Stable continuous production achieved after start up of Petroteq oil sands plant in Vernal Utah Asphalt Ridge!
• Production and sale of 1,000 barrels of oil, achieved in one work week of continuous operations at the Plant. • A production rate of 200 barrels of oil per day utilizing an eight-hour work shift each day. • A higher quality of oil on a consistent basis that meets the specifications of refiners and other buyers.
David Sealock, CEO, “The Company has been working with Valkor Engineering, a U.S. engineering firm in charge of the project, together with Alfa Laval, a leading global provider of engineering solutions, separation and fluid handling, and a centrifuge manufacturer, in improving existing processes and installing additional equipment to achieve higher production rates and to provide increase efficiencies at our Utah facility. We believe that all production issues have been resolved and the plant is now achieving continuous and stable production rates.”
Petroteq Announces Completion of Automation, Strategic Account Payment Structure With Valkor Oil and Gas and Appoints New Advisory Board Member
“Petroteq Energy Inc, an oil sands mining and production company having a proprietary technology that extracts hydrocarbons from oil sands without the use of water, is pleased to announce the completion of facility automation, a strategic account payment structure with Valkor Oil and Gas (“Valkor”) and the addition of Dr. Mark Rollins to its advisory board.
The Company has completed the automation of the front end processes for sand separation, oil quality control and centrifugal agitation. The Company believes that with the engineering and technical assistance from Valkor and Alfa Laval, its production of crude oil and potential reduction in operating, maintenance and labor costs will now be achieved. This marks a very important milestone in becoming an oil company focused on the development and implementation of a proprietary, environmentally clean technology for heavy oil extraction“
Break even at $30-32 a barrels break even at 300bblsa day production!
PQE : TSX
PQEFF : OTC
Petroteq Reaches New Production Milestone of 300 bbls/day and is Now Operating on a Break Even Basis at Its Asphalt Ridge Plant
Must be one of the only Project in North America to break even at these oil prices after Russia and Saudi Arabia price war, plus the staff at the site is already trained ready from Double shift operations where the output from the plant at Asphalt Rigde will most likely double to over 600 barrels a day which would be turning a good profit, unheard of really in this price environment!
• The technology at the Plant is flexible enough that it can produce a wide range of different characteristics of oils, which enables the Company to cater to the specific needs of its customers.
• Due to the high quality of oil produced at the Plant, the Company’s sweet heavy oil is being sold at West Texas intermediate (WTI), less the cost of transportation with no further deductions.
• Based on the Company’s current production rate of 300 bbls/day and production costs of approximately $30- $32 per barrel (inclusive of the costs of all plant expenses), the Plant is currently operating on a break even basis.?
• The Company has received a payment of $96,500 from the State of Utah County Roads Department for delivery of heavy unrefined oil to be used in their road paving operations. In addition, the Plant has received an additional purchase order for ?a further $250,000 of the same product from the same state agency.
• Additional staff training has been completed at the Plant in anticipation of implementing dual shift operations as a result of anticipated increased ?production resulting from various engineering improvements at the Plant.
• With the International Maritime Organization’s new low sulfur fuel regulations (IMO 2020) becoming effective on January 1, 2020, the Company is focusing on producing a high ?quality sweet heavy crude oil consistent with refiner and customer demand. Petroteq Heavy Sweet Oil has an American Petroleum Institute (API) gravity in the range of 14 to 20 and a sulfur ?content of less than 0.5%?.
• The Company believes that the low sulfur content of Petroteq’s Heavy Sweet Oil, provides it the potential to reduce refining costs and is an attractive blend component for refiners, which generates a more valuable product for the Company, increasing our ?net margins and netbacks on a per barrel basis.