- Oil extraction to begin at 1,000 barrels per day, with plans to escalate to over 8,000 barrels per day within three years
- Acquisition brings company’s total contingent resources to 2,541 leased acres and 87.49 million barrels of mineable oil sands
- Extraction technology could play vital role in U.S. oil sands and shale industry
- Application for Tax Credit Initiative filed with Utah Governor’s Office of Energy Development
Fully integrated oil and gas company Petroteq Energy Inc. (TSX.V: PQE) (OTC: PQEFF) is boosting its footprint within the Utah Oil Sands Region where the company’s Asphalt Ridge facility is located, CEO David Sealock stated in a recent news release (http://nnw.fm/0oRbZ). The company has signed a letter of intent to pursue additional acreage and resources within the state from Mareton Alliance LP, meeting a key initiative that Petroteq has been pursuing this year.
“I know that our valuation will be driven by our production and technology, as well as our assets in the ground,” Sealock stated in the update. “The discussions with Mareton Alliance have the potential to significantly increase the resource assets on our balance sheet.”
Petroteq has been developing its United States- and Canada-patented technology at the Asphalt Ridge site with the aim of finalizing a process that boosts North American oil production through the distillation of oil-rich sands. The emphasis on environmental impact has created a process that is cost effective, produces no greenhouse gases and leaves no waste once the “cleaned up” sands are returned to the ground and the proprietary solvent solution involved in the extraction is recycled. Petroteq announced in June that it was on track to initiate operations in the second quarter of 2018, and the full financial benefit of 1,000 bbl/d production is on track to be realized in the second half of 2018, a NetworkNewsWire article states (http://nnw.fm/tN3Ai).
While the pricing and structure of the transaction with Mareton Alliance have yet to be finalized, Petroteq management is confident that an attractive transaction can be structured to meet all of the criteria set by the company’s management and board of directors. The letter of intent is non-binding, and the transaction contemplated is subject to board and exchange approval.
Petroteq has also filed an application with the Utah Governor’s Office for the Alternative Energy Development Initiative, part of Utah’s Energy Action Plan. The incentive represents a 75 percent tax reduction on new revenues, including corporate, sales and withholding taxes for 20 years or the life of the project, whichever is less (http://nnw.fm/jHW3P).
“We have known Utah to be extremely collaborative and committed to its ‘energy action plan’ and this is just more positive evidence in support of that,” Sealock stated in a news release. “We have spent millions on developing our project, and we will look for opportunities to strategically achieve targeted projects for our technology to spend many millions more in business development, rural job creation and workforce development in the energy mining sector as we expand our footprint in what we believe will become the fastest growing energy market in the U.S.”
Petroteq’s focus on the development and implementation of proprietary technologies for the energy industry was recently featured on the front page of the local newspaper, the Vernal Express. The article, titled “Petroteq Looks to Change the Game in Oil Extraction,” centered on Petroteq’s Asphalt Ridge heavy oil extraction facility located near the town of Vernal and its progress toward an August production date.
“We are grateful to be making a positive impact in Vernal and the surrounding communities by bringing jobs and utilizing small local businesses as vendors in the process of our plants commissioning,” Sealock added (http://nnw.fm/WAkE8).
Chairman Alex Blyumkin stated, “The fact that some of our contractors are veterans of the United States Armed Forces goes to further expand on our company slogan ‘American Oil for America’ while providing opportunities to those willing to make the ultimate sacrifice in protecting the freedom and opportunities enjoyed by individuals and entities in the United States.”
Petroteq’s commitment to creating a positive, nature-friendly environment from which all will benefit is a core company value.
For more information, visit the company’s website at www.Petroteq.energy
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