Freestone Releases Petrozene Lab Test Results

Freestone Resources, Inc. has been engaged in extensive laboratory and field testing of Petrozene for the past two years. The majority of testing of Petrozene has involved paraffin and asphaltene elimination within tank bottoms, flow lines, production tubing, and formations.

During the testing and use of this product we have also found other characteristics of financial importance such as corrosion inhibition, scale removal, the dissolution of iron sulfide and decreasing the viscosity of oil. Freestone has been steadfast in ensuring that all claims of use have been proven to the Board of Directors by either documentable field studies or defined laboratory testing. It is with this mindset that Freestone is now able to reveal the results of our preliminary viscosity testing using Petrozene.

Viscosity is obviously a very important factor with regards to oil production. The simple explanation is that it is more difficult to flow thick, high viscosity oil. Historically, heavy oil reserves, which abound in North America, have been bypassed for lighter oils due to the problems associated with production and refining. Even if the oil was capable of being produced from the well, the oil was often unable to travel by pipeline to refineries due to the thickness, or could only be transported or produced during the summer months when the viscosity was lowered by radiant heat.

Methods used in the past to decrease the viscosity of the oil in the pipelines have included pipeline heaters or even adding low viscosity condensate at high concentrations (up to 25%) in order to thin the oil. Some chemical treatments have also been tried, but to our knowledge, none have been economically proven, until now.

Freestone collected a sample of heavy oil from a lease in South Texas for viscosity testing. The oil was sent to FESCO Inc. in Alice, Texas along with a random sample of Petrozene from our storage. Testing was done in a two stage fashion, initially all samples were run with the sample oil and Petrozene only, and then the tests were run with the sample oil, Petrozene and a carrier added at a volume to volume ratio of 1%.

Freestone is very pleased with the results of these initial tests and is actively involved in pursuing additional test data regarding viscosity and other applications. At this time, Freestone is currently testing Petrozene with less viscous oils from various geographic locations in order to verify tests already performed by a client that show that Petrozene will decrease lower viscosity oils (1000 to 4000 cSt) at an even greater percent change at even lower concentrations and temperatures.

We anticipate publishing these results as verification is achieved. Finally, the Byrd A1 well is now in production and is currently producing at volumes above the capability of the pump, meaning the well is flowing partly on its own. As this well has never produced without artificial lift, we believe the Petrozene treatment has enhanced the drive from this formation. Freestone will release well data in the near future.


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