- Oil
extraction to begin at 1,000 barrels per day, with plans to escalate to
over 8,000 barrels per day within three years
- Acquisition
brings company’s total contingent resources to 2,541 leased acres and
87.49 million barrels of mineable oil sands
- Extraction
technology could play vital role in U.S. oil sands and shale industry
- Application
for Tax Credit Initiative filed with Utah Governor’s Office of Energy
Development
Fully integrated oil and gas company Petroteq Energy Inc.
(TSX.V: PQE) (OTC: PQEFF) is boosting its footprint within the Utah Oil Sands
Region where the company’s Asphalt Ridge facility is located, CEO David Sealock
stated in a recent news release (http://ibn.fm/B5Ihl). The company has signed a letter of
intent to pursue additional acreage and resources within the state from Mareton
Alliance LP, meeting a key initiative that Petroteq has been pursuing this
year.
“I know that our valuation will be driven by our production
and technology, as well as our assets in the ground,” Sealock stated in the
update. “The discussions with Mareton Alliance have the potential to
significantly increase the resource assets on our balance sheet.”
Petroteq has been developing its United States- and
Canada-patented technology at the Asphalt Ridge site with the aim of finalizing
a process that boosts North American oil production through the distillation of
oil-rich sands. The emphasis on environmental impact has created a process that
is cost effective, produces no greenhouse gases and leaves no waste once the
“cleaned up” sands are returned to the ground and the proprietary solvent
solution involved in the extraction is recycled. Petroteq announced in June
that it was on track to initiate operations in the second quarter of 2018, and
the full financial benefit of 1,000 bbl/d production is on track to be realized
in the second half of 2018, a NetworkNewsWire article states (http://ibn.fm/tqW5O).
While the pricing and structure of the transaction with
Mareton Alliance have yet to be finalized, Petroteq management is confident
that an attractive transaction can be structured to meet all of the criteria
set by the company’s management and board of directors. The letter of intent is
non-binding, and the transaction contemplated is subject to board and exchange
approval.
Petroteq has also filed an application with the Utah
Governor’s Office for the Alternative Energy Development Initiative, part of
Utah’s Energy Action Plan. The incentive represents a 75 percent tax reduction
on new revenues, including corporate, sales and withholding taxes for 20 years
or the life of the project, whichever is less (http://ibn.fm/DuiYz).
“We have known Utah to be extremely collaborative and
committed to its ‘energy action plan’ and this is just more positive evidence
in support of that,” Sealock stated in a news release. “We have spent millions
on developing our project, and we will look for opportunities to strategically
achieve targeted projects for our technology to spend many millions more in
business development, rural job creation and workforce development in the
energy mining sector as we expand our footprint in what we believe will become
the fastest growing energy market in the U.S.”
Petroteq’s focus on the development and implementation of
proprietary technologies for the energy industry was recently featured on the
front page of the local newspaper, the Vernal Express. The article, titled
“Petroteq Looks to Change the Game in Oil Extraction,” centered on Petroteq’s
Asphalt Ridge heavy oil extraction facility located near the town of Vernal and
its progress toward an August production date.
“We are grateful to be making a positive impact in Vernal
and the surrounding communities by bringing jobs and utilizing small local
businesses as vendors in the process of our plants commissioning,” Sealock
added (http://ibn.fm/PslKE).
Chairman Alex Blyumkin stated, “The fact that some of our
contractors are veterans of the United States Armed Forces goes to further
expand on our company slogan ‘American Oil for America’ while providing opportunities
to those willing to make the ultimate sacrifice in protecting the freedom and
opportunities enjoyed by individuals and entities in the United States.”
Petroteq’s commitment to creating a positive,
nature-friendly environment from which all will benefit is a core company
value.
For more information, visit the company’s website at www.Petroteq.energy
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