Oil Sands Supply
Petroteq currently owns the Temple Mountain Mine lease, in the area known as Asphalt Ridge, just south of Vernal, Utah.
This lease contains an estimated 139,539,000 gross barrels of bitumen (total bitumen initially in place), as disclosed in an independent resource evaluation report prepared by Chapman Petroleum Engineering Ltd. (2015) in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH). Of this gross volume of bitumen in place, Chapman estimated that 87,817,000 barrels would, under favorable circumstances, support very positive mining economics. These 87,817,000 barrels would be classified as a "Contingent Resource" under current NI 51-101 and COGEH criteria.
In 2015, JT Boyd Mining and Geological Consultants was commissioned to perform an economic evaluation of the cost of mining this oil sands resource. Their report confirmed very attractive mining costs for the Asphalt Ridge oil sands ore, based on a detailed economic analysis of all major mining functions (drilling, blasting, overburden removal, oil sands mining and mine reclamation, maintenance). Based upon three separate scenarios, mining costs are estimated to range between $5.35 and $5.76 per ton of oil sands ore. Low mining costs are due, in part, to the fact that Petroteq's oil sands resource is directly at, or just beneath, the surface so that minimal overburden (non-ore material) removal is required. These low mining costs, combined with low processing costs by Petroteq's proprietary, closed-loop, solvent-based process, will result in significantly lower per barrel production costs than the costs for traditional hot water-based oil sands extraction technologies.
Both the Chapman and the JT Boyd reports were prepared, in part, from a wealth of oil sands exploration information that had been obtained by Petroteq as part of the acquisition of the lease. This exploration information included detailed well logs from approximately 99 core holes that had been drilled on the lease. These well logs identified both the thickness and richness of the oil sands lenses beneath the lease. Individual oil sands lenses range in thickness from 5 to 25 feet and contain oil sands ore with an average of 6% to 12% bitumen.
Petroteq currently has all the required environmental and mining permits needed to mine this lease.