INVESTOR PRESENTATION - content.equisolve.net · PQE 2 Important Notice OTC: PQEFF | TSX Venture: PQE This presentation (the “Presentation”)about Petroteq Energy Inc. (“Petroteq”)is

PQE

OTC: PQEFF | TSX Venture: PQE

I N V E S T O R P R E S E N T A T I O N

OCTOBER 2019

www.petroteq.energy

PQE

2

Important Notice


Certain statements contained in this presentation contain forward-looking statements within the meaning of the U.S. and Canadian securities laws. Words such as “may,” “would,” “could,” “should,”“potential,” “will,” “seek,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions as they relate to the Company, including: the commissioning of the sand separation and theclean sand production processes and the fluid and sediment extraction equipment starting immediately, the addition of new vibrating separation units virtually eliminating the need of introducing abrasivesand into the Company’s centrifuges and these upgrades reducing the Company’s maintenance costs greatly over the long term are intended to identify forward-looking information. Readers are cautionedthat there is no certainty that it will be commercially viable to produce any portion of the resources. All statements other than statements of historical fact may be forward-looking information. Suchstatements reflect the Company’s current views and intentions with respect to future events, based on information available to the Company, and are subject to certain risks, uncertainties and assumptions.Material factors or assumptions were applied in providing forward-looking information.

While forward-looking statements are based on data, assumptions and analyses that the Company believes are reasonable under the circumstances, whether actual results, performance or developmentswill meet the Company’s expectations and predictions depends on a number of risks and uncertainties that could cause the actual results, performance and financial condition of the Company to differmaterially from its expectations. Certain of the “risk factors” that could cause actual results to differ materially from the Company’s forward-looking statements in this presentation include, withoutlimitation: the ability of the Company to commission the sand separation and the clean sand production processes and the fluid and sediment extraction equipment immediately, the ability of the Companyvirtually eliminate the need of introducing abrasive sand into its centrifuges by the addition of new vibrating separation, the ability of the Company to use these upgrades to reduce its maintenance costsgreatly over the long term, the failure by the TSXV to provide final approval to the financing or shares for debt settlements; uncertainties inherent in the estimation of resources, including whether anyreserves will ever be attributed to the Company’s properties; since the Company’s extraction technology is proprietary, is not widely used in the industry, and has not been used in consistent commercialproduction, the Company’s bitumen resources are classified as a contingent resource because they are not currently considered to be commercially recoverable; full scale commercial production mayengender public opposition; the Company cannot be certain that its heavy oil and bitumen resources will be economically producible and thus cannot be classified as proved or probable reserves inaccordance with applicable securities laws; changes in laws or regulations; the ability to implement business strategies or to pursue business opportunities, whether for economic or other reasons; status ofthe world oil markets, oil prices and price volatility; oil pricing; state of capital markets and the ability of the Company to raise capital; litigation; the commercial and economic viability of the Company’s oilsands hydrocarbon extraction technology, and other proprietary technologies developed or licensed by the Company or its subsidiaries, which currently are of an experimental nature and have notbeen used at full capacity for an extended period of time; reliance on suppliers, contractors, consultants and key personnel; the ability of the Company to maintain its mineral lease holdings; potentialfailure of the Company’s business plans or model; the nature of oil and gas production and oil sands mining, extraction and production; uncertainties in exploration and drilling for oil, gas and otherhydrocarbon-bearing substances; unanticipated costs and expenses, availability of financing and other capital; potential damage to or destruction of property, loss of life and environmental damage; risksassociated with compliance with environmental protection laws and regulations; uninsurable or uninsured risks; potential conflicts of interest of officers and directors; and other general economic, marketand business conditions and factors, including the risk factors discussed or referred to in the Company’s disclosure documents, filed with the securities regulatory authorities in certain provinces of Canadaand available at www.sedar.com.

Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially fromthe results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for theaccuracy or completeness of such forward-looking information. The forward-looking information included in this presentation is made as of the date of this presentation, and the Company undertakes noobligation to publicly update or revise any forward-looking information, other than as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this presentation.

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COMPANY OVERVIEW

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Petroteq Energy Inc.


