Tuesday, 05/22/07 02:54:47 PM
History
The discovery of PETROZENE began with a desire to solve the environmental hazard that used tires pose to the environment. In 1987 the U.S. E.P.A reported that there were approximately two billion tires stockpiled in the United States alone. An estimated 290 million are added to the stockpile each year in the US alone. These stockpile dumps can catch fire and may burn for months before they can be extinguished. As a result, enormous volumes of toxic air pollution, oil, and heavy metals are released into the environment. Also, rainwater can buildup in the tires and create stillwater mosquito breeding grounds and lead to the spread of disease.
These huge problems sparked the interest of Natural Resource Recovery, Inc (NRR). They took it upon themselves to find an environmentally friendly way to dispose of these tires. After almost 2 decades of research, a solution was found. Through their patented process of breaking down the tires, NRR was able to efficiently break the tires down into usable substances. These substances include gas, carbon, steel, and a unique solvent (PETROZENE). NRR immediately noticed the unique properties associated with PETROZENE and proceeded to test PETROZENE in current low yielding oil wells and oil storage tanks. The results were phenomenal. The low yielding wells showed a dramatic increase in production and in the storage tanks, sludge buildup was dispersed.
Upon their discoveries, NRR developed an exclusive partnership with Freestone Resources; a prominent oil company out of Fairfield, TX. This partnership allowed for new opportunities and advanced the recognition of new uses for PETROZENE. PETROZENE.com was created as the sole source supplier of PETROZENE to the oil industry. Currently, the discovery for additional uses of PETROZENE is currently underway by a team of scientists from Freestone Resources, Inc. and Natural Resource Recovery, Inc.
FSNR News...
Petrozene Field Report
Jun 1, 2007 8:30:00 AM
FAIRFIELD, TX -- (MARKET WIRE) -- 06/01/07 -- Freestone Resources Inc. (PINKSHEETS: FSNR) would like to divulge and discuss several applications of Petrozene and the resulting economic impact seen at these sites. As stated before, Freestone has been hard at work promoting and using Petrozene, our patented paraffin/asphaltene solvent, in several wells and oil tanks across Texas, and has tested several batches of paraffins, asphaltenes, and emulsions from all over the world. Through a cooperative working relationship with our producer, Near Bore Resources, we have been able to refine and polish our techniques in the oil field and produce a very decisive treatment.
To begin our discussion, we will first look at one well treatment in Freestone County, Texas and another well treatment in Shackleford County, Texas. The first well treatment was performed by Freestone resources technical representatives on a 9,500-foot Cotton Valley well in northern Freestone County. The well was producing an average of 100 Mcf of gas with 9 barrels of oil and 7 barrels of water per day. The well was treated with a 20 gallon Petrozene bolus down the production tubing followed by a crude oil flush and then the well was shut-in for 72 hours. Upon opening the well back to production, the well has since produced an average of 125 Mcf of gas with 24 barrels of oil and 9 barrels of water per day. This equates to a 25% increase in gas production and a 266% increase in oil production with only a 28% increase in water production. This increase in production has since yielded the producer an average of $1,075.00 per day, which calculates to over $392,375.00 per year.
The Shackelford County well is a 1,500-foot well which operates off of a pumping unit. This well had a production average of 1.5 barrels of oil per day for the last 20 years. After a technical review of the well and a diagnosis of paraffin restriction was made, a Freestone representative performed a near bore spot treatment with a blend of 25 gallons of Petrozene and 25 gallons of cude oil pumped into the producing formation and then the well was shut-in for 72 hours. Upon opening the well to production, the well has since produced an average of 4 barrels of oil per day with no increase in water production. This also equates to a 266% increase in crude oil production which yields this producer a daily average of $210.00 dollars increased gross revenue.
Several tank treatments have been performed in the last 3 months across the state of Texas, but more especially in Freestone County, where many major oil and gas companies are involved in exploration and production of natural gas. We have contacts within several of these companies and have begun a pilot program for treating their tank bottoms and emulsion problems. To date, Freestone Resources has treated approximately 25 tanks with huge success. To give an example, when a salt water tank is found to have an emulsion pad floating mid-level inside the fluid column, the disposal of a load of saltwater could mean the loss of several barrels of oil. Using 1/10 of 1% of the volume inside the tank of Petrozene added to the tank, the oil will totally separate from the water, with the oil settling at the top. This means that no oil is lost to saltwater disposal. This reclaimed oil more than covers the cost of Petrozene treatment per tank.
Petrozene is also completely effective in assuring that oil is sold at par value and not discount. In an oil tank, dispersing paraffin into oil or dropping any basic sediment or water (BS&W) to the bottom of the tank means clean oil is being sold. This is important, since all loads of oil are centrifuge tested at pick-up.
