- SRJ Technologies Group (ASX:SRJ) secures two contracts in the US
- Both contracts come from the O&G sector
- Black Hills Energy Corp want’s SRJ’s BoltEx product and so do Magnolia Torque and Testing
- This marks SRJ’s entrance into the US oil and gas market
- Shares last traded at 7.8 cents
This, the company reported, marks its first foray into the lucrative North American energy support services market.
With that said, today’s total contract value comes in at less than $130,000 – $126,000 to be precise.
BoltEx is a flange clamp that can be used during ‘hot bolting’ – the term given to repairs on live oil and gas pipelines.
The ultimate benefit of hot bolting is that key repairs can be undertaken without needing to shut down production. The process is dangerous but often viewed as a necessity of operations.
SRJ claims the clamp can stay robust even under 1.5 times more than the pressure it’s designed to withstand.
Who are the customers?
Two companies have purchased BoltEx units off SRJ – Black Hills Energy, an electricity and natural gas provider in the US, and Magnolia Torque and Testing, a repair contractor working on oil and gas assets.
Magnolia’s clients include BP, Shell, and Chevron, according to SRJ.
“These two initial contract awards mark a major milestone in SRJ’s strategic outlook as they provide asset reference points to target the USA’s significant addressable market in 2024,” SRJ CEO Alexander Wood said.
Despite the positive news, SRJ shares are unmoved in Wednesday’s trade. The little-known stock has been quietly plugging along for years but remains thinly traded.
SRJ shares last traded at 7.8 cents.