Petroteq Energy has signed a letter of intent (LOI) with Mareton Alliance to acquire leases and resources within the Utah oil sands region.
David Sealock, Chief Executive Officer of PetroTeq, stated, “Growing our asset base is a key initiative that I have been pushing since my arrival at Petroteq this year. I know that our valuation will be driven by our production and technology, as well as our assets in the ground. The discussions with Mareton Alliance have the potential to significantly increase the resource assets on our balance sheet.”
These assets meet all of the criteria set by Petroteq’s management and board. The pricing and structure of the transaction have yet to be finalized, but Petroteq management is confident that a transaction can be structured. The LOI is non-binding, and the transaction contemplated is subject to board and exchange approval.
Petroteq is in the process of bringing its new facility in Asphalt Ridge, located south of Vernal, Utah, up to its nameplate production capacity of 1,000 bbl/day of oil.