• Fully integrated, technology-centric, energy company based in Los Angeles, California

• 100% WI2 in 2,542 gross acres3 & 87 mmbbl contingent resources in Uintah basin, Utah4

• 100% of the operating rights in 8,480 gross acres & estimated 81 mmbbl contingent resource in P.R. Springs and the Tar Sands Triangle, Utah4

• Implementing proprietary clean oil sands processing & heavy oil extraction technologies

• Environmentally-friendly process that reduces greenhouse gases & waste

• Potential to unlock resources across U.S. and global oil sands & oil shale markets

• Technology provides access to a multi-billion dollar global land remediation market

• Nasdaq application submitted for potential listing 2H 2019 – Blue Sky Exempt in 39 States in the USA

Value-creation focused company, developing & implementing sustainable technologies in the oil sands mining production & remediation sectors

(1) All values as of October 7, 2019. (2) Working Interest. (3) Net acres of 2,318.75 after royalties contemplated in the leases (4) Please refer to the notice on slide 2 of this presentation for information regarding contingent resources

(1) OTC: PQEFF TSXV: PQE

HQ: Los Angeles, CA

Shares O/S: 193.06 mm 193.06mm

Price: US $0.18 CAD $0.24

Market Cap: US $31.42mm CAD $41.61mm

52wk High: US $0.925 CAD $1.159

52wk Low: US $0.112 CAD $0.174

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Multi-Sector Investment Opportunity

OTC: PQEFF | TSX Venture: PQE 5

• 87 mmbbl of contingent resource across 2,500+ leased acres in Uintah basin, Utah1 + 8,480 net acres, less royalty & estimated 81 mmbblcontingent resource in P.R. Springs and the Tar Sands Triangle, Utah

• Risked resource valuation of $445/146mm at 10/15% discount rate2 + $154/83mm at 10/15% discount rate2

• Excellent existing infrastructure, 5 major refineries in trucking distance to Salt Lake City

SIGNIFICANT RESOURCE

EXPERIENCED LEADERSHIP

ATTRACTIVE ECONOMICS

PATENTED TECHNOLOGY

ESCALATING PRODUCTION

• Patented technology drives low project capex, estimated ~$10k per flowing bbl

• Low production costs, est. to average $30-$25/bbl based on scale of production

• Netback margins between $17-$25/bbl at $50 WTI

• Production capacity of 1,000 bpd, potential for 8,000 to 10,000 bpd production in 2022/1H23

• 10,000 bbl oil produced3 to date demonstrates feasibility, viable economics & path to cash flow

• Scalable operations with potential to achieve 25,000 bpd production4

• Innovative, patented & proven oil recovery technology with low capex demand

• Expected to extract up to 99% hydrocarbons using no water, reduces greenhouse gases & waste

• Potential to unlock surface minable oil sands deposits & target multi $Bn remediation market

• Highly qualified leadership team with significant experience in creating investment value

• Significant experience across oil sand asset life cycle, including start-up, operations and M&A

• Experience in construction quality assurance & conducting in-house commissioning

Attractive, unique, growth opportunity for investors seeking a position in both the E&P & Clean Energy sectors

(1) Please refer to the notice on slide 2 of this presentation for information regarding contingent resources. (2) Chapman Petroleum Engineering, Ltd., September 1, 2018. (3) At pilot plant. (4) See slide 23 of this presentation for details on assumptions

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Industry-Leading Executive Team

6OTC: PQEFF | TSX Venture: PQE

Mr. David SealockExecutive Director and Chief Executive Officer

• Mr. David Sealock is a highly accomplished, results driven senior executive leader with over 28 years of strategic management and business leadership. He has a trackrecord of building high-performing teams with a strong focus on setting corporate strategy, executing over $1.2Bn in equity and debt transactions, joint ventures andM&A deals.

• Prior to Petroteq Energy, David Sealock served as President of Autus Ventures, Vice President Technology - Petroleum Technology Alliance Canada, President & COO ofSulvaris, President & CEO of Sunshine Oilsands, EVP MegaWest Energy, & senior management positions with Deer Creek Energy, CNRL, Petrovera Resources, Total andChevron.

