Vivakor Inc VIVK shares are trading higher by 156.7% at $4.40 after the company announced it has signed a 10-year contract with Hot Oil Transport with a potential value of up to $250 million.
Vivakor says that based on the current asphalt wholesale index price for the Rocky Mountain region, this contract could be valued at up to $250 million over the life of the contract, provided that Vivakor is able to ramp up and operate its Vernal, Utah site at full capacity.
"As this is our first long-term contract for sale of our asphaltic binder, it is an important milestone for Vivakor. We have worked closely with HOT to refine our product to meet their specifications," said Matt Nicosia, CEO of Vivakor.
"We have already produced tonnage of asphaltic cement with our Vernal, Utah RPC and believe that by the end of the year we will have ramped up our infrastructure to include three additional RPCs to operate the site to the level required to fulfill the full amount of material requested by HOT on an annualized basis. This could be a significant event for shareholders as this project, when fully-scaled, could contribute meaningful profits."
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According to data from Benzinga Pro, Vivakor has a 52-week high of $4.65 and a 52-week low of $0.24.
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