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Yes, that's my understanding (perhaps not clearly communicated enough in the article!).

More solvent recovery results in much higher crude viscosity; so it's not very valuable to sell and is difficult to handle. But it's lowest cost to produce, because solvent is expensive.

The Quadrise MSAR process can turn that low-value, high-viscosity crude directly into a low-viscosity, high-value fuel. No refining required; no diluent/solent required.

The Petroteq solvent is reusable.

Mike covers this on the Proactive one2one here: https://youtu.be/_zBFX-CoyIM?t=935

Look in the "For Consumers" section, with reference to size in the very left-hand column (10k bopd)

No. As I understand it from reading their documents, they achieve the API numbers you mention by leaving notable amounts of the solvent in the finished crude. Even then, 15-17 API is around the bitumen and heavy oil ranges.

Thanks for the kind comments Greatcrestednewt, it's truly appreciated. According to the filing linked in the article, it appears 99% solvent recovery is the approximate maximum. That's pretty darn good!

More heat is required to recover more solvent though, so I guess that's also where MSAR comes in as a cheaper and more environmentally compliant heat source.

Fyoz -- MK mentioned "modern 2-stroke diesels" I believe in the proactive one2one. So guess they are targeting fairly new vessels. Which makes sense as if you get a LONO on an old engine that doesn't necessarily translate to the new vessels you'd actually want to run it on long-term.

I really hope we can find out the strategy soon! If you check out pricing on ship&bunker you'll see it's been slowly and steadily climbing back up.

Colin: I think it depends on a bunch of factors. I know that's not as helpful an answer as I'd like to give.

For example, is the engine manufacturer is willing to accept MSAR based upon the tests on similar/same engines we've performed before (e.g. on the wide range of 4 stroke engines); level of perceived risk the operator is willing to take (e.g. at-risk testing); level of perceived risk their insurer is willing to insure; full vs partial LONO requirements/hours requirements; etc.

I would guess if it's a large 2 stroke marine engine that's not the same as the one we tested on before, there's a higher chance of another LONO requirement. That's exactly what JM mentioned the conversations with the two leading marine operators being about (new LONO trials).

As always, we continue to wait.

A point on this follow the molecule thing... The reason Tomco and Valkor are so interested in bolting on the Quadrise MSAR process is that the kerogen/crude produced by the Petroteq process at Asphalt Ridge is highly viscous (bitumen, probably API 8-14).

In order to control viscosity, and make a saleable crude, Petroteq leave certain of the solvents used during the extraction process in the finished crude in order to lift it to WTI viscosity spec. These solvents are *extremely* expensive and constitute a large proportion of per barrel cost.

Quadrise MSAR controls viscosity via water, allowing Petroteq to instead perform the highest possible solvent recovery and recycling. This would drastically reduce the per-barrel cost of Petroteq crude, whilst providing a finished fuel that requires no refining in order to be used by industrial users, marine, etc.

I analysed it a bit here in more detail (apols for re-posting this opinion link, but it's salient) https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html#opinion_how_quadrise_msar_could_help_greenfield_unlock_asphalt_ridge

A point on this. The reason Tomco and Valkor are so interested in bolting on the Quadrise MSAR process is that the kerogen/crude produced by the Petroteq process at Asphalt Ridge is highly viscous (bitumen, probably API 8-14).

In order to control viscosity, and make a saleable crude, Petroteq leave certain of the solvents used during the extraction process in the finished crude in order to lift it to WTI viscosity spec. These solvents are *extremely* expensive and constitute a large proportion of per barrel cost.

Quadrise MSAR controls viscosity via water, allowing Petroteq to instead perform the highest possible solvent recovery and recycling. This would drastically reduce the per barrel cost of Petroteq crude, whilst providing a finished fuel that requires no refining in order to be used by industrial users, marine, etc.

I analysed it a bit here in more detail (apols for re-posting this opinion link, but it's salient) https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html#opinion_how_quadrise_msar_could_help_greenfield_unlock_asphalt_ridge

Yes, Petroteq, but we don't really know whether that's substantiated or specifically MSAR-related. All a bit cloak-and-dagger at the moment...

Good to see you all around.

I think it's a cold truth that many are stuck in double-digit averages, so we need a considerable appreciation in the SP to repay the patience of those long-term holders. Especially those who have contributed to open offers at multiples of today's share price.

As you mention, there seem to be a bunch of attractive prospects at the moment... But, that's nearly always been the case! Getting things over the line in a timely manner has always been the Achilles heel of the company.

With Utah and Morocco there finally appear to be some prospects that can execute in the short term, however the COVID-19 situation has complicated matters quite dramatically.

I think we really need to see pen hitting paper in the near future, even if it's just more trials contracts, LONO trials agreements, MOU/MOA to progress to trials, etc.

I've been checking out Investor Meet Company that Quadrise registered on recently, https://www.investormeetcompany.com/ and watching some other presentations.

It seems a much better match.

Presenters get however long they want, with a full Q&A session afterwards. No shared time-slots, and no super-short Q&A, no annoying software to download.

You can prod Quadrise to provide a slot, by:

1) registering at https://investormeetcompany.com/quadrise-fuels-international-plc/register-investor
2) click on "my companies" and add Quadrise
3) click on the drop-down button on Quadrise, and click "Drive Demand, Request DDM Now"

I feel this format would be far more effective in getting to our questions in the detail and nuance that we deserve.