• Mr. Alex Blyumkin has over 20 years of a wide range of experience in the energy industry. After achieving significant success in downstream operations on severalenergy projects in Azerbaijan, Ukraine and the U.S., he recognized a worldwide need for safe, environmentally-friendly oil sands extraction technology. Alex Blyumkinand his team discovered the origins of what is now Petroteq’s extraction technology.

• Dr. R. Gerald Bailey has over 40 years of experience in the international petroleum industry in all aspects, both upstream and downstream with specific Middle Eastskills and U.S. onshore/offshore sectors. Current President and Director of Petroteq Energy Inc. as well as its former CEO, he also serves an advisor to Petroteq’sPetrobloq.

• Dr. Vladimir Podlipskiy has over 20 years of extensive experience as a researcher, involved in oil extraction technologies and research into many remediation products,all with a focus on the utilization of benign solvents/solutions.

• Mr. Mark Korb has over 20 years experience with high growth companies, serving as the CFO or Financial Consultant across several industries.

Dr. R. Gerald BaileyDirector and President

Mr. Alex BlyumkinChairman of the Board

Dr. Vladimir PodlipskiyChief Technology Officer

Mr. Mark KorbChief Financial Officer

Highly qualified, experienced management team with 175+ years across the energy, chemical engineering, remediation, and engineering technology sectors

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OPERATIONS & TECHNOLOGY

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Asphalt Ridge: Growing production on a multi-decade asset


Regional Excellence

• Measured regional play resource in-place is est. to be an estimated 1 Bnbbl, underlying 29,000 acres 1

• Petroteq’s leased acreage holds an est. 87 mmbbl contingent resource across 2,500+ acres2 + est. 81 mmbbl contingent resource across 8.400+ acres2

• Acreage acquired by Petroteq for $10 mm (~$0.10/bbl), excellent existing regional infrastructure

Rich Oil Sands Deposits

• Asphalt Ridge’s oil sands deposits are estimated to be the richest in the US at 100 to >300 bbl/acre-ft.

• Deposits average 6% - 15% oil by weight, expected resource life >20 years

• 10,000 bbl high-diesel fractionation oil produced at pilot facility to demonstrate feasibility and validate economics

Expanding a Multi-Decade Asset

• Expansion project underway to boost facility capacity

• Step wise production targets to achieve 8,000 -10,000 bpd by 2022/1H23

• Product trucked to local State refineries

Petroteq’s key asset, Asphalt Ridge, is located in Utah’s prime oil sand play

Reservoir Properties Asphalt Ridge

Depth 20-600 ft.

Net Pay 35-50 ft.

Porosity 27%

Permeability 1,000+ md

Oil Saturation Max: 60%, Ave: 48%

(1) Department of Energy, U.S. Government. (2) Please refer to the notice on slide 2 of this presentation for information regarding contingent resources.

Planned Expansion Phases

1,000 bpd 4,000 bpd 8,000+ bpd

2019 2020/1H21 2022/1H23

PHASE 1 PHASE 2 PHASE 3

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Oil Sands: The Petroteq advantage


CLEAN TECHNOLOGY

• Greatly reduces greenhouse gases

• Requires no water, leaves no waste water/slurry

• Demands no high temperatures/pressures

• No waste - leaves clean, dry sands

• Up to 99% of hydrocarbons are extracted

• Up to 99% of used solvents are recycled

Structuring potential for global deployment

OIL SANDS PRODUCTION

• Proprietary extraction & remediation technology

• 2,500+ acres leased in Uinta Basin, Utah + 8,400 acres leased in PR Springs/Tar Sands, Utah

• Small, modular footprint, low capex & opex

• 87 mmbbl of shallow, high-grade, resource + 81 mmbbl contingent resource

• Commercial production facility with 1,000 bpd capacity

• Goal of 4,000 bpd production in 2020 – 1H 2021

Potential to unlock international heavy oil mining deposits

PETROTEQ’S CLEAN OIL RECOVERY TECHNOLOGY (“CORT”)INTEGRATES CLEAN TECHNOLOGY & OIL SANDS PRODUCTION

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CORT: Proprietary extraction & remediation technology


