Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Quantum - it’s less than 3 years ago; if you follow Petroteq you will know what has happened in this period - not least the shut down/mothballing of much of the O&G industry. In this period the company have been perfecting their technology with the help of Valkor and continued to spend many more $ millions. From memory they have spent $70-80M in the last 7-8 years on the test plant and technology altogether.
Many do not realise that Petroteq is first and foremost a technology driven company - yes it will make very good money from oil and frac sand production at its acreage in Utah (130M barrels certified resource) but the big investor returns will be from the interest in their technology and intellectual property, for which patents have been granted to the main heavy oil producing countries ie Canada, Russia, US etc
If the tech proves up in commercial terms (I expect the current trial to be successful) then Nasdaq will definitely be where Petroteq is heading. That process has already started but stalled for reasons mentioned but why would they change direction if the tech is commercially approved now?
In the growth cycle of a US technology stock, a Nasdaq listing is the next usual step up. Nothing has really changed except from these levels the investor returns will be more dramatic. Fingers crossed. Let’s see.
“We believe that a NASDAQ listing will help unlock some of the shareholder value we are trying to create for our stakeholders. A NASDAQ listing should provide us with more liquidity and a larger pool of investors that use the NASDAQ Stock Market as a requirement for assembling a portfolio.”
“Being in a position to list our common stock on the NASDAQ Capital Market reflects significant progress that we have made in building our financial and liquidity standards, strengthening our corporate governance, and positioning the Company for future growth and profitability,"
It's on Petroteq news feed (website). The original notification.
https://petroteq.energy/news/press-releases/detail/278/petroteq-energy-submits-application-for-nasdaq-capital
Nasdaq minimum share price denomination - this will not be not an issue - if you research more news on their nasdaq plans you will see the need for the consolidation; shareholders were advised of this a while back - but then all stalled because bottom fell out of oil. Consolidation is very normal for many companies moving up to Nasdaq - to meet their minimum $ nominal denomination.
If news is good they will move quickly to follow through on nasdaq - the share price from which they will need to consolidate will be multiples of todays price.
they will RNS when are required to - not before. Simples.
Petroteq have registered for a Nasdaq listing - they need to have squeaky clean market reporting to shareholders , otherwise they will get pulled up and jeopardise a listing.
then low oil prices kicked in and the plant was shut....
On news, it could be that they will not provide any update until the testing is finalised and the FEED report signed off. Q1 2021 so expectation per RNS, so soon.
".......it re-commenced production at its ?Asphalt Ridge facility located in Vernal, Utah (the “Plant”) and since re-commencement ?on February 19, 2020 has produced approximately 1,900 barrels of oil thus achieving an average ?daily production rate of over 300 bbls/day on a continuous basis. The maintenance ?shutdown allowed the team to make adjustments and complete installation of critical ?additional equipment. Furthermore, Valkor Engineering used this time to run a testing ?regimen on the plant which will provide the final data points needed for a proposed ?expansion of the Asphalt Ridge Facility to up to 4,000 bbls/day of capacity.?"
https://www.globenewswire.com/news-release/2020/03/02/1993493/0/en/Petroteq-Reaches-New-Production-Milestone-of-300-bbls-day-and-is-Now-Operating-on-a-Break-Even-Basis-at-Its-Asphalt-Ridge-Plant.html
it seems pretty logical that if there has been a slight delay this is because of weather, no one can control that!
..this time last year, the Chairman made exactly that point, except this year the weather was even worse....
"...... would like to personally acknowledge the ?workers onsite who have carried out this remarkable achievement while working in ?what can only be described as very cold and inhospitable weather conditions in ?January and February.”?
Primula - you appear to be the one who seems overly concerned. Many posts clearly demonstrate this.
So assuming you are invested here, do us all a favour and take your own advice - can you please phone CEO Potter and report back here. Don't phone him now as he won't take your call in his sleep, lol. Utah is 6 hours behind UK. Try around UK 2.30pm he'll be through with brekky and hopefully take your call.
John Potter CEO +44 (0) 38233635
Primula - looking at some of your posts it seems AIM is probably not for you. Your financial advisor will no doubt tell you of the inherit risks associated in investing in AIM stocks. The same goes for investments in OTC/TMX stocks (eg Petroteq). All carry a much higher risk. For sure AIM directors do not/will not give a blow by blow account of how shareholders money is spent. Each placing document does give a generic overview - Tomco have done that as required by AIM rules.
The thing is, and stating the obvious, if you pick the right stock you make a shed load - but obviously the wrong one you lose your shirt. It's why AIM is commonly referred to as a Casino. (There are a few exceptions but largely speaking AIM is a wash with companies which will certainly fail).
