Tomco Energy Share Discussion Threads

[ducky fuzz] 05/6/2021 11:17

Hi rmart .. love to hear your opinion on whether TOMco is an investment or a short term trading punt. DF

[rmart] 05/6/2021 11:13

Interview added to header.

[rmart] 05/6/2021 11:05

what sounds too good to be true?

The oil production?
The sand Production?
The production cost?

Just interested in why you think that.

[con90210] 05/6/2021 10:28

Just sounds too good to be true but the presentation from PQE was impressive.

[rmart] 05/6/2021 10:06

It is crazy that just a month ago we were talking of oil sales @$60, $35 profit, so around $17.50 to TomCo.

Now we have the sand by product covering all oil production costs and oil sales @$65 per barrel.

In terms of % profit The most profitable oil production company in the world, bar none! You can get higher than 100% profit.

So no it is not a p&d.

[fishyneck] 05/6/2021 10:04

Ace jumping on board, Wilson topping up, Goulding in a good mood, talk of 23p share prices...what are they putting in those vaccines? :-)Looking strong here for coming weeks/months with some decent newsflow due and sentiment on the up. With the figures being crunched I think people are starting to realise why there is utter confidence of financing our own plant,

[con90210] 05/6/2021 09:59

TOM should benefit from the news that this takeover of PQE looks on the cards.

[everready1] 05/6/2021 08:27

Thanks also Rmart for your reply.Just noticed your post

[lopodop] 05/6/2021 07:26

SL
What have you been advised re cash depletion and placing necessity?

[johncasey] 05/6/2021 07:15

aye,aye..whats going on here then..pump and dump?

[wilson2] 04/6/2021 22:17

Busamitch , why are you waffling and the designated village idiot

[busamitch] 04/6/2021 21:23

"Petroteq Announces Debt Conversions

June 04, 2021 4:01pm EDT

SHERMAN OAKS, CA / ACCESSWIRE / June 4, 2021 / Petroteq Energy Inc. ("Petroteq" or the "Company") ‎‎(TSXV:PQE) ‎(OTC:PQEFF) (FSE:PQCF), an integrated oil ‎company focused on the development and implementation of its proprietary oil-‎extraction and remediation technologies, announces the execution of debt conversion agreements with two arm's length lenders wherein the lenders will accept an aggregate of 1,388,897 common shares of the Company at a deemed price of US$0.139 per share in satisfaction of US$193,057, representing certain principal and accrued and unpaid interest up to and including June 1, 2021, under previously issued convertible debentures.

The Company (with the lenders' consent) determined 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 foregoing transactions are subject to all necessary approvals, including from the TSX Venture Exchange (the "Exchange"). The foregoing securities 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, the shares issuable will be subject to a Canadian four-month hold period.‎

The Company also announces that it has closed the equity financing of 2,666,665 common shares at US$0.06 per share for gross proceeds of US$130,000 previously announced on April 9, 2021."

[busamitch] 04/6/2021 21:20

Wouldn't want to be short.

Preliminary remark

Petroteq Energy– ISIN: CA71678B1076 - WKN: A2DYWC hereinafter "Company"

called.

The seller owns x shares in the company. The shares are not securitized.

§ 1 Sale and Assignment

The seller hereby sells all of his aforementioned x shares to the buyer and assigns all of his membership rights from the shares sold

xx BGB to the buyer. The buyer accepts the sale and assignment.

The buyer has the right to draw profits for all undistributed profits.

§ 2 purchase price

The purchase price per share is EUR 0.48, the total purchase price EUR x. The purchase price is due by the buyer on June 30th, 2021 for payment to the seller's specified account.

§ 3 guarantees

The seller guarantees that

a) he is the owner of the sold and assigned shares, he can freely dispose of them and there are no third party rights to the shares;

b) he instructs his custodian bank to initially leave the company's shares in the securities account and to transfer the shares to a securities account specified by the buyer within a period of 6 weeks after receipt of the total purchase price;

§ 4 Buyer's Obligations

The buyer undertakes to immediately transfer the total purchase price of the specified shares to a bank account specified by the seller.

§ 5 Seller's bank account Account holder: Bank:

BANK ACOUNT NUMBER :

§ 6 Period of commitment and acceptance of the contract

The seller is bound by this offer. Acceptance takes place by countersigning this document.

§ 7 final provisions

Changes and additions to this contract must be in writing. This also applies to the written form requirement. Should individual provisions of this contract be ineffective or unenforceable, this shall not affect the validity of the remaining provisions. The ineffective or unenforceable provision is to be replaced by an effective or enforceable provision that comes as close as possible to what the contracting parties want economically. The same applies in the event of a loophole in the contract. The buyer bears the costs arising from the conclusion and implementation of this contract. As far as permissible, the place of jurisdiction is Berlin. The law of the Federal Republic of Germany. In case of doubt, the German wording is authoritative.

