Petroteq Energy Inc - PQEFF stock

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Petroteq Energy Inc. (OTC: PQEFF, TSX-V: PQE) is a holding company incorporated in Ontario, Canada. It uses its proprietary oil sand mining and processing technology to extract oil from surface-mined bitumen deposits[1]. The company conducts its business in the United States through its Los Angeles-based subsidiary,  Petroteq Energy CA, Inc. The holding company’s stock trades on the TSX Venture Exchange under the ticker symbol PQE and on the OTC market under the ticker symbol PQEFF. However, trading in the company’s shares on the TSX Venture Exchange was ceased after the order from the Ontario Securities Commission for the company’s failure to file its 2021 Q3 quarterly report on Form 10-Q  before the deadline[2].

According to the company, its oil sand mining technology extracts oil without water, emissions, and waste tailings ponds[3]. The company owns the intellectual property rights to the Petroteq Clean Oil Recovery Technology, being used at its Asphalt Ridge Plant in Utah. The technology extracts and removes all hydrocarbons from sand, ensuring clean and sustainable oil production as part of its ESG strategy. It has produced around 10,000 bbl of oil using the technology as of August 2021[4].

The company has acquired operating rights for around 2,500 acres of land in the Uintah Basin, and 8,480 net acres in the Tar Sands Triangle & P.R. Springs, Utah. The area has a nearby rail terminal on the West Coast and has 5 refineries with a total refining capacity of around 200,000 bpd, located at a short trucking distance from Salt Lake City.

As of August 2021, the company’s production capacity was around 500 bpd, which is expected to rise to around 10,000 bpd by the end of 2024. Petroteq Energy’s innovative technology is affordable with low Capex costs, which are approximately between $19,000 to $22,000 per daily bbl with anticipated 5,000 bpd process locations/trains. Depending on the scale of production, the average cost per barrel is expected to be around $25 to $30, which is considerably low because of the advanced technology employed and patented by the company. However, the company aims to reduce the average cost per barrel to below $20 in the future[5].

The company did not make any sale of hydrocarbon products in the quarter ended November 30, 2021, and 2020. However, during the quarter ended November 30, 2020, the Company entered into a Technology License Agreement with Valkor whereby Valkor paid $2,000,000 for a non-exclusive license to the Oil Sands Recovery Technology[6].

OTC Market: PQEFF • Industry: Oil

The page is authored by: Otis Wick