Valkor and Petroteq entered into a technology license agreement, which provides for Valkor to pay Petroteq a license fee of US$2,000,000 per oil sands plant in two payments with 50% payable at the start of construction of a plant and the balance payable upon first production. Valkor shall also pay Petroteq an amount equal to five percent (5%) of net sales from production at a plant.
Valkor, together with its joint venture partner, Tomco Energy plc, have upgraded Petroteq’s existing oil sands plant to increase plant capacity and reliability for continuous operations at up to 500 barrels per day as part of a larger FEED study for a proposed commercial scale 5,000 barrel per day plant design. This design could be utilized for a future 5,000 bpd plant owned and operated by Petroteq and for other similar plant licenses worldwide.
TomCo is a UK listed company that, together with Valkor, established Greenfield Energy LLC to seek investment opportunities in the oil sands sector. Greenfield helped to fund the recent upgrades to Petroteq’s existing oil sands plant. Upon successful completion of the testing of the upgraded plant and FEED study, it is Greenfield’s intention to offset upgrade costs against the US$2,000,000 fee that would have become payable by Valkor to Petroteq pursuant to the License Agreement as described above. Because Greenfield advanced the License Fee for use in upgrading the demonstration plant, Greenfield will now receive a multi-site license. The five percent (5%) royalty will still apply to any plants developed by Greenfield.
Tomco recently entered into a membership interest purchase agreement to acquire from Valkor its 50% interest in Greenfield. Tomco now owns 100% of Greenfield.
Petroteq has recognized further CORT growth and value potential beyond oil sands production solely by Petroteq