Member Info for foxm

That was mentioned earlier, I presume it was this guy

https://twitter.com/BobSmithMSc/status/1295626186106732547

"Also note, I believe this would also be the first ever upstream direct-to-consumer commercial MSAR sales (am I right?). So they are really going for this."

This is also a game-changer, I mean it's still a fossil fuel the end users will be burning, although a much more environmentally friendly one, "it burns like a gas", but the well-to-wake benefits of this compared to standard VLSFO must be substantial. How much energy will be needed to produce this very low sulphur MSAR in Utah compared to what a standard refinery would use and potentially a desulphurization unit too.

From Twitter last night, PQE recently appointed a new COO, Mr George Stapleton, and it looks like he immediately bought a million shares in PQE, about a £50,000 investment. He seems confident.

"the development of commercial MSAR® plants of up to 10,000 barrels oil per day ("Phase 2")"

I like that they used the plural of the noun plant. So several, maybe even many commercial MSAR® plants. Given the potential economics, it would be mad not to.

"We will use this commercial trial to attempt to demonstrate a viable retail product direct from site. We will be seeking markets for this product at a premium above WTI pricing. If successful, this effort could provide outstanding economics for oil sands production through ordinary price regimes while enabling profitability through low or even crisis crude pricing."

Producing something at $15 a barrel and selling it at $50 a barrel, that definitely corresponds to outstanding economics.

I hope we get the hat-trick with Ecuador tomorrow. That's the main course after these appetizers.

I do not expect this to be the last RNS in August, this is just a little amuse bouche from Mike I think. News from Utah is overdue, as many keep harking on about, but the absolute game-changer and company-maker could be from Ecuador. According to Rene Ortiz, the Minister of Energy, the tender for the Esmeraldas refinery should be ready this month, so in the next 14 days.

Also in that Spanish news article which dustofnations posted last week, the original plan was to close at least one of the smaller refineries too, but an international consortium has come forward to save both of them, as well as Esmeraldas. There must be a good chance that Freepoint is also involved in those. If using MSAR is the only viable solution to save Esmeraldas, that will also probably be the case at La Libertad and Shushufindi, which will also be spewing out HFO as 40% of their total output. So we could be looking at 70,000 barrels of HFO a day to be switched to MSAR instead of 40,000, that's 14 MMUs for the 3 refineries. Forget 50p a share, £70m profit on a P/E of 16, that would take us closer to a share price of £1.

Only the RNS REACH variety unfortunately.

Publication of White Paper

Quadrise Fuels International, supplier of MSAR® emulsion technology and fuels, a low-cost, cleaner alternative to heavy fuel oil, is pleased to announce the publication of a White Paper detailing the potential economic and environmental benefits of the implementation of MSAR® technology in the Middle East. The paper is entitled, "A clean solution to the Middle East's heavy fuel oil problem" and is available at: https://www.quadrisefuels.com/middle-east-white-paper/.

A Modern Standard Arabic ("MSA") version of the report is also available on the Quadrise Fuels International website at the link above. This will be followed shortly by further updates to the website, so that a significant proportion of the content will be available in MSA, including the animated video.

White Paper highlights:

· Quadrise's MSAR® technology enables production of a proprietary oil-in-water emulsion fuel oil - MSAR® that reduces energy costs for consumers and improves refinery profitability and yield.

· Implementation in power generation in the KSA can deliver fuel cost savings of ~$0.8 billion annually. Refinery margins where MSAR® is produced would increase by a comparable amount.

· MSAR® delivers significant environmental benefits to consumers, with a 30% reduction in NOx emissions and 50% lower ash emissions - and it is the most cost effective and cleanest upgrading technology for refiners.

· Oil-in-water emulsion fuels have been used worldwide, with over 60 million tons consumed in power generation. The latest generation, MSAR®, is now on the verge of being implemented in the Americas, Africa, Europe and the Middle East.

· Strong synergies with metals recovery from power station ash - including vanadium, which is a critical component for the manufacture and deployment of renewable energy storage batteries in the KSA and the region.

· With over 10 years of working in the KSA, Quadrise is now poised to progress its first regional commercial implementation.



Mike Kirk, Chairman, commented on the publication of the White Paper, adding:

"This White Paper sets out the clear economic and environmental opportunity that MSAR® technology provides to Middle Eastern markets as the region looks to reconfigure its petroleum and power infrastructure to migrate to lighter oil products whilst transitioning to renewable energy.

With over 10 years' experience of working in the KSA, we are very excited at the potential of MSAR® to provide tangible, proven solutions to the challenges faced by refiners and utilities and our White Paper illustrates the benefits that our propriety technology delivers. This is part of a planned process to demonstrate our long-term commitment to the KSA and the wider region and to increase our engagement by making much of our website available accessible in MSA".

