Petroteq Energy Announces Offtake Agreement With Firebird Logistics for 100% of Production From Its Utah Heavy Oil Extraction Facility
March 06, 2018 08:00 ET | Source: Petroteq Energy Inc.
STUDIO CITY, CA, March 06, 2018 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. (“Petroteq” or the “Company”) (TSXV: PQE; OTCQX: PQEFF; Frankfurt: A2DYWC), a company focused on the development and implementation of proprietary technologies for the energy industry, today announced that it has entered into a six-month agreement with Firebird Logistics LLC (“Firebird”), for 100% of Petroteq’s production from its heavy oil extraction facility in Asphalt Ridge, Utah. Firebird is a regional provider of transportation and distribution services, and this agreement gives Petroteq access to multiple refineries in the region.
Petroteq has successfully completed testing of all major process systems at the facility and is undergoing test runs of the utility system in preparation for the launch of commercial production.
The agreement shall continue on a month-to-month basis following the initial six-month term. The monthly price shall be the calendar day average of the NYMEX settlement price for West Texas Intermediate Light Sweet Crude Oil, less $6.50 per barrel and adjusted for basic sediment and water (BS&W).
“Petroteq's oil from its oil sands is a high quality heavy crude oil with low sulfur content, low heavy metal content and no waxes or paraffins,” said Donavan Cameron, Firebird’s President. “With high concentrations of the very valuable diesel fraction hydrocarbons and aromatic hydrocarbons, the quality of Petroteq’s oil meets all refineries’ specifications and quality requirements.”
Firebird has access to Andeavor Logistics’ Rockies South Pipeline, a 66-mile long pipeline located in Redwash, Utah, about 40 miles from Petroteq’s Asphalt Ridge facility. This pipeline is used to transfer hydrocarbons directly to refinery facilities, and major corporations including Chevron, Plains All American, Sinclair and Andeavor (formerly Tesoro) who purchase local production and use this pipeline for transport. The total daily crude oil refinery processing volume in Utah exceeds 100,000 barrels.
“This critical offtake agreement enables Petroteq to focus on 24/7 uninterrupted production cycles and developing continuous growth of our production capacity,” said Petroteq CEO, Alex Blyumkin. “This agreement maximizes our flexibility and our price leverage by diversifying customers among all local refineries.”
