Overview and History
Iofina plc is the holding company of a group of companies 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 production operations in the United States in the states of Texas, Montana, Oklahoma and Kentucky.
The presence of both iodine and natural gas has been discovered on acreages (Atlantis Field) which the Company holds through its wholly owned subsidiary Iofina Resources, Inc. The presence of iodine, co-produced water and natural gas allows the Group to generate three revenue streams over a single cost structure. A dual revenue approach has worked successfully in the Mobara field in Japan, which has been produced iodine and natural gas for over 50 years.
Iodine is a rare element that is only produced in a few countries in the world, with over 92 per cent. coming from Chile (58 per cent.) and Japan (21 per cent.). This has resulted in the US and Western Europe becoming major net importers to meet growing demands from pharmaceutical and industrial manufacturers. Iodine demand is growing at over 6 per cent. per annum driven by a combination of increased usage in a wide variety of sectors from pharmaceutical manufacturing, LCD screen manufacturing, medical imaging, cosmetics, biocides in paints and pesticides, as well as the emergence of new uses for iodine and greater consumption from developing countries such as India and China.
The Group's proprietary Wellhead Extraction Technology® (WET®) method allows low cost production metrics and high operational efficiencies compared to other large iodine/gas fields in Mobara, Japan. The WET® approach can quickly and efficiently be deployed to any location and adapt to variations in brine water streams. As a result, Iofina is able to deploy WET® units to producers' sites throughout North America, presenting a mid-stream option to third party producers and a new revenue source from their waste brine streams. Co-produced brine water from oil and gas production is the largest waste stream in North America. Thus turning in a cost to a cash flow.
The WET® approach employs two different iodine extraction methods, depending on brine chemistry and temperature for optimal efficiency. This flexibility removes some of the operational issues experienced previously by adapting to the specific characteristics of each operator’s brine streams.
The first technology for cold brine streams is a chemical-based method using an anion exchange resin as an absorption media, to which the iodine anions are attracted. It can also be based on a “physical system” that separates out iodine molecules in a physical trap using carbon. This method, which may require pre-filtration, has lower iodine yield efficiency.
The second method is called the WET® IOsorb® method; it is used on larger higher temperature brine streams which may include oil and other impurities.
Iofina larger WET® IOsorb® plants are capable of handling up to 30,000 barrels per day (bpd). The plants are built to ensure full redundancy, meaning production can be switched across to backup twin components to maintain 24/7 operation for lower down times and high iodine yield efficiency. The design of the larger WET® IOsorb® plants enables them to be shipped via five standard sea cargo containers that can be deployed through normal railways and roadways. Custom designed plants or multiple WET® IOsorb® plants can be used together in the event that a site produces more than a single unit can handle. The WET® units are crucial to Iofina's ability to extract third party brine streams from oil, gas and salt water disposal (SWD) producers in a rapid and highly cost effective manner that had not previously been available in the iodine industry.
Iofina compact mobile WET® units are capable of production rates of up to 6,000 bbpd per unit. The mobile WET® units are mounted in a standard trailer or skid mounted that can be rapidly deployed to locations using an articulated truck. Iofina has a series of patents pending relating to its technology for capturing iodine from iodine-rich brine from wells and converting it into a range of iodine molecules.
Our WET® IOsorb® plants are capable of producing between 50mt to over 450mt of iodine per annum each, depending on flow and iodine concentrations at these target locations. Locations with abnormally high concentrations will produce even more iodine than stated above.
Iofina has a series of patents and patents pending relating to its proprietary technology for capturing iodine from iodine-rich brine from wells and converting it into a range of iodine molecules. The Company believes it is important to capture this intellectual property to protect the Group's interests and enhance the overall value of our technology.
Iofina was incorporated on 15 March 2005 in the UK and registered in England and Wales. In January 2006 the Group acquired the entire issued share capital of Iofina Inc. and its wholly owned subsidiary Iofina Resources Inc., each of which is a Colorado corporation, with the objective of becoming a growing producer of iodine and natural gas. Iofina Chemical Inc., a Delaware corporation, was established in 1983 and acquired in 2009 as the specialty chemical division of Iofina Inc. The Group successful completed its IPO and was admitted for trading on 9 May 2008 on the London Stock Exchange AIM market.
The Directors believe that the Group's WET® and IOsorb® technologies will enable it to become one of the world's leading producers of iodine, and become a significant player in an industry which has been dominated by Chilean and Japanese producers for over 50 years. As far as the Directors are aware, the Group will be the only independent iodine producer in the USA and control the largest currently known reserves in North America.