Petroteq to receive completed FEED study this week 2021-07-28 06:20 ET - News Release
Mr. George Stapleton reports
PETROTEQ ENERGY ANNOUNCES COMPLETION OF FEED STUDY FOR 5,000 BARREL PER DAY PLANT
The front-end engineering and design (FEED) study for a proposed 5,000-barrel-of-oil-per-day (bopd) production facility employing Petroteq Energy Inc.'s clean oil recovery technology (CORT) process has been completed by Crosstrails Engineering LLC and is expected to be delivered to Petroteq later this week. This FEED encompasses a production train capable of processing 5,000 bopd from mined oil sands ore. The company anticipates that this FEED can become the starting basis for future 5,000 bopd train designs for use in Utah by Petroteq and potentially by additional licensees in Utah, the United States and other locations worldwide. This standard design may need some customization for local site conditions and ore characteristics, but differences are expected to be minor. Third party certification of this standard CORT process train is also expected shortly.
TomCo Energy PLC announced on July 27, 2021, that Greenfield Energy LLC, TomCo's 50/50 joint venture with Valkor LLC, has now received the finalized FEED study for production facilities using the CORT process licensed from Petroteq, together with the associated third party technical verification report on the process, commissioned from Crosstrails and Kahuna Ventures LLC, respectively. The third party technical verification report by Kahuna indicated operating costs of approximately $22 (U.S.) per barrel of oil produced for a 5,000 bopd plant operating 24 hours a day and 360 days a year, before corporate costs, SG&A (selling, general and administrative) costs and royalty fees.
Greenfield has entered into a non-exclusive, multisite licence with Petroteq. For any oil sands plants built by Greenfield utilizing the Petroteq licence, a 5-per-cent royalty of net revenues received from oil products produced from oil sand resources will be payable by Greenfield to Petroteq. Other than this royalty, no further Petroteq licence fees are payable.
George Stapleton, Petroteq chief operating officer, commented: "The estimated operating cost of $22 per produced barrel of oil falls well within the $20 to $25 range previously estimated for a 5,000 bopd commercial plant and does not take into account the reduction in net operating costs per barrel attributable to the possible sale of produced sand. We are very pleased with the FEED study results and will now look to move forward on funding for a 5,000 bopd plant while also advancing licensing efforts with third parties."
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 minable oil deposits. The versatile technology can be applied to both water-wet deposits and oil-wet deposits -- outputting high-quality oil and clean sand.