Petroteq Energy, a company focused on the development and implementation of proprietary technologies for the energy industry, has acquired additional acreage in the resource-rich Uintah Basin.
The company has finalized the acquisition at auction of a 100% interest in two leases for 1,312 acres of land within the Asphalt Ridge, Utah area. Petroteq previously commissioned a report (September 2016) by Chapman Petroleum Engineering stating that the Petroteq leases contained 86.1 million bbl of contingent resource. A new report titled “Evaluation of Contingent Resources” from Chapman dated 30 April 2018 states that the newly acquired leases contain 7.331 million bbl of contingent resource, expanding Petroteq’s total contingent resources by 8.5% to 93.4 million bbl.
David Sealock, Chief Executive Officer, stated, “We are pleased with the new report from Chapman, as this is an accretive transaction benefiting our shareholders. We look forward to applying our patented mining extraction technology process to this additional resource. This acquisition is highly valuable to us as it increases our operating footprint in Asphalt Ridge, giving us more mineable resources but also giving us more flexibility in how we mine the acreage we already have.”
The 30 April 2018 independent resource evaluation report was prepared by Chapman Petroleum Engineering in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH). Chapman estimated that 93.4 million bbl would, under favorable circumstances, support very positive mining economics. These 93.4 million bbl would be classified as a ‘Contingent Resource’ under current NI 51-101 and COGEH guidelines. There is no certainty that it will be commercially viable to produce any portion of the resources.