Thursday, December 05, 2019 3:25:01 PM
"Whilst the Company's focus has been on advancing TurboShale's RF technology, the Company has also continued to explore other opportunities for the Groups oil shale leases within the Uintah Basin, Utah, USA ("Leases").
The Company is therefore pleased to announce that it is has entered into a non-binding memorandum of understanding ("MoU") with Valkor LLC ("Valkor") pursuant to which the Company and Valkor will explore the oil/tar sands potential across the Leases. Valkor is an international Engineering, Procurement, Construction and Installation ("EPCI") and field operations company, with operations in the US, South America and Africa both on and offshore and the owner and operator of gas and oil fields in Trinidad, USA, Turkey and the Ukraine. Through their subsidiary, Valkor Energy Services, they have assisted with the design improvements of Petroteq Energy Inc's ("Petroteq") closed loop system for use in the recovery of oil from oil sands over the last 18 months and this will bring valuable experience and knowledge to TomCo in looking at the oil/tar sand opportunity across its Leases.
Under the MoU, the parties shall seek to agree the scope of a study, to be undertaken by a suitably qualified third party and managed by Valkor, on at least one of the Leases, to determine the location of any oil/tar sands, the potential quantum available to be recovered together with a plan for the mining and processing of any such oil/tar sands. Subject to the findings of the study, Valkor shall also undertake an engineering study to determine the location for a proposed facility, preliminary plant design and economic analysis for the development of a 3,000 barrels of oil per day system from oil/tar sands on the Group's leases."
According to the Pertoteq licensing agreement with Valkor, “Valkor will pay Petroteq a five percent (5%) royalty based on annual gross sales, excluding solvent and or water”. Five percent of 3000 barrels is 150 barrels. At $55.00 a barrel, that is $8,250.00 per day, or $3,011,250.00 per year. In addition, “Valkor has agreed to pay Petroteq a non-refundable license fee of US$2 million per Plant in two payments, with 50% payable upon start of construction of a Plant and 50% payable upon first production of such Plant”.
Last week I saw an article on MSN Money that was published in the latest edition of Chemical Engineering magazine. It was titled “Solvent Chemistry Is Key For Cleaner Oil-Sands Processing”. The article is about Petroteq's proprietary technology at Asphalt Ridge.
In Oct this year I visited the facility again. They had made many additions and improvements since my last visit and again I was impressed. At that time they were concentrating on the quality of the oil as opposed to quantity. But, I had them dip a sample out of the holding tank just so I could see the actual oil with my own eyes. I saw it! They have since achieved the low Sulphur content and now they are working on increased quantity. My estimate is the break even point should be around the 1000 bpd, but I am told that with the licensing income the break even point drops to 480 bpd. The cost per barrel will also drop with the quantity increasing to 4000 bpd.
I don't think there will be a significant increase in share price until there is a full quarter of 1000 bpd production, and that won't be reflected in the financial reports until 1Q 2020. The report should be out in Apr or May, 2020.
I must say that if this is a scam, it is a very elaborate one.
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM