- Petroteq is strategically expanding its oil sands resource through the acquisition of operating rights and interests under U.S. federal oil and gas leases
- The agreement encompasses 8,480 gross acres in Utah; the new agreement and a previous one will give Petroteq 100 percent operating rights for oil sands development
- Expert estimates establish a significant oil/bitumen resource at both the Tar Sands Triangle and the P.R. Springs federal oil and gas leases
- The move is the latest step in what is seen as a potential revolution in the oil industry, using Petroteq’s patented technology to efficiently capture heavy oil that was not previously accessible
Petroteq Energy Inc. (TSX.V: PQE) (OTCQX: PQEFF), a fully integrated oil and gas company, announced on April 16, 2019, that it is executing a definitive agreement for the acquisition of an additional 50 percent of the operating rights and interests relating to oil sands in the state of Utah, under U.S. federal oil and gas leases.
The U.S. federal oil and gas leases encompass approximately 8,480 gross acres (4,240 net acres), the company said in a news release (http://ibn.fm/1YaWA). This acquisition, as well as the previous one carried out by Petroteq for 50 percent of the operating rights and interests under the same lease, will give the company 100 percent of the operating rights for oil sands development.
As per the acquisition terms and conditions, Petroteq’s wholly owned subsidiary, TMC Capital LLC, will acquire Petrollo LP Corp. – a Nevada corporation with an undivided 50 percent interest in the operating rights under a federal oil and gas lease located in P.R. Springs and five federal and oil gas leases located in the Tar Sands Triangle.
Under all of the leases, the operating rights include the right to explore for and produce bitumen and heavy oil from oil-impregnated bituminous sand formations.
According to Chapman Petroleum Engineering Ltd., estimates suggest that all of the operating rights interests acquired under the P.R. Springs lease will give Petroteq access to a gross contingent resource of 90 million barrels of mineable oil/bitumen. The arithmetic average after risk estimate is set at 40.77 million barrels of mineable bitumen/oil.
The remaining operating rights for the Tar Sands Triangle lease are estimated to contain 41.3 million barrels of in situ oil/bitumen. The arithmetic average after risk is 20.7 million barrels.
According to Petroteq CEO David Sealock, the acquisition is a part of the company’s oil sands acquisition strategy focused on the state of Utah and including federal leases that cover lands and areas deemed as special tar sand areas.
Petroteq is focused on the development and implementation of new proprietary technologies for oil extraction. The environmentally safe and sustainable approach for the extraction of heavy oil and bitumen from oil sands, shale and shallow oil deposits produces zero greenhouse emissions or waste and does not necessitate the use of high temperatures. The successful processing of oil from such deposits represents a potential revolution in the oil industry, much as fracking did before, and could represent a huge step forward.
As a part of its expansion strategy, Petroteq is currently focused on increasing its oil sand resources and expanding the company’s production capacity at the Asphalt Ridge heavy oil extraction facility. Crude oil processing at Asphalt Ridge started last year, and, recently, the company announced that it has achieved two weeks of continuous production using its proprietary technology at a benchmark level.
In the beginning of 2019, the Asphalt Ridge facility underwent an expansion aimed at increasing its production capacity to 1,000 barrels per day. Currently, the company is preparing to move the facility into the second stage of its production lifecycle, with an aim of reaching 4,000 barrels per day by the end of Q1 2020. Notably, permit approval has not been received as planned; it was expected in Q1 2019.
For more information, visit the company’s website at www.Petroteq.energy
NOTE TO INVESTORS: The latest news and updates relating to PQEFF are available in the company’s newsroom at http://ibn.fm/PQEFF
