The Hydrocarbon Dynamics Ltd (ASX: HCD) share price is rocketing again today, leaving the All Ordinaries (ASX: XAO) for dust.
At the time of writing, the energy company’s shares are up 52.63% to 2.9 cents. This means its shares have accelerated by more than 200% this week.
In contrast, the broader index is 0.84% higher to 7,706.6 points for the day.
What’s the deal with Hydrocarbon Dynamics?
Investors are rallying up the Hydrocarbon Dynamics share price to a 52-week high after digesting the company’s latest update.
According to its release, Hydrocarbon Dynamics advised it has been awarded the chemical treatment business for 30 wells with receipt of a follow-up order from Santos Ltd (ASX: STO).
The order follows a successful trial conducted on 3 wells in the Cooper Basin last year.
Hydrocarbon Dynamics stated that it will supplant one of the world’s largest oilfield chemical companies that previously treated these wells.
The initial order is expected to generate revenue of approximately A$140,000 with treatment expected to recommence next month.
Notably, Hydrocarbon Dynamics concluded a successful 6-month trial for the producer on a waxy field in the Cooper Basin. This achieved the “key objective of mitigating down time and production loss issues stemming from paraffin build-up.”
The company highlighted that the use of its HCD multi-flow reduced lost production by 96% in the trial.
Furthermore, the results demonstrated that with the introduction of HCD multi-flow there was exceptional improvements in well performance, cleaner flow lines and no additional build-up of sludge in the tanks.
Management said that it’s connecting with other producers in the region with similar production issues to expand business opportunities.
Hydrocarbon Dynamics share price snapshot
Adding to this week’s euphoric gains, the Hydrocarbon Dynamics share price has risen by more than 120% in 2022.
However, when looking further back, the company’s shares are up 45% over the last 12 months.
On valuation grounds, Hydrocarbon Dynamics commands a market capitalisation of around $17.02 million.
The post This ASX energy share has rocketed 200% in 3 days on a secret Santos deal appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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