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Well it seems as if people believe the rumour about the potential hook up with PQE and its tech: it looks like it is going down well. If they do some sort of deal, then it is a big upside for PQE and for Attis.

By defenders you mean shareholders?

Your mate Double is on filter but I just had a quick look to see what he was going on about now.

One of the reasons he is on filter is that he obviously doesn't know what he is talking about. His comments about the CLNs and the power to issue shares is double counting. It maybe that that they can draw down on the CLNs but if they don't have the power to issue shares, they can't satisfy the conversion option when and if it is exercised.

As it happens I emailed Christian Dennis yesterday with a number of points. The last update was 5th November and they said they would further update the market when production had stabilised. We have had no update and so either the production has not stabilised or they are not meeting their promise.

There was no AGM statement which is very poor, most companies put something in the public domain after the AGM.

Nonetheless the deal with CAV is a good one. It won't take much from BTN 03 to meet the 150 bopd target. The last update did confirm that BTN 03 was producing.

The big thing for the company is now what happens next? They said that they would spend November optimising production on the wells, so that is November dealt with: but what about December, January etc.

So the possibilities are: they are in discussions with CAV about the way forward, other assets, further workovers on wells at Betun, drill Selo, farm out Selo, set up a formal JV and so on. Or do they look to do another deal with another Indo partner? Or Corallian is now funded, are they going to progress the farm out on the Wessex Basin assets?

Still all to play for here.

DYOR

https://mailchi.mp/bfd2b6e4d69e/10wc5u22ur-3792553

From the LSE BB for Tomco

genty1974
Posts: 67
Price: 1.475
No Opinion
RE: whats cooking?
Today 12:39
expect a licensing deal here with petroteq and tomco i have got both in my locker now hold a fair amount of #PQE shares and the re rate is only just starting for both.. very cheep for both , petroteq will take a 5% royalties on the billion dollar oil asset that tomco have.. load up

It looks like Tomco thinks it has 1.6/1.7 billion barrels of oil. The radio tech they are testing obviously won't do the job. Maybe add this to the list of third party plants along with QEM.

So that that would be Valkor, QEM and Tomco with plants.

DYOR

https://twitter.com/Smudgedann/status/1198894506592161792?s=19

DYOR

Unfortunately, a bunch of warrants lapse today unexercised. These are from the November 2017 fund raise.

The BOD has had to keep issuing shares because they are not generating income. If the share price were higher all they would be doing is issuing shares at a higher price. Now that the automation has been dealt with, we should have confirmation that this is a thing of the past. Next is for them to confirm either that they have moved to 24/7 working or when they will do so.

Someone trying to get out.

Your original point was that no one was interested in the licensing, not what the share price currently is.

QEM Quarterly report published 31/10

https://www.asx.com.au/asxpdf/20191031/pdf/44b3q1sz2w705q.pdf

Don't believe anything I say, read it for yourself.

DYOR

"Nobody is interested"

1. Investors are; the income from licensing will be a multiple of the income from its own production.
2. Valkor is: the solution is an engineering package that it is now marketing to third parties. The Valkor deal is a $2mil fee and 5% of the gross revenue less the water and solvent cost. Valkor is committed to funding at least one plant by December 20.
3. We already know that they are in discussions with multiple third parties including QEM. QEM have said that they have 583mil barrels in place at Julia Creek. QEM have said that the trials so far have been successful and the next step is for a bulk sample to be processed through Asphalt Ridge.
4. Steve Byle, who is the head honcho at Valkor,owns multiple oil sands assets.

All in the public domain.

DYOR

https://petroteq.energy/about/opportunities

Well hopefully the get the ADL market cap up before CAV do anything.

As long as Attis can sell for more than $1.2mil by April I will be happy.

Probably BP. I had the conversation with someone else this morning. At what point do they decide to move? Maybe when the plant has been running solidly for 6 months or so and the other licenses deals have started to land.

DYOR

https://www.ft.com/content/c5274598-f43c-11e9-a79c-bc9acae3b654

https://www.ft.com/content/4c3e5fdc-0601-11ea-a984-fbbacad9e7dd

I have been told elsewhere that the current premium over WTO is $8/$10 but it would be good for PQE to confirm it.

DYOR

I know most on here never read anything but this is worth a reread..
https://www.globenewswire.com/news-release/2019/07/02/1877278/0/en/Petroteq-Announces-Technology-Licensing-Agreement.html

How long before Valkor presses the Start Button on this?

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.

This commits Valkor to action... 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.

A 5,000 bopd plant at $55 WTI with an $7.5 premium is worth $5.7mil pa in royalties to PQE. 10 of those in place by mid 21 is worth $57mil pa (all profit). On a p/e of 9 that is $413mil.

Orslega and I have always said the upside here is the licensing. Getting the plant running 24/7 on around 1,000 bopd is nice but not very sexy. In reality the plant is just for demonstrating the technology. I expect by mid 21 PQE will make more from the Royalties than from its own production.

DYOR

Rollins will beef up the engineering side, which is where they have been weak.

No excuses now. Next updates should be: moved to two shifts, then moved to three shifts, other license deals, NASDAQ.

We could still do with them confirming the premium over WTO that they get for their oil. As pointed out elsewhere, they need to confirm if they are going to start selling the sand as well.

One thing that was mentioned a while back but has gone quiet is the recycling of Asphalt tiles and Asphalt roof covering. It is a whole separate industry in the US.

DYOR

https://www.lse.co.uk/rns/ADL/andalas-energy-and-pwr-services-agreement-to-indonesian-kso-betun-selo-99ocawojpvs3obq.html

Worth a reread... ADL can elect to convert to a participating interest in the six months following completion of the workovers... So does period now start?

If we convert we end up with about 15% of the license assets. This means we will have paid about $6.19 per barrel for 1p, $2.7 per barrel for 2P and $2.06 for 3P.

Selo looks interesting.

Just over two weeks since Betun 03 was completed: it should have stabilised production by now.

DYOR

https://twitter.com/PetroteqEnergy/status/1196781031401164800?s=20
Update tomorrow or Thursday then.....