Imperial Forms New Oil Sands Recovery Co
Imperial Petroleum has formed a new company, Arrakis Oil Recovery, LLC, for the development of a revolutionary new oil sands recovery process to recover bitumen or heavy oil from tar and oil sands. Imperial owns a 33.3% interest in Arrakis with two other partners, including the technology provider, and will manage the Company and its operations. Arrakis has been granted a license to the new technology for oil sand processing outside of Canada, using a non-thermal, mechanical and chemical closed-loop process to recover the bitumen. The chemical employed in the process is not a solvent and is both non-toxic and bio-degradable. In connection with the formation of Arrakis, the Company also signed an Engagement Agreement with Hyde Park Capital Group and Charlotte Capital Partners to raise $6.1 million for the initial facility installation planned for late summer 2010.
"We believe that the technology developed and licensed to Arrakis is the most advanced, cost-effective and environmentally friendly processing technology available for recovering bitumen from tar and oil sands," Jeffrey T. Wilson, President of Imperial said. "The process operates without hot water or steam and without any solvents, either hydrocarbon or otherwise, so there are no emissions issues. The process produces a clean sand residue while separating the bitumen in an eco-friendly manner. Operating costs are significantly less than conventional processes because the chemical medium is re-cycled and re-used. The process has been pilot tested on several tons of material at the research and development facility owned by the technology provider on oil sands from Oklahoma, Texas and Utah. The initial installation will process some 2,400 tons of oil sands per day containing an average of 8% bitumen and should generate approximately $20 million annual cash flow. The first facility will be located at a site on which several million tons of the material has already been mined and is available for immediate processing by Arrakis. We are very fortunate to have the opportunity to bring this revolutionary technology to the marketplace."