Hunting PLC Acquires Organic Oil Recovery Technology for $17.5 Million
Why we think this is good
The acquisition of the Organic Oil Recovery (OOR) technology is a positive development for Hunting PLC. The technology provides several benefits to oil and gas operators, including improved oil recovery, cost-efficiency, and extended field life. The company is well-positioned to commercialize the technology globally, with field trials already underway with major industry players. The acquisition is margin-accretive and aligns with Hunting's strategy to expand its technology offerings. While there are some execution risks, the overall outlook is favorable.
Key Points
- Hunting PLC acquires Organic Oil Recovery (OOR) technology for $17.5 million
- OOR technology improves oil recovery, reduces capex, and extends field life
- Hunting now holds global rights for the OOR technology
- Field trials underway with major industry players, strong pipeline of opportunities
- Acquisition is margin-accretive and aligns with Hunting's technology expansion strategy
Summary
Hunting PLC has acquired the Organic Oil Recovery (OOR) technology for $17.5 million, including the intellectual property, distribution rights, and a laboratory in the US. The OOR technology provides several benefits to oil and gas operators, such as improved ultimate recovery of oil reserves, cost-efficiency, and extended field life. Following the acquisition, Hunting now holds the global rights for the OOR technology and is well-placed to accelerate commercialization across North America and the rest of the world. Field trials of the technology are currently underway with numerous blue-chip exploration and production companies, and Hunting has a strong pipeline of opportunities to secure in the coming years.