The Uinta Basin in Utah represents the largest concentration of oil sands in the US, with more than 30 billion barrels of reserves. Utah is an ideal place for Petroteq to grow by acquiring more leases and joint venture deals on the back of its technology that can really unlock the value in oil sands.
Proof of concept for the technology was successfully achieved at 250bopd. Now this revolutionary extraction facility is being scaled up as it is moved on to Petroteq's Asphalt Ridge site in Utah. Here there are 3,000 acres of rich and thick oil sands, allowing 25-30 years of production at 5,000bopd or more.
Petroteq has teamed up with First Bitcoin Capital to improve the efficiency of oil and gas supply chain management by developing a bespoke blockchain, a move that is likely to attract a lot of attention to the stock.
Our NPV and peer analysis shows the stock trading at a discount. We initiate coverage of Petroteq with a target price of US$3.98 (CAD $4.89) and Conviction Buy stance.
Petroteq Energy Inc. (PQE) is a research client of Align Research. Align Research holds an interest in the shares of PQE. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.
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