Iofina plc is involved in the exploration and production of iodine, produced water and natural gas with complete vertical integration into the specialty chemical iodine derivatives business. Iofina also provides third party brine stream operators with a turnkey mid stream fee based solution to extract iodine. The Group has iodine production operations in the United States in the states of Texas, California, Montana, Oklahoma and Wyoming. The presence of both iodine and natural gas has been discovered on acreages which the Company holds through its wholly owned subsidiary Iofina Natural Gas, Inc. The presence of iodine, co-produced water and natural gas allows the Group to generate three revenue streams over a single cost structure.
Iofina (LON:IOF), the iodine extraction specialist, this morning gave an upbeat assessment of prospects based on the outlook for the iodine price and the performance of its mid-stream business.
The group works with US oil and gas companies to deploy its well extraction technology (known as WET) that processes the brine associated with gas and oil production.
The group is already working with a number of large operators and handling up to 30,000 barrels of brine per day and is talks with other potential customers.
At the same time the group is looking to expand its specialty chemicals operation with the purchase of 13 acres of land next to its current manufacturing site.
Chief executive Lance Baller said: "The board is pleased to report that the group is encouraged by forward-looking cash flow generation, robust iodine prices and overall performance of the management team and staff.
“It is the result of considerable hard work, both from the technology and commercial divisions, that Iofina has been able to secure contracts with large independent oil and gas producers in its mid-stream business.
“Iofina's strong reputation and presence in the market is now well-established. With its geological model, robust technology and current customers, the group is well positioned for a strong 2012 and beyond."