ASX Release
ACN 109 200 900
AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT
3 September 2015
Eden (India) Wins Tender to Supply Eight OptiBlendTM Dual Fuel Kits to ONGC
Eden Energy Ltd ("Eden") is pleased to announce that Eden Energy (India) Pvt Ltd ("Eden (India)"), Eden's wholly owned Indian subsidiary, has won a tender to supply to Oil and Natural Gas Corporation Limited ("ONGC") of India, eight OptiBlendTM dual fuel kits for use on diesel powered generator sets ("gensets") used on drilling rigs it operates in India.
The value of the contract is for the Australian dollar equivalent of over A$240,000. This is the first time that Eden (India) has secured a contract to supply ONGC, and is an encouraging development. India is presently expanding its early stage domestic exploration for shale oil and gas, and ONGC is a significant participant in this exploration programme. Sales of OptiBlendTM kits in the US and India have greatly slowed over the past year as a result of low oil prices and a reduction in US exploration, and Eden (India) is hopeful of further success in this emerging Indian market.
Interest in Optiblend™ in Nigeria
Eden (India) has also recently participated in an Indian trade mission to Nigeria, where it has secured interest in its OptiBlendTM dual fuel kits for use in various back-up power applications. This interest is currently being pursued in the hope of converting it into contracts to supply dual fuel kits.
Nigeria is a significant African producer of oil and natural gas but has an inadequate power grid, with the result that many larger Nigerian operations are supplying some or all of their electrical power requirements through the use of diesel powered gensets. The Nigerian market price of Natural Gas is significantly lower than the price of diesel fuel and provided a suitable supply of Natural Gas is available, conversion of these diesel powered gensets to operate on a combination of diesel fuel and Natural Gas is a financially attractive option.
Optiblend™ Background
Eden has developed Optiblend™, an efficient dual fuel system that is capable of operating on diesel
powered gensets and displacing up to 70% of the diesel fuel with Natural Gas. In addition to reducing greenhouse gas emissions, where Natural Gas is cheaper than diesel fuel, it will also reduce fuel costs. Depending upon the size of the engine and the number of hours per day that it operates and the relative
prices of Natural Gas and diesel fuel, the payback time for the Optiblend™ conversions is frequently less than 12 months.
Gregory H. Solomon
Executive Chairman
Level 15, 197 St Georges Terrace, Perth, Western Australia 6000
Telephone: (08) 9282 5889 Facsimile: (08) 9282 5866
Email: [email protected]