Member Info for dustofnations

I believe Valkor may now be the largest single shareholder in Petroteq? Essentially 20% of the company is now Valkor's.

https://www.linkedin.com/posts/quadrise-international-ltd_sustainablebusiness-activity-6699630478565101568-UJr1

Many of you have probably seen this video before, but if not, worth a watch.

The losses on shares you are talking about pertain to Capital Gains Tax (CGT). You can register CGT losses to offset against future CGT gains, but you cannot use registered CGT losses to reduce your Income Tax/NI burden (taxes on salary). Note that losses inside of your ISA do not qualify for relief.

I suggest you refer to the HMRC website. https://www.gov.uk/capital-gains-tax/losses

One of the more interesting segments of the talk is when Tim mentions his hopes for Feraccru to become a standard treatment for patients with untreated anaemia because they cannot tolerate existing oral iron therapies (i.e. anaemia, but not severe enough to use IV iron).

I'm not sure whether that would require an expansion of the existing licensing (probably?), and/or additional trials. There are some expansion of indication procedures that might provide a shortcut for that with regulators.

From a patient welfare/quality of life perspective, this seems like an obvious win, as the existing treatments are notorious for causing severe GI problems; there are a large number of people with chronic iron deficiency (especially women). I guess pricing is going to be an issue, as it needs to be affordable if it is going to be used with a very large number of patients vs status quo. But, this could be a great long-term market for STX to move into.

Some detail on Ecuadorean government's initiative to privatise/concession the Esmeraldas refinery. Use Chrome and the Google Translate feature to translate the entire document; the translation is good enough to fully understand it. Thanks to ForFoxSake on The QFI Shareholders' Forums for posting it.

https://www.primicias.ec/noticias/economia/ecuador-decidido-concesionar-sus-refinerias-vender-termogas-machala/

Oh dear, trying again with the link: https://bit.ly/2XRzA8l

Interesting podcast with Tim Watts covering recent announcements. Skip to 13:25 to hear Tim.

The audio quality is not the best at certain times (I think Tim needs to upgrade his mic and ensure his WiFi and/or Internet connection are working better!).

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Indeed, indirect options may be possible, but QFI need to make sure it's (A) safe enough for their staff where they're going, and (B) still meets insurance & visa requirements, etc.

A quarantine period of a couple of weeks on return would be a perfectly acceptable price to pay, IMO.

AIUI, they are looking to finish the *upgrades* in the next 2 months and start the trials/test process. Then presumably continue to operate it commercially until they transition to the 10k bopd project, but that is just speculation on my part.

2 July:

""
The Company believes that it will take approximately three months to complete the upgrade works to the POSP, with the test programme expected to then take approximately a further 4-6 weeks
""

And yes, we've speculated what the alternatives could be, but nobody at the company has confirmed any of these options. And every question so far as indicated they want someone on the ground over there... So, let's see what comes out of the trials agreement.

Just crossposting some of my Asphalt ridge thoughts...

Greenfield have quite an ambitious timeline, wanting to get their trials running in the next 2 months or so...

Some inventive thinking may be necessary to ensure that the Quadrise team can get out there to install and commission any equipment (recent Q&A indicated they would need their team to do that rather than Valkor), as no regular [direct] travel between UK and US is really possible at the moment.

For transparency, I'm a QFI holder, but the more I dig into the data, the more I think that Quadrise MSAR is key to the success of the Greenfield/Asphalt Ridge project.

This should be mutually beneficial for all parties, as Quadrise obviously want to get a foothold into the USA, and get as much of their MSAR product into real-world use as fast as possible -- and Greenfield's commercial trials project seems a really good way of achieving that.

Potentially the entire commercial trials could be up and running and verified within CY2020; we could have an idea about the viability of the 10bopd project.

I suspect that part of that commercial assessment process Greenfield refer to will be getting new Quadrise MSAR customers/consumers signed up, as that's where the margin is. The difference in margin is absolutely enormous (going by 2015 figures, near 30 USD a barrel if they can avoid leaving solvent in the finished product), so they can easily offer a dramatic price discount to clients, as well as "free" EPC services to convert clients over to MSAR.

There is also plenty of industry (for example, cement), and they have mentioned on a large number of occasions the marine potential, so I imagine there's at least a plan there for which consumers to tap up.

Of course, this is just my analysis and best guess; please don't take it as advice or anything else.

Yes, honestly slightly surprised there hasn't been an announcement yet for a formalised Quadrise MSAR trials agreement (vs current MOU/good faith status).

Hopefully that will be forthcoming soon, as Greenfield have quite an ambitious timeline, wanting to get their trials running in the next 2 months or so...

Some inventive thinking may be necessary to ensure that the Quadrise team can get out there to install and commission any equipment (recent Q&A indicated they would need their team to do that rather than Valkor), as no regular [direct] travel between UK and US is really possible at the moment.

For transparency, I'm a QFI holder, but the more I dig into the data, the more I think that Quadrise MSAR is key to the success of this project.

This should be mutually beneficial for all parties, as Quadrise obviously want to get a foothold into the USA, and get as much of their MSAR product into real-world use as fast as possible -- and Greenfield's commercial trials project seems a really good way of achieving that.

Potentially the entire commercial trials could be up and running and verified within CY2020; we could have an idea about the viability of the 10bopd project.

