WTI Price Paid for The First Truck Load Of Oil Produced After Restart of Operations
Petroteq Energy Inc. announced that its oil production at the Asphalt Ridge facility resumed, with the first truckload of oil sold at a price of US$70.91 per barrel. After transport costs, the net realized price was US$57.91 per barrel. Additionally, a sample of this oil will be sent to Quadrise Fuels for testing. The company is also partnering with a drilling fluids company to sell processed sand, projecting proceeds of US$15-20 per ton. These developments indicate a potential premium for their oil and a viable market for their clean sand product.
- First oil production sold at WTI pricing of US$70.91 per barrel.
- Net realized price of US$57.91 after transport costs.
- Testing of oil by Quadrise Fuels could enhance market opportunities.
- Potential revenue from sand sales estimated at US$15-20 per ton.
- Uncertainties around continued operations at Asphalt Ridge.
- Proprietary extraction technology remains unproven in commercial production.
Development of Sales Channels for Produced Sand Continues
SHERMAN OAKS, CA / ACCESSWIRE / June 17, 2021 / Petroteq Energy Inc. ("Petroteq" or the "Company") (TSXV:PQE; OTC PINK:PQEFF; FSE:PQCF), a company focused on the development and implementation of its proprietary oil-extraction technologies, is pleased to announce that the oil produced last week at Asphalt Ridge (the "POSP") Petroteq's oil sands facility was sold and collected by a buyer last Friday as expected. The buyer was only able to load 200.52 barrels of crude, owing to trucking weight limitations. The buyer paid West Texas Intermediate ("WTI") pricing of US
A sample of produced oil is also being prepared for shipment to Quadrise Fuels International Plc in the United Kingdom, for the purpose of assessing the suitability of the heavy sweet oil produced by the POSP for their MSARÒ technology. It is expected that this sample will leave the US before the end of June 2021, with testing taking place following arrival in the UK.
As previously announced, Petroteq and Greenfield are continuing to work with a local drilling fluids company to identify customers for the clean sand that results from the POSP for use as a potential frac sand. The fluids company has, to date, taken an initial 40 tons and it is expected that they will take the additional 700 tonnes of processed sand currently available, together with further sand as it is produced, over the coming weeks. The proceeds from the sale of sand are expected to be approximately US
George Stapleton, Petroteq COO, commented: "The fact that we were able to receive WTI pricing for the oil produced by the POSP demonstrates that the heavy, sweet (low sulfur) oil produced from Utah's tar sands will likely command a premium price relative to other heavy oils. There also appears to be a market for our produced sand, which is a bonus."
About Petroteq Energy Inc.
Petroteq 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. The versatile technology can be applied to both water-wet deposits and oil-wet deposits - outputting high-quality oil and clean sand.
Petroteq 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.
Forward-Looking Statements
Certain statements contained in this press release contain forward-looking statements within the meaning of the U.S. and Canadian securities laws. Words such as "may," "would," "could," "should," "potential," "will," "seek," "intend," "plan," "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Forward-looking information contained in this press release includes statements concerning the timing of when oil to be shipped to Quadrise will leave the US and when testing by Quadrise will commence, and the amount of clean sand expected to be purchased by a local drilling fluids company and the anticipated proceeds of such sales. Such statements reflect the Company's current views and intentions with respect to future events, based on information available to the Company, and are subject to certain risks, uncertainties and assumptions, including, without limitation, the Company and its partners having the resources and services available to continue and complete work on the POSP and operate it continuously. In addition, readers are cautioned that there is no certainty that the Company's extraction and processing technology will be commercially viable.
Material factors or assumptions were applied in providing forward-looking information. While forward-looking statements are based on data, assumptions and analyses that the Company believes are reasonable under the circumstances, whether actual results, performance or developments will meet the Company's expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of the Company to differ materially from its expectations. Certain of the "risk factors" that could cause actual results to differ materially from the Company's forward-looking statements in this press release include, without limitation: uncertainties around the ability of the Company to prepare and submit an updated, revised Notice of Intent that will be acceptable to Utah's Department of Oil, Gas and Mining before 1 July 2021, and thereby avoid a further shutdown of operations at the POSP; uncertainties inherent in the estimation of resources, including whether any reserves will ever be attributed to the Company's properties; since the Company's extraction technology is proprietary, is not widely used in the industry, and has not been used in consistent commercial production, the Company's bitumen resources are classified as a contingent resource because they are not currently considered to be commercially recoverable; full scale commercial production may engender public opposition; the Company cannot be certain that its bitumen resources will be economically producible and thus cannot be classified as proved or probable reserves in accordance with applicable securities laws; changes in laws or regulations; the ability to implement business strategies or to pursue business opportunities, whether for economic or other reasons; status of the world oil markets, oil prices and price volatility; oil pricing; state of capital markets and the ability of the Company to raise capital; litigation; the commercial and economic viability of the Company's oil sands hydrocarbon extraction technology, and other proprietary technologies developed or licensed by the Company or its subsidiaries, which currently are of an experimental nature and have not been used at full capacity for an extended period of time; reliance on suppliers, contractors, consultants and key personnel; the ability of the Company to maintain its mineral lease holdings; potential failure of the Company's business plans or model; the nature of oil and gas production and oil sands mining, extraction and production; uncertainties in exploration and drilling for oil, gas and other hydrocarbon bearing substances; unanticipated costs and expenses, availability of financing and other capital; potential damage to or destruction of property, loss of life and environmental damage; risks associated with compliance with environmental protection laws and regulations; uninsurable or uninsured risks; potential conflicts of interest of officers and directors; risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession; and other general economic, market and business conditions. Readers are encouraged to review the risk factors discussed or referred to in the Company's disclosure documents, filed with United States Securities and Exchange Commission and available at www.sec.gov (including, without limitation, its most recent annual report on Form 10-K under the Securities Exchange Act of 1934, as amended), and with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
Petroteq Energy Inc.
Alex Blyumkin
Executive Chairman
Tel: (800) 979-1897
SOURCE: Petroteq Energy Inc
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FAQ
What were the results of Petroteq's recent oil production at Asphalt Ridge?
What is the significance of the contract with Quadrise Fuels?
How much revenue is expected from the sand sales?
What challenges does Petroteq face moving forward?
