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New Wealth From High-Tech Oil Production

RADICALLY SIMPLIFYING TECHNOLOGIES BETTER ALIGN OIL RECOVERY WITH NATURE

Introducing Advanced Environmental Petroleum Producers Inc. (OTCQB: AEPP) -- a petroleum developer with new technologies and an exciting vision to slash the financial cost – and the environmental consequences – of very substantial petroleum production. Includes extraordinary earnings and gains potential for shareholders.

AEPP’s licensed technologies from PointSource Processing Inc. revolutionize oil recovery from shale by:

Pulverizing oil-rich rock against itself using high-speed air flows.
Using a one-step liquid catalyst to recover the oil from the resultant sized rock.
Reinstating the cleaned rock back where it originated – eliminating all tailings and tailings- Pond costs.
Soon, using proprietary low-temperature cracking to break down complex low-grade oil molecules into very high-value, high-demand, high-margin, jet-fuel-grade and above hydrocarbons.
AEPP is a petroleum exploration and development company, which controls the Technical Evaluation Agreement (TEA) from PeruPetro S.A., Peru’s controlling state agency, to evaluate and potentially develop and produce Oil & Gas from Block 19 in southern Peru. Block 19 consists of a 10,100 square kilometers oil and gas lease holding minimally 745 square kilometers of on-surface shale oil based on 2D seismic geophysical surveys performed by leading Peruvian petroleum engineers. We have identified phase 2 with 150 square Kilometers to the East. These very large, accessible resources are now being further evaluated and defined into qualified reserves by respected Chapman Petroleum Engineering of Calgary.

Concurrently, AEPP has entered into an exclusive technology contract with PointSource Processing Inc. (PSP) of Victoria, B.C., for the extraction and upgrading of shale oil. PSP has completed 5 years of testing of the on-surface shale formations, and is providing three phases of radically new recovery technologies with exceptional promise for low-cost, environmentally sound procedures for exploitation of the oil-rich shale’s.
TECHNOLOGY PHASES 1, 2 AND 3

AEPP is building a mobile processing plant specifically engineered for the oil shale of Block 19, which will demonstrate the application of Phases 1 and 2 technologies for the recovery of oil from shale.

Phase #1:

Phase #1's technology is known as Air Fractionation. Here the shale is pulverized against itself into pebble-size particles for the extraction of the petroleum.

The process involves feeding the shale rock into a high-speed (~220 mph) airflow. The large shale-filled container causing the shale pieces to pulverize against each other at a combined speed of 440mph.

This process replaces the current capital-intensive, 3-step crushing and milling process known to tar sands producers and most mining operations. The technology uses a single, very low-energy output with operating expenses that are one-tenth that of conventional processes, and capital expenditures that are a tiny fraction of the mass crushing, cone crushing and milling known throughout the industry.

Air fractionation is already being applied today in several industries for several cost-saving and environment-saving objectives. What is new is that AEPP’s mobile plant is anticipated to be the first demonstration of the process for petroleum recovery.

Phase #2:

The pebble-sized pieces from Phase 1 are loaded into a rotating drum and sprayed with a proprietary liquid catalyst, which draws essentially all hydrocarbons from the shale pebbles, effectively separating oil from shale. The oil/catalyst liquid is drawn off and the catalyst, after light heating to separate the catalyst from the hydrocarbons, is recycled and used again in a closed loop cycle. The cleaned pebbles are separated for reinstatement in the ground. There are no tailings, no tailings pond, no poisons, and no tailings spills or possible tailings liability – an additional large savings.

At this point, the hydrocarbons are bitumen with some light volatiles, API’s ranging from 20API to approx. 25API, with very low sulfur, approximately 0.1-0.3%, and ready for sale to market at prices in the range of US$40/barrel with the simplified oil recovery having cost in the range of approximately US$22 - $24/bbl. A substantial gross profit margin. Approximately two tons of shale from Block 19 is known to generate on average 1 barrel of bitumen. ‘API’ refers to the grade and cost of any hydrocarbon as measured by the American Petroleum Institute. West Texas sweet crude oil, the most quoted grade of oil, is 40API.

Phase #3:

The third technology, a proprietary low temperature Cracking, breaks down the complex bitumen molecules produced from Phase 2 into lighter forms of hydrocarbons changing them into gaseous Acetylene, Ethylene and molecular hydrogen dissolved in Pentane (API 95), Hexane (API 84) and Octane (API 93). This one-step process converts low-grade oil into high-grade oils along the lines of jet fuel and lighter. These gases dissolve in the liquids, changing the specific gravity into a highly valuable hydrocarbon mix marketable in the range of approx. $300/bbl. at an all-in cost in the range of approximately $120/bbl. The low temperature-cracking module has no moving part and is designed to operate 24/7/365 for approx. 3 years before replacement.

Procedurally, the phase 1 and 2 pilot plant can be constructed for approx. US$7.2 million. The initial levels of defining reserves at Block 19 are targeted to cost US$2 million. The company is targeting initial production of low-grade bitumen from the Phase 1 and 2 mobile plant in the range of 8 - 12 months.

Phase 3-technology application is two-plus years from readiness at a cost of approx. US$25 million. Profits from the sale of bitumen are anticipated to cover the majority of the capital expenditure for Phase 3 production.
MANAGEMENT, DIRECTORS

LOONG YIP JUY (VINCENT), PRESIDENT

Mr. Loong, age 66, was born in Guangzhou China and is a resident of Peru. He is a graduate of the National Engineering University of Peru where he has served in business management throughout his career.

ANDREW MYNHEER, DIRECTOR

Mr. Mynheer, age 55, was born in Oxford UK and is a resident of British Columbia. He is a graduate of Brookes University in Oxford and has a distinguished career as a steady manager bringing complex designs through to operating fruition.

PETER WEICHLER, INVESTOR RELATIONS

Mr. Weichler is a financial professional whose background includes Commercial and Corporate Banking, Investment Banking and Brokerage, as well as a former Partner in a leading Investment Communications firm. Mr. Weichler clearly understands the steps necessary to build a concept and vision into reality.
OUTLOOK

With the successful application of Phases 1 and 2, AEPP is anticipated to be a stable, operating petroleum producer with an enviable profit margin and a world-class environmental record. Trading today at 50 cents/share, the potential value to shareholders could be breathtaking. With ascendance to Phase 3, and the sale of premium oils at an enviable profit margin, AEPP could well become a leading intermediate-sized producer.
CORPORATE INFORMATION

Exchange/symbol: (OTCQB: AEPP)
Recent price range shares outstanding shares in float contact
$0.50/share 93 million 11 million
www.aeppinc.com
Contact Peter Weichler for all Investor Relations information.

Peter Weichler - Investor Relations
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Source: http://www.aeppinc.com/news/