The Scidev Ltd (ASX: SDV) share price is rocketing higher this morning after the company announced it has received a trial purchase order from Syncrude, one of Canada's largest operators in the oil sands industry.
At the time of writing, SciDev shares are trading 24.6% higher at $0.785 per share.
What does SciDev do?
Established in 2001, SciDev is involved in the development and application of both chemistry and process control for solids-liquid separation. SciDev's capabilities are primarily used in the mining, resources, water, and food manufacturing industries.
Details of the new Canadian trial
Scheduled to occur late in FY20, SciDev commented that the trial could generate as much as $1 million of revenue and is anticipated to last for approximately 2 weeks.
During the trial, the focus will be on using SciDev's chemistries in Syncrude's CND$1.9 billion full-scale Tailings Centrifuge Plant.
SciDev further pointed out that its staff will be on-site in the Canadian plant to support the trial and ensure it is successfully performed.
The company added that fluid tailings management is an area which has been placed under increased regulation in the Canadian Oil Sands industry.
Commenting on the transaction, SciDev Managing Director and CEO, Lewis Utting said:
"The order from Syncrude represents SciDev's first entry into the oil sands sector, a significant potential area of growth for SciDev. We are pleased that our offering is continuing to be recognised in the oil and gas sector, which we believe is an exciting area of growth for the Company."
Recap of recent financial results
Last week on February 27, SciDev released its 1H20 financial results. With this, the company reported revenue of $6.12 million for the half, representing a massive 382% increase on the prior corresponding period of 1H19.
Pleasingly for the company, SciDev managed to reduce its net loss by 69% during the period, however, net cash outflows from operations increased to $2.5 million.
Recent major acquisitions
Last year, SciDev completed a $1.9 million acquisition of ProSol Australia. ProSol is a bespoke solutions business that delivers chemistry and services for the mining and water treatment industries in New South Wales.
SciDev also acquired private US company Highland Fluids Technology Inc at the beginning of this year. The purchase price of this acquisition was US$6 million and it will provide the company with access to the onshore oil and gas market.