- Its acquisition of 50 percent of operating rights pertaining to oil sands in Utah is expected to help increase Petroteq’s cash value
- The company has also announced plans to satisfy debts with common shares so as to preserve its cash for the extraction technology being utilized at its Asphalt Ridge asset, as well as for working capital
- The acquisition is an important part of Petroteq’s extraction strategy, which is reliant on the company’s Clean Oil Recovery Technology that ensures safe, sustainable and environment-friendly oil extraction
On July 22, 2019, Petroteq Energy Inc. (TSX.V: PQE) (OTC: PQEFF) announced the finalization of its acquisition of 50 percent of the operating rights and interests pertaining to oil sands in the state of Utah under the U.S. federal oil and gas leases. The acquisition encompasses 8,480 gross acres, or 4,240 net acres. All of the shares issued pursuant to the transaction will be subject to a four-month hold period, according to a company news release (http://nnw.fm/mq9Qj).
Petroteq, a fully integrated surface oil sands mining company with proprietary technology, delivered a number of additional important news in connection with its operation and strategic growth plans.
The company released details regarding the issuance of a $300,000 principal amount (including an original issue discount of 20 percent) unsecured convertible debenture, as well as warrants exercisable for up to 1,315,789 common Petroteq shares at a cost of $0.24 per share for 15 months.
The debenture bears an interest rate of seven percent per year. It is payable quarterly, and, at the option of the holder, the purchase amount is convertible to 1,315,789 common shares of the company at $0.19 per share.
Finally, Petroteq has agreed to complete a shares-for-debt transaction, after which the company will issue 838,714 common shares in satisfaction of $176,130 of indebtedness that’s currently owed. The decision to satisfy the indebtedness with common shares will enable Petroteq to preserve cash for the important purposes of working capital and the implementation of its extraction technology at its Asphalt Ridge site in Utah.
Petroteq, an oil and gas extraction innovator, has developed its own Clean Oil Recovery Technology (CORT) that’s suitable for surface tar sands oil extraction in Utah. CORT is a closed-loop system that extracts fuel oils from the ground and returns the “cleaned” sand after the completion of the process.
The company is focused on the development of proprietary new extraction technologies. It targets sustainable and environment-friendly techniques for the extraction of heavy bitumen from oil sands, oil shale deposits and shallow oil deposits. The proprietary technology produces no greenhouse emissions and zero waste while also requiring no high temperatures.
Currently, Petroteq is focusing its mining efforts on resource-rich areas of Utah. U.S. Department of Energy estimates suggest that the state’s recoverable oil resources comprise of over 30 billion barrels (http://nnw.fm/1Oj8C). As per engineer estimates, there are 139.5 million standard tank barrels of bitumen at Petroteq’s Asphalt Ridge site.
Through the acquisition of the additional operating rights announced on July 22, Petroteq is expected to increase its cash flow value. One of the leases, P.R. Spring, is believed to contain gross contingent resources of about 90 million barrels of mineable bitumen, with a net arithmetic average after risk estimate of 40.77 million barrels. According to Petroteq, the resource amounts to an after-risk cash flow value of $293.4 million on a 10 percent per year discounted basis and a cash flow value of $166.6 million on a 15 percent per year discounted basis.
For more information, visit the company’s website at www.Petroteq.energy
NOTE TO INVESTORS: The latest news and updates relating to PQEFF are available in the company’s newsroom at http://nnw.fm/PQEFF
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