- Petroteq Energy has built a commercial facility in Utah’s deserts for proprietary technology that it believes will revolutionize the fuel industry with cost- and time-saving processes
- Petroteq’s flagship technology promises to make the most of domestic fuel sources at a time when foreign sources of heavy oils are facing trade uncertainties
- Petroteq recently completed a new funding round and is in the process of acquiring the operating rights and interests for additional oil resources on government land
During an era when geopolitical influences, automotive advances and market fluctuations have kept petroleum revenues well below historic record levels, pioneering technology developer Petroteq Energy Inc. (TSX.V: PQE) (OTC: PQEFF) is helping to revolutionize the oil and gas industry through the development of a cost-saving, environmentally friendly production platform.
Petroteq Energy’s flagship closed-loop surface oil extraction technology continues to attract industry attention in the surface oil sands resources of eastern Utah, where the company has been engaged in realizing its commercial facility by turning a bituminous surface minable tar sands resource into the commercial output of heavy oil while leaving behind a clean footprint.
On May 22, Petroteq announced the close of its most recent round of financing — a private placement for aggregate gross proceeds of $985,950, as well as two share-for-debt transactions (http://nnw.fm/0yqJJ). The company has been in the process of ramping up continuous production at its Asphalt Ridge lease in Utah since late last year, selling oil to regional markets and expanding its facilities to help it reach its goal of delivering 5,000 to 8,000 barrels per day (bpd) of oil by 2022 as evidence of the technology’s effectiveness.
U.S. Department of Energy estimates put Utah’s undeveloped (but recoverable) oil resources at over 30 billion barrels (http://nnw.fm/1Oj8C). Engineers estimate that there are 139.5 million standard tank barrels (“STB”) of bitumen in place on Petroteq’s site, and the company recently announced the proposed acquisition of the operating rights and interests for oil sands under federal oil and gas leases in Utah encompassing some 8,480 gross acres in two areas that have been designated as “Special Tar Sands Areas” by the U.S. Bureau of Land Management (http://nnw.fm/y7Eq8).
The “Evaluation of Contingent Resources” prepared by Chapman Petroleum Engineering Ltd., dated December 31, 2018, estimates that one of the leases, P.R. Spring, when combined with the prior acquisition of rights and interests under the lease, contains gross contingent resources of approximately 90 million barrels of mineable bitumen in place, with a net “arithmetic average after risk” estimate of 40.77 million barrels of mineable bitumen in place.
The company estimates that 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.
The resource rights in the other area, the Tar Sands Triangle leases, are estimated at a gross contingent of 41.3 million barrels of bitumen in place, with a net “arithmetic average after risk” estimate of 20.7 million barrels of bitumen in place. No economic evaluation of those resources has been conducted.
Just as fracking revolutionized oil industry production by creating a feasible means of extracting fuels from domestic sources and reducing North America’s dependence on foreign sources, Petroteq expects its proprietary technology to innovate by using its recyclable solvent extraction process to exalt domestic sources of heavy fuels at a time of supply uncertainty from foreign producers, and to do it in a way that leaves the desert sands “cleaner” than they were initially.
The environmentally friendly process is suitable for all surface minable oil sands hydrocarbon deposits, and it may also be applied for remedial projects, according to the company.
“There’s no emissions, nothing to the air and nothing to the soil,” Petroteq President R. Gerald Bailey said in an Uptick Newswire interview last year (http://nnw.fm/qY6GR). “So, you could put plants on it and grow it after we get finished. So, there’s no environmental issues in this stuff and it’s very amenable to easy expansion.”
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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