- The buyer loaded an initial 200.52 barrels of heavy crude and paid WTI pricing of $70.91 per barrel of crude oil produced at the company’s Asphalt Ridge facility
- Samples of the Asphalt Ridge crude are being sent to Quadrise Fuels International Plc in the UK for assessment to determine if it is suitable for the British company’s proprietary technology
- Petroteq and Greenfield are working with a local drilling fluids company for the identification of customers for the clean sand produced for use as a potential frac sand
Petroteq Energy (TSX.V: PQE) (OTC: PQEFF), an oil company focused on developing and implementing its proprietary oil extraction and reclamation technologies, has announced that the oil it produced at its Asphalt Ridge facility (the POSP) at the beginning of June 2021 has been sold and handed over to its buyer (https://nnw.fm/V87U5).
According to a company press release, the buyer paid West Texas Intermediate (‘WTI”) pricing of $70.91 per barrel, resulting in a net realized price of $57.91 per barrel after removing transportation costs of $13 per barrel. Due to trucking weight limitations, the buyer was only able to load 200.52 barrels of the10.2° API heavy crude produced at Asphalt Ridge.
Commenting on the oil acquisition, George Stapleton, Petroteq COO, stated, “The fact that we were able to receive WTI pricing for the oil produced by the POSP demonstrates that the heavy, sweet (low sulfur) oil produced from Utah’s tar sands will likely command a premium price relative to other heavy oils. There also appears to be a market for our produced sand, which is a bonus.”
The clean sands produced by the POSP can potentially be used as frac sand. Petroteq and Greenfield Energy, a 50/50 joint venture between TomCo Energy plc (AIM: TOM) and Valkor LLC, are currently working with a local drilling fluids company to identify customers for these clean sands. To date, the fluids company has taken an initial 40 tons and is expected to take an additional 700 tonnes over the coming weeks. Proceeds from this sand sale are expected to total approximately $15-$20 per ton.
To further explore market opportunities for its produced oil, Petroteq is preparing a sample of its produced oil to ship to Quadrise Fuels International Plc in the UK. The purpose is to assess if the heavy, sweet oil produced by the POSP will be suitable for Quadrise’s MSAR(R) technology, a low viscosity oil-in-water emulsified synthetic heavy fuel oil obtained by mixing heavy residual oils with water and specific chemicals in a proprietary formulation. The sample is expected to leave the U.S. by the end of June 2021. Testing will be taking place following its arrival in the UK.
Petroteq is engaged in developing and implementing its patented, proprietary technology that allows for the environmentally safe extraction of heavy oils from oil sands, oil shale deposits, and shallow oil deposits while also expanding operations at the Asphalt Ridge facility. The source is nearer the surface and avoids the risk found in traditional drilling.
Unlike traditional fracking, Petroteq’s technology focuses on heavy oil, which is currently in high demand. Most refineries are required to take a mixture of heavy and light oils, allowing them to provide a wide range of products, but Petroteq is uniquely positioned to help satisfy the heavy-oil gap. Petroteq’s green technology uses a small, modular footprint, which produces no greenhouse gases, does not require high temperatures, leaves only clean dry sand, and could be used to help unlock heavy oil deposits worldwide.
Despite setbacks from the COVID-19 pandemic, the global oil demand is expected to rise to 104 million barrels per day (mb/d) by 2026, increasing 4% over 2019 totals (https://nnw.fm/GI4Z6). To meet the oil growth demand, the supply will need to rise by 10 mb/d by the IEA’s projected date.
For more information, visit the company’s website at www.Petroteq.com.
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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