Replies to post #100342 on MMEX Resources Corp (MMEX)

[CEOs]

Precisely. Plus, there are companies which specialize in supplying office goods and maintenance materials that drive trucks to the site to sell. Plus, consignment on site is also a possibility.

I’ve worked in many remote sites. It all gets done.

The mmex site isn’t even “remotely” remote. Lmao

[jmjjw]

MMEX doesn't understand the sector, or regulations within the sector, that affect the market for intermediate stream hydrocarbons.

AGO (aka. "straight run diesel") has no direct use in the market; it cannot be combusted in any fuel application, stationary, off, or on-road. AGO is not used in frack fluid make-up - that requires a special UIC from the Railroad Commission of Texas (RCT regulates O&G production), and it would be suicide for any operator/service provider to use AGO as frac fluid make-up.

The sole possible application is in HOBM - again, there are synthetic, soy-based alternatives that are superior, less costly, less toxic to handle and dispose of, and with fewer regulatory constraints. HOBM is not used in the Permian, no legitimate services company would go that route. As has been established factually, many times, the "straight run diesel" can't be used for fuel, can't be used for frack fluid make-up, or for drilling mud make-up.

Further, a company like Pilot Thomas, a distributor, would have to have a separate tanker fleet, separate storage, and separate distribution mechanism to handle AGO - otherwise its fuel-grade ULSD would be contaminated with sulphur from the AGO. There is no way to transport, store, or distribute AGO in the region (or state for that matter).

MMEX's location has no nearby crude transmission lines, and no nearby refined products pipelines. All feedstock would have to be either trucked in, or hauled in by rail, and all intermediate stream "product" would have to be hauled out by truck, or by rail. In the latter case, the rail line services no customers either northeast, and it is inoperable southwest. Factually, MMEX's location is one of the worst possible locations for a refinery facility - isolated, stranded, without low-cost access to any customer, even if the Phase I unit could produce directly marketable product.

For the initial CDU, the diesel that will be produced will be purchased and utilized locally to help with further oil production. I think other products will be used in this way also. So, its not isolated from its current markets (off take agreement states as much). As a matter of fact, its in the best location possible for the CDU portion at least. Its near the primary source and the secondary market. makes sense.

MMEX