Using 1 gallon per 1000 gallons of oil in tank ensures that oil will not be sold at a discounted price.
The latest breakthrough we have discovered is Petrozene's ability to treat wells with a high content of iron sulfide. Treating a well bore with the proper ratio of Petrozene vs. feet of perforations in the well bore has shown to totally remove all iron sulfide restriction in the well bore as well as the production string, flow lines and tank batteries. Our last test cleaning out a flow line showed staggering results within 3 hours and after 24 hours had completely broken down the restriction into loose crystals which settled on the bottom of the tank which the line flowed into. It would be impossible to state the amount of money this could save operators in replacement costs of tubing, flow lines and tanks. As this was our first test with iron sulfide, we plan on treating other similar wells.
Overall, we are more than excited about the case studies and anecdotal results that we are receiving daily. There is no doubt that Petrozene works and works better than every other chemical that we have tried it against in cases of paraffin/asphaltene restriction, tank cleaning, emulsion breaking, treating iron sulfide, and in anti-corrosion treatments.
Freestone Resources Inc. has successfully treated paraffin from Saudi Arabia. There are thousands of tank bottoms with a calculated value of 1.5 billion dollars. We are currently working on a presentation to the Saudis. To say that the sky is the limit for Petrozene would be an understatement.
Jan 31, 2008 11:00 ET
Freestone Resources, Inc. Provides 2007 Summary and 2008 Strategy
FAIRFIELD, TX--(Marketwire - January 31, 2008) - Freestone Resources Inc. (PINKSHEETS: FSNR) would like to address the progress made during the last quarter of 2007 and reveal the ongoing and future projects online for 2008. The officers and directors of Freestone have been diligently working on several diversified projects for the last several months, however due to obvious ethical concerns have been unable to publicize these works. At this time, we can now discuss the exciting developments that have come through several months of due diligence and hard work. To date, Freestone Resources representatives have used Petrozene in over 30 down-hole well treatments and approximately 50 tank battery treatments with outstanding results. Through these treatments we have gained an invaluable and intimate knowledge into the factors affecting the use of this chemical and more importantly, its potential uses.
LOOK
(Our marketing strategy), as previously discussed, has been to show that we can use a "GREEN" technology to increase domestic oil production and increase production efficiency, by dispersing paraffin and asphaltene restrictions and build-ups. Research has also shown that Petrozene is also an anti-corrosive and can rid pipe of scale deposits and prevent future formations. This information has led to talks with a large oil and gas service company that wishes to use Petrozene in the pigging of existing pipelines, which would be a major contract. There are also three companies that are now in the research phase of using Petrozene in conjunction with other new technologies to increase oil recovery rates in several different conventional and non-conventional oil reservoirs. These cooperative projects have already spawned great contacts throughout the oil and gas sector and have put Freestone's name into greater circulation among the industry's elite.
Currently, Freestone representatives have just completed the down-hole treatment of approximately 20 shallow oil wells in the South Texas oil fields. The wells in these two leases averaged .25 to .5 BOPD before treatment. Two weeks post-treatment, these wells now average 3.5 BOPD per well. This has been confirmed with treatments in other South Texas wells, which exhibit the same type of asphaltene restrictions. After recording this increase, Freestone directors believe they can increase shareholder value by capitalizing on this information. To do this, Freestone will move from merely marketing Petrozene and acting as a chemical service company, to actually becoming more involved in oil production ownership.
Obviously, this is nothing new to Freestone, as we are currently producing the Carroll Unit #1 in Freestone County, Texas. With Petrozene utilization in the South Texas oil wells we are dealing with different types of formations and specific gravities of oil produced. We are targeting wells with large initial production, followed by a fast rate of decline due to the gravity of the oil and porosity of the formation. Leases purchased in this field with multiple well-bores, and optimal well characteristics, could yield 6 to 12 month ROIs. We have already proven these numbers to several investors and have currently entered into a verbal agreement with one such financier. This verbal agreement has been consummated with a large good-faith monetary exchange, and is now in the final construction phases, before binding contracts are signed. Obviously, names cannot at this time be disclosed, however, we can insure that the well-being and profitability of the company will be greatly enhanced by this relationship. This arrangement will not only yield needed capital for lease acquisitions, but will also allow Freestone access to invaluable resources within the financier's private companies. Upon the closing of this agreement, Freestone will be able to move forward in acquiring several leases we have been researching for the past 6 months, which fit the characteristics that are the most optimal for Petrozene treatment, thus yielding the greatest increase in production and increase in profits.
Finally, Freestone will reveal the independent lab results showing Petrozene's effect on oil viscosity. This is very exciting data which could potentially open huge markets to Freestone. These tests have been run twice already and are currently being replicated at a private petrochemical lab in Texas. We expect to have the final results in hand within 7 days and be able to summarize the results and explain the ramifications in full detail soon.
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