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Utah Tar Sand Summary
Tar Sand Triangle 16.0 billion bbl
P.R. Spring 4.5 billion bbl
Hill Creek 1.2 billion bbl
Other Deposits 1.4 billion bbl
Sunnyside 6.0 billion bbl
Asphalt Ridge 1.5 billion bbl
Circle Ridge 1.1 billion bbl
White Rocks 0.3 billion bbl
Total Shallow Oil 32.0 billion bbl
Utah's Bureau of Land Management oversees all matters pertaining to mineral resource and oil and gas development, covering over 22.9 million acres of land throughout the state. In the Vernal area, BLM's jurisdiction covers over 5,500,000 acres. A limited amount of oil sands production occurred in the late 1970s and early 1980s, but inefficient technologies and extremely low oil prices brought much of these operations to a halt. Recently, though, the U.S. interest in increasing domestic energy sources has intensified technological advances such as Petroteq's Liquid Extraction System, prices have increased dramatically and the occurrences of significant new reserves of conventional crude oil have become extremely rare. The focus is now on developing U.S. oil sands deposits, with Utah's Oil Sands as a major potential source of domestic energy.
UTAH OIL ASSET
WHY UTAH?
THE STATE HOLDS OVER 32 BILLION BARRELS OF UNDEVELOPED OIL SANDS RESOURCES.
Unita Basin, Alphalt RidgeOil sands, or tar sands as they are often referred to, are a type of unconventional petroleum deposit. The sands known as "oil-wet" deposits in Utah contain a mixture of sand and a dense, extremely viscous form of petroleum technically referred to as bitumen or tar. There are many other deposits of oil sands throughout the world, most notably in Venezuela and Canada, where they are known as "water-wet" deposits because they're typically found deep in the earth, mixed in with water, sand and clay in a semi-solid natural deposit. Although several of America's western/southern states have oil sands deposits, Utah contains approximately 55% of the nation's total deposits, concentrated in eight major deposit areas with a total resource of over 30 billion barrels of oil. (Source: US DOE).
Patents in Major Markets
• Own patents in US, Russia, Canada
• Petroteq has been involved in the patent protection processes since the early days of its technology development
in 2011
• Provisional patents to be filed in 30 countries worldwide with significant oil sands reserves
• Patent protection applications have been filed covering specific aspects of the entire extraction processes and the
physical features of the extraction plants and solvents as follows:
- Solvent combinations and compositions.
- Engineering and design features of specific major components and vessels.
- Specific extraction processes
Production capacity at Asphalt Ridge facility will be incrementally raised through addition of identical process trains
Process trains can be relocated
once location depleted
Familiarity with approvals
processes
Supply chain & marketing
routes established
Environmental requirements
met
Fewer variables in employee
training and operations
Predictable costs & cash flow
modeling
• ‘Plug and play’ process train expansion model provides cost effective route to cash flow growth
• Proprietary technology application deployed and expanded through cost-efficient means
• Minimizes scope of cost-inflating variables including maintenance, supply chain, marketing and employee training
Asphalt Ridge at 1,000 bpd capacity Expansion to 4,000 bpd in 2020 8,000-10,000 bpd est. by early 2022
• Expanding small capacity plant via additional plants and
common feed conveyor system
• Raising $30mm of funding via equity and debt, expected
in place by 2nd half 19
• Engineering due to complete 2Q’19
• Est. EBITDA of $22.0 mm at 4,000 bpd1
• Fully funded, operational 4Q’18
• Peak 2019 capacity of 1,000 bpd
• Trucking production to local refineries
• 1,000 bpd plant is project gateway for additional,
larger capacity plants
Measured growth with proof of commerciality ideally positions Petroteq to capture market share as technology is developed and implemented, and expansion trains are
producing sales product
• Construction of larger capacity plant
• Production increase by 2022
• Achieved though addition of 2x 2,500 bpd process trains
• Phase 3 est. capex of $25 mm / train
• Est. EBITDA of $29.5 mm at 5,000 bpd1
Industry-leading executiveteamwith 175+ years of relevantexperience
David Sealock, Executive Director & CEO - Mr. David Sealock is a highly accomplished, results driven senior executive leader with over 28 years of strategic management and business leadership. He has a
trackrecord of building high-performingteams with astrongfocus on settingcorporatestrategy,executing over$1.2B in equityand debt transactions, jointventuresandM&A deals. Prior to Petroteq Energy,
David Sealockserved as President of Autus Ventures, Vice PresidentTechnology- Petroleum Technology Alliance Canada, President & COO ofSulvaris, President & CEO ofSunshine Oilsands,EVPMegaWest
Energy, & seniormanagement positionswith Deer CreekEnergy, CNRL, Petrovera Resources,Total & Chevron.
Alex Blyumkin,Founder, Chairman -Mr. Alex Blyumkin has over 20 years ofa widerange ofexperiencein theenergyindustry. Afterachievingsignificant success in downstream operations on severalenergy
projects in Azerbaijan, Ukraine and the U.S., herecognized a worldwide need for safe, environmentally-friendly oil sands extraction technology. Alex Blyumkin and his team discovered the origins of what is
now Petroteq’sextraction technology.