Clean Oil Recovery Technology (CORT)

• Breakthrough, environmentally-friendly, proprietary oil sands extraction technology, suitable for all hydrocarbon deposits

• Patented, innovative, 14-stage process uses solvents & surfactants to liquefy & extract bitumen oil from crushed raw oil sands

• Expected to extract up to 99% of the crude oil and recycles 99% of the solvent used

• Technology can also be deployed for land remediation projects, independently or integrated with other processes

• Scaling-up production capability with several additional, higher capacity units

Petroteq’s extraction technology has been evaluated by reputable, independent consulting firm, Chapman Engineering, who concluded that the process is scalable, commercially viable & cost effective

Key CORT Advantages

No water needed

No greenhouse gasses

No high temps / pressures

Up to 99% of solvent recycled

Up to 99% of crude oil extracted

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CORT: Process Schematic


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GROWTH & DEVELOPMENT

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Building shareholder value through focused operations

• Develop Asphalt Ridge asset from 1,000 bpd plant

• Target multi process trains, 8,000 to 10,000 bpd facility in 2022 – 1H 2023

• Capture share of the multi-billion dollar remediation market

• Acquire incremental oil sand acreage across Uinta Basin

• Expand technologies through international licensing opportunities

PHASED PRODUCTION

GROWTH

LAND REMEDIATION

LEASE EXPANSION

& LICENSING


Optimizing capital expenditures via strategic growth and development of proprietary technologies, Petroteq’s business plan focusses around two core operational areas

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Phased growth plan to 10,000 bpd by early 2022


PHASE 1 PHASE 2 PHASE 3

Expansion to 4,000 bpd in 2020 – 1H 2021 8,000-10,000 bpd est. by early 2022 – 1H 2023Asphalt Ridge at 1,000 bpd capacity

• Expanding small capacity plant via additional plants and common feed conveyor system

• Raising $30mm of funding via equity and debt, expected in place by end of 2019

• Engineering due to complete 4Q’19

• Est. EBITDA of $22.0 mm at 4,000 bpd1

• Fully funded, operational 4Q’19

• Peak 2019 capacity of up to 1,000 bpd

• Trucking production to local refineries

• 1,000 bpd plant is project gateway for additional, larger capacity plants

Measured growth with proof of commerciality ideally positions Petroteq to capture market share as technology is developed and implemented, and expansion trains are producing sales product

• Construction of larger capacity plant

• Production increase by 2022

• Achieved though addition of 2x 2,500 bpd process trains

• Phase 3 est. capex of $25 mm / train

• Est. EBITDA of $29.5 mm at 5,000 bpd1

Note: See slide 23 of this presentation for details on assumptions to achieve est. EBITDA

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Expansion via Process Trains enhances margins & cash flow


Production capacity at Asphalt Ridge facility will be incrementally raised through addition of identical process trains

Process trains can be relocated once location depleted

Familiarity with approvals processes

Supply chain & marketing routes established

Environmental requirements met

Fewer variables in employee training and operations

Predictable costs & cash flow modeling

• ‘Plug and play’ process train expansion model provides cost effective route to cash flow growth

• Proprietary technology application deployed and expanded through cost-efficient means

• Minimizes scope of cost-inflating variables including maintenance, supply chain, marketing and employee training

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Phase 2 Detail: Expansion of Asphalt Ridge to 4,000 bpd


Estimated timeline of expansion operational activity to increase Phase 2 production goal of 4,000 bpd production by 4Q’20

ENGINEERING

& PROCUREMENTFIELD CONSTRUCTION

& COMISSIONING

RAMPING UPPRODUCTION

SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JULY AUG

• Engineering and process verification established

• Procurement of long lead items, Fabrication of modules

• Design basis approved Q2‘19, civil construction to commence early 4Q’19

• Engineering due to complete late 3Q’19

• Expand 1,000 bpd capacity plant to 4,000 bpd capacity through additional 3,000 bpd process train

