Sky Quarry Announces Completion of 2024 CapEx Program for its Flagship Hydrocarbon Extraction Site, PR Spring

Rhea-AI Summary

Sky Quarry (NASDAQ: SKYQ) has completed its 2024 capital expenditure program for PR Spring, its flagship hydrocarbon extraction facility. The facility, built at a cost of $54 million under previous ownership, is designed to process up to 1 million tons of asphalt shingle waste annually and produce 2,000 barrels of oil per day.

The company has invested $7 million in critical equipment and engineering partnerships for the facility's retrofit. Located on nearly 6,000 acres, PR Spring holds an estimated 180 million barrels of hydrocarbon resources. A significant upgrade included replacing a trommel mill with proprietary vortex mixing tanks for the extraction process.

Expected to be commissioned in 2025, PR Spring will serve as a central hub connecting upstream and downstream operations, supplying crude oil to Sky Quarry's Foreland Refinery to enhance operational efficiency and profitability.

Positive

• Facility capable of processing 1 million tons of shingle waste annually
• Production capacity of 2,000 barrels of oil per day
• Access to 180 million barrels of hydrocarbon resources
• Strategic integration with Foreland Refinery for operational efficiency

Negative

• Additional $7 million capital expenditure required for facility retrofit
• Facility not operational until 2025

Insights

Energy Infrastructure Analyst

This capital expenditure completion marks a strategic milestone in Sky Quarry's waste-to-energy infrastructure development. The $7 million investment into PR Spring's retrofit, built on an existing $54 million facility, represents an efficient capital allocation strategy to create a first-of-its-kind integrated hydrocarbon recovery operation.

The facility's designed capacity of 2,000 barrels per day from 1 million tons of shingle waste annually could generate substantial revenue streams. With current oil prices, this could translate to approximately $55-60 million in annual revenue potential at full capacity. The 180 million barrels of hydrocarbon resources within the 6,000-acre property provides significant long-term operational runway.

The technical upgrade from trommel mills to proprietary vortex mixing tanks indicates a shift toward more efficient extraction technology. This vertical integration strategy - connecting extraction to the Foreland Refinery - should optimize margins by eliminating middleman costs and ensuring steady feedstock supply.

Environmental Technology Specialist

The implementation of proprietary vortex mixing technology for processing waste shingles represents a significant advancement in sustainable resource recovery. This circular economy approach addresses two critical environmental challenges: reducing construction waste in landfills and producing energy from recycled materials.

The facility's ability to process 1 million tons of shingle waste annually could significantly impact waste management economics. Traditional shingle disposal costs range from $25-40 per ton - meaning this facility could potentially save the construction industry $25-40 million in annual disposal costs while generating valuable energy products.

The dual-feedstock capability - processing both waste shingles and mineral lease resources - provides operational flexibility and risk mitigation. This hybrid approach ensures consistent production even if one feedstock stream experiences supply constraints.

Designed to Process 1 Million Tons of Shingle Waste and Produce 2,000 Barrels of Oil Daily

WOODS CROSS, Utah, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) ("Sky Quarry" or "the Company"), an integrated energy solutions company committed to revolutionizing the waste asphalt shingle recycling industry, today announced the successful completion of its 2024 capital expenditure program for PR Spring. This milestone advances Sky Quarry toward completing and commissioning its cornerstone facility, which will play a pivotal role in its waste-to-energy mission while driving future growth.

Capable of processing up to 1 million tons of asphalt shingle waste annually, PR Spring has a designed capacity to produce up to 2,000 barrels of oil per day. The facility will extract oil from both waste asphalt shingles and hydrocarbon resources within its permitted mineral leases on-site. Once retrofitting is completed, the facility is expected to be commissioned in 2025, making it the largest of its kind.

Sky Quarry has invested a total of $7 million, with the majority of this effort focused on procuring critical equipment and collaborating with engineering partners to advance the facility’s retrofit. Built at a cost of $54 million under previous ownership, the facility sits on nearly 6,000 acres of land and holds an estimated 180 million barrels of hydrocarbon resources.

A key achievement in the 2024 upgrade involved the removal of a massive trommel mill to make way for the installation of proprietary vortex mixing tanks. These tanks will serve as key components to the extraction process, responsible for the mixing and agitating the asphalt shingles and sand with the solvent.

Once commissioned, Sky Quarry expects the PR Spring facility to be a key driver in their fully integrated process, from extraction to refining, acting as the central hub that connects their upstream and downstream operations to ensure a reliable supply of base-blending liquid asphalt for their waste-to-energy initiatives. By supplying sustainably produced crude oil to The Company’s Foreland Refinery, the PR Spring facility will significantly boost production capacity, drive revenue growth, and contribute to the refinery’s long-term economic viability, thus enhancing both operational efficiency and profitability.

About Sky Quarry Inc.

Sky Quarry Inc. (NASDAQ: SKYQ) and its subsidiaries are, collectively, an oil production, refining, and a development-stage environmental remediation company formed to deploy technologies to facilitate the recycling of waste asphalt shingles and remediation of oil-saturated sands and soils. Our waste-to-energy mission is to repurpose and upcycle millions of tons of asphalt shingle waste, diverting them from landfills. By doing so, we can contribute to improved waste management, promote resource efficiency, conserve natural resources, and reduce environmental impact. For more information, please visit skyquarry.com.

Forward-Looking Statements

This press release may include ''forward-looking statements.'' All statements pertaining to our future financial and/or operating results, future events, or future developments may constitute forward-looking statements. The statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of our management, of which many are beyond our control. These are subject to a number of risks, uncertainties, and factors, including but not limited to those described in our disclosures. Should one or more of these risks or uncertainties materialize or should underlying expectations not occur or assumptions prove incorrect, actual results, performance, or our achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. We neither intend, nor assume any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. You are urged to carefully review and consider any cautionary statements and the Company’s other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the Company’s Form 1-A offering statement filed with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained.

Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
SKYQ@mzgroup.us
www.mzgroup.us

Investor Relations
Jennifer Standley
Director of Investor Relations
Ir@skyquarry.com

Company Website
https://investor.skyquarry.com/

FAQ

What is the production capacity of SKYQ's PR Spring facility?

Sky Quarry's PR Spring facility is designed to produce 2,000 barrels of oil per day and process 1 million tons of asphalt shingle waste annually.

How much did SKYQ invest in the PR Spring facility's 2024 capital expenditure program?

Sky Quarry invested $7 million in the 2024 capital expenditure program for PR Spring, focusing on critical equipment and engineering partnerships.

When will SKYQ's PR Spring facility become operational?

The PR Spring facility is expected to be commissioned in 2025 following the completion of retrofitting works.

What are the hydrocarbon resources available at SKYQ's PR Spring site?

The PR Spring facility sits on nearly 6,000 acres of land and holds an estimated 180 million barrels of hydrocarbon resources.

What technical improvements were made to SKYQ's PR Spring facility in 2024?

The facility underwent upgrades including the removal of a trommel mill and installation of proprietary vortex mixing tanks for the extraction process.