Petroteq Energy Inc. Stock Symbol” (OTC PINK:PQEFF) an integrated oil company focused on the development and implementation of its proprietary oil-extraction technologies, today announced that Greenfield Energy LLC (“Greenfield”) has executed a non-exclusive, multi-site license with Petroteq (the “License”). Pursuant to the terms of the License, the License has been granted in consideration for the funding that Greenfield has provided to date in respect of the upgrades to Petroteq’s existing oil sands plant at Asphalt Ridge, Utah (the “POSP”) being US$1,500,000, and a further US$500,000 to be invested by Greenfield into the POSP within 20 days. Greenfield is a 50/50 joint venture between TomCo Energy plc (AIM: TOM) (“TomCo”) and Valkor LLC (“Valkor”).
The License will allow Greenfield to use Petroteq’s oil sands technology, which includes PQEFF’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.
As announced by TomCo on September 16, 2020, the board of TomCo believes that the Pre-FEED (Front-End Engineering and Design) Report prepared by Crosstrails Engineering LLC, a subsidiary of Valkor, provides a high level of confidence that the processes being utilised at the POSP can be scaled up to enable commercial production of 10,000 barrels of oil per day (“bopd”) from a single site. Proof of commerciality though is subject to the successful completion of the upgrade works to the POSP, that are currently being completed prior to its restart, and the associated trials to demonstrate the commerciality of the processes used in Petroteq’s Clean Oil Recovery Technology (“CORT”) process and the identification and securing of a suitable site for a commercial scale plant. Greenfield believes that a combination of the License and know how being developed through the POSP upgrades and associated trials, may put Greenfield in a position to develop its own commercial scale oil sands plant, subject to securing a suitable location and funding.
Work is being undertaken by Greenfield pursuant to the work order originally between Valkor and Petroteq that has been assigned to Greenfield, under which Greenfield has taken over the management and operations of the POSP. Work to upgrade the capacity and improve the reliability of the POSP is progressing as planned, with the restart of the POSP expected the week of November 30, 2020. Once the POSP has been restarted, Petroteq intends to undertake a series of associated tests and trials, to be verified by an independent third party, to demonstrate both the commerciality of the CORT process and validate the proposed design for the commercial scale plant, thereby enabling Greenfield to move forward with the final FEED report for a 10,000 bopd plant.
In addition, following the restart of the POSP, Greenfield intends to start working with Quadrise, regarding a trial of Quadrise’s MSAR® technology at the POSP. This will initially comprise the supply of oil samples produced by the POSP to Quadrise to enable them to undertake test work in the United Kingdom to finalise the required MSAR® formulations, before the planned on-site demonstration trial to produce approximately 600 barrels (100 tonnes) of MSAR® which is intended to be undertaken during Q1 2021.
George Stapleton, Petroteq’s COO, commented “We appreciate the confidence shown by Greenfield in Petroteq’s CORT process for the extraction of heavy oil from oil sands and look forward to supporting the FEED and detailed design for Greenfield’s proposed initial 10,000 bopd facility. We are hopeful that once the commerciality of the CORT Process has been independently verified, Petroteq will be in a position to license its oil sands technology to other operators.”
About Petroteq Energy Inc.
PQEFF is a clean technology company focused on the development, implementation and licensing of a patented, environmentally safe and sustainable technology for the extraction and reclamation of heavy oil and bitumen from oil sands and mineable oil deposits. Petroteq is currently focused on developing its oil sands resources at Asphalt Ridge and upgrading production capacity at its heavy oil extraction facility located near Vernal, Utah.
PQEFF believes that its technology can produce a relatively sweet heavy crude oil from deposits of oil sands at Asphalt Ridge without requiring the use of water, and therefore without generating wastewater which would otherwise require the use of other treatment or disposal facilities which could be harmful to the environment. Petroteq’s process is intended to be a more environmentally friendly extraction technology that leaves clean residual sand that can be returned to the environment, without the use of tailings ponds or further remediation.
For more information, visit www.Petroteq.energy.
Company Name: Petroteq Energy Inc
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