Genoil Inc. Provides Update for Investors on Status of Upgrading Projects and Expansion of Engineering Department
TSXV SYMBOL: GNO
OTCBB SYMBOL: GNOLF.OB
Calgary, Alberta, Canada – July 10th, 2006. Genoil Inc. (the “Corporation”) is pleased to provide this update on the status of the Corporation’s operations and plans. Genoil executives, including a technical engineering team, have scheduled an imminent trip to the Middle East, where they will be holding meetings with high level company management of two prospective customers. Genoil is working with these potential clients towards testing agreements and the use of the Genoil Hydroconversion Upgrader (GHUTM) for their applications in the Middle East for the removal of sulphur content from crude oil, while increasing the API or density of the heavier crudes. The Middle East produces a significant volume of sour crude (high sulphur content) that needs to be converted to sweet oil (low sulphur) in order to make better use of the world oil supply.
Today, simple and some complex refineries around the world are not capable of utilizing the higher volumes of sour crude. By upgrading the high sulphur heavy crude oil, producers and refineries can utilize the higher volumes of sour crude and free up more production to help meet the growing global demand for sweet crude that can be refined into transportation fuels and other lighter petroleum products. With global refineries running near capacity, the increased demand for sour crude to make up shortfalls in sweet crude, and the need to stretch the finite world oil supplies, the GHUTM technology is being considered for several different projects in which it could help unburden the refineries around the world.
The visit of a delegation comprised by representatives of Hebei Zhongie Petrochemical Company and CNPC (China National Petroleum Corporation), which has been announced in different press releases on February 28, 2006 and May 16, 2006, and which was initially scheduled for June of this year, has been slightly delayed, though these plans are being carried forward. The representatives for CNPC have been working on obtaining the necessary visas and a visit date has been rescheduled for August. Genoil Inc. has entered into a non-binding 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 barrel per day based on the Genoil GHUTM technology.
A high level Lukoil delegation visited Alberta in mid-June 2006 and held discussions with the Genoil engineering group. During a detailed review of Lukoil’s requirements in the area of heavy oil upgrading, Lukoil requested a further elaboration of a project study be submitted with respect to a proposed GHUTM project in the Komi region of Russia. Genoil is working to furnish further information and a detailed defined commercial proposal to Lukoil by October 1, 2006.
Also, the Corporation is continuing to pursue strategic partnerships with entities in the Middle East, whereby Genoil Inc. will provide its technology and in exchange, the partner finances Genoil’s operations. A number of potential sources of future financing include government affiliated entities. The Corporation is also seeking a strategic relationship with a number of private equity sources which could potentially involve the granting of an equity interest in the Corporation or an alternative financing component, connected to the building of refineries and financing heavy oil deposit acquisitions. Genoil has received several financing offers from US based hedge funds or investment banks, which are still available to the Corporation. At this moment, the Corporation has deferred those financings in favour of a potential partnership and investment from either an oil company or a Middle East entity, as Genoil views such sources of funding as representing better strategic alternatives.
In an effort to strengthen Genoil’s Engineering Department to enable the Corporation to respond to increased global client interest and demand for Hydroconversion Upgrader technology, and in connection with the Corporation’s transition from a technology development company to a corporation focused on engineering, design and commercialization of Genoil’s technology, Genoil is pleased to announce that it has incorporated some valuable new members to its staff. Also, Mr. James Runyan, former Senior Vice President, Engineering and Operations, has been appointed Executive Vice President and Chief Operating Officer.
As announced in a previous press release, Mr. Peter Chung has joined the Corporation as Vice President, Engineering. Mr. Chung has over twenty years experience in engineering and design of heavy oil upgrading facilities in Canada. Mr. Chung’s experience and expertise in the heavy oil upgrading industry has been utilized by several major engineering firms and oil companies over the years for his knowledge in producing oil for the Canadian Tar Sands. Peter Chung has operated his own consulting company and has designed and executed many projects in Canada. He has worked for and as a consultant at Stantec, a company providing engineering design and consulting services, following Stantec’s purchase of GKO Engineering, a company where Mr. Chung served as a principal. Mr. Chung has also worked as a consultant for CoSyn Technologies, the consortium of Colt Engineering and Syncrude. Mr. Chung has in-depth design experience of petrochemical, oil sands and refinery processes, and operations and project management experience. He holds a degree in Chemical Engineering and is registered with APEGGA.
In addition to Mr. Chung, another engineer has been hired at the Genoil Sherwood Park Engineering offices, being Mrs. Jun Yang. Mrs. Yang started her career and involvement with catalysts and hydrocracking projects at the Chemical Engineering Department of the FuShun Research Institute of Petroleum and Petrochemicals (SRIPT) in China, one of the R&D institutes and technical resource of Sinopec (China Petrochemical Technology Company). As a main researcher, she was able to develop hydrotreating catalysts with high sulphur resistance capable of producing environmentally friendly diesel oil with ultra low sulphur under mild reaction conditions. Before joining Genoil, and as part of a research group at Nova Chemicals Research and Technology Center, in Calgary, she designed a research plan to solve problems in petroleum processing including hydrotreating and hydrocracking. Her ability to interpret relations between chemical structures of catalysts and their performance in chemical reactions make her an important team member that will give specific technical and process conditions support. Jun Yang holds a Bachelor’s Degree, a Master’s Degree and a PhD in Chemical Engineering from the East China University of Science and Technology.
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 high sulphur heavy sour crude oil into more valuable sweet light upgraded crude, high in yields of transport fuels, while significantly reducing the sulfur, nitrogen and other contaminants in the oil.
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: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Certain information regarding the company, including management’s assessment of future plans, strategic partnerships, operations, financing alternatives, and the timing of visits to the Corporation’s facilities and of the completion of proposals may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with an oil and gas technology development corporation, including competition from other technologies and the ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated. The Corporation 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. Additionally, statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the company’s ability to obtain new contracts and accurately estimate net revenues due to the variability in size, scope and duration of projects, and internal issues.
Further information on potential risk factors that could affect the company’s financial results can be found in the company’s disclosure materials filed on SEDAR at www.sedar.com and with the Securities Exchange Commission