Petroteq18 Oct 2018 20:42
Old news - May 2018 - extract from accounts. Observation - you don't spend $19M not to get your "clean air" licences. News must be very soon. They have been playing it safe with the greenies.
Oil Sands Exploration and Production Plant
In June 2011, PQE commenced the development of an oil sands extraction facility on the Lease at Maeser, Utah and entered into construction and equipment fabrication contracts for this purpose. By January 2014 the initial facility was fully permitted and construction was completed by October 1, 2014. This was a pilot plant with the production capacity of up to 250 barrels per day. The Extraction Technology has been tested at full capacity. During 2015, the plant produced 10,000 barrels of oil from the local oil sands ore in the Asphalt Ridge including PQE’s own Temple Mountain oil sands deposit. Most of the produced oil was sold to oil and gas distributors, or refineries. The initial processing plant was flexible in that it had the ability to produce both high quality heavy crude oil as well as the lighter oil if needed.
In 2016 when oil prices fell to very low levels, PQE determined that the transportation costs of hauling the ore from the mining site to the production facility was having a detrimental effect on the economics of the extraction operation and temporarily suspended operations.
In 2017, the plant was disassembled and moved from the Maeser, Utah to the Temple Mountain mining site and is currently being rebuilt at that location. During the current reassembly of the facility, additional equipment is being installed to increase the capacity of the plant from 250 barrels per day to 1,000 barrels per day. PQE anticipates that the new production plant will restart operations and produce heavy crude oil from the Temple Mountain oil sands deposits during the end of March 2018. Management’s current estimate of the total cost of the facility, including the expansion of the production capacity of the facility, exclusive of capitalized borrowing costs and lease costs, is between $18 million and $19 million.
PQE also owns the intellectual property rights to a patent-pending process (the “Extraction Technology”) of extracting oil from oil sands utilizing a closed-loop solvent based extraction system, as more completely described below.
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