Petroteq Energy Inc. (CVE:PQE, OTC:PQEFF) unveiled its Asphalt Ridge extraction plant, where it is extracting oil from oil sands and sandstone rocks using its new patented technology that leaves no waste, requires no high temperatures and produces no greenhouse gases.
Petroteq is focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge heavy oil extraction facility located in the resource-rich Uintah Basin of Utah.
"This event at the plant is a culmination of two years of hard work by our entire team. Getting back into production is a tremendous accomplishment for Petroteq technically and organisationally, as well as the harbinger of value creation to come,” Chairman Alex Blyumkin said at a media day to initiate production at the plant.
“We have worked hard to demonstrate our commitment to shareholders through the completion of our facility,” he added.
The chairman said that the fully integrated oil and gas company has received all the permits necessary to produce oil at Asphalt Ridge.
The Asphalt Ridge area of Utah is home to sandstone rocks that are full of a sticky, semi-solid petroleum substance called bitumen. The company is pulling bitumen from the rocks and transforming it into heavy oil that is low in sulfur, contains no paraffin and is low in heavy metals like nickel and vanadium. That oil can then be turned into diesel, kerosene or jet fuel or mixed with lighter oils.
By the end of the year, Petroteq Energy aims to be producing 1,000 barrels of oil per day. By 2019, the goal is 2,000 barrels per day.
“We were able to raise capital and expand our plant to the point where we are now able to generate revenue at the facility which is being ramped up to what is expected to be 1,000 barrels per day in a cost-effective and environmentally friendly way,” said Blyumkin, adding that the plant had scale to “be self-sufficient” and generate cash flow.
As part of its media day, the company held meetings with oil executives and geologists and hosted a reception. Petroteq plans to hold a formal grand opening of the plant in September 2018.
Petroteq also owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc.
Through a wholly owned subsidiary PetroBLOQ LLC, Petrotec also seeks to develop the first blockchain-based platform created for the supply chain needs of the oil and gas sector.