FSNR news
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.
About Freestone Resources Inc.:
Freestone Resources Inc. is an East Texas based Oil and Gas company which
is actively pursuing opportunities in Texas and New Mexico oil and gas
fields in the areas of lease acquisitions, exploration, production,
re-completions, and waste disposal. Freestone Resources Inc. is also
diligently working to develop and utilize emerging technologies and
products related to increasing oil and gas production, efficiency and
profitability.
SAFE HARBOR STATEMENTS:
Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities Act of 1933
and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to
the safe harbor created by those rules. All statements, other than
statements of fact, included in this release, including, without
limitation, statements regarding potential future plans and objectives of
the company, are forward-looking statements that involve risks and
uncertainties. There can be no assurance that such statements will prove to
be accurate and actual results and future events could differ materially
from those anticipated in such statements.
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