• Multiple process trains to operate in tandem

• Major modules arrive on site early 2Q’20, mechanically complete late 3Q’20

• Estimated online early 4Q’20

• Production focus to achieve rate of 4,000 bpd in 4Q’20

• Further process trains to continue growth to Phase 3

2019

Note: Schedule is based on timing of equity and debt financing

SEP OCT NOV

2020

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Remediation: An environmental necessity


GLOBAL Conventional Oil Sands Mining has an environmental impact problem – Petroteq’s unique technology can solve it

• Evaluation and testing of tailing ponds to clean contaminated soil underway

• Potential to capture share of multi-billion dollar land remediation market

• Petroteq owns the CORT process IP, has the ability to deploy internationally

• Opportunity & capability to build & deploy specific remediation fleets globally

• Modular technology can work independently or be easily integrated with other facilities

THE OIL SANDS SECTOR HAS A REMEDIATION PROBLEMESTIMATED 50 THOUSAND CONTAMINATED ACRES IN CANADA ALONE

PETROTECH’S PATENTED TECHNOLOGY CAN

REMEDIATE A HIGHER CAPACITY PER DAY

THAN EXISTING SOLUTIONS

Remediation is estimated between $27 Bn and $48 Bn to clean up the oil sands tailing ponds waste problem

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Patent protection of a disruptive clean technology


Patents in Major Markets

• Own patents in USA, Canada, Russia

• Petroteq has been involved in the patent protection processes since the early days of its technology development in 2011

• Provisional patents to be filed in 30 countries worldwide with significant oil sands reserves

• Patent protection applications have been filed covering specific aspects of the entire extraction processes and the physical features of the extraction plants and solvents as follows:

− Solvent combinations and compositions.

− Engineering and design features of specific major components and vessels.

− Specific extraction processes

Petroteq's patented oil sands extraction technology is a breakthrough for the oil sands industry

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Leveraging CORT: Opportunities beyond Asphalt Ridge


Actively reviewing and pursuing land and resource opportunities across the wider Utah Oil Sands

• July 2018, Petroteq formed a partnership with Mareton Alliance LP to acquire leases and resources

• Signaled intent to significantly increase acreage and resource, goal to be a major oil sands producer in Utah

• Proprietary technology deployable on asset farm-ins or joint ventures, in North America and on a global basis

• Crucially, for deployment across the US and beyond, CORT is suitable for both oil sands and shale oil reserves

Oil spill and land remediation remains a business area of global potential for CORT

• Technology is also potentially applicable to oil spill remediation

• Own patents in major oil markets, including US, Canada and Russia

• Petroteq process has lower capital expenditures than competitive technologies

Petroteq has recognized further CORT growth and value potential beyond oil sands production in the Uinta Basin

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Leveraging CORT: Opportunities beyond Asphalt Ridge (cont.)


Petroteq has recognized further CORT growth and value potential beyond oil sands production in the Uinta Basin

Opportunity to license CORT in 20 countries that have oil sands resources

• CORT is a value investment, commercial production validates game-changing global application

• Engaged in discussions with numerous global oil sands and oil shale reservoir players

• Signed MOU with Queensland Energy & Minerals Pty Ltd (QEM)

• Ongoing roll-out discussions globally, including Middle East, Canada, Africa, South America

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THE PETROTEQ ADVANTAGE

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Shifting demand driven by improving US & Global fundamentals

UNDEVELOPED OILSANDS LEASES

DOMESTIC ENERGY INTEREST

TECHNOLOGY ADVANCES DEVELOPMENT COSTS

• Limited oil sands production occurred in the late 1970-80’s

• Much potential was halted by inefficient technology and low oil prices

• Environmental concerns have hindered developments

• ‘OOOs of acres of untapped U.S. oil sands potential

• The occurrences of significant new reserves of conventional crude oil have become extremely rare, and increasingly challenging and more capital intensive to access

• Petroteq’s technology grants the opportunity to access millions of previously inaccessible domestic barrels with exceptional production cost margins

• Technological advances such as Petroteq's CORT system facilitate development and production of oil sands projects

• Enhanced recovery through CORT, combined with remediation opportunities globally provide Petroteq with significant growth potential