I suspect that part of that commercial assessment process Greenfield refer to will be getting new Quadrise MSAR customers/consumers signed up, as that's where the margin is. The difference in margin is absolutely enormous (going by 2015 figures, near 30 USD a barrel if they can avoid leaving solvent in the finished product), so they can easily offer a dramatic price discount to clients, as well as "free" EPC services to convert clients over to MSAR.

There is also plenty of industry (for example, cement), and they have mentioned on a large number of occasions the marine potential, so I imagine there's at least a plan there for which consumers to tap up.

Of course, this is just my analysis and best guess; please don't take it as advice or anything else.

Orslega, I think you are correct. As stated in the RNSes, it would require a much larger new facility to reach 10kbpod (it is still in the process of being designed).

I believe this is why independent engineering verification is emphasised so much for the current upgrade + pilot plans. Greenfield need to provide high quality, independent reassurance to any parties that might be willing to fund the larger facility (e.g. banks, investment houses, funds, etc).

As you point out, it will require serious money well in excess of what they currently have in order to execute 1 or more large facilities. But, that will be a nice problem for Greenfield to have if they crack the pilot trial and it's profitable.

Conversely, it would be rather good for QFI to get an anchor client in the US market in 2020, and there's no point in strangling your customers or souring the relationships.

Everyone should have a chunk of the success and it should be win-win.

I don't understand what you are saying. Are there some typos or something in your third sentence?

Hi, all. A quick follow-up: I posted the condensate cost pics mentioned previously -- on Quorum Twitter acct https://twitter.com/quorumzine/status/1287717937319641088

As mentioned in previous post, this is 2015 Petroteq data, so it may have changed somewhat but I think it's indicative.

First picture shows condensate costs per barrel
Second picture shows average sale per barrel

As you can see, they were mightily close to a loss, and it does not account for energy costs and other inputs (e.g. employees wages). If you look at the API numbers (viscosity), you can see this is much higher than the natural 10 API of the crude; this upgrade is achieved by leaving the solvent in the finished product.

Hence, the Quadrise MSAR appears to be key to the process, and should be able to knock out most of that condensate cost out entirely if they can secure some MSAR customers (wonder if they have some ideas for this already?).

Quick follow-up: I posted the condensate cost pics mentioned previously -- on Quorum Twitter acct https://twitter.com/quorumzine/status/1287717937319641088

As mentioned in previous post, this is 2015 Petroteq data, so it may have changed somewhat but I think it's indicative.

First picture shows condensate costs per barrel
Second picture shows average sale per barrel

As you can see, they were mightily close to a loss, and it does not account for energy costs and other inputs (e.g. employees wages). If you look at the API numbers (viscosity), you can see this is much higher than the natural 10 API of the crude; this upgrade is achieved by leaving the solvent in the finished product.

Hence, the Quadrise MSAR appears to be key to the process, and should be able to knock out most of that condensate cost out entirely if they can secure some MSAR customers (wonder if they have some ideas for this already?).

It seems to be referring to bitumen emulsions and PMB for the road-surfacing industry, rather than emulsion fuels. These are enhanced types of road surfacings that hold together better, better wear properties, better elasticity, resistance to cracking, etc.

But, bitumen is a good feedstock for MSAR, certainly.

I have no knowledge to suggest we have any involvement.

A little follow-up.

Discovered some interesting info from further digging into PQE's filings in 2015.

It states that the natural API of the product is approximate 10. So, I was pretty close with my research from other documents about Asphalt Ridge. That's very heavy indeed (bitumen), and requires a lot of work to lift it to a saleable specification.

Some of the tables show that in 2015 low-price environment, they were often spending almost as much on the solvent/condensate per barrel than they were making on sales. They were making a very slim profit margin, at best. Probably breakeven or a loss, depending on other non-solvent costs such a heat and electricity.

I'll try to do a proper writeup later, as I can't attach images here. But it's pretty clear why Greenfield JV want Quadrise MSAR to make this go from marginal to highly profitable, as they would be able to eliminate the vast majority of that solvent cost. With MSAR, the viscosity is controlled with water, and Greenfield can recover as much of the solvent as possible for reuse instead (i.e. not leaving it in the barrel).

For example, in August 2015, the average condensate cost per barrel produced was $28.38, whilst they sold the average barrel in the same month for $30.39 (at an API of 43.75).

With MSAR they would just produce API 10 bitumen, and emulsify it directly into a finished fuel. Chop out most of that condensate cost.

Discovered some interesting info from further digging into the PQE documentation.

The natural API of the product is approximate 10. So, I was pretty close with my research from other documents about Asphalt Ridge. That's very heavy indeed (bitumen).

And in 2015 low-price environment, they were sometimes spending more on the solvent/condensate per barrel than they were making on sales. They were making a very slim profit margin, at best.

I'll try to do a proper writeup later, as I can't attach images here. But it's pretty clear why they need Quadrise MSAR to make this go from marginal to highly profitable.

Indeed, elir71. And, by carriage capacity, something like 25% of the containership market is now scrubbed https://shipandbunker.com/news/world/675365-scrubber-installations-down-from-march-peak

So there's plenty of market for the likes of QFI to access, if they can convince them to execute on those LONO trials.