Petroteq Energy announced that it 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 MMbbl of contingent resource.
A new report titled “Evaluation of Contingent Resources” from Chapman dated April 30, 2018 states that the newly acquired leases contain 7.331 MMbbl of contingent resource expanding Petroteq’s total Contingent Resources by 8.5% to 93.4 MMbbl.
Petroteq CEO David Sealock 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 April 30, 2018 independent resource evaluation report was prepared by Chapman Petroleum Engineering Ltd. in accordance with the Canadian Oil and Gas Evaluation Handbook (COGEH). Chapman estimated that 93.4 MMbbl would, under favorable circumstances, support very positive mining economics.
These 93.4 MMbbl would be classified as a ‘Contingent Resource’ under current NI 51-101 and COGEH guidelines. Readers are cautioned that there is no certainty that it will be commercially viable to produce any portion of the resources.
Pursuant to its newly amended stock option plan, approved by shareholders of the Company at the May 29, 2018 shareholder’s meeting, the Company also announces the grant of an aggregate of 8,350,000 stock options to officers, directors and consultants of the Company at an exercise price of $1.00 per common share expiring on June 5, 2028.
Source: Company Press Release