• With technological advances in horizontal driving interest in domestic energy sources has increased

• By developing new domestic sources Petroteq can further minimize America's reliance on foreign oil supplies

Time is now to focus on undeveloped U.S. resources, with Utah's Oil Sands as a major source of domestic energy


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Asphalt Ridge Proforma


Modular PlantEconomics

Energy EfficientTechnology

• Modular & scalable, from 250 - 8,000 bpd to 2,500 - 5,000 bpd process trains

• Closed-loop, continuous recycle of process materials

• Low CAPEX estimates: ~$10,000 per flowing bbl of capacity (conventional mining operations 4-5x higher due to water demand)

• Returns over 14x energy used to produce oil, comp. to 2-6x for competitive technologies

• All costs anticipated to average $25 /bbl1

• Netback margins anticipated to average between $17 - $25 /bbl

• Economics run at EBITDA assumption of $46.80 /bbl WTI

• Assumes 350 days of operation for each process train

(1) At 5,000 bpd(2) $8 mm in addition to $10 mm spent on 250 bpd pilot

Plant Sizebpd

CAPEXUS$

Production CostUS$ / day

Gross Daily RevenueUS$

EBITDAUS$ / year

1,000 $8 mm2 $28,738 $46,800 $6.3 mm Payout in 24-30 months

5,000 $45 mm $127,250 $234,000 $29.5 mm >20 years cash flow

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Low Production Costs


Netback

• Summary of costs associated with bringing one barrel of oil to the marketplace, and all revenues from the sale of products generated from that same unit, expressed as gross profit per barrel

(1) Price varies from discount of 10% to as high as a premium of 10%

(2) $7 / ton of ore / 0.6 bpd per ton (oil saturation varies between 8 - 14% by weight)

(3) Solvent components are abundant and at a discount to WTI. Have potential to be further reduced using other products

Economies of Scale

Crude (WTI) @ $50/bbl LOW MEDIUM HIGH

Production 1,000 bpd 4,000 bpd 8,000 bpd

Heavy Diff & Transport1 $9.00 $8.00 $6.00

Operating CostMining2 $10.00 $9.00 $7.00

Operating Cost - Fuel & Solvent3 $8.50 $7.50 $6.50

Royalties (7%) $3.25 $3.25 $3.25

G&A $2.50 $2.50 $2.50

NETBACK /bbl $16.75 $19.75 $24.75

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Independent Resource Valuation


Petroteq Energy, Inc. – Asphalt Ridge, Minable Bitumen Resource

Note: Unrisked values are the arithmetic average of C1, C2 and C3 economic cases

Discount Rate undisc. 5% 10% 15% 20%

Unrisked Value, $mm $3,469 $1,146 $543 $323 $220

Risked Value, $mm $2,842 $939 $445 $265 $180

Chapman Engineering has valued Petroteq’s Asphalt Ridge resources at $445mm on a 10% discount rate basis1

(1) Chapman Petroleum Engineering, Ltd., September 1, 2018. (2) Chance of Commerciality = Chance of Discovery * Chance of Development. (3) TCSO = 169 million

• Chance of Commerciality2: 81.9%

• Risked Value at 10% and 15% discount is $444.9 mm and $264.9 mm

Total Values for Asphalt Ridge

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Key Takeaways


1. Clean technology oil producer with global land remediation potential

2. Modular & scalable, from 250 - 8,000 bpd to 2,500 - 5,000 bpd process trains

3. Independent reserves report expected early 4Q’19

4. Phase 1 fully funded, facility operational, peak 2019 capacity of up to 1,000 bpd

5. Raising $30mm of equity and debt to fund 2019 Phase 2 expansion program

6. Modular plant economics anticipate netback margins of $17 - $25 / bbl

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The Petroteq Advantage


SIGNIFICANT RESOURCE

EXPERIENCED LEADERSHIP

ATTRACTIVE ECONOMICS

ESCALATING PRODUCTION

Petroteq's patented oil sands extraction technology is a breakthrough for the oil sands mining industry and remediation sectors

PROPRIETARY TECHNOLOGY

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Oil Sands Glossary


Term Definition

API gravity An American Petroleum Institute measure of liquid gravity. Water is 10 degrees API, and a typical light crude is from 35 to 40. Heavy oil is, by convention, typically from 9.0 to 11 degrees API, while bitumen is 7.5 to 8.5.

