally with blue-chip exploration and production firms.
Hunting said that following the acquisition, its outlook for expansion is "robust", owing to the additional geographical opportunities provided by the deal.
Shares in Hunting were up 2.9% at 294.90 pence on Friday afternoon in London.
All Organic Oil Recovery technical employees will move over to Hunting as either an employee or long-term consultant, added Hunting.
"Following the acquisition of this exciting business, Hunting now has the ability to deploy this remarkable technology globally. The technology is currently being evaluated by many blue-chip customers, with the benefits to the operator clear," said Chief Executive Jim Johnson.
"For Hunting, the business will be margin accretive and strongly position the company to reach its Hunting 2030 Strategy targets in the medium term as commercialisation accelerates."
By Christopher Ward, Alliance News reporter
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