Synertec Corporation Limited provides an update regarding progress in the Company's relationship with Sichuan GreenTech Environmental Co., Ltd. Synertec and GreenTech are jointly planning to globally commercialise GreenTech's novel environmentally-friendly and cost-effective Composite Dry Powder technology for the treatment of hydrocarbon drilling mud and allied applications. The Company announced that GreenTech has fully invoiced all work performed and CDP chemicals sold to date under its pilot programs with two major Chinese energy SOE customers. Approximately two thirds, or almost AUD 300,000, of these invoices have been paid, with the balance expected within 60 days.
Both Chinese SOE customers have indicated to GreenTech that they wish to proceed toward Strategic Alliance Agreements (SAAs) for the provision of GreenTech's patented CDP technology, including supply of chemicals and
processing of drilling mud using GreenTech's proprietary process machinery: One SOE customer has provided GreenTech with a Letter of Intent which confirms that the technology is effective and feasible for the purposes of further promotion and application. The customer has indicated an intention to enter a SAA subject to an "open book" confirmation on a nominated "test" well of the broad economic benefits of the CDP technology. Another SOE customer has provided GreenTech with preliminary instructions to mobilise for processing water-based drilling waste from a new well. GreenTech management anticipates receiving a contract shortly to complete this work on commercial terms. Once COVID-19 lockdown restrictions permit, GreenTech management plans to meet with this customer's senior management to negotiate the terms of the SAA.