Petroteq Energy Inc., an integrated oil ‎company focused on the development and implementation of its proprietary oil-‎extraction and remediation technologies, has announced progress on the licensing of its proprietary oil-sands extraction ‎technology.

On July 2, 2019, the company announced that it had entered into a non-exclusive technology licensing agreement with Valkor LLC, a company based in Katy, Texas. The agreement grants to Valkor the right to use Petroteq’s proprietary patented technology to engineer, construct, operate and finance oil sands extraction plants to transform highly oil saturated feed ore recovered from mining operations to heavy crude. Under the agreement, Valkor agreed to pay Petroteq a non-refundable license fee of $2 million per plant in two payments, with 50% payable upon start of construction of a plant and 50% payable upon first production of such plant. The agreement further provides that Valkor will pay Petroteq a 5% royalty based on annual gross sales, excluding solvent and or water, for so long as licensed technology is covered by a valid claim in the country in which it is used.

Valkor has now advised the company that it has entered into a non-binding memorandum of understanding with Hydrocarbon Dynamics Ltd (HCD), a company listed on the Australian Securities Exchange, to complete a preliminary study to determine the feasibility to mine HCD’s oil sands within HCD’s Utah leases. To earn an interest in HCD’s Utah leases, Valkor will need to engineer, install and operate a plant.

Valkor has also advised Petroteq that it has entered into a non-binding memorandum of understanding with TomCo Energy PLC, a company listed on AIM, the London Stock Exchange’s international market for smaller growing companies, in respect of TomCo’s leases in the Uintah basin in Utah. Valkor and TomCo intend to work towards agreeing on the scope of a resource study to identify the locations of the potential resource whereupon Valkor would seek to engineer, construct and operate a plant.

In the event the foregoing ventures successfully proceed, the company would be entitled to initial non-dilutive ‎capital, as well as a potential long-term revenue stream through a royalty.