CORPORATE PRESENTATION 2018

Transcription

1 AMERICAN OIL FOR AMERICA CORPORATE PRESENTATION

2 IMPORTANT NOTICE THE INFORMATION CONTAINED HEREIN, TOGETHER WITH ANY AMENDMENTS OR SUPPLEMENTS AND ANY OTHER INFORMATION THAT MAY BE FURNISHED BY THE COMPANY, INCLUDES FORWARD-LOOKING INFORMATION. SUCH INFORMATION IS BASED ON ASSUMPTIONS AS TO FUTURE EVENTS THAT ARE INHERENTLY UNCERTAIN AND SUBJECTIVE. THE COMPANY MAKES NO REPRESENTATION OR WARRANTY AS TO THE ATTAINABILITY OF SUCH ASSUMPTIONS, INCLUDING THE COMPLETION OF A FINANCING OR AS TO WHETHER FUTURE RESULTS WILL OCCUR AS PROJECTED. IT MUST BE RECOGNIZED THAT THE PROJECTIONS OF THE COMPANY'S FUTURE PERFORMANCE ARE NECESSARILY SUBJECT TO A HIGH DEGREE OF UNCERTAINTY, THAT ACTUAL RESULTS CAN BE EXPECTED TO VARY FROM THE RESULTS PROJECTED AND THAT SUCH VARIANCES MAY BE MATERIAL AND ADVERSE. PROSPECTIVE INVESTORS ARE EXPECTED TO CONDUCT THEIR OWN INVESTIGATION WITH REGARD TO THE COMPANY AND ITS PROSPECTS. THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY. 2

3 THE OPPORTUNITY: RECOVERING HEAVY OIL HAS BEEN DIFFICULT In Utah, Colorado and Wyoming alone, there are 1.2 trillion to 1.8 trillion barrels 1 of oil locked in sand and shale - U.S. Department of Energy Existing processes require large capex/economies of scale, leave vast tailing ponds that take years for land reclamation 1) 3

4 OUR SOLUTION: CLEAN TECHNOLOGY & OIL PRODUCTION PATENTED CLEAN TECHNOLOGY Modular and Small Footprint/capex Produces no greenhouse gases Requires no high temperatures/opex No waste leaves clean dry sands Can be deployed worldwide Could unlock global heavy oil deposits HEAVY OIL PRODUCTION 3,000+ acres leased in Utah 86+ million barrels of shallow high grade resource Relocated and upgraded plant to 1000 bod Goal: bod production in

5 MANAGEMENT TEAM David Sealock, Chief Executive Officer Over 26 years oil & gas experience Former positions include: President Autus Ventures, Vice President PTAC, President & COO Sulvaris, President & CEO Sunshine Oilsands, Executive VP MegaWest Aleksandr Blyumkin Founder, Chairman More than 20 years oil & gas industry experience Developed oil properties around the globe He and his team initiated Petroteq s technology Dr. R. Gerald Bailey President & Director More than 40 years oil & gas experience Former positions include President of Exxon, Arabian Gulf, Abu Dhabi, UAE, Qatar General Petroleum Corp Dr. Vladimir Podlipskiy, Founder & CTO More than 23 years experience in chemistry, research & development and manufacturing Former positions include R&D Nanotech - Chief Chemist, Premier Chemicals Mark Korb, CFO 20+ years experience with high growth companies Experienced in pharmaceuticals, brand development and private equity and financial consulting 5

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7 PETROTEQ TIMELINE 2012 Petroteq secures oil sands lease in Utah 2015 Petroteq receives permits and begins processing oil sands in Utah 2017 Petroteq acquires 46% of Accord Energy GR and produces first oil from Texas 2016 Petroteq constructs oil sands processing facility in Utah 2014 Petroteq produces 10,000 bod of bitumen oil in Utah using patented process Petroteq resumes Production In Asphalt Ridge, Utah