Seller

Place, date, signature :

Name surname

Buyers

Place and date :

Signature (CEO):

Roger Lars Vilhelm Uppgård

[busamitch] 04/6/2021 21:13

And rumours of the PQE SPA may well be true!

[busamitch] 04/6/2021 21:11

Well, PQE finished +5% on 2.24M. Looks like nobody is selling.

[ducky fuzz] 04/6/2021 20:54

When we are doing well the weekend comes so quickly. DF

[wilson2] 04/6/2021 19:22

11 hours was his last post, you don't think he may have been gaslighting you do you

[wilson2] 04/6/2021 19:16

Ace has been quiet today,

[busamitch] 04/6/2021 19:07

From Twitter @lmnd____

Question: Unsolicited offer that you’ve had from a Swedish agent acting for an undisclosed third party. What’s the company’s view on this?

Answer: To be honest we haven’t been able to gather a whole lot of information. We first learned of the offer from some of our European shareholders around the 20th 21st of May, I believe the offer may have been posted in Germany prior to that. At the time we learned of the offer, we sent them, via council an email for more information, which frankly has not been forthcoming, they indicated that they would, that they were acting on behalf of an unidentified third party, and that they would issue a press release at some point in the future, which I believe they did this morning. There was a press release this morning that basically restates the offer posted in Germany of 200m of shares at 0.48 euros per shares, subject to their terms and conditions looking to close the offer by the 30th of June. They indicated also that once they’d reach the reporting requirement for North America they would make the required filings.

This again is, if you will, something that was issued today. Our last press release on the topic we indicated that we had not been able were not able to get additional information other than on the Bundesanzeiger. If I pronounce that right. We are not able to comment on the legitimacy of the offer and whether or not it applies to applicable law. But again as they said, they would issue a press release when they were ready. According to our council it doesn’t appear that the offer extends to the shareholders in the United States or Canada. At this time all we can do is to ask the shareholders looking at the offer do their own due diligence, because we have nothing new we can offer on the topic.

Question: So you’re not able to comment on whether it’s a genuine offer or not? And you haven’t had any real dialogue with them.

Answer: That is correct, we have had no dialogue with them, other than an exchange of emails, where very little information was forthcoming, no more than in the announcement. That’s all we know at this time.

Question: The offer has undervalued the company. What basis have you come to that conclusion on?

Answer: Well. It really depends on whether you’re looking forward, or where the company is today. The Utah tar sands have been around for many years, and there’s been no way to produce them commercially. The clean oil recovery technology of Petroteq seems to be, or is, a means of producing that, those resources commercially. There’s over, well depending on whose, there’s somewhere between 15-20 billion barrels of tar sands in Utah, that until now, have not been commercially producible. So if you think, and I would hate to compare us to George Mitchell, who was a pioneer in the oil and gas industry, but Mitchell Energy was a little known company, until he, after ten years, was able to commercialize fracking. And ultimately Mitchell was acquired by Devon in 2002 for $3.5 billion. So, opening up the a new production area like the Barnett Shale was done by Mitchell Energy. There is significant upside if you have a means of producing the petroleum commercially and economically, and in today’s world of course, with a green technology. Ours is a closed loop technology, no tailings, so we do believe that we have a slightly better mouse trap, and probably the only one that works for mined tar sands in Utah.

Question: Just looking at the company then, I understand that the focus is on oil, but the sand is also very valuable. Can you explain a little more?

Answer: Yes. Basically, the bitumen is in a sand layer. Once we extract the bitumen from the sand, which we do with a closed loop system using a solvent, we end up with a two outputs, the bitumen and cleaned sand. We sent the sand away for testing, its come back that roughly 70% of the sand 40 to 140 mesh range, which are ideal sizes for fracking, and furthermore the sand has a crush strength in excess of 7000 psi. So very high crush strength, good grain size, good grain shape if you will, and suitable for use as a frac sand. We sent it to a lab in Austin, Texas, which specializes in that side of the industry. And they came back in both instances. We sent two samples, one from the Temple Mountain ore, and one from the offside site ore, both came back as suitable for frac sand use. So that is a potential way to reduce operating costs, or generate additional revenue through the sale of that sand.

It also has use for, potential use, as an aggregate for cement and/or concrete. So there is a use for the sand.

Question: Can you give us a feel for the current pricing differentials on frac sand and concrete sand?

Answer: Frac sand right now and fracking is down quite a bit, it goes for somewhere about 40 to 60 dollars a ton. Construction sand, probably closer to 12 to 15 dollars a ton. We produce roughly 1.5t of sand per barrel of oil produced. So, construction sand at 12 to 15 say, you’re looking at a sales value of, again if you can sell it regionally, somewhere around 12 to 15 dollars per barrel. The frac sand we’re working with a local drilling fluids company, as they have the contacts and the way to distribute within the area, say Wyoming, Colorado, and so forth. So we will probably, we’ll end up sharing the upside in that sand. But I would expect we would ultimately end up, receiving somewhere on the order to 15 to 20 dollars per ton on that sand, which would be somewhere on the order of 20 to 30 dollars per barrel of bitumen produced. So you can see it would be a significant offset to the cost of production.