Also, here are the slides for yesterday's presentation: https://media.moneyam.com/a/2020/07/1-Quadrise-Fuels-International-Mike-Kirk-Jason-Miles-v3.pdf

Quorum Short Stuff Opinion & Analysis: How Quadrise and Greenfield (Tomco, Valkor) could unlock Petroteq's Asphalt Ridge using MSAR fuel

Hi, PQE holders.

Something for you from the QFI/Quadrise shareholder perspective, for your perusal. I hope you find it useful; please share if you find it interesting. As always, feedback is appreciated. I think it demonstrates why MSAR + PQE could be a compelling combination.

This was written before PQE's announcement today about Valkor's strategic investment in the company.

https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html

Quorum Short Stuff Opinion & Analysis: How Quadrise and Greenfield (Tomco, Valkor) could unlock Petroteq's Asphalt Ridge using MSAR fuel

Hi, all. Something for you from the QFI/Quadrise shareholder perspective, for your perusal. I hope you find it useful; please share if you find it interesting. As always, feedback is appreciated.

This was written before PQE's announcement today about Valkor's strategic investment in the company. But, I think my analysis matches their statements.

Please let me know your thoughts and opinions, and share with anyone who may find it interesting.

https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html

Quorum Short Stuff Opinion & Analysis: How Quadrise and Greenfield (Tomco, Valkor) could unlock Petroteq’s Asphalt Ridge using MSAR fuel

This was written before PQE's announcement today about Valkor's strategic investment in the company.

Please let me know your thoughts and opinions, and share with anyone who may find it interesting.

https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html

It's going to be a joint venture with Valkor.
I imagine if they succeed with the trial, provide a solid independent economic and engineering report for their project, they'll be able to raise the money in a variety of ways that may not just be equity (bonds, banks, investment houses, etc).

It's basically a risk thing; if they can prove it's a safe investment, then heavyweights will weigh in with their cash as a long-term investment.

I don't know enough to say what the likelihood of any particular outcome/option is, but just pointing out that equity isn't the only possibility.

The same goes for QFI; if they land a bunch of solid prospects with long-term contracts, merchant financing becomes an option (basically a type of invoice financing).

Yes, the 5% of gross seems a pretty fair deal for PQE. Especially if they can then sell this tech to other companies. You could imagine this is a good combined product offering in a variety of contexts (MSAR + Petroteq).

Not sure if the POSP is covered by this, but I imagine it should be.

""
On July 2, 2019, the Company announced that it had entered into a non-exclusive technology licensing agreement with Valkor LLC (“Valkor”), a company based in Katy, Texas. The Agreement grants to Valkor the right to use Petroteq’s proprietary patented technology to engineer, construct, operate and finance oil sands extraction plants (individually, a “Plant”) to transform highly oil saturated feed ore recovered from mining operations to heavy crude. Under the Agreement, Valkor agreed to pay Petroteq a non-refundable license fee of US$2 million per Plant in two payments, with 50% payable upon start of construction of a Plant and 50% payable upon first production of such Plant. The Agreement further provides that Valkor will pay Petroteq a five percent (5%) royalty based on annual gross sales, excluding solvent and or water, for so long as licensed technology is covered by a valid claim in the country in which it is used.
""

https://petroteq.energy/news/press-releases/detail/345/petroteq-announces-progress-on-new-technology-licenses-and

typo correction: for when they *WANT* the upgrade work finished and they start running the commercial trials.

Torreaguas... As your snippet says, the target was 3 months as of announcement for when the upgrade work finished and they start running the commercial trials, including MSAR.

So, obviously the trials agreement with QFI needs to happen before 3 months.

There is currently no trials agreement between Valkor and QFI; it is just a good faith/handshake arrangement on top of the MOU, with the expectation of progressing this to a trials agreement.

So, there will obviously need to be some movement on this soon, otherwise it will not be possible to send, install, and commission the trial gear within 3 months. It's a non-trivial sized trial, which is great news for QFI, IMO.

Valkor have been working at Asphalt Ridge for a few years already, helping PQE optimise their process and scale up. In fact, Valkor are a substantial holder of PQE shares, as they were paid in shares for some EPC work they did last year. https://ir.petroteq.energy/press-releases/detail/338

""
The Company has also completed a strategic account payment structure with Valkor where the account payable amount for engineering to date of US$989,500 will be paid to Valkor in 3,958,000 common shares of the Company at US$0.25 per share. This is more than a 28% increase to the current trading share value (OTC:PQEFF – November 19, 2019). “In working with Petroteq for the past year at its Asphalt Ridge facility in Utah, and signing a technology licensing agreement in July, it is more apparent that Petroteq’s technology is highly effective,” stated Steve Byle, CEO of Valkor. “As Valkor has worked on providing many of the solutions to increase the efficiencies in all aspects of the Asphalt Ridge facility, we are pleased to be offering this account payment structure to Petroteq.”
""

So, Valkor are extremely familiar with PQE tech, and have proposed the use of MSAR tech to really make this project work. So I think MSAR is a very important part of the puzzle; going from heavy bituminous oil directly to a premium fuel product without any refining is quite amazing, really.

Hope to see more on this topic soon, as their upgrades and tests should start running in under 3 months -- with the MSAR trial being part of that, assuming they come to an agreement.

See the recent one2one interview with Mike Kirk; this question was asked (and suggestion of remote hands teams).

In short, as of last communications, they stated they want to have the QFI team on-site to do the work to ensure it's 100% successful.

However, it's obviously proving troublesome because no foreigners are allowed to enter the country, and the state of emergency has been extended until early August.

There's then also the separate issue of when the client allow external entities on-site to do work.