8 PLANNED UPCOMING DEVELOPMENTS Project Relocate Utah Extraction Plant 1H H 2018 Utah Heavy Oil 1000 bod/day 5000 bod/day Utah Net Annual Revenue Potential at $46.80/bod (Annual) $5.65 million $29.5 million 8

9 ASPHALT RIDGE PROFORMA Modular Plant Economics ALL costs anticipated to average between $18 - $25 per bod Netback margins - anticipated to average between $15 - $25 per bod Energy Efficient Technology Modular and scalable technology from 250 to 5,000 bod/day Low CAPEX estimates: ~$9,000 per flowing bod/day Plant size bod/day CAPEX US$ M Production Cost US$/day Gross Daily Revenue US$ EBITDA US$M/year 250 $5 M $8,750 $12,150 $.45 M 1,000 $5 M** $22,738 $45,893 $5.65 M 5,000 $45 M $109,675 $229,465 $29.5 M Assumes $46.80 / bod oil (WTI West Texas Intermediate oil price) 360 days of operation Energy efficient energy returns over 22 times the energy used to produce oil compared to 2-6 times for competitive technologies 9

10 LOW PRODUCTION COSTS Netback is a summary of all the costs associated with bringing one unit of oil to the marketplace and all of the revenues from the sale of all the products generated from that same unit, expressed as gross profit per barrel NETBACKS LOW MEDIUM HIGH Crude Oil Price (WTI) $48.6/BOD $48.6/BOD $48.6/BOD Heavy Diff & Transport 1 $7 $5 $3 Operating Cost Mining 2 $12 $10 $8 Operating Cost Solvent (20%) 3 $8.5 $7.5 $6.5 Royalties (7%) $3.25 $3.25 $3.25 G&A $2.5 $2.5 $2.5 Inventor s Royalty (2%) $0.45 $0.45 $0.45 NETBACK = $14.90 $19.90 $ Price varies from discount of 10% to as high as a premium of 10%. 2. $6 / Ton of ore / 0.6 bod per Ton (oil saturation varies between 7-14 % by weight) 3. Solvent components are abundant and at a discount of 25% to WTI and could be further reduced 10

11 PETROLEUM ENGINEERS UTAH EVALUATION Chapman Petroleum Engineering, Ltd. evaluated the site with a three person team Petroleum engineer, geologist, professional engineer C.W. Chapman, P. Eng. has more than 25 years experience evaluating oil and gas fields Material from 84 core holes across the property were examined Chapman estimates that there are 139,539,001 STB (Standard Tank Barrels) of Bitumen in Place on the site Part of the resource has a lower saturation of oil and is therefore not feasible for extraction We estimate that 139 million standard tank barrels is equivalent to over 86 million barrels of contingent resource oil equivalent (boe) 11

12 PHASE BOD/DAY EXPANSION Expanding the Small Capacity Plant Once complete, Petroteq s initial Petroteq has been working over the extraction plant is the gateway for past 9 months to expand the plant at additional, larger capacity plants Asphalt Ridge Utah to 1000 bod/day Using a common feed conveyor system, several extraction plants may operate in tandem, providing expanded capacities in daily oil production Petroteq s initial extraction plant will put the Company in position to have the commercial facility expand our global licensing prospects Anticipated EBITDA - $5.65 million annually 12

13 PHASE BOD/DAY EXPANSION Our Asphalt Ridge Utah Site 86 million barrels of contingent resource Extracted bitumen has a heavy oil API as compared to tar-like bitumen Final oil product has the high diesel fraction refineries look to purchase Deposits average 6% - 15% oil by weight Resource life expectancy years Construct a larger capacity plant Build a 5000 bod/day facility on the Temple Mountain lease CAPEX $45 million $32 million equipment manufacturing, construction $2 million C&SU $4 million permitting $4 million site preparation $3 million R&D and overhead Oil sands ore at our Asphalt Ridge lease site Anticipated EBITDA - $29.5 million annually 13

