News that Kraken Robotics Inc. has landed $7 million worth of contracts from the Newfoundland Offshore Oil and Gas Industry Recovery Assistance Fund gave the stock a bit of a bump this week.
Kraken, PNG on the TSX-V exchange, hit 44 cents Tuesday before pulling back and settling in around 40 cents in mid-day trading Wednesday. It peaked at just under a dollar in March.
The company will get $2.3 million as part of a $4 million Fast Remote 3-D Digital Inspection (FR3D) demonstration project for Cenovus Energy Inc and Suncor Energy Inc.
Kraken will use its SeaVision® 3D underwater laser scanning technology to show how it can be used to inspect critical subsea infrastructure.
The offshore demonstration campaign will consist of several inspection scopes of work to create digital twins of subsea infrastructure as prioritized by Cenovus and Suncor. The applications include inspection of underwater infrastructure and critical seabed assets including flowlines, spider buoys, and manifolds.
Through this project Kraken will receive approximately $1 million for equipment and salaries. The company will also contribute around $400,000 of its own money for equipment and salaries.
The remaining $2.6 million of project funding will cover operational expenses, materials and consumables and will be supported by the provincial oil and gas industry recovery fund and project partners Cenovus and Suncor.
This project will also employ joint engineering efforts from Kraken and its recently acquired subsidiary, PanGeo Subsea, using an existing PanGeo sled design with Kraken SeaVision® electronics and significant software integration.
PanGeo, a wholly owned Kraken subsidiary, in partnership with Memorial University’s Fisheries and Marine Institute, also landed a $4.8 million contract for offshore oil work.
The GeoTrac project will develop a new multi-sensor platform that will use high resolution 3D Synthetic Aperture Sonar to gather data about the rock and soil below the sea bed for offshore energy projects.
Geotechnical and geophysical data will be gathered offshore and processed onshore at a new facility located at the Marine Institute’s facility in Holyrood, Newfoundland.
PanGeo will get $4.8 million for equipment and salaries needed to develop deep-water data collection technology and an onshore data processing facility.
Kraken said the combined projects, valued at $9.2 million, will be carried out from Q4 of 2021 to the end of 2022 and allow the offshore energy sector to acquire better, faster, and more valuable data.
“This will enable offshore energy operators to make better-informed decisions regarding asset integrity, enhance energy recovery and reduce carbon emissions during inspection and survey operations,” the company said in a news release.
These contracts are the latest in what’s been a busy year for Kraken, which is based in Mount Pearl, Newfoundland and Labrador.
In addition to multiple contracts for robotics services and purchase of its AquaPix® Sonar and SeaPower® Batteries products from private companies and defense organizations in the US, Canada and Europe, Kraken also bought out a Brazilian Underwater Robotics Company for $220,000 and acquired PanGeo in a $10 million deal.
Kraken also trades over the counter in the United States under the ticker KRKNF.
Source: Saltwire | This text was excerpted from the media outlet cited on November 25, 2021 and is provided to Noia members for information purposes only. Any opinion expressed therein is neither attributable to nor endorsed by Noia.