From November 28th, 2017 Article #2 Petroteq Energy Inc. (TSX:PQE.V; OTC:PQEFF)
Petroteq’s tech contribution is multifaceted. For starters, it’s pioneering a solution for cleaning up the dirty processing of oil sands that are slipping out of favor with the public. Petroteq’s proprietary Liquid Extraction System can extract oil from oil sands in a way that is not harmful to the environment, and all for a production cost expected to come in at $22 per barrel. The tech has demonstrated that it extracts over 99 percent of all hydrocarbons in the sand, generates zero greenhouse gases, and doesn’t require high temperatures or pressures—a new must-have for oil drillers who want to stay off climate activists’ radar. What’s more, the clean sand can then be re-sold as fracking or construction sand.
And Petroteq is not just working on using this tech for itself—it’s planning to license this one-of-a-kind advanced technology globally, paving the way for the extraction of over a trillion barrels of oil that currently sit in the sands in Utah, Colorado, and Wyoming—along with tens of trillions of barrels located elsewhere in the world.
Petroteq’s technology has the potential to generate millions in licensing fees around the world, and it is eyeing the opportunity to file patents in many countries with oil sands reserves.
Petroteq has rights to 87 million barrels of oil equivalent in Utah’s Asphalt Ridge, which it acquired for $10 million. It’s a heavy oil, but they’ve proven that they can extract oil from both the sands and the shale with the new tech. In 2015, Petroteq produced 10,000 barrels.
Since then, the modular plant has been moved even closer to oil resources and is now being reassembled. Permits are already in place, and new production is scheduled to launch in early 2018. The goal for 2019 is production of 5,000 bopd at a production cost as low as $18 per barrel. And there’s potential, says Petroteq, to achieve 30,000 bopd with proven reserves.
With one plant, Petroteq says it’s potential is $10 million a year in profit at today’s oil prices.
Demand is expected to be voracious for oil that comes in at a $20 discount to WTI. And that’s just the oil from a single plant. The projected netbacks are impressive:
So, while oil sands in Canada are prohibitively expensive to produce in today’s oil-price environment, Petroteq has found a way to produce in Utah for only $22 per barrel.
Petroteq, like Shell, is also working with blockchain technology. It is now in the process of signing an agreement with First Bitcoin Capital which specializes in crypto currency and blockchain development. The visionary small-cap intends to license the blockchain built by IBM and will use this to make it industry-specific, giving the entire spectrum of oil—from upstream to downstream—access to massive data.
Once the product is finished, the goal is to have a free open source blockchain for massive oil data, including everything from how much oil someone bought to how much they paid and how long it took to deliver, where it was drilled, how it was refined. Petroteq has already been busy courting major energy players on multiple continents to get involved.
Bitcoin might be worth over $7,000 per coin, but the real cryptocurrency is data—and this is a gold mine for the energy industry.
By February 2018, when production is scheduled to resume from the relocation of their modular facility, this company could be in investors’ spotlights.