PERTH-based Eden Energy has doubled sales of its “green” fuel kit to $2.7 million, reporting nine sales at a value of $315,000 for the fourth quarter of 2014.
The company has projected further growth in the Optiblend Dual Fuel project, with the company’s US subsidiary Hythane Company reporting a strong outlook for demand for the product in 2015.
Ongoing growth in oil and gas markets was likely to be slower, Eden said, adding that it hoped power markets such as agriculture, industrial plants, and hospitals and data centres would boost demand.
The company also expects to expand into “suitable” overseas markets.
“Whilst the recent significant drop in oil prices is expected to reduce US oil and gas exploration in the short term, it is hoped to have only a limited effect on sales opportunities of OptiBlend,” the company said in a statement.
Eden said the natural gas price had fallen at a similar rate as the oil price, meaning the price differential between gas and diesel was maintained, thereby keeping the economics of converting diesel-powered gensets to operate on both gas and diesel attractive.
It also said the expected short-to-medium term nature of the oil price decline meant it would act as a convenient time to perform any conversions on equipment.
Eden also provided an update on its planned merger, which involves plans for the company to transfer its UK subsidiary Adamo Energy to UK Onshore Gas (UKOG).
The conditions precedent to the deal were not all satisfied by the 9 December deadline and the conditional merger agreement will continue until it is terminated by either party.
Eden Energy executive chairman Gregory Soloman said discussions between the parties had continued since December 2014.
“But there is no certainty that this agreement will proceed,” he said.
If the deal is completed it will give UKOG a 100% interest in all merged assets, with Eden to take control of 33.33% of the merged company, plus up to $2.1 million.