Deployment of Oilfield Recovery Additive

Graphene NanoChem PLC

("Graphene NanoChem" or the "Group")

Deployment of Oilfield Recovery Additive

Graphene NanoChem (AIM: GRPH), the performance nanochemicals and advanced materials company, is pleased to announce the commercial deployment of its Oilfield Recovery Additive (PlatsurF) - the Group's latest oilfield product offering - as the Group continues to execute its go-to-market channel via its joint venture partner, Scomi Oiltools Sdn Bhd ("Scomi Oiltools").

Highlights:

· Order from Scomi Oiltools for an international oil company end customer serviced by Scomi Oiltools for an approximate 50-well drilling programme in Thailand ("IOC Drilling Programme");

· Initial deployment of 40 drums of recovery additive for 2 wells in Thailand as part of the initial phase of field introduction under a change order process with Scomi Oiltools for product substitution;

· The revenue from the initial purchase order for 40 drums is estimated to be US$162,000.

Oilfield Recovery Additive offers a unique nanoemulsion solution to remove blockages caused by drilling residues or from production waste and is a solution to shortfalls in production caused by formation damage. The smartfluids solution vastly improves production rates in previously damaged wells with reduced waste generation.

The Scomi Oiltools, order book currently stands at RM5.3 billion (£0.95 billion) and together with its existing contract base with national and international oil companies provides a significant market opportunity for the joint venture in terms of product substitution. The partnership with Scomi has enabled the Group to significantly minimise its marketing and adoption risk and accelerate the commercial deployment of its products via Scomi Oiltools' existing customer base.

The global oilfields chemicals market is estimated to be US$21 billion today and growing. 

 Jespal Deol, Chief Executive Officer of Graphene NanoChem, commented:

"The combined strength of our unique product solutions and the strategy to deploy our products through a partnership model with a respected industry player is bearing fruit with the deployment of our third oilfield product through Scomi Oiltools. We are working hard with Scomi Oiltools in executing the process that would allow the substitution of products in existing drilling programmes as well as directly introducing our products in new tenders participated by Scomi Oiltools as part of our immediate and long term growth plan for this market and are very much encouraged with the progress achieved."

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About Graphene NanoChem

Graphene Nanochem plc is a technology commercialisation company that operates two commercial platforms, the Advanced Chemicals platform that manufactures renewable chemical products for high growth sectors and the Advanced Materials platform that focuses on graphene nanomaterials applications for selected industries targeting high performance use.

Headquartered in Malaysia, Graphene Nanochem was admitted to the AIM of the London Stock Exchange on 26 March 2013, following the reverse acquisition of Biofutures International plc, and trades under the symbol GRPH.L.

To find out more, please visit www.graphenenanochem.com.

About Scomi Oiltools

Scomi Oiltools is one of the world's leading providers of high performance drilling fluids solutions with an order book of RM5.3 billion (£0.95 billion) With a combined group experience of more than 60 years and global presence at 42 locations in 21 countries, Scomi Oiltools possesses the formulation expertise, global presence, customers, products distribution channels, back office infrastructures and logistical capabilities needed to effectively develop the global market share for PlatDrill in the immediate and long term.