Member Info for dustofnations

Greenfield aren't going to sign up for a full commercial agreement until the commercial trials have been completed successfully. They also likely need to finish marketing studies, receive independent engineering sign-off, work with some potential customers, and have indications on some kind of financing arrangement to move onto the next stage (10k sign-off).

They'd be absolutely insane to do anything else. There is no point in going to great expense of entering a commercial negotiation involving lawyers, accountants, and a tonne of other commitments that likely include ordering large volumes of chemicals, purchasing an MMU, engineering services, etc.

But, as pointed out by others, it would not be surprising if they had a heads of agreement already so that they can negotiate and execute a commercial agreement in short order.

As long as they don't pay us in Amazon vouchers or Prime subscriptions.

Because below the good news was hidden another significant debt to equity conversion.

re: Green MSAR. AIUI, it's orthogonal to sulphur, could be either HS or LS feedstock; some amount of the resid is substituted with a biofuel of some variety. That's what I understood, anyway.

So you could have 50% resid, 20% biofuel, 30% water (or whatever).

Guess we'll find out more specifics once they launch the product.

The results states that the POSP samples will arrive in November after initial startup (post Greenfield upgrades). I think you are correct that QFI probably have had initial samples from before the upgrade, but I don't know that.

I know the team are supremely confident that they can emulsify the POSP bitumen into MSAR; it's dramatically less viscous than the other residues they've developed formulas for (by multiple orders of magnitude, in fact).

Samir refinery has closed down, unfortunately.

Indeed, Sammagmil. IMO, the biggest near-term news is hopefully that the Morocco pilot will finally being completed in October. Not much of October left, so let's see what happens over the next 8-9 days.

From PQE twitter.
https://twitter.com/PetroteqEnergy/status/1319651024387362816

"""
Petroteq Energy $PQEFF is happy to announce that we are moving forward with our announced plan to restart production by the end of November and all critical parts and equipment were delivered on site! More updates on the way!
"""

Update on POSP upgrade -- all parts delivered on site, still on target for November initial restart/production https://twitter.com/PetroteqEnergy/status/1319651024387362816

I think one of the key things CF was getting at is that challenge study facilities are extremely expensive and potentially financially ruinous if you are caught out.

Furthermore, they are also useless without the requisite expertise, operating procedures, CHIMs, attenuated viruses, etc.

So, hVIVO can provide high-value and high-margin challenge study services to the entities owning these facilities. It is a win-win for everyone: ORPH don't need to take on the huge risk of owning these facilities, whilst the owners actually get some use out of their assets, plus the obvious global benefit of additional challenge studies occurring at a time when capacity is constrained.

There's a moat based upon the decades of experience that competitors cannot overcome without many years of investment. If what CF says is correct, then they are really the only ones who are capable of providing this service at scale.

I believe Santander are also currently still operating services for EU customers, but have not made any final decision yet.

Yes, it's extremely annoying, but the fundamentals are objectively better than before the announcement that seemed to cause this series of SP drops.

Indigo, your assumption is correct, unfortunately. As no deal has been reached by UKG with EU, many UK banks are shedding their EU customers.

I think DeGiro operate in Spain and are reasonably low-cost. Freetrade may launch in future, but don't think it's available yet.

No idea what the tax situation is.

To be clear, this is going to be for Phase 2 of the Morocco trial, and it's only 20 tonnes so fits into an ISO tank (which fits inside an intermodal container -- i.e. it can go on a containership; rather convenient).

""
Since that time, regular project and steering group meetings have taken place and we now plan to complete the trial in October 2020. This will, of course, be subject to the site remaining accessible for our team and safe procedures being provided by the client. Assuming the trial proceeds on this basis, the overall timetable will not have been extended significantly. Furthermore, the most recent discussions with the client have highlighted the potential to move straight to trials on their commercial kilns using around 20 tonnes of MSAR® fuel that can be produced at QRF, pumped into an ISO tank and shipped to the client site, together with the new pumping and heating unit and new bespoke burner tips. Other application trials on kilns, calciners and utility boilers are being discussed that could then follow.
""

To be fair, TomCo could co-promote this if they wanted to on social media, but they don't seem to bother.

It's essentially a joint effort between Valkor, TomCo, and Petroteq after all.

Petroteq's contributions are coming, in part, as certain costs are being eaten out of their normal upfront licensing fee

So this works in everyone's interests. AIUI: POSP is still Petroteq's, but it's being operated by Greenfield; Greenfield get the benefit of ironing out any kinks for their 10k plant; Greenfield are providing the up-front capital, but Petroteq are still paying for it in a deferred manner eventually.

"""
Greenfield is ?funding the current upgrades to Petroteq’s existing oil sands plant. Upon successful completion of the ?testing of the upgraded plant and FEED study, it is Greenfield’s intention to offset upgrade ?costs against the US$2,000,000 fee that will become payable by Valkor to Petroteq pursuant to the License Agreement as described above. Once costs, if any, in ?excess of the license fee, have been recovered from production, Greenfield will continue to ?operate the plant in favor of Petroteq under the existing Work Order.?
"""

See: https://financialpost.com/pmn/press-releases-pmn/globe-newswire-releases/petroteq-provides-shareholder-update-and-announces-additional-debt-conversion

I suspect he will use it as an opportunity to straighten out the claim that the contract is only £10M (versus real value of up to £40M). Seeing lots of misreporting/misinterpretation of that RNS floating around.

Yes, indeed. Although, I think there will be some logistical delays between signing off P2 - which can hopefully happen very quickly - and P2 actually occurring (20t MSAR will be manufactured at QRF and sent in ISO tanker).

I really hope sign-off happens ASAP, as the success of P2 and information about transition to commerciality will be critical.

For example, commercial contracts with Morocco would allow us to sign up a refiner or bitumen terminal, which will in turn make operating other trials much easier.

Fingers crossed it keeps progressing...

We should hopefully hear something from QFI in the next week or two on the Morocco pilot, and then what's happening with P2 in terms of schedule and how long that will take. Some key events for the short term.

Similarly, I added at higher prices. The reaction to a £40M contract seems rather irrational, but that's the short-term market for ya. The fundamentals and pipeline look wonderful, so I see no rational reason for it; the SP did not appear to be unreasonable given what's already known, and what's upcoming.

Like you, I'm confident for the mid-to-long term. Heck, just as likely to see it turn around in the short term with how crazy AIM has been lately.

Likely news-flow include potentially massive wearables deal, Imutex spinoff/sale, further covid and non-covid challenge study signups, additional challenge study facilities coming online, further deals for testing/validation, etc.

We've seen this pattern a few times recently, where good news has been greeted with a short period of negative price movement, followed by people finally digesting/understanding what the value of the announcements are in the following days (and consequent upwards movement).

Not that anyone bank on trying to predict the future when it comes to short-term SP movements, especially on AIM...