Xebec Reveals Recent Major Order Comes From Chevron Joint Venture

Xebec Adsorption (TSX: XBC) this morning announced that it has received the first task orders under a major master services agreement announced in July. The order is for an initial 18 BGX-Biostream units, representing the largest purchase order received to date for the units by the company.

The order, and master services agreement, has been revealed to be with that of Brightmark RNG Holdings, which is a joint venture between Brightmark and Chevron Corp (NYSE: CVX). The units are to be used to produce renewable natural gas at ten different dairy farms across the US.

As has become a trend from Xebec, little actual detail was released this morning by the company. In fact, it appears this mornings announcement was primarily a means of announcing the master services agreement was related to Brightmark and Chevron, with the initial order of 18 units previously announced by the firm.

While financial details were not included this morning, in its initial announcement Xebec revealed that the Biostream units have an initial list price of US$1.5 million per each, meaning the transaction could represent significant revenues for the firm. A timeline for the estimated delivery of these units however was not provided.

Xebec Adsorption last traded at $2.63 on the TSX.

Information for this briefing was found via Sedar and Xebec Absorption Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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