About 4 weeks ago, Rob79 posted this -

We also know that the original power plant that was to trial MSAR was Shoaiba Power Plant. This power plant has Alstom boilers. In 2015 Alstom was acquired by GE Power.

At the end of 2019 Saudi Electricity Company and GE Power signed an agreement in the field of research and development. The agreement includes a research project for the emulsion of fuel:

https://www.spa.gov.sa/viewfullstory.php?lang=en&newsid=1996712

I do not know if this relates to MSAR or not. What I do know is that the Saudi Electric Company is clearly very interested in emulsion fuel technology. GE / Alstom have also worked with Quadrise in the past (most of the presentations refer to GE Power), so they are fully aware of MSAR fuel.

Now from the white paper just released -

"Quadrise is proud to have been active in the region, and in the KSA in particular, for over 10 years. In this time Quadrise has formed excellent relationships with key companies in the refining and power/utility sectors in the KSA, Kuwait and Bahrain, supported by GE Steam Power."

"In parallel, the utility has accepted that emulsion technology reduces fuel costs and emissions."

"Strong synergies with metals recovery from ash - including VANADIUM, a critical component for the manufacture and deployment of renewable energy storage batteries in the KSA and the region."

Date of paper? - on the front page, AUGUST 2020.

"Implementation in power generation in the KSA can deliver annual fuel cost savings of ~$0.8 Billion.
Refinery margins where MSAR® is being produced would increase by a comparable amount."

So $1.6 Billion in savings? I thought we were always talking about £500m savings, not complaining about that though.

"The latest generation, MSAR®, is now on the verge of being implemented in the Americas, Africa, Europe and the Middle East."

"With over 10 years of working in the KSA, Quadrise is now poised to progress its first regional commercial implementation."

"The KSA is poised to be at the vanguard of the transition to renewable energy with the use of Quadrise’s MSAR® technology"

Those are three VERY BOLD statements, I presume Jason and Mike think they can back those words up.

Everybody is waiting for imminent news from Utah and Ecuador, could KSA sneak up on the inside rail? RNS tomorrow? After 6 utterly depressing and soul-destroying months, things seem to be hotting up quite nicely here, are they finally going to deliver after 14 YEARS? I bloody hope so.

https://www.globenewswire.com/news-release/2020/08/14/2078778/0/en/Petroteq-Announces-Additional-Debt-Conversions-and-an-Equity-Investment.html

https://www.globenewswire.com/news-release/2020/08/14/2078778/0/en/Petroteq-Announces-Additional-Debt-Conversions-and-an-Equity-Investment.html

I've got a suspicion that Jason and Mike might be playing hard ball. QFI have many more active projects which could come good, PQE/Tomco are a bit of a one-trick pony. The news coming out of Ecuador suggests that we might be in a very strong position in a few weeks time, much better than the PQE consortium, the potential at the Esmeraldas refinery alone dwarfs Asphalt Ridge.

The addition of MSAR adds SIGNIFICANT value to the project, it can probably cut the production costs in half and the product can be sold directly to end users at a premium to the WTI price, no need for refining. Remove MSAR and the project is nowhere near as financially rewarding. QFI could potentially add $25 profit to every barrel sold, and if Petroecuador lands very soon, PQE will need QFI much more than QFI will need them, Jason and Mike will be in a very strong negotiating position to agree as high a % of the profits as possible.

I was thinking that 40,000 barrels of HFO a day from a 110,000 bpd refinery sounded too much, 36% of output, but it is probably correct. I found this fairly recent paper talking about a new refinery in Ecuador, Figure 1 (a) shows HFO currently makes up 39.8% of refinery output in Ecuador. Ouch, that's a hell of a lot. No wonder they want to use MSAR.

https://www.researchgate.net/publication/333618385_Evaluation_of_the_socio_economic_impacts_in_Ecuador_due_to_refinery_matrix_change_using_General_Equilibrium_Model

Mexico has 10 times more potential than Ecuador. If we land Mexico, we're there, in dreamland. It tops KSA for me now, because they are both similar size, 20 - 25 million tons a year, but Mexico would be with Freepoint, so Tolling Model, so much more lucrative. If we ever did get MSAR rolled out in KSA, it would almost certainly be in License mode.

I spotted this yesterday when I was reading the 2019 AGM presentation -

REDLINER
• Agency agreement June 2019 excellent access to refinery sector.
• Several meetings held in 2H 2019 most recently November 2019.
• Significant opportunity to assist with improvements to constrained refinery output and distillate shortages.
• Political drivers and affordability will be critical to 2020 engagement.

