Petroteq Energy Inc, an integrated oil ?company focused on the development and implementation of its proprietary oil-?extraction technologies, announced that work to upgrade the capacity and reliability of its oil sands plant at Asphalt Ridge (the "POSP") continues on schedule with restart of the plant on track for late November 2020.
A recent survey of Petroteq's lease properties has identified three key areas where the oil sands ore appears to have higher oil saturations than what was previously mined. Samples were taken from each location and lab assays of the samples are in progress and are close to being completed. These areas are currently anticipated to be the focus of Petroteq's mining efforts during the initial operation of the POSP following its pending restart. In addition, six corehole locations were staked and, subject to rig availability, will be drilled during November. This work would allow Petroteq's mining consultant to develop a detailed mining plan which would direct future mining operations for extended plant operation.
George Stapleton, Petroteq COO, commented: "Despite some vendor delays, we were able to remain on schedule and are still on track to begin starting up the POSP in late November. I am very much looking forward to the results of our ore sample assays and, in particular, evaluating the results of our core drilling program. Although some critical pumps were delayed two weeks, all equipment needed for the upgrade has now been shipped to the site in Vernal with the final deliveries scheduled for next week. Installation and tie-in of the third mixing tank is complete. All control system components and instrumentation have been received at site and installation is underway."
In addition, the Company also intends to complete three shares for debt transactions, pursuant to which ?it will issue an aggregate of 7,222,221 common shares in satisfaction of US$360,000 of ?indebtedness. The Company determined (with the creditors' consent) to satisfy the foregoing ?indebtedness with common shares in order to preserve the Company's cash for use on its extraction ?technology in Asphalt Ridge, Utah, and for working capital. The transactions are subject to completion ?and execution of a definitive agreements and all necessary approvals, including from the TSX Venture ?Exchange (the "Exchange"). The securities issuable pursuant to the transactions will be issued in ?reliance on exemptions from the registration requirements of the United States Securities Act of 1933, ?as amended (the "U.S. Securities Act"), and applicable state securities laws, and will be issued as ??"restricted securities" (as defined in Rule 144 under the U.S. Securities Act). In addition, such securities ?will be subject to a Canadian four-month hold period.?