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USA News Group -US President Joe Biden is calling for a return to US energy independence for the first time during his presidency, in response to surging gas prices and global supply challenges. The US officially became a net exporter of oil back in 2018 under the previous administration, for the first time in over 75 years. However, under today's challenging times, prices are through the roof, and once again domestic production is being called upon to help lessen the impact of the price shocks. This time, solutions will require innovative efforts from across the spectrum, including from technology developed by Petroteq Energy, Inc. (OTCPK: PQEFF), transportation from Canadian Pacific Railway Limited (NYSE: CP) (TSX: CP), biofuel production from groups like Green Plains (NASDAQ: GPRE), and greener production from producers such as TotalEnergies SE (NYSE: TTE) and Clean Energy Fuels (NASDAQ: CLNE).
A breakthrough technology that's presenting a potential game changer in US energy security is being developed by Petroteq Energy, Inc. (OTC: PQEFF), known as Clean Oil Recovery Technology (CORT).
By enabling production from oil sands without using water during the extraction process, CORT comes with significant environmental advantages over historical production methods. Last September, Petroteq proved CORT could produce from oil sands ore. So far as a result, neither wastewater nor tailings ponds are created from the process.
According to Petroteq in a statement based on the results: "Confirmation that heavy oil extracted from Utah oil sands using our CORT process is suitable for production of MSAR(R) and bioMSAR(TM) fuels could allow for the production of fuel and biofuel with significant environmental benefits, while creating a higher value product stream for Petroteq's future commercial production."
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.
Already CORT has drawn plenty of outside interest, including that of ESG-focused equity firm Viston United Swiss AG, which made an offer to buy Petroteq, giving a valuation more than 10x higher than its 52-week volume weighted average was prior to the offer.
"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 at the time of the offer, 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 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 (~US$0.59) 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.
Reaction to Viston's offer has been favorable across the Petroteq team, with its Board Members sharing their unanimous intention to tender their shares, as well Petroteq's Founder, Former Chairman and CEO Alex Blyumkin also announcing his support for the takeover bid.
A third-party cash flow analysis was run by Broadlands on a pre-income tax basis, at discount rates of 0.0, 7.5 and 15%. Their results showed potential economic benefit in the base case of a Net Present Value (NPV) of $1.285 billion, $602 million, and $341 million, respectively.
"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."
This economic analysis of CORT focused on the markets available for the sale of the three categories of by-product sands. Broadlands noted that an extraction plant producing 5,000 bpd could (as estimated by Petroteq) 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 economics of frac sand check out, according to executives at Canadian Pacific Railway Limited (NYSE: CP) (TSX: CP), who told investors earlier this year that it "can't move as much frac sand as the demand is out there."
In order to open up more domestic reserves for production, it will likely entail more fracking, which in turn requires the right quality of sands to carry out. Canadian Pacific Railway's sand business is already up slightly based on the rise in oil prices.
However, it didn't help business when the rail company was involved in a lengthy labour dispute with the Teamsters Canada Rail Conference (TCRC), until late March when it finally agreed to reach an agreement through binding arbitration.
"CP is pleased to have reached agreement with the TCRC Negotiating Committee to enter into binding arbitration and end this work stoppage," said CP President and CEO Keith Creel. "This agreement enables us to return to work effective noon Tuesday local time to resume our essential services for our customers and the North American supply chain."
In the biofuels industry, Green Plains (NASDAQ: GPRE) expanded its patent portfolio through its subsidiary Fluid Quip Technologies through the acquisition of a family of patents from AB Agri.
"As the leading technology provider to the biofuels industry, we have been focused on both developing and discovering great technologies to enhance the base ethanol facility," said Neal Jakel, Managing Director at Fluid Quip Technologies. "Our deep intellectual property portfolio along with the latest issued patents combined with the suite of AB Agri patents, adds incredible breadth to our existing technology portfolio."
The entire patent family is extensive and encompasses multiple countries around the world, including the U.S., Canada, Australia and a majority of the EU markets where FQT currently has technology installations.
French-based oil giant TotalEnergies SE (NYSE: TTE) is quite active in the United States, not only as a big player in the Barnett Shale, but also through its involvement in biomethane production. Back in November of 2021, TotalEnergies announced the construction launch of its first biomethane production unit with US partners Clean Energy Fuels (NASDAQ: CLNE).
"We are pleased to consolidate our entry into the U.S. biomethane market by jointly developing this first production unit on the Del Rio Dairy farm, through our joint venture with Clean Energy," said Laurent Wolffsheim, Senior Vice President Green Gases & Growth at TotalEnergies. "This project marks another step in TotalEnergies' transformation into a multi-energy company, and in the implementation of its ambition to be a major player in renewables."
According to the release, by processing cow manure, a significant source of methane emissions, and substituting fossil fuels with renewable energies, the project will avoid some 45,000 tonnes of CO2 equivalent emissions per year. Through the acquisition of an interest in Clean Energy in May 2018, TotalEnergies became the largest shareholder of the U.S. leader in natural gas vehicle fuels--today holding a stake of 19%.
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/
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