Los Angeles, CA -- December 1, 2017 -- InvestorsHub NewsWire --
Petroteq Energy, Inc. (the
"Company") (TSX
VENTURE: PQE) (OTCQX: PQEFF) (FRANKFURT: A2DYWC), a company
focused on the development and implementation of proprietary
technologies for the environmentally safe extraction of heavy oils
from oil sands, oil shale deposits and shallow oil deposits,
announced today the acquisition of the equipment related to the
expansion of its heavy oil extraction facility (the
"Facility") located at Asphalt Ridge, Utah.
The Company is excited to announce the acquisition of a
significant portion of the equipment needed to expand production of
its Facility. The Company has previously announced that it has
successfully moved the equipment from its 250 bpd facility in
Maeser, Utah to its lease site at Asphalt Ridge, Utah.
The Company has purchased approximately $3 million of equipment
at a discounted price of $838,000, which was well below the
Company's budgeted purchase price. This reduces the Capex required
by the Company to increase the production capacity of the Facility
from 250 bpd to 1,000 bpd.
There are two significant reasons for the Company to increase
the production capacity of the Facility at this new Asphalt Ridge
location:
1. The primary reason for expanding the production capacity of
the Facility is to increase the potential revenue generation
capacity of the Facility. The more production -- the more efficient
the Facility can operate -- driving down the cost per barrel. The
Company believes that the man power required to run a 250 barrel
production facility can also safely run a facility 4x in size,
thereby increasing the bottom line.
2. The secondary reason to increase the production capacity of
the Facility is less obvious. Since the Company's strategy is to
license the patented clean oil sands technology behind the Facility
to third parties -- to have the Facility operating at a scale of
1,000 bpd is anticipated to be crucial to prospective licensees.
Engineers on these projects will want to evaluate a 1,000 bpd
Facility in contemplation of how the technology can scale up from
the current design level. Therefore, having a 1,000 bpd Facility is
anticipated to provide prospective licensees a comfort level that
the Company's technology is scalable.
"We are extremely excited at this equipment purchase, as it is
expected to knock 90 days off of the payback period for the plant
expansion," stated Alex Blyumkin, CEO. "We are looking forward to
announcing further progress on our new plant in Utah. The recent
decision by OPEC to extend the production cuts will also be a
tailwind for us, in that we anticipate that our production supply
will find a ready market when we begin production in the new
year."
The Company also announces that Dr. Gerald Bailey, a current director and
former Chief Executive Officer of the Company, has rejoined the
management team as President.
In addition, the board of directors of the Company has approved
an option grant, subject to compliance with applicable securities
laws, of 1,425,000 stock options, expiring in 10 years, to certain
directors at an exercise price of $2.27. All options will be
subject to a four month hold.
About Petroteq Energy, Inc.
The Company is engaged in the development and implementation of
its proprietary, environmentally friendly heavy oil processing and
extraction technologies. The Company is currently focused on oil
and gas exploration and production on mineral leases located in
southwest Texas held by Accord GR Energy Inc. (46% of which is
owned by the Company), developing its oil sands resources and in
expanding production capacity at its Facility at Asphalt Ridge,
Utah. For more information about Petroteq Energy Inc.
visit: https://petroteq.energy/.
Forward-Looking
Statements
Certain statements contained
in this news release contain forward-looking statements within the
meaning of the U.S. and Canadian securities laws. Words such as
"may", "would", "could", "should", "potential", "will", "seek",
"intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions as they relate to the Company, including
issuance of the options, the Company successfully increasing
production capacity of its Facility to 1,000 barrels per day, the
man power required to run a 250 barrel production facility safely
running a facility 4x in size, thereby increasing the bottom line,
and the equipment purchase reducing the Company's payback period
for the plant expansion by 90 days, are intended to identify
forward-looking information. All statements other than statements
of historical fact may be forward-looking information. Such
statements reflect the Company's current views and intentions with
respect to future events, based on information available to the
Company, and are subject to certain risks, uncertainties and
assumptions, including: approval of the TSX Venture Exchange of the
option grant and appointment of Dr. Bailey; the Company delivering
option certificates to the optionees; and the Company having the
working capital and access to labour and equipment necessary to
complete the work on its Facility. Material factors or assumptions
were applied in providing forward-looking information. While
forward-looking statements are based on data, assumptions and
analyses that the Company believes are reasonable under the
circumstances, whether actual results, performance or developments
will meet the Company's expectations and predictions depend on a
number of risks and uncertainties that could cause the actual
results, performance and financial condition of the Company to
differ materially from its expectations.
Certain of the "risk factors"
that could cause actual results to differ materially from the
Company's forward-looking statements in this press release include,
without limitation: the TSX Venture Exchange not approving the
option grant; the TSX Venture Exchange not approving the
appointment of Dr. Bailey; the Company successfully negotiating
licensing arrangements with third parties; changes in laws or
regulations; the ability to implement business strategies or to
pursue business opportunities, whether for economic or other
reasons; status of the world oil markets, oil prices and price
volatility; state of capital markets and ability by the Company to
raise capital; litigation; the commercial and economic viability of
the Company's oil sands hydrocarbon extraction technology, the
SWEPT technology, the S-BRPT technology, and other proprietary
technologies developed or licensed by the Company or by Accord
which are of experimental nature and have not been used at full
capacity for an extended period of time; reliance on suppliers,
contractors, consultants and key personnel; the ability of the
Company and Accord to maintain their respective mineral lease
holdings; potential failure of the Company's business plans or
model; the nature of oil and gas production and oil sands mining,
extraction and production; uncertainties in exploration and
drilling for oil, gas and other hydrocarbon-bearing substances;
unanticipated costs and expenses, availability of financing and
other capital; potential damage to or destruction of property, loss
of life, and environmental damage; risks associated with compliance
with environmental protection laws and regulations; uninsurable or
uninsured risks; potential conflicts of interest of officers and
directors; and other general economic, market and business
conditions and factors, including the risk factors discussed or
referred to in the Company's annual Management's Discussion and
Analysis for the year ending August 31, 2016, filed with the
securities regulatory authorities in certain provinces of Canada
and available at www.sedar.com.
Should any factor affect the
Company in an unexpected manner, or should assumptions underlying
the forward-looking information prove incorrect, the actual results
or events may differ materially from the results or events
predicted. Any such forward-looking information is expressly
qualified in its entirety by this cautionary statement. Moreover,
the Company does not assume responsibility for the accuracy or
completeness of such forward-looking information. The
forward-looking information included in this press release is made
as of the date of this press release, and the Company undertakes no
obligation to publicly update or revise any forward-looking
information, other than as required by applicable law.
Neither TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
The securities referred to in
this news release have not been, nor will they be, registered under
the United States Securities Act of 1933, as amended, and may not
be offered or sold within the United States or to, or for the
account or benefit of, U.S. persons absent U.S. registration or an
applicable exemption from the U.S. registration requirements. This
news release does not constitute an offer for sale of securities,
nor a solicitation for offers to buy any securities. Any public
offering of securities in the United States must be made by means
of a prospectus containing detailed information about the company
and management, as well as financial statements.