Sky Quarry Signs LOI with E2 Lab Services to Collaborate on PR Spring Facility
The proposed collaboration would bring engineering and operating personnel to support remaining retrofit work and production readiness.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Sky Quarry (SKYQ) signed a non-binding letter of intent with E2 Lab Services & Consulting to evaluate a collaboration at PR Spring.
E2 would support engineering, completion planning, commissioning and initial production at the Utah facility, subject to definitive agreements. The parties target an initial assessment and proposed execution plan within approximately 30 days after E2 receives necessary information and site access. Planned production capacity is approximately 2,000 barrels per day. Sky Quarry plans a retrofit to recover oil from oil sands and waste asphalt shingles, with recovered oil then refined at its Foreland Refinery. A binding transaction depends on diligence, commercial terms, financing, permits and approvals.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed E2 collaboration would support PR Spring completion, commissioning and the initial production ramp.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Planned production capacity at PR Spring is approximately 2,000 barrels per day.
- Minor point. Forward-looking: it has not happened yet and may not happen.Initial assessment and execution plan targeted within approximately 30 days after necessary information and site access.
- Minor point. Forward-looking: it has not happened yet and may not happen.Planned retrofit would enable oil recovery from oil sands and waste asphalt shingles for refining at Foreland.
Negative
- Moderate pointNon-binding LOI does not obligate either party to provide services, equipment or funding.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Binding transaction requires satisfactory diligence, agreed commercial terms, decision-maker approvals, necessary financing, permits and definitive agreements.
- Minor pointLOI terminates after 90 days unless extended or earlier terminated.
News Explained
The LOI requires neither side to provide services, buy equipment or fund PR Spring and expires 90 days after signing unless extended, so no collaboration resources are committed yet.
Key Figures
- Initial assessment target
- approximately 30 days
- After E2 receives the necessary information and site access
- LOI termination
- 90 days
- After the LOI date, unless extended or earlier terminated
Key Terms
letter of intent financial
bitumen technical
vacuum gas oil technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Collaboration would add engineering and operating expertise to advance Sky Quarry’s PR Spring facility
WOODS CROSS, Utah, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Sky Quarry Inc. (NASDAQ: SKYQ) (“Sky Quarry” or the “Company”), an energy infrastructure company focused on domestic refining and resource development, today announced that it has signed a non-binding letter of intent (“LOI”) with E2 Lab Services & Consulting LLC (“E2”) to evaluate and negotiate a potential strategic collaboration relating to the completion, commissioning and operational readiness of Sky Quarry’s PR Spring facility in Utah.
Under the proposed collaboration, which remains subject to definitive agreements, E2 would provide engineers, technical specialists and operational personnel to assist Sky Quarry’s team in reviewing PR Spring’s existing infrastructure and installed equipment, preparing a prioritized engineering and completion plan, developing production workflows and operating procedures, and supporting commissioning and the initial production ramp. The parties’ non-binding target is to deliver an initial assessment and proposed execution plan within approximately 30 days after E2 receives the necessary information and site access.
“More than
“Sky Quarry has built a substantial foundation at PR Spring,” said Edward Lemus, Chief Executive Officer of E2. “We look forward to applying a disciplined, hands-on engineering approach to assess the remaining technical requirements needed to prepare the facility for operations.”
PR Spring is located in Utah’s Uinta Basin, where the Utah Geological Survey estimates that 25 oil sands deposits contain 9 to 11 billion barrels of in-place bitumen.1 Sky Quarry’s PR Spring leases contain an estimated 184 million barrels of discovered oil sands resources,2 and the facility has a planned production capacity of approximately 2,000 barrels per day.
Sky Quarry plans to integrate its proprietary extraction technology at the PR Spring facility, which was built to recover hydrocarbons from oil sands. This retrofit is intended to enable the facility to recover oil from both oil sands and waste asphalt shingles. The recovered oil would then be refined at the Company’s Foreland Refinery, Nevada’s only permitted refinery, which is designed to produce diesel, naphtha, vacuum gas oil (VGO) and asphalt, creating an integrated path from resource recovery to marketable products.
The LOI is non-binding, except for certain provisions relating to confidentiality, public announcements, expenses, the absence of any partnership or agency relationship, governing law and other customary matters. The LOI does not provide for exclusivity and does not obligate either party to enter into definitive agreements, provide services, purchase equipment or supply funding. Any binding transaction would be subject to, among other things, satisfactory technical, operational, legal and financial diligence, agreement on commercial terms, approval by each party’s authorized decision-makers, availability of necessary financing, receipt of applicable permits and approvals, and execution of mutually acceptable definitive agreements. The LOI will terminate 90 days after its date unless extended or earlier terminated. No assurance can be given that the parties will enter into definitive agreements or complete the proposed collaboration.
1 Utah Geological Survey, Utah Mining 2019, Circular 130 (2020). https://ugspub.nr.utah.gov/publications/circular/c-130.pdf
2 Utah Geological Survey, Utah’s Extractive Resource Industries 2015, Circular 123 (2016), citing an independent National Instrument 51-101 report estimating approximately 184 million barrels of discovered resource at PR Spring. https://ugspub.nr.utah.gov/publications/circular/c-123.pdf
About Sky Quarry Inc.
Sky Quarry is an energy infrastructure company focused on domestic refining and resource development. The Company owns and operates the Foreland Refinery in Nevada and is advancing development initiatives at its PR Spring facility in Utah. Sky Quarry’s strategy includes the recovery and conversion of waste asphalt shingles and other hydrocarbon-bearing materials into commercially valuable products.
For more information, visit www.skyquarry.com
About E2 Lab Services & Consulting LLC
E2 Lab Services & Consulting LLC is an industrial operations and project-development company with experience in extraction, processing, engineering coordination, facility buildouts and production optimization. Led by Chief Executive Officer Edward Lemus, the company focuses on applying practical engineering expertise and efficient operating systems to help complex industrial facilities progress from development toward commercial operation.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable federal securities laws. These statements include, among others, statements concerning the LOI and the proposed collaboration between Sky Quarry and E2; the anticipated scope and timing of the preliminary technical review; the completion of the retrofit and commissioning of the PR Spring facility; anticipated production efficiencies and capacity; financing requirements; and the expected timing of commercial operations.
Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, the non-binding nature of the LOI and the absence of exclusivity; the possibility that the LOI terminates before definitive agreements are executed; the results of technical, operational, legal and financial diligence; the parties’ ability to agree on commercial terms and negotiate and execute definitive agreements; obtain necessary financing, permits and regulatory approvals; procure and install equipment, including vendor lead times; complete construction and commissioning activities, including the effects of adverse weather and site conditions; and successfully commence and maintain commercial operations. Readers should not place undue reliance on these forward-looking statements. Sky Quarry undertakes no obligation to update such statements except as required by law.
Investor Relations
ir@skyquarry.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What would E2 do under Sky Quarry’s proposed PR Spring collaboration?
E2 would provide engineers, technical specialists and operational personnel to support PR Spring’s completion and operational readiness. Work would include reviewing installed infrastructure and equipment, preparing a prioritized completion plan, developing workflows and operating procedures, and supporting commissioning and the initial production ramp.
Is Sky Quarry’s E2 agreement binding or exclusive?
The LOI is non-binding and non-exclusive, except for specified provisions covering confidentiality, public announcements, expenses and other administrative matters. Neither party is obligated to enter definitive agreements, provide services, purchase equipment or supply funding. The LOI terminates 90 days after its date unless extended or earlier terminated.