FN Media Group Presents USA News Group News Commentary
Vancouver, BC – April 6, 2022 – In response to rising gas prices, the Biden administration has announced it will release 1 million barrels of oil per day from reserves. At its core, the government’s plan is to increase domestic production, starting with 1 million barrels per day this year, and nearly 700,000 barrels per day more next year. However, the White House statement also pointed fingers at companies for not stepping up production, and is calling on Congress to make companies pay fees on wells from their leases that haven’t been used in years. The reality is, producing more domestic oil is currently quite difficult. In order to meet some of these domestic production expectations, it’s going to take a wave of efforts from across the petroleum industry, including from Petroteq Energy, Inc. (OTCPK:PQEFF), ConocoPhillips (NYSE:COP), Exxon Mobil Corporation (NYSE:XOM), Devon Energy Corporation (NYSE:DVN), and Pioneer Natural Resources Company (NYSE:PXD).
One new proven breakthrough technology that could drastically impact future energy security in the US is known as Clean Oil Recovery Technology (CORT) from developers Petroteq Energy, Inc. (OTC:PQEFF).
CORT comes with significant environmental advantages over historical production methods, by enabling production from oil sands without using water during the extraction process. As a result, neither wastewater nor tailings ponds are created. Last September, Petroteq proved CORT could produce from oil sands ore.
Petroteq’s system is closed loop in nature, meaning that +95% of the solvents used in the extraction process are recovered, recycled, and reused while roughly 5% remain within the oil that’s extracted.
Third-party economic analysis of CORT focused on the markets available for the sale of the three categories of by-product sands. Analysis from Broadlands noted that an extraction plant producing 5,000 bpd is estimated by Petroteq to be capable of yielding 6,000 tons of sand per day or 1,860,000 tons per year (based on 310 operating days per year and operating 24 hours per day), and that silica flour is postulated to be 15% of the saleable product, fracking quality sand 55%, and bulk sand 30%. The economic forecast is based on 20 years of sales from such a 5,000 bpd operation, following two years for construction and start-up of the extraction plant and sands processing facility and related infrastructure.
“Broadlands evaluation report provides the potential economic benefit from the sale of sands is significant and provides an attractive enhancement to the value of the extraction process further enhances the forecast value of the Petroteq extraction technology,” said Petroteq’s CTO and Interim CEO, Dr. Vladimir Podlipsky. “The Petroteq operation can produce “green” energy with high quality oil extraction, while also remediating the oily sand and turning it into a useable, marketable resource.”
A cash flow analysis was run on a pre-income tax basis, at discount rates of 0.0, 7.5 and 15%; the results show potential economic benefit in the base case of a Net Present Value (NPV) of $1.285 billion, $602 million, and $341 million, respectively.
The CORT process has drawn plenty of outside interest, including that of ESG-focused equity firm Viston United Swiss AG, which made an offer which gave the company a valuation more than 10x higher than its 52-week volume weighted average was prior to the offer.
The offer itself is valued at a considerable premium over the market price, with a 100% all-cash consideration of C$0.74 per common share.
Meanwhile, through its US shares on the OTC under the PQEFF symbol, shares of Petroteq are trading around US$0.375 (C$0.474) on March 30, 2022. At that price point, the C$0.74 still represents a potential 56% premium over the more current trading price.
Originally made in April 2021, Viston’s premium price offer gave a valuation of Petroteq stock with a 1,032% premium over that 52-week volume weighted average while also giving approximately 279% higher than the closing price of the Common Shares on the TSX Venture Exchange on August 6, 2021.
“We are particularly pleased with the recognition this shows of our technology which we have taken from inception to commercial viability as a one of its kind in oil sands eco-friendly, green extraction,” said former Petroteq Chairman and CEO, Dr. Gerald Bailey, who retired in January. “We had always forecast a great future. However, we respect the value of this offer to shareholders and if it can be achieved it will reward our many dedicated supporters.”
