Petroteq Energy signs licensing LOI with Netoil Dr. Vladimir Podlipskiy reports
PETROTEQ EXECUTES LOI FOR LICENSE AGREEMENTS
Petroteq Energy Inc. has entered into a binding letter of intent dated Aug. 2, 2022, with Netoil Inc., an oil company led by Roger Tamraz, an experienced hands-on operator and investor in the oil and gas industry.
Netoil and its team has more than 50 years of experience in creating, structuring and implementing major international projects in the fields of energy such as oil and gas fields and blocks, oil and gas pipelines, oil refineries, gas stations, and petrochemical plants.
Netoil contacted Petroteq to inquire about its innovative, cost-effective and efficient oil extraction and recovery technology.
Roger Tamraz, chairman of Netoil, commented: "The developments in energy policy, the search for alternative sources of oil, its extraction, less risky transportation routes and the realization by many countries of the need to become energy independent of certain regions, have created the conditions for an economically viable and environmentally friendly technology such as Petroteq's clean oil recovery technology (CORT)."
Netoil is in the process of establishing a special-purpose investment vehicle focusing on alternative production methods within the oil and gas industry, alongside carbon offsetting technologies.
Pursuant to the letter of intent, subject to the negotiation and execution of definitive licence agreements, Netoil would be granted two licences for Petroteq's CORT for use in Iraq and Libya. The consideration for each licence has been agreed to $6-million (U.S.) and a 5-per-cent royalty fee of the net production revenue. In addition, a minimum annual fee has been agreed to $1-million (U.S.) until the region is producing.
"We are honoured and excited about the opportunity of working together with Netoil and Mr. Roger Tamraz, who has enjoyed an extensive career in the oil industry, resulting in an amazing network of related businesses and opportunities," stated Dr. Vladimir Podlipskiy, PhD, Petroteq's chief technology officer and interim chief executive officer.
Additionally, qualified candidates for the position of chief executive officer and chief financial officer were identified by Petroteq and approved by TSX Venture Exchange. Petroteq is currently negotiating the employment agreement with the identified candidates. Once the terms of the agreement are finalized, the next step will be to get approval from Petroteq's potential buyer, Viston United Swiss AG.
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.
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 waste water, 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 sold or returned to the environment, without the use of tailings ponds or further remediation.
Completion of the transactions contemplated by the letter of intent are subject to, amongst other things, negotiation and execution of definitive licence agreements and applicable director, shareholder and regulatory approvals.