RE:Is PQE for real? Druchci, There is not much chat on the PQE sites, think a lot of the investors are a but jaded by the current share price and the constant dilutive equity for debt conversions that get regularly announced. On a positive note it now appears that the debt conversion has all been to Valkor/ Steve Byle who is the key partner in Greenfields.
My understanding is that it has been a problem extracting the Utah oilsands truly profitable/ sustainable against other energy sources. The PQE POSP extraction method does provide a greener and cleaner method of extrating oil with no massive water use and leaves a clean builders sand by product that can be sold at circa $70/ ton. That obviously helps the economics. What is produced is a
very heavy crude, probably in the API 8-14 range (super-heavy crude/bitumen); in order to control the viscosity of the product, Petroteq selectively leave certain of these solvents in the finished/upgraded crude product. In effect they send these chemicals back to the refinery they purchased the chemicals from in order to be viscous enough to ship the oil for refining.
The key to the Greenfields/Valkor strategy is to bolt the Quadrise MSAR emulsion fuel onto the end of the exstraction process. This will add 30% water and surfactants to the crude/bitumen and allow the chemicals PQE would have otherwise shipped back to the refinery to be extracted and recycled for further extraction. The Quadrise MSAR synthetic HFO that will come off the end of the line is able to be used to directly power their own operations, sold directly to end users in local industry, and as the Utah oil is low sulphur will also compy with IMO2020 marine fuel applications.
For a detailed read on the potential economics of the Utah/Quadrise opportunity read further here. https://quorumzine.gitlab.io/quorum/content/2020/07/20/quadrise-msar-asphalt-ridge-analysis.html
Once Greenfields can prove the POSP initial testing period and sustainable production levels the Greenfields proposed new scaled up 10,000bopd plant will cost @$185m to build.10k bopd is circa (allowing for maintenance downtime) circa 3.5m barrels a year. With a low sulphur synthetic fuel end product that matches WTI pricing and needs no middle man refining they can recoup the cost of the facility in under a year.
Greenfield will own the rights and the tech incl the license for MSAR (in Utah) and can issue this license to multiple sites in Utah. Then think globally.
Where this gets even more interesting is Quadrise have just announced success in launching a bioMSAR adding 40-50% glycerol to the process that reduces C02 by 20-30% in addition to the 30% nox and sox reductions standard MSAR provides. Bolt that on to the end of the proposed Greenfield sites and you can double the output. And this is a cleaner and greener fuel so ticks all the boxes for marine shipping, powwer stations and industrial companies for use a transition fuel until green sustainable energy replaces fossil fuels.
Quadrise have also just announced a JDA with MSC, soon to be the largest container shipper with 350 vessels, to test MSAR and bioMSAR on multiple vessels with a view on success of the trail to launch commercually across the MSC fleet. And now Utah provides an opportunity for a low sulphur MSAR/bioMSAR stream. The trial will be to prove the logistics and bunkering, we already know MSAR works as a cleaner burning, lower cost alternative to marine fuel oil and HFO. If MSC adopt this so will the rest of the global fleet, thats a huge market.
Quadrise are also half way through a commercial trial with a global phosphate producer in Moriocco which should complete by H221, and have been in discussions with power stations and refineries in KSA, Kuwait, Mexico and Equador. All of these potential markets may well open up once the first production of MSAR commences for Morocco and in Utah.
Back to - they PQE will get a $5m payment per plus new production facility and a 5% royalty stream. That is a very bright future if Utah oil sands become profitable via a scaleable and repeated licensing model of this extraction method. So yes, the SP is currently low, much like Quadrise it appears to be priced to fail, but the potential is there for massive multiples of the current price.
There is a lot of good chat on both QFI and Tomco (the other UK partner with Valkor on Greenfields on the LSE chat sites. There is a lot of excitement on the UK side of the water about this development in Utah.
I would also highly recommend joining the Quadrise shareholders forum on Tapatalk. This is a private /moderated site. You will get a very high level of analysis and comment on the Greenfields/PQE progress as things unfold over the next year and half which could prove to be an incredible period in the life of PQE and Quadrise.
Hope the above raises your interest. It is a huge opportunity, but there is risk, PQE and Greenfields will need to raise funds, but could conceivably do this via financing rather than share dilution. Tomco, the UK partner with Valkor do not have a great record of looking after shareholders interests, and on the face of it neither do PQE. Quadrise also need to raise funds but have a very loyal indpendent shareholder base so should have no issues. I think funding will look after itself as the output compared to the return is a no brainer.