What is Petroteq Energy?
Petroteq Energy (OTC: PQEFF) is a Canadian oil and gas company headquartered in Toronto, Ontario, and founded in 2010. Petroteq Energy’s core business is the extraction of oil sands for the purpose of refining bitumen into crude oil. . Although headquartered in Canada where some of the largest oil sands are found in the Athabasca oil sands, Petroteq extracts primarily from various oil sands basins in Utah.
As you can see by the ticker symbol, Petroteq trades in the over-the-counter or over-the-counter market, which is usually associated with smaller companies, and is also more commonly known as Pink Slips or pennies. stocks. At the time of this writing, Petroteq has a 52-week trading range of $ 0.0180 to $ 0.25 per share, and has a market cap of just over $ 47 million. According to Yahoo Finance, there are just over 426 million shares outstanding, which brings us to a price of around $ 0.11 by doing a few simple calculations. The stock is trading above its 50 and 200 day moving averages, which is certainly a bullish signal that the stock is currently on a bullish path. Penny stocks can be risky investments, but I’m about to explain why I think Petroteq is on its way to becoming a $ 1.00 stock.
For any business, regardless of size, management is often the most important factor for future success. Could Amazon be the company it is without Jeff Bezos? Or Tesla without Elon Musk? Petroteq is a company run by its founder, which means that the vision and goals set when the company was founded are still intact.
Petroteq was founded by Aleksandr Blyumkin, a power industry veteran for over twenty years in various energy projects in the United States, Azerbaijan and Ukraine. After working in the energy sector, Blyumkin realized a global need for environmentally friendly extraction technologies, which he has now developed and created for Petroteq. Blyumkin is the current CEO as well as the Chairman of the Board of Directors.
The COO is George Stapleton who has over forty years of experience in managing onshore and offshore energy infrastructure projects.
George Bailey is the current Director and former CEO of Petroteq, and also brings more than forty years of experience in the international oil industry, particularly in the Middle East and the United States.
These three leaders alone bring 100 years of combined experience in the energy and petroleum industry, as well as extensive knowledge of the technologies and related infrastructure that are critical to Petroteq Energy’s operations.
Oil sands mining technology
Petroteq is one of the leaders in environmentally friendly extraction technology which it calls CORT or Clean Oil Recovery Technology. This patented method does not use water and significantly reduces harmful greenhouse gases emitted as a by-product of oil sands mining. With CORT, Petroteq can also extract up to 99% of hydrocarbons, allowing maximum bitumen extraction while leaving no waste.
Following recent CORT system upgrades in March 2021, Petroteq reported an increase to 500 barrels per day of extraction. Impressively, Petroteq predicts that this productivity will reach 5,000 barrels per day by 2022 and 10,000 barrels per day by 2023. This exponential growth in productivity alone should excite shareholders in the face of the potentially massive rise in prices. annual income. Petroteq recently published in its investor presentation that it expects EBITDA of $ 41.25 million for 5,000 bpd in 2022 and $ 83 million for 10,000 bpd in 2023. By comparison, EBITDA Petrotreq’s current value is – $ 3.34 million.
Eco-friendly technology and clean energy are just two of the hallmarks of the campaign led by the Biden administration. So far, President Biden has kept his word and spent billions of dollars improving America’s energy infrastructure over the next several years. With proprietary technology like that from Petroteq, the company could receive lucrative government grants, as well as regional and global deployment through licensing and sales of their technology.
Petroteq already holds patents for CORT in major global oil sands markets: Canada, United States and Russia. The company is also in the process of filing patents in more than 30 other countries that have significant oil sands basins, which could potentially see mass adoption of the technology in the future. At this point, Petroteq becomes one of the world’s leading producers of clean energy oil sands mining technology and can focus on manufacturing and production of CORT, rather than oil sands mining, which is a very capital intensive business.
Petroteq’s present and future success lies in Asphalt Ridge, located in the main tar sands of Utah. This basin is estimated to contain over a billion barrels of oil on its 29,000 acres of land. Petroteq currently owns 2,500 of the 29,000 acres in Asphalt Ridge and is expected to have a lifespan of over 20 years. The all-inclusive costs for a barrel of oil from Asphalt Ridge cost Petroteq about $ 25 a barrel. With an estimated WTI crude oil price of $ 50 per barrel, Petroteq expects gross daily revenues of $ 25,000 per day at current production. But of course, that figure jumps tenfold to $ 250,000 per day in 2022 when 5,000 barrels per day are mined. Perhaps most important to the company’s bottom line: the current price of a barrel of crude oil according to WTI is around $ 72.00 a barrel.
Final verdict on Petroteq
As much as Wall Street will tell you that electric vehicles and renewables are the age-old trend in which to invest, we are far from a world without fossil fuels. The International Energy Agency says it expects the number of electric vehicles to reach about 145 million by 2030. This still only represents a fraction of the more than 1.4 billion vehicles in circulation today, not to mention the total number in 2030.
Unlike most penny stocks in the over-the-counter market, Petroteq actually has an incredibly strong foundation and a long track of potential growth. Proprietary clean technology could be revolutionary for the oil and gas industry and could be widely adopted by countries around the world. As more countries focus on becoming carbon neutral, green technologies like CORT will be in high demand.
With patents already obtained in the United States, Canada and Russia, as well as 30 other countries in the near future, Petroteq is positioning itself as a world leader in green oil sands mining technology. If the company can continue with its predicted compound annual growth figure, revenues are expected to skyrocket by 2023, especially if the cost of crude oil continues to rise. Using raw arithmetic, Petroteq has a share price of $ 0.11 with negative EBITDA and $ 2.12 million in annual revenue. With the growth rate forecast by Petroteq, the current price-to-sales ratio of 22 drops to a forecast price-to-EBITDA ratio of just over 1 in 2022, meaning Petroteq’s stock is trading at a massive discount. . With recent technological updates, international patents that could lead to mass equipment licensing and sales, and an age-old global trend towards green energy, Petroteq is a time bomb that could explode once enough. investors will have realized the true potential of this business.