- Company has raised $6 million over the past few months to fully fund plans
- Oil extraction to begin at 1,000 barrels a day, escalating to over 8,000 barrels a day within three years
- Petroteq’s patented technology is arousing international interest
Petroteq Energy Inc.’s (TSX.V: PQE) (OTC: PQEFF) (FRANKFURT: A2DYWC) CEO has announced that the company’s aggressive growth strategy is fully funded and ready to kick off, beginning with the extraction of 1,000 barrels of oil per day from its Asphalt Ridge site in Utah from the third quarter of 2018. Petroteq CEO David Sealock made the comments during an interview with news organization Proactive Investors on the sidelines of the recently concluded LD Micro Invitational conference in California (http://ibn.fm/PDSpQ).
Sealock said that the company’s plans are cash flow ready, thanks to the successful fundraising efforts of its chairman. “We are fully-funded right now,” he noted. “Our chairman did a tremendous job in terms of raising $2.5 million in February and another $3.5 million just last month.”
Petroteq has developed and patented an environmentally friendly technology that extracts oil from sand. The company owns a mineral lease to the 3,000-acre Asphalt Ridge site and recently acquired two additional leases of 1,312 acres, bringing the its total contingent resources to 2,541 leased acres and 87.49 million barrels of mineable oil sands.
Sealock outlined a plan that will see the company ramp up production to 8,000 barrels per day by 2021. “We’re making sure that because we have a very aggressive growth pattern over the next four years—another thousand barrels a day in 2019, another thousand barrels in 2020 for a total of 3,000—we’re probably going to speed up our process in terms of 2020 and introduce another 5,000 barrels a day. So, our plan is to basically have capital expenditures in place for 8,000 barrels a day by 2020, 2021.”
The Petroteq CEO voiced his confidence that the technology will put Asphalt Ridge and Petroteq’s technology firmly on the map. “We have a captivating technology that I think is going to show the state of Utah and everyone surrounding as well, that this technology is fit for purpose.”
The company’s cash flow predictions take into account the historical volatility of oil prices and forecast profit even when those prices are at a low ebb. “If you take a look at the 20-year average, oil has always been between about $45 and $70. We run our economics roughly around $47, making sure that if there is a decrease in oil—and there probably will be, right? We’re always set for that,” Sealock said.
“At current prices right now, our cash flow is probably going to be just a little under $1 million a month for our 1,000 barrel a day facility,” Sealock added. “So, again, what we’re doing is we’re planning for the worst but making sure we have the benefits of the best WTI pricing right now in terms of where we’re working.”
Petroteq’s patented oil extraction technology does not leave waste behind or release greenhouse gases. This highly innovative extraction solution has attracted a large amount of international interest, Sealock said. “There is a global market for this type of technology in terms of what we’re looking at, and the conversations we’re having right now are exponential in terms of the interest around this technology around the world.”
For more information, visit the company’s website at www.Petroteq.energy
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