- Patented extraction technology is cleaner and more cost effective than existing processes
- Petroteq focusing on huge oil sands reserves in Utah
- Current production capacity of Utah plant is 1,000 bpd
- Construction of new 5,000 bpd plant in Utah scheduled to start in 2019
Petroteq Energy Inc. (TSX.V: PQE) (OTCQX: PQEFF) has developed patented clean technology for the extraction of oil from sands and shale, which disrupts existing processes. Traditional extraction processes damage the environment, require substantial capital investment and leave vast tailing ponds which take years to reclaim. Petroteq’s proprietary solution is cost effective, produces no greenhouse gases, leaves no waste and provides significantly better economies of scale through modular expansion. To date, the company’s oil sands extraction technology has been awarded two patents in the United States and Canada.
Petroteq’s innovative technology involves mixing crushed raw oil sands with a solvent to extract bitumen oil. In the first stage of the process, raw ore is mixed with solvent in a feed bin before being transported to a mill. The mill crushes the ore to facilitate better dissolution of the oil in the solvent. This mixture is agitated into a fluid before being pumped into an extraction column to remove solids from the oil/solvent mixture. The remaining fluid is pumped to a distillation column which uses heat to separate the solvent from the oil. Evaporated solvent is condensed and recycled to the feed bin for reuse, while the final bitumen oil product is pumped to a storage tank.
Petroteq’s production focus is on its heavy oil extraction plant in Asphalt Ridge, Utah. The company holds a mineral lease that covers more than 3,000 acres with oil sands reserves estimated at 87 million barrels of oil equivalent. Petroteq has recently expanded the production capacity of its Asphalt Ridge plant from 250 to 1,000 barrels per day (bpd) by debottlenecking the facility and deploying its innovative oil sands extraction technology. The company has the capability to further increase the capacity of this plant in the future through the use of its cost-effective, modular and scalable technology, with netback margins anticipated to average between $15 and $20 per barrel. This resource has a projected life expectancy of 25 to 30 years.
The company’s focus on Utah for expansion is fully justified, based on the fact that the state contains approximately 55 percent of the total oil sands deposits in America. These deposits hold a total oil resource of over 30 billion barrels. Petroteq has plans in the pipeline to build a new and larger capacity plant on its Temple Mountain lease in Utah that will produce 5,000 barrels per day, with an anticipated EBITDA of $39.6 million per year. The construction of this plant is scheduled to start in 2019, requiring an estimated capex of $40 million.
Petroteq is currently developing a blockchain-based supply chain management platform called PetroBloq. This will be a world first in the oil and gas industry and will use smart contracts and distributed ledgers to improve supply chain efficiency and automate transactions. This blockchain technology platform will also be used to support the company’s production endeavors. It has the potential to reduce costs and save time, while improving the efficiency, transparency and security of transactions for both production processes and expansion projects.
For more information, visit the company’s website at www.Petroteq.energy
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