Hunting buys Organic Oil Recovery technology for $17.5m

(Sharecast News) - Hunting said on Friday that it has bought Organic Oil Recovery (OOR) technology from its founding shareholders for $17.5m. OOR is an enhanced oil recovery technology, which improves ultimate recovery of oil reserves from a well.

It is a cost-efficient technology that reduces capex requirements and is simple to deploy; lowers the water cut during end-of-life production; lowers hydrogen sulphide levels in production offtake; and extends the life and increases the economic returns of a producing field.

The precision engineering group said it has bought the entire portfolio of intellectual property, comprising over 25 discreet patents, the distribution rights for the technology, and the laboratory located in California.

Following the acquisition, Hunting will hold the global rights for the OOR technology and said it is now well placed to further accelerate commercialisation across North America and the rest of the world.

Chief executive Jim Johnson said: "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.

"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."