Attis Oil and Gas Ltd Update on investee company: Petroteq Energy Inc. (5924Q)

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RNS Number : 5924Q

Attis Oil and Gas Ltd

21 October 2019

Attis Oil & Gas Ltd / Index: AIM / Epic: AOGL/ ISIN: VGG6622A1057 / Sector: Oil and Gas

21 October 2019

Attis Oil and Gas Ltd ('Attis' or 'the Company')

Update on investee company: Petroteq Energy Inc.

Attis Oil and Gas Ltd (AIM: AOGL), the AIM listed oil and gas company, is pleased to note the following update from TSX listed Petroteq Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF) regarding the Asphalt Ridge heavy oil sands project, Utah. Mayan currently holds 1,035,233 shares in Petroteq Energy Inc. with an associated 1,035,233 3-year warrants at USD $0.90.

Full Text of Petroteq's Release

PETROTEQ DEMONSTRATES STABILIZED PRODUCTION

COMPLETES CUMULATIVE SALES OF 1,000 BARRELS SINCE RE-COMMISSIONING

SHERMAN OAKS, Calif., Oct. 21, 2019 (GLOBE NEWSWIRE) -- Petroteq Energy Inc. ("Petroteq" or the "Company") (TSXV:PQE; OTC:PQEFF; FSE: PQCF), a fully integrated surface oil sands clean recovery mining oil company with proprietary technology, is pleased to announce that the Company has achieved stabilized production rates and sales of heavy oil from its Asphalt Ridge Facility in Utah. Since re-commissioning the plant in September 2019, the Company has achieved the following:

   --    cumulative sales of 1,000 barrels of heavy oil 
   --    stabilized production rate of 200 bbl/per day from the facilities current daily 12 hour shift 

-- oil quality (namely, clay percent and oil thickness) to meet the requirements of specific buyers

In addition, production numbers are anticipated to improve from an expected automation of the facilities centrifuge process which is due to begin shortly and the initiation of a 24 hour shift of plant operations.

"We believe our ongoing drive to deliver innovative Clean Oil Recovery Technology ("CORT") is paying off, and our most recent advances in oil quality, oil sales and consistent production, holds the additional promise of increased economic performance that should help us strengthen our balance sheet and our corporate value," said David Sealock, Petroteq's CEO.

The Company's optimization strategy of complete automization of the facility also has the potential to further reduce the costs of production through lower labor costs, and increase the price paid by refiners as automation is expected to result in higher quality oil.

As Petroteq prepares for the next 30 to 60 days of production, the Company expects that the estimated production rates will be increased incrementally to ensure that the oil meets or exceeds the local refineries' requirements. Petroteq's 30 to 60 day forecast is to potentially achieve production and sales rates of approximately up to 600 bbls/d, with continued weekly sales in the interim.

While the Company's projected production figures are preliminary estimates that are subject to adjustments, based on current projections the Company expects for its cash-flow to breakeven with its operating and general and administrative expenses in the first calendar quarter of 2020, which is anticipated to eliminate the need for further share issuances and dilution to the Company's stock to cover monthly expenses (excluding additional capital expenditures).

Petroteq believes that the Asphalt Ridge facility is the first known commercial plant demonstrating this technology. The patented technology, which has already been licensed to one US company, has the potential to be licensed globally.

For more insight into the potential for the CORT technology and the Company's growth please watch this video: "Petroteq Vision"

Phase 2 Asphalt Ridge Expansion Plans

Petroteq has begun the preliminary engineering and pre-construction activities with Valkor Engineering for a proposed expansion to 3,000 bbl/d.

About Petroteq Energy Inc.

Petroteq is a fully integrated oil and gas company focused on the development and implementation of a new proprietary technology for oil extraction. The Company has an environmentally safe and sustainable technology for the extraction of heavy and bitumen from oil sands, oil shale deposits and shallow oil deposits. Petroteq is engaged in the development and implementation of its patented environmentally friendly heavy oil processing and extraction technologies. Our proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. Petroteq is currently focused on developing its oil sands resources and expanding production capacity at its Asphalt Ridge heavy oil extraction and processing facility located near Vernal, Utah.

**ENDS**

For further information visit www.attisog.com or contact the following:

 
 Charlie Wood       Attis Oil & Gas Ltd           [phone] 
 Thom Board         Attis Oil & Gas Ltd           [phone] 
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 Roland Cornish     Beaumont Cornish Ltd          [phone] 
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 James Biddle       Beaumont Cornish Ltd          [phone] 
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 Frank Buhagiar/ 
  Megan Dennison    St Brides Partners Limited    [phone] 
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 Colin Rowbury      Novum Securities Limited      [phone] 
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About Us

Attis Oil & Gas Ltd is an AIM-traded (London Stock Exchange) North American-based energy company. It is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow from projects that are shallow, low risk with low levels of capex and infrastructure already in place. Attis is also seeking to develop new drill opportunities within both existing & new acreage.

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October 21, 2019 09:22 ET (13:22 GMT)