14 COMPANY STATISTICS Stock Symbol PQEFF (OTC) PQE(TSX) Industry Oil and Gas Price $0.98 (4/02/18) 1 $1.27 (4/02/18) 3 52 Week Range $0.24-$ $ $ Float 10.3 Million 2 Shares Outstanding 57.5 Million Million 3 Source: 1) 2) finance.yahoo.com 3) tsx.com 14

15 COMPELLING INVESTMENT $29.5 Million annual net profit potential for Utah in Phase 3 Potential game changing technology licensing opportunity to unlock billions of barrels of heavy oil Highly active acquisition market with attractive multiples Highly experienced and successful Management Team Petroteq is on track to be producing >5,000 bod by year end

16 BLOCKCHAIN FOR THE OIL & GAS INDUSTRY Petrobloq will be the first Blockchain based platform developed exclusively for the supply chain needs of the Oil & Gas sector A smart contract system prototype on a blockchain to improve the efficiency of oil and gas supply chain management interactions Taking advantage of distributed ledgers, the technology will monitor the supply chain logistics on the blockchain to automate oil and gas industry transactions 16

17 HOW BLOCKCHAIN CAN TRANSFORM THE OIL & GAS INDUSTRY Transparency and Compliance Tracking Provenance for Authenticity and Quality Control Security/ Data Protection Manage the Full Asset Lifecycle Mid-Volume Trading/Third-Party Impacts Enabling Performance- Based Contract * Information Taken From Deloitte & Accenture 17

18 Petroteq s Partnership With First Bitcoin Capital Corp to Form About First Bitcoin Capital Corp. Is the first publicly-traded cryptocurrency and blockchain-centered company. First Bitcoin Capital Corp. is engaged in developing digital currencies, proprietary blockchain technologies, and the digital currency exchange -- (in beta). The goal of First Bitcoin Capital Corp., which is comprised of seasoned financial and technology experts with diverse backgrounds and education, is to acquire Bitcoin start-ups, raise funding and invest in companies that are developing Bitcoin software or hardware applications. First Bitcoin Capital Corp. is currently trading on OTC Markets under the symbol BITCF. 18

19 Proud Member of Next Steps Petroteq will be leading a consortium to explore how blockchain can benefit the Gas and Oil Industry, specifically with Supply Chain Management. Petroteq will be joined by other Oil and Gas industry members, all of whom are looking to improve supply chain via blockchain. 19

20 The emergence of blockchain consortia Banding together for blockchain Does it make sense for your company to join a consortium? Funding Membership Leadership 20

21 Company News Mar 7 th, 2018 Azerbaijan Oil Major Socar Energy (Ukraine Branch) Joins Petrobloq's Oil & Gas Blockchain-Based Consortium Mar 5 th, 2018 Petroteq Energy Announces Completion of All Major Process Systems at Its Utah Heavy Oil Extraction Facility Feb 22 nd, 2018 Petroteq Energy Announces Completion of Facilty Improvements Bringing Production Capacity to 1000 Barrels Per Day Feb 13 th, 2018 Petroteq Energy, Announces Development of PetroBLOQ Payment Feb 5 th, 2018 Petroteq Energy, Inc. Receives $2.5 Million From Deloro Jan 31 st, 2018 Petroteq Energy Receives Approval as Government Contractor for State of Utah Jan 25 th, 2018 Petroteq Energy Announces Pemex as First Member of PetroBLOQ Global Blockchain Industry Consortium 21

22 OIL INVESTMENT: THE TIME IS NOW Investment in tight oil, oil sands, and deepwater drives longterm oil production growth Mar 12, 2018 Higher oil prices and a positive earnings outlook for energy companies are expected to fuel a rebound in North American oil and gas There is some growth in energy investments globally, which is restoring optimism in the industry March 8, 2018 March 6, 2018 New oil demand remains a constant reality March 8, 2018 The oil industry is beginning to recover Mar 3,

23 CONTACT Alex Blyumkin Chairman alex@petroteq.energy David Sealock CEO dsealock@petroteq.energy 23