Quantum Energy has announced that it has entered into a fully executed Letter of Intent (LOI) to purchase 400 acres of land near the city of Baker in Fallon Country, Montana. The intent is to develop a 21st century Energy Center to include a 20,000-barrel per day diesel refinery.
The LOI calls for a Contribution Agreement to be executed no later than July 3, 2014 when the 400 acres will be exchanged for shares of Quantum common stock. Quantum already has an existing purchase agreement for a refinery site with Northstar Transloading LLC in East Fairview, ND.
The planned facility would be run by Quantum Energy and would refine 20,000 barrels of oil to produce 7,000 barrels of diesel a day. The plant would then supply fuel to other energy companies and agricultural producers within a 100-mile radius, which would cut down on costs of diesel transported from out of state to meet oilfield-related demand. Mona Madler, director of the Southwest Montana Area Revitalization Team, said the refinery would essentially mimic the Dakota Prairie Refinery being constructed in Dickinson in its aims to decrease diesel costs in the Bakken region.