Member Info for Helpful

https://markets.ft.com/data/announce/full?dockey=1323-14580328-2JANHM7UPBA7VSRFKSCP4P548H

"which will seek to further process the oil into a premium, heavy fuel oil product for retail sale as IMO 2020 compliant bunker fuel or as No. 6 diesel for heavy machinery."

DYOR

https://www.sltrib.com/news/environment/2021/05/24/worsening-drought-could/

https://finance.yahoo.com/news/petroteq-energy-announces-testing-sand-133000617.html

At mine cost is not the same as the delivered cost.

https://www.westwoodenergy.com/news/crushing-the-market-with-206-million-tons-of-frac-sand-supply

"In contrast, NWS is priced freight on board (“FOB”) destination to Midland at $78 to $85 per ton, not including the terminal charges. NWS suppliers may be able to decrease prices to $65 to $72 per ton FOB destination according to industry sources. In order to reach lower pricing levels, many suppliers believe that further collaboration with Union Pacific and BNSF is required."

The market for fracking sand is non-homogenous: there is a wide regional variation. Mine sand production uses a lot of water. There isn't that much water to go around in Utah.

DYOR

From the May 21 EIA report it says $147 for No 6 in Q2 21. I don't expect PQE would get that price.

Last time I looked it was WTI plus $6/$8. It is in the EIA reports but it will be down to the deal they do with the local offtaker.

The market has changed.

Most output in the US is light oil with heavy oil imported from Mexico and Venezuela. Most output from fracking is actually condensate which doesn't contain the heavier fractions. Most refiners have to blend lighter oil and heavier to get the outputs that they want. Refiners don't just produce diesel. Take a look at the link from wikipedia which I post earlier, that has a discussion around this point. Heavy oil now trades at a premium to WTI.

DYOR

I have been in PQE for more than three years, taken part in a couple of the fund raisings and taken part in the last three TOMCO fund raisings. I have done Zoom calls with Potter, Alex, Steve and Coby. I reckon I am pretty up to speed on the the position with regards to the sand. I could even tell you who the offtaker for the sand is and that their distribution facility is 2 miles away from PQE's plant. They supply drilling muds and fracking sands throughout Utah and indeed have their own fracking sand mine.

Most of the fracking sand used in Utah comes from Wisconsin: it takes a little over 24 hours to drive, if you drive non-stop. In Utah the big issue is water use permits: they are hard to get and expensive. A few sand mines have been turned down because of the water permits.

PQE has already put out RNSs stating that the sand has been tested and that the split is 80%/20% fracking sand v construction sand. The likely pricing is $80/ton for the fracking sand and $20/ton for the construction sand. The crush strength of the sand has been tested at over 8,000. Taking water permit costs in Utah into account and the transport costs from Wisconsin, the sand from AR will be competitive.

The sand output is about 1.5/1.74 tons per barrel of oil dependent on the hydro carbon content of the sand. You do the calculations on a 5,000 bopd plant.

DYOR

Exactly.

MSAR is another process complication, involves more capex and opex plus a royalty to QFI. Why go there if you can get a good enough result with No 6 and the sand sales? If MSAR adds 20% to the bottom line net of all costs then it likely is a goer; 5% to the bottom line then probably not.

DYOR

Not doing QFI down, I quite like it and I have been in and out on a spreadbet a few times making decent money.

But PQE does not need QFI or MSAR. It will come down to economics. The No 6 diesel sells at a good enough price for the tech to make good money. But, the oil is not the main output at the moment. The sand can be split 80% fracking sand and 20% construction sand: at current prices, the sand output makes more money that the oil output, with or without MSAR.

DYOR

https://en.wikipedia.org/wiki/Fuel_oil

PQE has already confirmed that it can sell its output at a premium to WTI and that It can cook the output to No 6 diesel which can be sold directly into the market place without refining and without MSAR.

DYOR

The QFI MSAR is a potential add-on. It is not nailed on that PQE will use it. It will come down to economics: it may be that the plant has dual output. They might operate it for No6 Diesel or MSAR as the pricing changes. There is no requirement to integrate the MSAR as part of the FEED.

DYOR

https://www.pscp.tv/w/c4PyejF6dktOV0pCa0pkamV8MWt2SnBvWExXQkxHRW5g9aeg_CZlyqBYHmfhZhvSK2P0GT8Ria0NqjO5DsVF?s=09

Updates on RRAL.

https://twitter.com/PowerMetRes/status/1397507527672279041?s=20

So someone sold 2,500,00 shares and the SP is up but somehow that is a bad thing and makes you right.

The price has been slowly trending up for about ten days as we get closer to news. Gold is st $1,905: if you look at the 7 and 30 day charts you will see a clear upward movement. News on RRAL should be incoming shortly: up date on IPO plans, exploration work done and planned.

The work at Luanshimba should all be done by end of June. News on the Migori/Mikei drilling should be in the next week or so.

DYOR

Has just gone past $1,900.

RRR should start moving up now. Very good for the RRAL IPO.

https://twitter.com/StockBoxMedia/status/1397191126973665283?s=20

As I said, they think that they have something serious at Luanshimba. Note that he says that the second drill programme is at Mikei but no mention of what he was calling the third, RRAL. Probably because RRAL now has a separate life and is not seen as a RRR drill anymore.

DYOR

https://en.wikipedia.org/wiki/Supergene_(geology)

Supergene enrichment

https://www.britannica.com/science/supergene-sulfide-enrichment