QEM Limited flags the successful extraction of hydrocarbons from QEM’s Julia Creek Project. The initial tests work carried out on the previously drilled holes revealed that Petroteq’s proprietary technology was able to extract hydrocarbons from Julia Creek.
On Thursday, vanadium and oil shale explorer told that preliminary results have been in favor of oil extraction from Queensland-based Julia Creek Project. It outlines an essential milestone in the progress of Julia Creek’s development for further testing and optimization.
Managing Director of QEM, David Fitch stated these highly appreciable results are well in line with the company’s expectations. He added QEM is keen to expedite the next stage of optimization and testing.
QEM hit the ASX Board in mid-October after witnessing a highly successful and oversubscribed Initial Public Offer (IPO). But before making a debut on ASX, the company completed a small drilling activity in June, aimed at collecting samples for the process of testing.
Following the collection of samples, the initial testing was reportedly performed by ChemTreat Laboratories over a period of nine-days and was supervised by the Chief technology officer of TSX-V listed Petroteq Energy Inc. During the test of samples, ChemTreat used Petroteq’s proprietary solvent blend to evaluate how much oil could be extracted from QEM’s inactivated oil shale.
In the preliminary results, the company noted that Petroteq’s proprietary technology was able to extract hydrocarbons from Julia Creek Project but to determine the final yield of the hydrocarbon products, it has to go through the optimization process.
Based on the Petroteq results report, QEM believes that with further testing works, the extractable hydrocarbons from the oil shale would be close to the maximum hydrocarbon content available in the Julia Creek sample. QEM said that more than 90% yield of hydrocarbon content could be achieved from an activated oil shale sample.
The management further advised that the stage 2 optimization testing is currently in progress and Petroteq’s technology has indicated that Julia Creek type of shale is expected to be sensitive to their shale activation.
With the completion of stage 2 optimization, the company expects to develop the most appropriate process for vanadium extraction. Further, the test work is scheduled to be carried out throughout 2019 while there is a high possibility that QEM would utilize Petroteq’s environmentally friendly- closed loop technology at Julia Creek.
Despite posting positive results from preliminary testing at Julia Creek, QEM Limited (ASX: QEM) got slammed by negative market sentiments on ASX. Its share price fell 7.143% to last trade at $0.130 on 20 December 2018. Moreover, since its listing on ASX, i.e., mid-October 2018, QEM has gone down 12.50%.
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