Member Info for orslega

Zack $0.71 valuation.

Although they touch on sand as a by-product “The incremental revenue received from the sale of the clean sand tailings would increase the netbacks per barrel of oil produced” - this is NOT reflected in the $0.71 valuation.

It will make a very big difference to the valuation. Receiving an expected additional $15-$20 per ton for sand as per 17/6/2021 RNS is a biggy.

Zack will need to revise his target once offtake agreements announced.

https://s27.q4cdn.com/906368049/files/News/2021/Zacks_SCR_Research_06302021_PQEFF_Ralston.pdf

Unfortunately this is typically AIM - directors issue shed loads of options before big news.

Joe - unfortunately that is not fact and not what the company said in their interim report today - otherwise they would have said precisely that.

It is of no concern to me. DYOR is best approach.

Well I read this that they will not be able to debt finance the whole project - so they will need shareholders to dip in. The real question is, how much?

Personally I happy to watch and see - my main interest is Petroteq and this will become very interesting when Uppgard open up their offer (expect at higher price) to USA and Canada shareholders. There they are under the scrutiny of SEC as full reporting required from the day they issue their revised offer. When that happens I expect Petroteq to rocket. Until now Europeans shareholders have no real protection or recourse on the current offer (tactics of a hostile bid). Very different when the SEC get involved.

"...........we envisage that Greenfield would require funding in excess of US$110 million for the construction of the first plant, the vast majority of which it would seek to finance by way of debt..."

So this confirms that there will a placing to raise some of the capital needed. The question is how much..........

Screwed.

However as world first technology it won’t be shelved. Phew.

This increasingly looks a real offer now.

Clearly at $0.71 Canadian they recognise that is too low.

Expecting an increased offer on their next update. It is clear whoever is behind this offer that they are not going away.

Easy money to make on Petroteq shares right now. Minimum 3-4 based on the 0.71 low ball offer. Money for nothing.

Watch the market this afternoon, many will be jumping on. Very good.

Good explanation helpful for those clearly confused.

“PQE has confirmed that the output contains about 5% solvent. Solvent is not added subsequent to the extraction process, it is part and parcel of the process.”

And that is why the Petroteq technology is going to be so valuable.

Great update just issued:

https://ir.petroteq.com/news-presentations/press-releases/detail/381/wti-price-paid-for-the-first-truck-load-of-oil-produced

The clear uncertainty is probably timescale and funding. Circa $180M+ site costs etc if dd all good, is no small sum.

Plus as someone says there are still a large number of placing shares looking to exit. Usual risk and ****e AIM.

Timing and exit is everything in this game. Hey ho.

Recent RNS - 1/6/2021 - now plant upgrades and oil being produced:

“All proceeds from the sale of oil and sand will be retained in Greenfield.”

Important wording- this does not say this is Greenfields income, but says it is being “retained”. Subtle but clear that this ordinarily is not their income entitlement otherwise the wording would be very different.

The consensus view of those closer is that this is effectively an escrow account - given that the plant improvements cost a good deal more than $2M then as sales now start Greenfield can recover additional costs over the previously agreed $2M.

Under the agreement with Petroteq, Greenfield manage the plant for which they will receive a fee for doing so. But they are not entitled to the sales income. Petroteq plan to build a 5K plant on their Asphalt Ridge acreage so Greenfield get a fee for managing. Normal commrecital arrangements.

Some think that as Crown site ore is being used that this belongs to Greenfield- at this point it doesn’t - yes they have an option to purchase an interest site subject to dd. The ore is being used to test, prove up the plant etc Yes partly also to be satisfy the dd for Crown site but first and foremost to prove that the technology works. Note they are also using ore from Asphalt Ridge in current operations.

Hope this helps.

Greenfield is the 50:50 JV between Tomco and Valkor.

Greenfield specific task was to takeover the running of the plant but in particular implementation plant improvements- read this:

https://www.globenewswire.com/news-release/2020/07/02/2056880/0/en/Petroteq-Announces-Management-and-Operations-at-Asphalt-Ridge-Facility-to-be-Taken-Over-by-Valkor-LLC-s-Newly-Established-Joint-Venture-With-TomCo-Energy-PLC-Greenfield-Energy-LLC.html

In the 24/9/2020 RNS is states:

“In accordance with the work order and the Greenfield JV agreement, Valkor personnel will remain on site during the start-up of the POSP and, once operational, will continue to manage the plant in favour of Petroteq .”

Prior to the formation of the JV, Valkor had signed up for in 2019 Petroteq licence for $2M payment in two instalments.

https://www.globenewswire.com/en/news-release/2019/07/02/1877278/0/en/Petroteq-Announces-Technology-Licensing-Agreement.html

Then in November 2020 Tomco raised 3.5M. $2M for plant upgrades on behalf of Petroteq - effectively meeting the $2M Valkor licensing payment they signed up for (likely that Valkor original license assigned to Greenfield). From Nov 2020 RNS:

“The Petroteq Licence

In order to provide Greenfield with access to Petroteq's Oil Sands Technology and to enable it to be utilised in future commercial scale oil sands plants to be developed by Greenfield, Greenfield has entered into a new non-exclusive multi-site licence with Petroteq. The Petroteq Licence has been granted in consideration for the funding that Greenfield has provided to date in respect of the upgrades to the POSP, being US$1.5 million, and a further US$0.5 million to be invested by Greenfield into the POSP.
This is an important step for Greenfield as it allows 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 to be built by Greenfield in the United States. The Petroteq Licence also clarifies the ownership of any IP developed as a result of the POSP upgrade and associated trials or otherwise developed by Greenfield in the future. Any such IP will be the property of Petroteq and pursuant to the Licence, Petroteq will grant Greenfield the ability to utilise such IP, together with any additional IP developed by Petroteq, in accordance with the terms of the Licence.”

Interim measure only - Greenfield will have overrun on the plant engineering costs - so this is a financial adjustment between them.

Petroteq owns the right to all oil and sale sands, Greenfield are the operator.

https://ir.petroteq.com/news-presentations/press-releases/detail/380/petroteq-energy-announces-initial-load-of-sales-oil-has

Meant to add Tomco must be confident on the dd (they will no more about the FEED etc etc) - as they have paid a non refundable deposit of $200K.

For me the big and clear message in todays RNS is that Petroteq technology works! First large scale plant is planned. Very good.

Uppgard Konsult AG will now have to reconsider their offer to Petroteq shareholders. Even better.

Tomco will be fine assuming no major issues on their due-diligence (I expect most of that has already happened). Clearly the financing (big number) and time line to first production is spooking some. It would not surprise me that some have shifted their money to Petroteq (I know some who have) given the bid situation - potentially some very easy money. Anyway, each to their own.

Joe, the $2M has spent on the Petroteq plant upgrade. In accounting terms money may be owed by Greenfield to Tomco but this will have to come from future revenues or funding.

By the way although Greenfield is currently receiving of the benefit of revenue from oils sales - this is only temporary - probably because there was an overspend on the plant, so this is a temporary cash adjustment between Petroteq and Greenfield. All oil sales from Asphalt Ridge belong to Petroteq and Greenfield receive the benefit of a management charge for running the plant.

Someone mentioned earlier 250 bopd is Greenfield's revenue. Simply not correct and is mis-leading.

Funday tomorrow with Petroteq- the offerer has been sending out legal SPAs on Friday, many have been issued - I’ve seen some and also they have been chasing shareholders not decided about 0.71 Canadian offer (3.5 times Friday closing). I’ve told them offer materially undervalues.

Petroteq shorts closing tomorrow- watch.

Tomco in the slip stream.

Should be available sometime after 9am today : )