You have to weigh up the pros and cons, for me the only reason I have taken a position here and Petroteq (where I have substantial holding) is because of Valkor is in charge. Their commercial successes and financial gains stand out. My advice is follow the money - take a leaf out of Steven Byle (CEO Valkor) and George Stapleton (COO Petroteq) book - they have invested very large amounts in Petroteq technology. Having worked with Petroteq for over 4 years why only recently have Valkor taken a 16% stake thereabouts in Petroteq. Speaks volumes.
Each to their own. and good luck!
Someone mentioned that Greenfield will be the owner of the IP developed going forward, that is wrong, it remains with Petroteq.
From PQE RNS:
"The License will allow Greenfield to use Petroteq's oil sands technology, which includes Petroteq's processes for the recovery of oil from oil sands, patents, other intellectual property and know-how, in any future oil sands plants built by Greenfield in the United States. The License also clarifies the ownership of any intellectual property developed as a result of the POSP upgrade and associated trials or otherwise developed by Greenfield in the future. Any such intellectual property will be the property of Petroteq and pursuant to the License, Petroteq will grant Greenfield the ability to utilise such intellectual property, together with any additional intellectual property developed by Petroteq, in accordance with the terms of the License.
For any future oil sands plants built by Greenfield utilizing the License, Greenfield will pay Petroteq a 5% royalty of net revenues received from oil products produced from oil sand resources."
Craggs - not correct: Petroteq retain all IP:
The License will allow Greenfield to use Petroteq's oil sands technology, which includes Petroteq's processes for the recovery of oil from oil sands, patents, other intellectual property and know-how, in any future oil sands plants built by Greenfield in the United States. The License also clarifies the ownership of any intellectual property developed as a result of the POSP upgrade and associated trials or otherwise developed by Greenfield in the future. Any such intellectual property will be the property of Petroteq and pursuant to the License, Petroteq will grant Greenfield the ability to utilise such intellectual property, together with any additional intellectual property developed by Petroteq, in accordance with the terms of the License.
it was one of the worst winters, caused some operational issues, very understandable - pretty much all of the equipment was delivered on time - think they mentioned that in one of the updates.
anyway, no excuses now Spring in Utah!
Forgot to mention (and for completeness) the other side of the Petroteq model - they also aim to have their own 4/5K production plant to exploit 130M stock barrels from their 2 sites....ignoring sand etc annual net back $50M pa A little way off but nice earner all the same.
yes, DS has been touting a oilsands business plan - he also has a site and is working with an investment bank but not sure he has progressed this much further - mega investment is needed. He has an option to take a Petroteq licence but like Greenfield he will need to pay $2M upfront licence fee and 5% on future sales. Like Tomco/Greenfield no one will back him until these trials are proven.
imo if the current trials are successful it will be Petroteq who will see serious interest, quite early on - before they get too expensive. Think about their model, upfront licence fees and 5% royalties for each and every plant built. Do the maths on say just 5 x 10K plants, with say a conservative net back $35 per barrel based on WTI today (so ignoring sand sales and premium for bunker fuel) : $35 x 10,000 x 330 days (allow 1 month switch off for maintenance) = $350,000 x 330 = $115,500,500 x 5 plants = £577,500,000 annual net revenues x 5% royalty = $29M annually based on WTI today - straight to the bottom line = profit pretty much (have ignored the addition of $10M upfront licensing fees - $2M x 5 plants).
So that is for just x5 10K plants. As many more plants get licensed in the US and worldwide, the recurring income then multiples and surprise surprise the value of taking Petroteq shareholders also multiples. Big oil will want the technology as soon as then can, certainly before Petroteq list on Nasdaq which is their stated plan.
Keep in mind also that Petroteq granted Greenfield a non-exclusive US only licence. So that opens up licensing deals with as many as other US and worldwide companies who want to get involved.
Fingers crossed we hear this week that all going to plan (bad winter weather has been an issue).
Primula, with respect you seem to missing a key point. Greenfield is a legal 50/50 Joint Venture Company owned by Tomco and Valkor. Valkor are specialised engineers and have been working on the Petroteq site for 4 years now - the JV agreement agreed between them will deal with reporting lines I'm sure.
Regardless, why have another layer of onsite costs - not forgetting also Tomco CEO Potter has basically been living on site himself these past few critical weeks watching the Valkor engineers. Do you not think he might report back to his own board? lol
"Valkor have other jobs" lol Have a look at their projects - the headline pic is the plant at Petroteq Asphalt Ridge https://www.valkor.com/current_projects/ they are a substantial privately owned engineering group. Incidentally the last Valkor project shown - Parrylands in Trinidad; there is substantial oilsands in Trinidad and I suspect if the current AR project is successful Steve Byle will looking at a plant there. This is why he and his key team are spending all their time in Utah. Getting this process perfected will open many more opportunities to Valkor outside Tomco.
The US Petroteq technology licence vests with Greenfield - so assuming all goes well the financing of 10K plant (s) will be shared 50:50 between.
Petroteq up 15.4% on TMX with larger than usual volume so far...
https://money.tmx.com/en/quote/PQE