Dr. R. Gerald Bailey, President & Director - Dr. R. Gerald Bailey has over 40 years ofexperiencein theinternational petroleum industryin allaspects, both upstream and downstream with specificMiddleEast
skillsand U.S. onshore/offshoresectors. Current Presidentand Director of Petroteq EnergyInc.as wellas itsformer CEO, healso servesan advisor to Petroteq’s Petrobloq.
Mark Korb, CFO-Mr.Mark Korb has over 20 yearsexperience with high growth companies,servingas the CFOorFinancial Consultantacrossseveral industries.
Dr. Vladimir Podlipskiy, Founder & CTO - Dr. Vladimir Podlipskiy has over 20 years of extensive experience as a researcher, involved in oil extraction technologies and research into many remediation
products,all with afocus on the utilization of benign solvents/solutions.
. Crushed ore in
2. Feed bin receives the raw ore and mixes it with solvent
3. The mill breaks down clumps of ore, so that the patented solvent can better
dissolve the crude oil
4. In the mixing vessel, the ore and solvent mixture is agitated into an extraction
separation fluid
5. In the extraction column, solvent makes solids fall and the oil and solvent mixture
rise
6. Clean, salable sand out
7. Fluid is heated to separate the solvent from the oil
8. Secondary extraction column
9. Evaporated solvent is recycled leaving salable oil
10. Salable oil
https://content.equisolve.net/petroteq/media/a9bc1245c1b816150e14fa309f4aa53c.pdf
Value-creation focused company, developing & implementing sustainable technologies in the oil sands mining,
production & remediation sectors. Petroteq represents an attractive, unique, growth opportunity for investors
seekinga position in both theE&P & Clean Energysectors
• Fully integrated, technology-centric, energy company based in Los Angeles, California
• 100% working interest in 2,542 gross acres & 87mmbbl contingent resources in Uintah basin, Utah
• 50% of the operating rights in 8,480 gross acres (4,240 net acres, less royalty) & est. net 41 mmbblcontingent resource in P.R. Springs and the Tar
Sands Triangle, Utah4
• Asphalt Ridge asset located in prime of the play, rich deposits with est. resource life of >20 years
• Implementing proprietary clean oil sands processing & heavy oil extraction technologies
• Technology provides access to a multi-billion dollar global land remediation market
• Phase 1 production capacity of 1,000 bpd, potential for 8,000 to 10,000 bpd in 2022
Clean oil recovery technology (“CORT”)
independently evaluated as scalable, viable & cost effective
• Breakthrough, environmentally-friendly, proprietary oil sands
extraction technology, suitable for all hydrocarbon deposits
• Patented, innovative, 14 stage process uses solvents & surfactants
to liquefy & extract bitumen oil from crushed raw oil sands
• Technology can also be deployed for land remediation projects,
independently or integrated with other processes
• Expected to extract up to 99% of the crude oil and recycles up to
99% of the solvent used
David Sealock, Exec. Dir & CEO - Petroteq Energy
Tel: (403) 561-9882 -- investors@Petroteq.energy
Contact:
C
CLEAN TECHNOLOGY
• Greatly reduces greenhouse gases
• Requires no water, leaves no waste water/slurry
• Demands no high temperatures/pressures
• No waste - leaves clean, dry sands
• Up to 99% of hydrocarbons are extracted
• Up to 99% of used solvents are recycled
? Structuring potential for global deployment
Modular plant economics, combined with energy efficient technology, drive low
capex and production costs
• Low production costs, est. to average $30 to $25/bbl based on
scale of production
• Netback margins anticipated to average between $17 -$25 per
bpd at $50 WTI
• Economics run at EBITDA assumption of $46.80 / bpd WTI,
assumes 350 days operation/train
• Low CAPEX estimates: ~$10k / flowing bpd
• Modular & scalable, from 250-8,000 bpd to 2,500-5,000 bpd
process trains
• Closed-loop, continuous recycle of materials
• Returns over 14x energy used to produce oil, comp. to 2-6x for
competitive technologies
Asphalt Ridge: Expanding a multi-decade asset
• Deposits average 6% - 15% oil by weight, expected resource life >20 years
• Production capacity of 1,000 bpd, product trucked to local State refineries
• Expansion project underway to boost facility output
• Step wise production targets to achieve 8,000 -10,000 bpd by early 2022
• Scalable operations with potential to achieve 25,000 bpd production
Value-creation focused company, developing & implementing sustainable technologies in the oil sands mining,
production & remediation sectors. Petroteq represents an attractive, unique, growth opportunity for investors
seekinga position in both theE&P & Clean Energysectors
• Fully integrated, technology-centric, energy company based in Los Angeles, California
• 100% working interest in 2,542 gross acres & 87mmbbl contingent resources in Uintah basin, Utah
• 50% of the operating rights in 8,480 gross acres (4,240 net acres, less royalty) & est. net 41 mmbblcontingent resource in P.R. Springs and the Tar
Sands Triangle, Utah4
• Asphalt Ridge asset located in prime of the play, rich deposits with est. resource life of >20 years
• Implementing proprietary clean oil sands processing & heavy oil extraction technologies
• Technology provides access to a multi-billion dollar global land remediation market
• Phase 1 production capacity of 1,000 bpd, potential for 8,000 to 10,000 bpd in 2022
PETROTEQ ANNOUNCES CLOSING OF RESOURCE ACQUISITION
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.
