Oil Sands in Utah
In Utah there are currently two explorations into producing oil from tar sands that stand out and we should keep some eyes on: Petroteq, near Vernal on the Asphalt Ridge site and U.S. Oil Sands (USO Utah) operating at the P.R. Springs site.
Petroteq (was MCW):
Operating an old tar sands mine outside of Vernal, at Asphalt Ridge, that was previously used to mine road material. They’ve built a processing plant on site with what they say will have a 1,000 barrels per day production capacity, and are actively encouraging investment.
March 28, 2019: The company announced that it had been producing 500 barrels of oil per day for two weeks. They say they will scale up production to full capacity by the end of May.
February 8, 2019: Petroteq aquires 50% share in federal leases.
Petroteq Energy announced the execution of a definitive agreement with Momentum Asset Partners I, LLC for the acquisition of 50% of the operating rights of six U.S. Federal oil and gas leases: one located in P.R. Springs (encompassing approximately 8,480 gross acres) and five located in the Tar Sands Triangle. Total consideration for the transaction is US$10.8 million comprised of US$1.8 million in cash and US$9.0 million payable in Petroteq Energy shares (approximately 15 million common shares). (Raiston, Steven 2019)
“Biggest Breakthrough in Energy: Investor Warning” March, 2018: Here is a report debunking some of the propaganda that Petroteq has put out in the last few months.
2015-2018: The company constructed and operated a 250 bpd pilot plant on Temple Mountain. The company acquired the leases to oil sands to provide feedstock to the pilot plant. The pilot plant were relocated, upgraded and expanded to a 1,000 bpd facility on Asphalt Ridge right off of Highway 45 near the Green River.
USO Utah (was US Oil Sands):
Pre 2017: Built a $80+ Million experimental processing facility and began strip mining.
Went into bankruptcy proceedings right after completing the plant (though it is unclear if the plant was ever operational).
2017-2018: USOS declared bankruptcy and put the processing plant at PR Springs Utah up for sale but got no offers. Now USOS is called USO Utah and the major share holder, AMCO, remains the same.
US Oil Sands owed SITLA $265,000 in outstanding leasing and minimum royalty payments that were never paid.
USO Utah has reduced their SITLA lease holdings from 32,005 acres down to 5,930 acres.
Since 2008, USOS has made regular claims that oil production from tar sands was just around the corner. As it turns out, USOS never produced oil from tar commercially. Now USO Utah continues to keep up the charade.
UDOGM files on USO Utah-Including a recently revised Notice of Intent for Large Scale Mining (Feb 2019)