Question: What price would you get for the oil.

Answer: The oil of Utah is unique, because although it’s a heavy oil, its low on sulfur. In effect you have a heavy sweet oil. Sulfur content is 0.2% to 0.4% as compared to 3.5% to 5%, typically in heavy oils, like you find in Canada or Venezuela. Because the sulfur content is quite low, it makes the oil a very attractive addition to a refining splate. Typically we receive a price, a very slight discount to WTI. West Texas intermediate currently at 68 dollars per barrel, we expect to receive somewhere north of 60, probably closer to 65 dollars per barrel for the oil that we produce. The process is producing the oil with very low BS&W, and as I said it’s a sweet crude, which is unique in the heavy oil world, if you will, for it to have such a low sulfur content.

Question: What is the route to market? Do you plan to sell directly or via an offtake partner?

Answer: Right now for the oil we basically have a number of potential buyers in the area. Historically we have sold the oil to a refinery in Nevada, it’s a small refinery in Nevada that manufactures diesel and asphalt. But Salt Lake City has, I think its five refineries of total 200bb/d refining capacity. Once we get to the position of having consistent production, we will be able to look further afield, to Salt Lake City and possibly beyond for buyers of the oil. Because historically we produced in fits and starts, we’ve pretty much have had to sell on the spot market. So, we will be looking to firm up the distribution channels for the produced oil. Particularly once the first commercial 5000 bbl commercial plant is built.

Likewise on the sand we will probably continue to work through the drilling fluids company because they have facilities for cleaning, sorting the sand, and delivering the sand. Something that we would have to add, before we’d try to market it directly ourselves.

Question: Can you expand on the expansion plans? Give us an idea of the roadmap?

Answer: Yes we’ve, to be frank, right now Petroteq is working together with Valkor Energy and Tomco of the UK. Had they not, Valkor has been a technical partner, that has basically helped with the redesign of the demonstration plant. The feed for the 5000bbl/d plant, that they’re looking at possibly developing together with tomcod under their joint venture greenfield, and the monies that they have contributed to the upgrade via the license fee, and so forth, without that we’d probably we would have been in a tough spot to get the demonstration plant modified to where it was reliable and running consistently. So we do have a, if you will, a loose partnership with Valkor and Tomco, Greenfield as well. And the technology is licensable to other third parties potentially. The license fee for the technology was 2 million dollars, which has been used to upgrade the plant. Tomco and Valkor have contributed additional monies to get the plant up and running, which will be repaid from production. A third party coming in, would be expected to pay the same license fee, because of the advance of the fee, Tomco and Greenfield actually has a right to use the technology in multiple plants and we would hope they would build multiple plants. So they will get tremendous bang for the buck on that two million dollar contribution towards the license. They also, there’s also a five percent royalty on production, using the clean oil technology. So Petroteq will benefit from each and every plant that gets build, and Petroteq will likely build its own plants as well, subject to financing. Valkor has recently leased upwards of about 16.000 acres of oil sands leases in the asphalt ridge area. They’re positioning themselves and we would hope to work with, and develop some of their leases with additional plants. A plant, one of the highest costs of production, is in fact the transport of mined ore to the plant. So you would, plants really need to be located within a reserve base of about 35m bbls of reserves in the ground, mineable reserves, a 5000 bbl/d plant can run for 20 years. And obviously if you start talking mineable reserves on Asphalt ridge, you’re probably talking on the order of 1.5 billion barrels. So there is the potential for multiple plants in the area. Some developed directly by Petroteq some by Greenfield Tomco and Valkor together, and some potentially some by third parties.

Question: What is the current status on the Nasdaq listing?

Answer: The company applied in 2018 for a Nasdaq listing and received conditional approval, which would have required a reverse split at the time. I believe if I understand it correctly, the paperwork was filed for Canada, but not the US, so it did not come to be. We would certainly reconsider when conditions are right, listing on the Nasdaq. For the moment there are no immediate plants to do so, but we would hope to do so in the future.

[rmart] 04/6/2021 18:07

This is from the other site, a reply from Petroteq.

Depending upon ore saturation, we expect to produce roughly 1.5 tons of sand per barrel of bitumen produced. Approximately 65% of this sand falls within the desired standard 40-140 mesh range preferred for frac sand, so we should produce roughly 1 ton of frac sand per barrel.

Any revenue received from sand sales will act, in effect, as a reduction in operating costs. The estimated cost of production of $25-$30 per barrel is calculated without taking into account any reduction as a result of sand sale.

At present, we will work with a local drilling fluids company to screen and sell the sand, sharing the net proceeds. Assuming the san sells for $40-$60/ton net of transport, we hope to realize roughly $20-$30/ton.

End.

Basically the sand pays the production costs. Pretty incredible what they have achieved. We should see double figures on the share price imo.

[jaynealex] 04/6/2021 17:56

The £s would be fine for me !! Hahaha