RELATED LINKS
PDF Release PDF
SHERMAN OAKS, Calif., July 22, 2019 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (“Petroteq” or the “Company”) (TSXV:PQE; OTC:PQEFF; FSE: PQCF), a fully integrated surface oil sands mining oil company with proprietary technology?, is pleased to announce the closing of its ?acquisition of an additional 50% of the operating rights and interests relating to oil sands under U.S. federal oil ?and gas leases encompassing approximately 8,480 gross acres (4,240 net acres, less royalty) in the State of ?Utah, as ?previously announced on April 16, 2019.? All shares issued pursuant to the transaction will be subject to a four-month hold period.
The Company also announces the issuance to an arm’s length lender of a US$300,000 principal amount (including an original issue discount of 20%) unsecured convertible debenture, and warrants exercisable for up to 1,315,789 common shares of the Company at US$0.24 per share for 15 months. The debenture has a term of 15 months and bears interest at a rate of 7% per annum payable quarterly, and at the option of the holder the purchase amount of the debenture (excluding the original issue discount of 20%) is convertible into ?1,315,789? common shares of the Company at US$0.19 per share in accordance with the terms and conditions set out in the debenture.
In addition, the Company has agreed to complete a shares for debt transaction, pursuant to which it will issue 838,714 common shares in satisfaction of US$176,130 of indebtedness currently owed to an arm’s length service provider. The Company determined to satisfy the indebtedness with Common Shares in order to preserve the Company’s cash for use on its extraction technology in Asphalt Ridge, Utah, and for working capital. All shares issued pursuant to the transaction will be subject to a four-month hold period.
SHERMAN OAKS, Calif., July 02, 2019 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (“Petroteq” or the “Company”) (TSXV: PQE; OTC: PQEFF; FSE: PQCF), a fully integrated surface oil sands mining oil company with proprietary technology, is pleased to announce that it has entered into a non-exclusive technology licensing agreement with Valkor LLC, a company based in Katy, Texas (www.valkor-offshore.com).
RELATED LINKS
PDF Release PDF
The technology licensing agreement (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 has 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. Valkor also agreed to invest (or secure investment) of a minimum US$20 million towards the construction of a Plant by December 2020, and to have in production a minimum of 1,000 barrels per day. 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.
“Technology advancement in unlocking the enormous deposits of global oil reserves has been our focus in achieving energy independence and economic expansion,” stated CEO David Sealock, “and Petroteq’s CORT (Clean Oil Recovery Technology) is a primary key to develop the tremendous surface mineable oil sands resources in the USA and internationally. Petroteq’s technology has the potential to open these resources to new development opportunities and with this should come tremendous value potential.”
“In working with Petroteq for the past year at its Asphalt Ridge facility in Utah, it is clear that the Petroteq technology is unique and highly effective. It fits our long term strategy extremely well,” stated Steve Byle, CEO of Valkor. “As Valkor is a solutions company offering a range of services and products to the energy industries we are pleased to be offering the Petroteq technology in a project based platform.”
This licensing agreement is testament to the tremendous technical and engineering achievements made by Petroteq in recent years. The licensing model is an important component of the Petroteq business model allowing Petroteq to leverage its proprietary technologies and operating techniques to participate in value created through investment by other companies and strategic investors. Petroteq anticipates that this could be the first of many licensing agreements and believes that this aspect of its technology licensing business model will set the Company apart from other resource companies in years to come.
PETROTEQ ANNOUNCES EFFECTIVENESS OF FORM 10 REGISTRATION STATEMENT
Sherman Oaks, CA, July 18, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Petroteq Energy Inc. (“Petroteq” or the “Company”) (TSXV:PQE; OTC:PQEFF; FSE: PQCF), a fully integrated oil and gas company, announced today that its Form 10 Registration Statement as filed with the U.S. Securities and Exchange Commission (the “SEC”) became effective on July 12, 2019. Following the effective date, the Company will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. This means the Company will begin filing annual reports with the SEC on Form 10-K, quarterly reports on Form 10-Q, periodic reports on Form 8-K and subject itself to additional SEC reporting obligations related to proxies, shareholder actions and stock ownership rules.
RELATED LINKS
PDF Release PDF
The Form 10 filing provides investors detailed and audited information about the Company’s operations, including an overview of the business strategies, risk factors and financial statements. This additional information should help our investors make a more educated investment decision about the Company. A copy of the Form 10 is available at www.sec.gov under the name of Petroteq Energy, Inc. Additionally, the amended Form 10 can be found on the company’s website and by clicking here.
“The effectiveness of our Form 10 registration statement is a major milestone,” said David Sealock, CEO of Petroteq.