focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
less the frac and aggregate sand they (Petroteq) are planning to sell - assume Tomco will follow the Petroteq model. Independent testing at Petroteq site (Asphalt Ridge) shows 70% of clean sand extracted as part of the process is frac quality. That's massive addition to top line /cost of sales. Means one barrel of oil will produce sales revenue over $100.
wherever tomco decide to build their 10K plant (assuming all goes well) the sands will need testing - frac sand commands $50+ a ton - aggregate/cement $20 per ton. For every barrel of oil produced, produces 1.7 tons of sand. There is a demand in Utah for frac sand - much of it being transported from Wisconsin at hughe costs.
....that's why many are saying that oil is now the by product for Petroteq : ) Quite extraordinary really.
Expecting sales sand offtake agreement any time (assuming of course alls going well at AR).
Follow the money - George Stapleton (COO Petroteq) and Valkor both buying last week speaks volumes.
Petroteq should fly when they announce successful results of current trials. Ground breaking and first of its kind technology.
Tomco will follow but probably not as much initially (in time it will relative to its current low market cap, like Petroteq ).
Good luck all.
https://s3.amazonaws.com/content.stockpr.com/sec/0001567619-21-002239/0001567619-21-002239.pdf
back in 2012 and looking at this link Petroteq (then known as MCW - I see Jerry Bailey then CEO, and still today a director of PQE) didn't own the oil sands acreage they own today - so the oilsands then were supplied by a third party, TME - those sands were then processed by MCW (PQE) and then TME supplied the sands fracking industry under 5 year contract. So always been the potential for frac sands, but until now no commercial production meant no sand supplies - fingers crossed all change : )
https://www.desmogblog.com/2012/11/20/second-us-tar-sands-mine-owned-former-exxonmobil-and-chevron-exec-approved-utah
But they have currently said in RNS “ The Company is now working to develop sales channels for the frac sand and aggregate components of the tailings with a view towards maximizing the value of the clean sand tailings."
I cannot imagine that a contract entered into 9 years ago is still valid particularly as they have never produced any fracking sand in that timeline. Plus the local fracking industry/demand/landscape has substantially changed in last 2/3 years, never mind 9 years ago. Many oil cos using fracking methods have put a hold on production due to collapse in oil price and high costs associated.
Anyway expecting a new offtake agreement for frac and aggregate. Good.
Petroteq are in the process of signing up frac sand sales as per RNS below, so expect news soon on that from.
"The Company has recently completed an evaluation of the clean sand tailings that are a byproduct of the oil extraction process. It was determined that 60-70% of the sand falls within a 40-140 mesh size range and has a crush strength exceeding 8,000 psi, giving the sand an 8K crush factor and confirming that the sand is suitable for use as a frac sand. The 20% of tailings grading larger than 40 mesh can be used as an aggregate for concrete. The Company is now working to develop sales channels for the frac sand and aggregate components of the tailings with a view towards maximizing the value of the clean sand tailings." https://ir.petroteq.energy/press-releases/detail/369/petroteq-energy-announces-that-testing-of-the-sand-tailings
Petroteq have announced that they are in the process of negotiating frac sand contracts- so expect news imminently.
"The Company has recently completed an evaluation of the clean sand tailings that are a byproduct of the oil extraction process. It was determined that 60-70% of the sand falls within a 40-140 mesh size range and has a crush strength exceeding 8,000 psi, giving the sand an 8K crush factor and confirming that the sand is suitable for use as a frac sand. The 20% of tailings grading larger than 40 mesh can be used as an aggregate for concrete. The Company is now working to develop sales channels for the frac sand and aggregate components of the tailings with a view towards maximizing the value of the clean sand tailings."
https://ir.petroteq.energy/press-releases/detail/369/petroteq-energy-announces-that-testing-of-the-sand-tailings
Frac sands can sell upto $70 per ton locally. I barrel of oil produces 1.7 tonnes of sand. Do the maths - the above news was a game changer. If oil prices hang around at these levels the sand (as a by product) becomes more valuable as a business. Add the oil and the sand per barrel sale = $100+. Quite extraordinary really.
comment about site in here:
https://www.londonstockexchange.com/news-article/TOM/placing-to-raise-ps3-5-million/14756302
after all this is what $1.5M of the placing monies were for:
"Approximately £1.5 million will be retained by the Company with the intention that it is used, inter alia, to facilitate the securing of a site by Greenfield for the first proposed commercial 10,000 bopd plant using Petroteq's Oil Sands Technology pursuant to the Petroteq Licence. Once a suitable site has been identified, the Company intends on providing a loan to Greenfield, which will be on the same terms as the Loan, which will be used to secure the site."
CEO Potter has been in Utah for most of January (and we've seen him in the proactive video with the Steve Byle et al)
Does anybody think he might (by now) have possibly located a suitable location? This para below was buried in the November Placing RNS - he certainly has had enough time to have a proper look/see and progress. Tomco has never said the site would be on acreage owned, which in any event is mostly oilshale, not oilsands. Whatever they were looking at back in November has a verified resource and current permit which would accelerate Tomco plans (assuming the current trial is successful). Interesting indeed but see little comment on this.
"Whilst there is no certainty that it can be secured, a potential site in Uintah County, Utah, USA, has been identified by Greenfield that the Board believes has a number of key attributes that make it attractive. These attributes include, inter alia, the required infrastructure to enable construction to commence quickly, the required permits, and the land containing appropriate resources. Further announcements will be made in this regard as appropriate."
Petroteq volume has been pretty small over the few trading sessions - the spread has been wide (I have been buying).
The share issues have been going on for ages but not on particularly favourable terms - keep in mind that is those lenders who have got the company to where it is now. If the current trials are successfully, you'll have no worries about the Petroteq share price. No worries whatsoever. Let's see.
They need 600 barrels first - not any old barrels - they have said they are taking this slowly/fine tuning to get quality production - when that’s sorted Qfi get the sample. That’s fine much better for all involved.
The important aspect now is that they gave consistent and quality production - that is the thrust and objective of these current trials. MSAR production testing is very much secondary, it will happen in good time.
Steven Byle is the reason why I increased my Petroteq position in last couple of months. Now that George Stapleton has also bought in demonstrates that the technology is on the cusp of being signed off as commercial - boom time.
Follower the insiders, these guys are smart.
https://www.valkor.com/current_projects/
Yes he/Valkor own 45,000,000 shares in Petroteq: well over 10% of the company.
https://www.globenewswire.com/news-release/2020/07/20/2064319/0/en/Petroteq-Announces-Significant-Insider-Investment-and-Shares-for-Debt-Transactions.html
"The willingness of Valkor to accept partial payment in shares is a huge vote of confidence by a sophisticated and capable technical partner and the Company believes it is a validation of the potential of the Company’s extraction technology at the Asphalt Ridge, Utah facility.
“I have been working with Petroteq on their proprietary technology for a few years now, and my confidence in the platform and its capabilities have only grown. We look forward to completing the upgrade work and the design of the commercial scale plant over the next couple of months,” stated Steve Byle, CEO of Valkor Engineering.