Bayshore Petroleum Corp. Announces Agreement to Jointly Develop Athabasca Oilsands Property and Produce Commercial Diesel Using New Technologies
CALGARY, ALBERTA--(Marketwired - Sept. 10, 2015) -
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Bayshore Petroleum Corp. ("Bayshore" or the "Company") (TSX VENTURE:BSH) announces it has entered into a Memorandum of Understanding (the "MOU") with Athabasca bitumen producer E-T Energy Ltd. ("ET"), which has operations in the Poplar Creek, Fort McMurray area of Alberta. Under the MOU, Bayshore and ET intend to raise capital and implement a construction and operations program to accomplish two objectives:
- During the second half of 2016, restart bitumen production at Poplar Creek using ET's proprietary ET-DSP technology and Bayshore's catalyst-based in-situ Cold Catalytic Cracking ("CCC") upgrading technology and ultrasonic technology. ET and Bayshore believe that combining these technologies will produce in-situ improvements in bitumen viscosity and density, allowing bitumen to flow to surface. It is intended that this technology combination will improve or solve operational challenges which previously impeded full production at the Poplar Creek property.
- Construct a CCC upgrader designed to convert bitumen directly into ultra-low sulphur commercial diesel. The CCC upgrader does not use water, hydrogen, pressure/vacuum, or temperatures above 450° Celsius. The produced diesel is intended for sale in local Canadian energy markets.
ET wholly owns 3,200 hectares of bitumen rights at Poplar Creek. It currently holds Alberta Energy Regulator approvals to produce from this land using its ET-DSP technology, and has produced approximately 7,700 b/d of bitumen from 21 wells until the end of 2013, when it suspended operations on the property. ET's third party engineering report estimates that, as of October 1st, 2011, ET's Poplar Creek property contained approximately 607 million barrels of bitumen in-place. The Company also holds approvals for a 1,000 b/d facility to test the McMurray formation just to the north of the primary production site. It has 130 wells, including 8 cored, all of which are shut-in currently. ET's production facilities can restart production quickly, and Bayshore's liquid catalyst technology does not require any departure from standard downhole formation injection technologies.
The MOU contemplates the execution of one or more formal agreements customary in such a commercial transaction. Bayshore will issue, in due course, a comprehensive news release incorporating more detail of the project and transaction. Bayshore shares are currently halted pending release of this comprehensive news release. One or more aspects of the final agreement may be subject to regulatory review and approval, and the transaction in total is subject to TSX Venture Exchange acceptance.
About Bayshore Petroleum Corp.
Bayshore is a Calgary, Alberta based corporation focused on the exploitation of technology that increases the productivity and profitability of heavy oil and bitumen. Cold catalytic Cracking (CCC) enables the upgrading of heavy crude oil and bitumen directly into diesel. This technology, and other technologies such as desulphurization using ultrasonic oxidation, increase the sales price quality adjustment, reduce the need for diluent and other costs in the transportation of heavy oil or dilbit, and expedite the end to end process of delivering fuels to the downstream user.
On behalf of the Board of Directors, BAYSHORE PETROLEUM CORP.
Peter Ho, President and CEO
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company in the United States. The Company's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Source: Marketwired (Canada)
(September 10, 2015 - 5:29 PM EDT)
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