Petroteq Energy (TSX.V: PQE) (OTCQX: PQEFF) this morning announced that it has received $2.5 million from Deloro Energy LLC, which is equal to the first tranche of the financing anticipated in the previously announced memorandum of understanding (“MOU”) with Deloro. Per the terms of the MOU, upon receipt of the entire first tranche, Deloro shall receive an economic royalty of 25% of the net profits of the company’s heavy oil extraction facility at Asphalt Ridge, Utah, from the date that the facility is operational. The MOU specifies that at least $2,000,000 of the first tranche shall be used toward the capital costs and related expenses regarding the expansion of the facility’s processing capacity to at least 1,000 barrels per day. Additionally, Deloro has agreed to loan Petroteq Energy CA, Inc., a wholly owned subsidiary of the company, $10 million under a convertible debenture which will be convertible into up to 49% of Petroteq Energy CA. “We look forward to sharing the details of our new plant assembly, as we move towards turning on the new facility,” Petroteq Energy CEO Alex Blyumkin stated in the news release.
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About Petroteq Energy Inc.
Petroteq Energy is engaged in the development and implementation of its proprietary 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 facility located near Vernal, Utah. The company also owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc. Petroteq is also developing technologies to optimize petrochemical industry workflow processes. For more information, visit www.PetroteqEnergy.com.
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