- Petroteq Energy is leasing property at a bituminous asphalt resource in Utah’s eastern desert to develop its first-in-kind oil extraction technology for commercial use
- The company began delivering oil to its regional market in November after months of buildup and is in the process of increasing the amount of quality crude it produces to 1,000 bpd
- Petroteq recently reported consistent production of over 500 bpd
- The company has also shown its flexibility in responding to refineries’ demand for differing gravities of crude
Oil and gas industry technology developer Petroteq Energy Inc. (TSX.V: PQE) (OTCQX: PQEFF) announced significant milestones as it closed out the year’s first quarter, reporting continuous production at a rate of over 500 barrels per day (bpd) and the sale of two loads of barrels of heavier-than-usual crude at an API gravity of 17 from its eastern Utah facility.
The company’s March 28 announcement about the production rate (http://nnw.fm/q4pXF) noted that the continuous 500 bpd production benchmark demonstrates the commercial viability of its first-in-kind technology, which is patented in the United States and Canada to extract oil from tar sands in a closed-loop, environmentally friendly manner and will help the company generate confidence when it seeks licensing opportunities in coming years.
The technology uses a process of mixing oil sands with a solvent solution and then transporting the mixture to a mill. At the mill, the ore mixture is crushed to make the oil disperse better in the solvent. The batch then undergoes a separation process before the fluid is pumped out to where the mixture’s solids can be removed. The remaining fluid is then pumped out and distilled through a heat process that separates the solvent from the oil. The oil is then stored in tanks, while the evaporated solvent is reclaimed for use once again in the mixture bin.
Petroteq has produced 10,000 barrels from its Asphalt Ridge pilot facility using the technology and is storing unsold crude in tanks at the Utah site. The company began selling its oil to regional markets in November.
Utah contains about 55 percent of the total oil sands deposits in America. The U.S. Department of Energy estimates that there are more than a trillion barrels of oil in the desert sand and shale formations in the state, as well as in neighboring Colorado and Wyoming (http://nnw.fm/dk5Qn). Petroteq believes that its lease contains 87 million barrels that it can extract over the next 20 to 30 years.
Analysts at Global Market Insights estimated the worldwide market for the asphalt bitumen that comprises the desert oil sands’ fuel resource to be $84.3 billion in 2017, with growth potential of over 3.7 percent through 2025 (http://nnw.fm/ioJC3). The vast majority of this resource (over 80 percent) is expected to be used in building and maintaining roads, with another significant amount used in waterproofing applications such as roofing materials, and the market is expected to record a CAGR of 4 percent between 2018 and 2025.
The Asphalt Ridge facility underwent recent expansion designed to allow it to produce up to 1,000 bpd, which Petroteq expects to achieve within eight weeks. CEO David Sealock said that the company expects to move the facility into Phase 2 of its production life cycle later this year, which would include building toward 4,000 bpd (http://nnw.fm/Hyx5u).
The announcement that the company had sold two loads of 250 barrels of API 17-degree oils noted a departure from the 35-degree barrels that it had sold previously and an ability to respond to demand for heavier oils from U.S. refineries.
“Through recent refinements at our Asphalt Ridge facility, we are now able to produce a heavier crude oil (API gravity 17) having a relatively low sulfur content and a low sediment factor (i.e. below .005% BS&W),” Sealock stated in a news release (http://nnw.fm/0bMuS). “This in my view showcases our technology’s flexibility to meet changes in market demand in a way that maximizes our bottom line. We are looking forward to a year of stable and growing production from our Asphalt Ridge facility.”
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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