RE: TOM26 Aug 2020 14:23
Petroteq Provides Shareholder Update and Announces Additional Debt Conversion SHERMAN OAKS, Calif., Aug. 26, 2020 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (“PetroteqR21; or the “Company”;) (TSXV:PQE; OTC:PQEFF; FSE:PQCF), an integrated oil company focused on the development and implementation of its proprietary oil-extraction and remediation technologies, is pleased to distribute this shareholder update regarding recent ?transactions relating to the Company. Related Links PDF Release PDF Background Information Valkor Energy Services LLC (“Valkor”;) has been a strategic partner of Petroteq for a number of ?years – their deep experience in engineering complex processes in the energy industry has ?helped Petroteq develop its proprietary oil extraction process. In 2019, Valkor and Petroteq entered into a technology license agreement (the “License Agreement”) for Petroteq’s technology. The ?License Agreement provides for Valkor to pay Petroteq a license fee of US$2,000,000 per oil ?sands plant in two payments with 50% payable on the start of construction of a plant and the ?balance payable upon first production. In addition, pursuant to the License Agreement, Valkor shall also pay Petroteq an amount equal to five ?percent (5%) of net sales from production at a plant.? Valkor Management and Operations Agreement Petroteq has also entered into an agreement with Valkor (the “Work Order”) for Valkor to take over ?the management and operations of Petroteq’s existing oil sands plant at Asphalt Ridge, Utah. Valkor, along with its joint venture partner, Tomco Energy plc (“TomCo”), ?are upgrading Petroteq’s existing oil sands plant to increase plant capacity and reliability for continuous ?operations at 400 barrels per day average with a target of 500 barrels per day as part of a larger ?FEED study for a proposed commercial scale 5,000 barrel per day plant design. This design, with minor ?changes to account for location variables, could be utilized for an expansion of Petroteq’s existing oil sands plant ?to potentially up to 5,000 barrels per day and for other similar plants worldwide.? Despite initial delays due to COVID-19, the upgrade work is underway and is expected to be ?completed, and the plant re-started, in Q4 2020. The work will include a commercial scale ?demonstration trial of MSAR technology from Quadrise Fuels International plc at Petroteq’s existing oil sands plant to produce over 600 bbls of power grade MSAR. Petroteq, Greenfield (defined below) and ?Quadrise believe that the use of MSAR technology could potentially add significant value to the oil produced ?from Petroteq’s existing oil sands plant and the parties will continue to cooperate in good faith to agree to the ?commercial terms of a conditional MSAR license and commercial supply agreement for the ?production of MSAR fuel should the demonstration prove successful.? TomCo Relationship TomCo is a UK listed company that, together with Valkor, has established ?Greenfield Energy LLC