BitumenNaturally occurring, viscous mixture of hydrocarbons that contains high levels of sulphur and nitrogen compounds. In its natural state, it is not recoverable at a commercial rate through a well because it is too thick to flow. Bitumen typically makes up about 10% by weight of oil sand, but saturation varies

Cleaned crude bitumen Crude bitumen that has had impurities removed to the extent that it is possible to blend it with diluent and transport it by pipeline

Condensate A mixture of extremely light hydrocarbons recoverable from gas reservoirs. Condensate is also referred to as a natural gas liquid and is used as a diluent to reduce bitumen viscosity for pipeline transportation

Conventional crude oil Petroleum in liquid form that can be pumped without processing or dilution

Heavy crude oil Crude oil that is very dense, highly viscous, and has a high boiling point, with an API gravity of less than 25 degrees

Initial established reserves Established reserves prior to the deduction of any production

Initial volume in place The volume calculated or interpreted to exist in a reservoir before any volume has been produced

Naptha The portion of a crude barrel with a boiling point between 145°F and 400°F. Naphtha can be used as diluent

Oilsands A naturally occurring mixture of sand, clay, silt, rocks, other minerals and bitumen, also known as tar sands or bituminous sands.

Overburden A layer of sand, gravel, and shale between the surface and the underlying oil sand. Must be removed before oil sands can be mined. Overburden underlies muskeg in many places

Pay thickness The average thickness of an oil or oil sand zone. Differs depending on the type of oil and method of recovery

Possible reserves Attributed to known accumulations with a greater than 10% confidence of being recovered than probable reserves, also known as P10 reserves. The sum of Proved, Probable and Possible reserves is known as 3P

Probable reserves Attributed to known accumulations and claim ~50% confidence level of recovery, also known as P50 reserves. The sum of Proved and Probable reserves is known as 2P

Proved developed reserves 'PDs' - P1 reserves that can be produced with existing wells and perforations, or from additional reservoirs where minimal additional operating expense is required

Proved reserves Classified as having a 90% or greater likelihood of being present and economically viable for extraction in current conditions and with existing technology. Also known as P90 or 1P reserves

Proved undeveloped reserves 'PUDs' - P1 reserves that require additional capital investment (e.g., drilling new wells or facilities) to recover the identified hydrocarbons

Remediation Returning disturbed land to a stable, biologically productive state.

Recovery factor Percentage of in-place petroleum in a reservoir that ultimately can be recovered at a specific point in time. Typically assumed as reserves divided by volume in place at a given point in time

Resources Quantities of petroleum estimated to be potentially recoverable from known accumulations, but not yet ready for commercial development. Includes all known quantities of petroleum that can be technically recovered, regardless of economic conditions.

Saturation The relative amount of water, oil and gas in the pores of a source material, usually as a percentage of volume

Solvent Chemical additive for stimulation treatments that is soluble in oil, water and acid-based treatment fluids

Tailings A combination of water, sand, silt, and fine clay particles that is a byproduct of removing the bitumen from the oil sands

Thermal recovery Any process by which heat energy is used to reduce the viscosity of bitumen in situ to facilitate recovery

Upgrading The process of converting bitumen extracted from oil sands into lighter synthetic crude oil. The term “synthetic crude oil” is used interchangeably with “upgraded crude oil.”

Visbreaking A process designed to reduce residue viscosity by thermal means, but without appreciable coke formation

Viscosity The ability of a liquid to flow. The lower the viscosity, the more easily the liquid will flow


Alex BlyumkinChairman & Founder

+1 (800) [email protected]

David SealockExecutive Director & CEO


Marcus LaunBusiness Development


mailto:[email protected]



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INVESTOR PRESENTATION - content.equisolve.net · PQE 2 Important Notice OTC: PQEFF | TSX Venture: PQE This presentation (the “Presentation”)about Petroteq Energy Inc. (“Petroteq”)is