GENOIL INC. AND STEAUA ROMANA REFINERY SIGN A MEMORANDUM OF UNDERSTANDING FOR A HYDROCONVERSION UPGRADER IN ROMANIA.
TSXV SYMBOL: GNO
OTCBB SYMBOL: GNOLF.OB
CALGARY, AB, August 28, 2006: Genoil Inc. (“Genoil” or the “Corporation”) is pleased to announce the signing of a Memorandum Of Understanding with the Steaua Romana Refinery in Romania, which currently refines approximately 20,000 barrels of oil a day. A testing agreement is expected to follow in reasonably short order.
It is Genoil’s plan to conduct a Genoil Hydroconversion Upgrader (“GHUTM“) retrofit on this refinery and to utilize this project as a showcase for European, Eastern European, Russian and CIS oil companies.Genoil is also currently reviewing similar demonstration units in other markets for marketing purposes, and the Corporation expects such units will be completely viable as commercial investments despite their relatively small size, demonstrating the versatility of the GHUTM technology.
Genoil is also working closely with a number of the twenty largest world oil producers and expects to be able to report progress in the near future. The anticipated Steaua Romana refinery retrofit will be conducted for the purpose of upgrading the vacuum distillation towers residues and obtaining hydrocarbons of higher value than might otherwise be achievable and which can be further processed in the refinery. Genoil believes that the difference between the sale price of residual fuel oil for power generation and the sale price of transportation fuel produced from the upgraded vacuum distillation residues can form the basis for a profitable operation while increasing the daily output of the higher transportation fuels.
Genoil is also pleased to announce that in regards to the visit of a delegation comprised of representatives of Hebei Zhongie Petrochemical Company and CNPC (China National Petroleum Company), the estimated arrival date is September 22, 2006 as all immigration and travel related requirements have been met. Genoil has entered into a Memorandum of Understanding with Hebei Zhongie Petrochemical Group to jointly develop and build the first major commercial heavy oil upgrader in China, with a capacity of 30,000 barrels per day based on the GHUTM technology. The Hebei Zhongie Refinery has a total capacity of 150,000 barrels a day. Genoil expects to enter into negotiations to convert this MOU into a significant contract in the near future following the completion of the visit of the delegation. Genoil is a technology development and engineering company providing environmentally sound solutions to the oil and gas industry through the use of proprietary technologies.
The Genoil Hydroconversion Upgrader is designed to economically convert heavy crude oil into more valuable light upgraded crude, high in yields of transport fuels, while significantly reducing the sulfur, nitrogen and other contaminants.
Genoil’s shares are listed on the TSX Venture Exchange under the symbol GNO, as well as on the OTC Bulletin Board under GNOLF.OB.
For more information on Genoil Inc. visit www.genoil.net
Chairman and CEO
ADVISORY: Certain information regarding the company, including management’s assessment of future plans, operations, profitability and the uses of the company’s technology, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas technologies, production, refining, marketing and transportation such as loss of market, volatility of prices, environmental risks, competition from other technologies, the effectiveness of the company’s technologies and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements. Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Further information on potential risk factors that could affect the company’s financial results can be found in the company’s Reports filed with the Securities and Exchange Commission and with the Canadian Securities Administrators. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.