PETROTEQ'S PATENTED OIL SANDS EXTRACTION TECHNOLOGY IS A BREAKTHROUGH FOR THE OIL SANDS INDUSTRY.
Petroteq Energy Inc. has developed a unique, environmentally safe, continuous flow, closed-loop technology... a first in North America... and probably in the world. The Company's philosophy is that the environment and the oil sands industry can work together harmoniously... without any of the resulting destruction seen in so many of the world's major oil sands projects. This extraction technology is the result of nearly five years of research by Petroteq's research and engineering teams, headed up by Chief Technology Officer Dr. Vladimir Podlipskiy, well known for his work with benign solvents. Over this period of time, Petroteq gradually enhanced and improved the efficiencies of its technology at each stage of fabrication with better dryer/mixer components and a higher consistency of oil sands flow. This extraction technology is versatile...it can be effectively applied to both "water-wet" deposits (such as the oil sands projects in Alberta, Canada) or the "oil-wet" deposits such as the resources typically found in Utah.
Petroteq's extraction technology utilizes no water in the extraction process, produces no greenhouse gases and requires no high temperatures/pressures. It extracts up to 99% of all hydrocarbon contents and recycles up to 99% of the benign solvents. The proprietary solvent composition consists of hydrophobic, hydrophilic and polycyclic hydrocarbons. In testing periods, these solvents separated up to 99% of heavy bitumen/asphalt and other lighter hydrocarbons from the oil sands while preventing their precipitation during the extraction process. Solvents used in this composition form an azeotropic mixture which has a low boiling point of 70-75 C degrees. Petroteq expects to recycle over 99% of the solvents used. These features make it possible for hydrocarbon extraction from oil sands feedstock at mild temperatures of 50-60 C degrees... with no vacuum or pressure applied. There's no need for tailings ponds because the only elements that leave the closed-loop system are the extracted crude oil and the cleaned sands, which can be placed back in the earth or sold as clean sand for construction or fracking purposes.
Another unique component of the Petroteq extraction process is the application of its own extractor, based on a proprietary, patent-pending liquid fluidized bed. Similar-style fluid bed systems have been successfully utilized on a commercial scale in the coal-burning industry, the chemical industry and a wide variety of different industries for decades. This liquid fluidized bed-style reactor is expected to provide continuous mixing of the solvents and the solid ore particles. This action provides a continuous flow process with optimal material/mass/energy balances.
PETROTEQ'S EXTRACTION TECHNOLOGY HAS BEEN EVALUATED BY A REPUTABLE, INDEPENDENT CONSULTING FIRM.
Petroteq's oil extraction technology has been evaluated by a reputable engineering firm, Chapman Engineering Company (Calgary, Alberta), who are experts in petroleum and chemical engineering projects as well as providing economical analyses for resource development processes.
CHAPMAN'S INDEPENDENT REPORT CONCLUDED THAT PETROTEQ'S EXTRACTION TECHNOLOGY IS SCALABLE, COMMERCIALLY VIABLE AND COST EFFECTIVE.
An excerpt from the report:
"Petroteq's oil sands extraction process has been designed utilizing good engineering practices and confirmed chemical and physical principles. Many innovative chemical and engineering aspects have been incorporated into the process to achieve over 98% of bitumen extraction from the oil sands, and a greater than 99.5% solvent recycling efficiency. The principals and processes implemented utilize established technologies, and are comparable to ones successfully utilized in different industrial applications for many years."
The conclusions of the Chapman Report show that Petroteq's extraction process could reasonably expect to have overall processing costs of $30.00-$40.00 STB of crude bitumen generated, representing a netback of approximately $49.00 per STB. There is a 90% confidence level that the per STB processing costs will fall between $22.84 and $38.87 per STB. Note that these costs were formulated at a time when WTI was selling for $80.00 USD bbl. Proportionate savings on processing costs based on a lower oil price per barrel of $50.00-$60.00 would be approximately $25.00-$28.00 USD per barrel due to much lower propane and condensate costs.
WITH THE VALIDATION OF THE CHAPMAN REPORT, PETROTEQ IS MOVING FORWARD WITH THE DEVELOPMENT OF ITS TECHNOLOGY.
Petroteq is confident that with the positive findings/conclusions of the comprehensive Chapman Engineering Report, "The Evaluation of Oil Sands Extraction Process - NW Asphalt Ridge, Utah," the Company will move into Phase #2 of its development plans with one or more larger capacity extraction units.