02/08/2016
Letter to Investors:
Just last week the Alberta Government released the long-awaited Royalty Review report, and in that report a recommendation was given to directly fund the development of “Partial Upgrading” technologies. This is very interesting to me because my company, Bayshore Petroleum Corp, has developed a chemically-based partial and full upgrading technology that can convert bitumen and heavy oil into a flowing heavy fuel product, or in the full upgrading application, to refined distillates such as diesel fuel. We have been searching for funding partners over the last several months to fund our first plant and start operations. This technology is called Cold Catalytic Cracking, or “CCC”.
In the partial upgrading application, a liquid catalyst is added to bitumen, it is mechanically stirred for maximum surface contact, and depending on API/Viscosity/Density and amount of catalyst, the resulting bitumen becomes a flowing bitumen at API’s that average 18 to 25. No heat is added, and there is no dropout of solids or paraffin, etc. There is no material change in the quality of the energy content of the bitumen/crude.
I believe this is exactly what the Government and the industry in general is looking for.
In the full upgrading application, a liquid catalyst is added to bitumen or heavy oil feedstock, a simple pyrolysis is completed up to temperatures of about 430 C, and the result is a designer distillate (diesel), depending on the catalyst formulation, natural gas (which feeds the heat requirement), and a porous petroleum coke that is basically carbon and other solid dropouts. In fact, the technology forces carbon rejection, which is basically why no hydrogen, high pressures, and high temperatures are required for the process. This process is so simple and safe it can be accomplished at the wellhead. I have attached the presentation on the pending Bayshore/ET merger, which will inject 600 million barrels of bitumen in-situ into Bayshore.
Bayshore as merged plans to produce the bitumen to surface using E-T’s technology, process it directly to diesel fuel onsite using Bayshore’s CCC technology, and further de-sulphur and process the diesel to a wholesale/rack diesel fuel available for distribution and sale in the local Canadian market. This is a revolutionary departure from current production operations in the Athabasca oilsands basin. In short:
• Revenue from diesel is CAD $90/barrel, not $20 for WCS
(Western Canada Select benchmark). Diesel pricing is much more stable than crude/bitumen pricing in Canada or globally
• No transportation costs or bottlenecks – no reliance on pipelines or constrained rail to far-flung Gulf Coast refineries
• No costs associated with blending or diluting bitumen
• No centralization, regulatory, environmental issues associated with large centralized upgraders and refineries – CCC is mobile and scalable from small operations – as little as 500 b/d
• Greenhouse gas emissions are much less than SAGD or other related extraction technologies, and processing also consumes less energy and emits fewer GHG than traditional hydrocracking
• CCC production of diesel is a chemical process, and does not require hydrogen injection, high temperatures, high pressures, or multi-step processing
• CCC production is safe and scalable and simple/flexible, allowing production on-site and in the field as necessary. The current pilot plant operates indoors in a commercial building
Please contact 403-265-8820
or email [email protected]
Thanks!
