MMEX Resources Corp (MMEX)

[jmjjw]

Setting bad math aside, more flawed thinking about MMEX.

MMEX's proposed Phase I rudimentary topping system has a name-plate rating of 10K bpd. The key thought is "name-plate rating."

That figure is based on maximum through-put, under idealized circumstances, in continuous operation, without faults, cessation in operations due to maintenance cycle, or other real-world considerations.

A unit rarely achieves its name-plate throughput, even for a qualified, experienced operator.

MMEX, lacking any experience, or understanding, commissioned an unknown, suspect firm, VFuels, to design a plant with no possibility of stable operation in real-world circumstances - and then had this unit permitted for its TCEQ Type O AQP - that will be all it can operate, and there is no means of amending the permit. As is, the unit as permitted operates at the edge of what can be permitted by the PBR process.

The proposed unit is single stream, lacks a desalter, and other critical features, which guarantees it would operate well below the name-plate rating.

And by the way, as has been established by MMEX's own filing, and other materials, the proposed unit could not produce "diesel" - it can only produce ATB (atmospheric residuum), AGO, and LGO, none of which have any direct market.

Pilot Thomas would have to acquire, and operate a separate tanker fleet, separate storage, and separate distribution facilities for any AGO it might obtain from MMEX - otherwise, it would contaminate Pilot Thomas's "legal" ULSD handling/storage systems. There is no business in that.

Also note, the claimed "agreement" exists only in MMEX self-generated, self-referential PR - there is no independent, corroborating record of anyone at Pilot Thomas commemorating the "agreement" with MMEX.

That is 176,200 gallons per day and wholesale prices for #2 diesel is around $2 per gallon and climbing. You do the math.