The Clean TeQ Water Ltd (ASX: CNQ) share price rose strongly at one point today following a significant contract award.
During early morning trade, the metals recovery and water treatment solutions company's shares hit an intraday high of 77 cents. However, some profit-taking has led its shares to retrace to 73.5 cents, up 3.52%.
What did Clean TeQ announce?
Investors are pushing Clean TeQ shares into the green after the company revealed it won an important contract.
According to its release, Clean TeQ Water advised it has been selected to design and deliver a High Recovery Reverse Osmosis (HIROX) water recovery plant in the Middle East.
The facility will be used to treat bore water used for enhanced oil recovery with minimum waste within the region.
Clean TeQ Water's technology is able to attain more than 90% water recovery compared to traditional methods which achieve around 30%. The treatment involves reducing sulphate in bore water to prevent scaling when the water is used for reinjection.
The HIROX plant will produce approximately 1,200 tonnes per day of treated water.
Clean TeQ Water's counterparty on the contract, National Energy Services Reunited Corp (NESR) will assist with delivery of the project.
NESR is one of the largest oilfield services providers in the Middle East, North Africa, and the Asia Pacific. The company has a water conservation and management business focused on improving water availability and reuse in the oil and gas sector.
Under the agreement, NESR will be the owner and operator of the plant's first installation.
The contract is expected to generate revenue of roughly $3 million.
Clean TeQ Water CEO, Willem Vriesendorp commented:
The award of this significant contract is further testament to our ability to provide the best water treatment solutions across multiple industries.
The Oil and Gas sector is a tremendous opportunity for the adoption of high recovery water and reuse technology. Our HIROX process is one of our world-leading treatment technologies that will ensure Clean TeQ Water can compete with the world's best water treatment companies.
About the Clean TeQ Water share price
Since debuting on the ASX boards on 2 July, Clean TeQ Water shares have flatlined. The company's share price hit an all-time high of $1.45 in mid-July and have treaded lower ever since.
Clean TeQ Water presides a market capitalisation of about $32.8 million, with more than 44.6 million shares outstanding.
