- Petroteq Energy has been developing a proprietary clean surface oil extraction technology that it expects to revolutionize the fuel industry
- Petroteq recently announced that Texas-based energy engineering services company Valkor has contracted Petroteq’s technology for its extraction plants, paying Petroteq associated royalties
- Petroteq expects the licensing of its technology to become a significant part of its business model
Petroteq Energy Inc. (TSX.V: PQE) (OTC: PQEFF) is demonstrating the true potential value of the Clean Oil Recovery Technology (CORT) that it has developed for surface tar sands oil extraction in Utah’s rural eastern desert. The company announced July 2 that it has entered into a non-exclusive technology licensing agreement with eastern Texas energy services company Valkor LLC, marking the first in what Petroteq hopes will become a series of licensing agreements for its technology (http://nnw.fm/zw4JE).
Since last year, Petroteq has been putting its technology to work at the Utah site it leases, aptly named Asphalt Ridge because of the surface bituminous resource located there. The company has been using its CORT, which is a closed-loop system that extracts fuel oils from the ground and returns the sands “cleaned” to the earth.
Valkor’s agreement to license CORT grants Valkor the non-exclusive right to use Petroteq’s patented technology to engineer, construct, operate and finance oil sands extraction from mining operations to heavy crude at Valkor’s bases of operation.
Petroteq, in return, gains a non-refundable license fee of $2 million per extraction plant and a five percent royalty based on Valkor’s annual gross sales, excluding solvent and water, for so long as the technology is covered by a valid claim in the country in which it is used. Valkor also stipulates that it will invest (or secure investment of) at least $20 million for building a plant by December 2020 and will have in production a minimum of 1,000 barrels per day.
“The licensing model is an important component of the Petroteq business model allowing Petroteq to leverage its proprietary technologies and operating techniques to participate in value created through investment by other companies and strategic investors,” the company’s announcement states.
“In working with Petroteq for the past year at its Asphalt Ridge facility in Utah, it is clear that the Petroteq technology is unique and highly effective. It fits our long-term strategy extremely well,” Valkor CEO Steve Byle noted in the news release.
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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