Well the political drivers couldn't have gone any better for us in the last 6 months. It has panned out absolutely perfectly, Jason couldn't have written the script better himself.

I've been trying to see if I could get any info on what the potential size of an Esmeraldas refinery contract would be. I was thinking it might only be a couple of MMUs, but I was wrong, it might be significantly larger.

This graph -

https://www.indexmundi.com/energy/?country=ec&product=residual-fuel-oil&graph=production

shows HFO production in Ecuador of about 60,000 - 66,000 barrels a day, although the figures only go up to 2012.

Ecuador's 3 refineries have 175,000 bopd capacity, of which Esmeraldas makes up almost two thirds, 110,000 bopd. Two thirds of the total HFO production would be about 40,000 barrels a day.

From this article in February 2020, the HFO production seems to be at roughly the same level -

https://www.argusmedia.com/en/news/2064548-ecuador-to-unleash-more-spot-crude-fuel-oil

Six HFO cargoes (one spot market, five to China) a month, 6 x 190,000 barrels / 30 days = 38,000 barrels a day.

It is interesting that the China contracts expire in October 2020. Given they are now looking at upgrading Esmeraldas instead of closing it, I presume the new refinery with coking capacity won't be getting built.

The last presentation which Mike and Jason did gave figures for 2 MMUs, 10,000 BPD (600,000 tpa).

http://www.youtube.com/watch?v=YHvLWMzZ9hw&t=13m47s

We might potentially need 4 of these (8 MMUs) to replace the 40,000 barrels of HFO with MSAR. Since this project will be run with Freepoint, it will be the Tolling Model, so a potential margin of $48-$52m a year!! That should easily equate to a share price of about 50p :-)

That would be a very nice first contract to land, sod Morocco, and personally I think it's close to being in the bag. We know that Mike said the techno-economic study was ready to be sent to the client in mid-May, then less than 2 months later the Ecuador president issues a decree approving the “exceptional” involvement of the private sector in the Esmeraldas refinery. From the wording in the press releases, it has to be related to MSAR. If the techno-economic study wasn't accepted, why issue a presidential decree? Could we possibly get a bigger clue? Fingers crossed the i's are currently being dotted , the t's crossed, and we might finally get our long-awaited first commercial contract in the next month or so.

I spotted this about a month ago too, Jason left a recommendation for this guy on LinkedIn and it very quickly appeared on his website.

https://leadership2success.com/#testimonials

I wish he would hurry up and tell us WTF these "great things" are he's going to achieve. In your own time guys, feel free to spill the beans, don't be shy now. If Bergen get any more shares at 1.5p a pop, I'll throw a serious wobbly.

https://www.bnamericas.com/en/news/mexicos-drive-for-refining-capacity-hints-at-investment-opportunities

"While Pemex’s refining capacity has dropped in line with the NOC’s declining oil production in recent years, the reduction disguises a growing mismatch: the six plants were set up decades ago to process lighter crude blends.

In 2018, over two-thirds of Pemex’s refining output was light crude but now production skews toward heavier-grade crudes."

https://www.lexology.com/library/detail.aspx?g=a74002dd-cf44-4d99-a42b-6a27aed4a850

"As of February 2020, national production of oil was 1,721 mbpd.... Of total production, around 1,060 is considered heavy crude, 490 light crude and 185 superlight crude."

"Total demand for refined products in Mexico at the end of 2019 was 1,371 mbpd (a reduction of 1 per cent when compared with 2018). Of all oil refined in Mexico, 41 per cent is gasoline, 27 per cent is fuel oil, 25 per cent diesel and 7 per cent jet fuel."

"Of all motor fuels consumed in Mexico, about 73 per cent is imported. Although Mexico is one of the top oil producing countries, only 40 per cent of that production is refined domestically."

https://www.quadrisefuels.com/msar-technology/the-benefits-of-msar/

"In simple terms, the heavier the crude or the more complex the refining process, the higher the cutter stock requirement per ton of residual oil."

https://www.argusmedia.com/en/news/2114825-mexico-aims-to-boost-fuel-oil-in-power-generation

"Many of the country's fuel-oil powered plants were scheduled for decommissioning by the previous administration but the energy ministry is now looking to modify those plants "with the application of technology that will reduce emissions and sulfur content at prices that are reasonable for Pemex and CFE," according to the plan."

https://www.theyucatantimes.com/2020/05/pemex-is-a-disaster-with-amlo-its-going-in-the-opposite-direction-financial-times/

"There’s an additional problem: the more Pemex plants refine, the more low-value fuel they produce, “so what comes out of the refineries is worth less than the oil that went in,” said Jorge Andrés Castañeda, an energy consultant. Fuel oil markets are drying up after its use in shipping was banned."

https://mexiconewsdaily.com/opinion/lack-of-third-party-petroleum-infrastructure-is-an-issue-for-mexico/

"It is intriguing to see a government push for the use of fuel oil at these plants, supporting Pemex refinery production where bottom of the barrel fuel oil is produced in higher quantities than gasoline and middle distillates such as diesel.