The Viston offer has been favorably across the Petroteq team. Its Board Members have shared their unanimous intention to tender their shares through the offer. Now the company’s Founder, Former Chairman and CEO Alex Blyumkin has announced his support for the takeover bid.
In response to the White House’s proposals, the reaction from big oil hasn’t been very positive.
For example, Ryan Lance, CEO of ConocoPhillips (NYSE:COP) already told CNBC that if his company decided to pump more oil today, the first drop of that new oil wouldn’t hit the market for at least eight to 12 months.
“The longer term is really a question of, what are we doing to do for the next six month? What are we going to do for the next year?” said Lance said. “Are we planning enough to say, what are the scenarios that could develop over that period of time and what are we going to do to ensure energy security as a country and as a globe? Releases out of the [strategic petroleum reserve] for a month or two or three, they’ll help the short term and they’re necessary to do that, but they don’t answer this longer-term question.”
Another meeting involving the House Energy and Commerce subcommittee was scheduled to include the CEOs of multiple oil companies, including Exxon Mobil Corporation (NYSE:XOM), Devon Energy Corporation (NYSE:DVN), and Pioneer Natural Resources Company (NYSE:PXD).
In the case of Exxon Mobil, increasing output from their US assets was already set into place, but initially it was to offset declines at older sites around the world—giving less optimism over making any overall impact on global supplies.
As well, Exxon Mobil is also stating that pulling out of currently embargoed regions may cost the company $4 billion.
“In light of the ongoing situation… the Company is proceeding with efforts to discontinue operations at the Sakhalin-1 project (“Sakhalin”) and is developing steps to exit the venture,” it said in a statement.
The Sakhalin-1 project was designed to harvest the huge reserves of natural gas. Exxon Mobil has been working on it for years, agreeing to the production-sharing agreement in 1996 and drilling the first well in 2003. Meanwhile, due to surging prices, the company also recently took its biggest profit in 13 years.
The same goes for Devon Energy which has had a successful year so far.
“We have learned our lesson,” said Devon Energy CEO Rick Muncrief in mid-February. Devon is a darling of Wall Street. Its stock has risen from $16 a share to trading at around $60 now.
The company has gone on to pledge up to $20 million in aid towards humanitarian efforts in areas impacted by recent conflicts.
“I am proud that Devon and our employees are doing what we can to help those desperately in need,” said Rick Muncrief, President and CEO. “[This humanitarian crisis] calls upon the global community — governments, businesses, and individuals — to act in solidarity.”
Pioneer Natural Resources recently announced an amended services agreement with ProPetro Services Inc. to provide pressure pumping services, to continue to improve completions performance in the Permian Basin. ProPetro will deliver and dedicate hydraulic fracturing fleets to provide fracture stimulation pumping services and provide associated products in connection with such services.
“This amendment to our existing agreement with ProPetro reflects Pioneer’s desire for continuous improvement in completions performance as demonstrated through the material progress achieved since our partnership began,” said Rich Dealy, President and Chief Operating Officer of Pioneer.
For more information go to: https://usanewsgroup.com/2022/03/25/this-quick-turnaround-takeover-is-the-kind-of-play-smart-investors-snap-up-in-a-heartbeat/
USA News Group
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for PetroTeq Energy Inc. advertising and digital media from Maynard Communication Limited. There may be 3rd parties who may have shares of PetroTeq Energy Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ owns shares of PetroTeq Energy Inc. which were purchased in the open market at least 72 hours after our initial coverage date of the company. MIQ reserves the right to buy and sell, and will buy and sell shares of PetroTeq Energy Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ on/about PetroTeq Energy Inc. has been reviewed and approved by the principals at PetroTeq Energy Inc.; this is a paid advertisement, and while we we do own shares of PetroTeq Energy Inc. that were purchased in the open market, we plan on buying and selling more shares of PetroTeq Energy Inc. in the open market. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact Information:
FN Media Group, LLC
Media Contact e-mail:
U.S. Phone: +1(954)345-0611
SOURCE USA News Group