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Petroteq Completes Pre-FEED Study for Environmentally Technology

Source: www.gulfoilandgas.com 9/16/2020, Location: North America

Petroteq Energy Inc., an integrated oil ?company focused on the development and implementation of its proprietary oil-?extraction and remediation technologies, announced that Crosstrails Engineering LLC, a subsidiary of Valkor LLC, has completed its Pre-FEED (preliminary) Design for a proposed 5,000 bopd oil sands plant (single train) for Petroteq. The same design, in a 2-train configuration, can be used for a proposed 10,000 bopd oil sands plant in eastern Utah for Greenfield LLC, a joint venture company between Valkor LLC and TomCo Energy Ltd., that has a technology license with Petroteq.

The purpose of the study was to confirm the technical feasibility of the plant and make a first estimation of capital cost. The study confirmed that an initial 5,000 bopd train can be constructed using conventional oil processing equipment at an estimated cost of US$92.5mm, or US$18,500 per nameplate bopd. Pursuant to the study it is believed that subsequent parallel 5,000 bopd trains can be added for less owing to savings from shared infrastructure. The capital cost is inclusive of all engineering, project management, all equipment and systems, site construction, startup and commissioning sufficient to have a fully operational oil sands plant capable of processing oil sands ore into a high-grade bitumen product. The process is environmentally benign, uses no water in the extraction process, and produces bitumen and a clean sand that meets EPA Tier 1 standards as the only byproduct. The entire plant, except for mining and oil storage may be housed within buildings and will produce no significant emissions. An assumption for this design is that a contract mining company will be employed to deliver crushed ore to the facility and, as such, this estimate excludes the cost of mining equipment.

In addition, the study performed a basic economic analysis of the plant operation which demonstrates very favorable economics. It is estimated that the total incremental cost of production, including subcontract mining, fuel, electricity, operating personnel and all expenses to extract a commercial petroleum product from oil sands ore is estimated to fall below US$30/bbl, while targeting less than US$25/bbl in the next round of detailed design through incorporation of various optimizations, including heat recovery.

Because the design is based upon standard oil processing equipment, no required equipment has a lead time longer than 12-13 months. The schedule from project sanction to the start of commercial production is estimated at 15-17 months dependent upon prevailing market conditions at the start of procurement and plant construction.

Crosstrails Engineering LLC is now commencing a FEED (Front End Engineering and Design) study to further refine the design. During the Pre-FEED, all major equipment was identified and costed using historical information. In the FEED study, all major equipment will be defined, specified and quoted and the balance of plant will be estimated to determine Capex to within ±15% and bring the design to the point of beginning detailed design and procurement of long lead items. This FEED is estimated to take approximately four months and is expected to further optimize operating costs, by determining energy and personnel requirements, to arrive at an estimated total cost per produced bbl. Upon completion of the FEED study, and subject to funding, the project will be in a position to order long-lead items and begin detailed (final) design to start the clock towards construction of the first commercial plant.

George Stapleton, Petroteq COO, commented: "The Company has been working ?with our engineering partners to improve production levels and this Pre-FEED study incorporates all of the lessons learned during the initial de-bottlenecking of the pilot plant. Lessons learned as a result of upgrades currently underway at the pilot plant will be incorporated into the FEED Study for the 5,000 bpd plant, resulting in an improved and robust design, which can only benefit future commercial production by Petroteq and its licensees."

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