Petroteq Energy closes resource acquisition in Utah, US

Petroteq Energy has announced the closure of ‎the acquisition of an additional 50% of the operating rights and interests with respect to oil sands under US federal oil ‎and gas leases.

The assets include approximately 8,480 gross acres in Utah, as announced earlier in April.‎

All shares issued as part of the transaction will be subject to a four-month hold period.

The acquisition enables the company to gain 100% of the operating rights for oil sands development under the leases.

The lands included in the leases are located in PR Springs and the Tar Sands Triangle areas that have been designated as ‘Special Tar Sands Areas’ by the US Bureau of Land Management.

Under the agreement signed in April, the company agreed to acquire an undivided 50% interest in the operating rights under a federal oil and gas lease in PR Springs and five federal oil and gas leases in the Tar Sands Triangle.

The acquisition was to be made by TMC Capital, an indirect wholly owned operating subsidiary of the Petroteq, from Nevada corporation Petrollo.

The total consideration for the acquisition was $13m, with $1m payable in cash and $12m payable in shares.

Based in the US, Petroteq is an integrated oil and gas company engaged in the development and implementation of a new ‎proprietary technology for oil extraction.

It currently focuses on developing oil sands resources and ‎expanding production capacity at its Asphalt Ridge heavy oil extraction and processing facility located near Vernal, Utah.