Consequently, higher demand for low sulphur distillate fuels will push refineries worldwide to use middle distillates such as diesel-based MGO (marine gasoil describes marine fuels that consist exclusively of distillates and is similar to diesel fuel, but has a higher density), diesel (especially ultra-low sulphur diesel) and jet fuel to blend down high sulphur fuel oil and produce the compliant fuel.

Pemex does not have the capacity to produce more of the middle distillates necessary meaning the company is now “long” fuel oil, allowing us to understand better why Bartlett will continue to use fuel oil in plants: to support another state entity, Pemex, by buying its refined fuel production."

https://www.evwind.es/2020/05/09/the-mexican-government-against-wind-energy-and-solar-power/74669

"But the biggest cost of this absurd decision will be in terms of public health. Fuel oil is the most important source of PM2.5 pollutant particles that directly impact morbidity and mortality from cardiovascular, cerebrovascular, respiratory, cancer, and infectious diseases such as Covid-19; as has been extensively demonstrated in scientific research. In the Metropolitan Area of ??the Valley of Mexico and Tula alone, more than 14,000 premature deaths from PM2.5 caused by the Tula thermoelectric that runs on fuel oil are estimated. Fuel oil means death. Point."

https://www.explica.co/pemex-has-few-options-to-improve-the-refining-business/

"The six refineries in Mexico were built before the late 1970s, so they are designed to operate in another world, one in which light oil was produced"

cont'd....

I've been following Pemex news on Google for the last few months, it is intriguing what is happening there, AMLO's changes are playing right into our hands. As far as I can see, the only way he can execute his plan is to use MSAR, unless he wins 5 hydro-crackers in a raffle over the weekend. The potential has grown significantly and it could turn out to be the biggest open goal which QFI have ever had. If we can't get a contract in Mexico, it's probably time to call it a day. They are screaming out for MSAR.

https://www.explica.co/fuel-oil-against-clean-energy-false-contradiction/

"It should be remembered that for every barrel of crude that is refined, after obtaining gasoline, diesel and naphtha, 25 percent is fuel oil. In other words, a quarter of each barrel is a residual that, unlike what happened until December 2019, today cannot be displaced."

"it is forecast that in the next three years Mexico will have to dispose of up to 500 thousand daily barrels of fuel oil."

500,000 barrels = 70,000 tons a day = 25.5 million tons a year. Was KSA not about 25m tons a year?

https://www.argusmedia.com/en/news/2115313-pemex-pressed-to-find-home-for-hsfo-glut

"Pemex's HSFO production, with 4pc sulphur content, reached 201,000 b/d in the week ended 1 May, its highest level since October, according to the latest data from the Mexican energy ministry (Sener). This is up by 35pc from the same week of 2019, and almost flat with the 199,000 b/d produced the prior week.

Fuel oil output is booming as Pemex is on a drive to produce more refined products as part of a policy to reduce fuel imports. About 30pc of every barrel that Pemex processes becomes fuel oil."

https://webcache.googleusercontent.com/search?q=cache:URgmq36x3dUJ:https://mexiconewsdaily.com/news/lopez-obrador-vows-self-sufficiency-in-gasoline-by-2023/

President López Obrador has pledged that Mexico will be self-sufficient in gasoline by 2023 through the rehabilitation of Mexico’s six existing refineries and the construction of a new one on the Tabasco coast.

“We will be self-sufficient in the production of gasoline and we won’t sell crude oil anymore,” he said Saturday while speaking at the Pemex refinery in Minatitlán, Veracruz. “All the raw materials will be processed in our country; that’s why [we have] this plan to rehabilitate the six existing refineries.”

https://www.bnamericas.com/en/analysis/pemexs-need-to-offload-fuel-oil-spawns-mexico-anti-renewables-bias---analyst

"But the current bias against renewables is specifically motivated by the fact that CFE power generation is the only outlet for Pemex's heavy fuel oil."

https://www.bnamericas.com/en/news/pemex-fuel-oil-choking-mexican-market-amid-refining-drive

"He added, “There is nowhere else for this power to go but in their domestic power stack."

cont'd....