VANCOUVER (Februay 4 , 2010) -
Vancouver-based SONIC Technology Solutions Inc. has entered into a
joint venture in Albania to build and operate a 1,000 bopd
PetroSonic heavy oil upgrading facility.
The joint venture is with a private company which will provide
an existing lease and facility which has been utilized in the past
for crude blending operations. The PrivateCo will contribute an
initial $1 million in capital required into the joint venture.
Sonic, through its wholly-owned subsidiary PetroSonic will
provide the license for operating Sonic generators and the process
for upgrading of heavy crude oil along with the initial one or two
sonic generators to process 1,000 barrels per day of heavy crude
oil.
The joint venture will be owned 60% by PetroSonic and 40% by
PrivateCo. Since much of the infrastructure is already in place at
PrivateCo's facility, it is expected that the capital required to
commence operations will be approximately $1 million. The joint
venture anticipates start-up of the facility this June 2010.
Albania provides an excellent region for the application of the
PetroSonic process. Albania has the largest onshore heavy oilfield
in Europe, with low recoveries to date, and several companies are
re-developing the oilfields with production growth expectations.
The oil is typically heavy, high in sulphur, and incurs significant
pricing discounts relative to conventional oil along with
transportation challenges. These factors make Albania an attractive
location for PetroSonic's first facility.
Richard Wadsworth, Sonic President and CEO, stated "I am pleased
to be entering into a joint venture with an Albanian partner,
bringing a clean upgrading technology to Albania where I believe we
can improve the quality and economics of the heavy oil. With our
clean de-asphalting and upgrading technology we can improve on the
challenges Albania faces with its environmental, transportation,
refining and energy needs".
The PetroSonic process consists of a first phase of rapid
de-asphalting of oil that is expected to increase the API of
typical Albanian heavy oil by approximately 6-10 degrees, reduce
sulphur and metals by 40% and lower viscosity by 99%. The second
phase of the process utilizes a chemical oxidation process which
can upgrade oil by an additional 6-10 API. The Joint venture will
initially focus on the first phase de-asphalting process. Once
de-asphalting operations are successfully established and cash flow
is being generated, the joint venture plans to integrate the second
phase.
Tests in Alberta's oil sands have proven that the PetroSonic
scalable upgrader technology can be designed to maximize oil
product revenues or integrated to optimize overall oil and energy
revenues; - Asphaltene by-product quality can be adjusted depending
on the end- use; - Sonic reactor technology reduces processing
costs in a low temperature and pressure process; and - PetroSonic
field upgrading reduces or eliminates the need for diluents for
pipeline transport.