A Current Review of the Emerging Freestone Story
A strategically significant, history-changing technology appears now to be in the hands of Freestone Resources, Inc. ( OTCBB: FSNR ). It is suggested that discerning investors conduct all due diligence regarding this company and its significant intellectual and resource holdings. The evidence provided by the company must be carefully evaluated. No overly enthusiastic statements about the potentials of this company are intended in this posting, except for very conservative numbers that intelligent investigators might insert into various business projections for the company.
Although still only a business story (early May, 2010), with no significant corporate revenues, Freestone Resources is an engaging, if not sensational narrative. The story centers entirely upon Freestone’s rights to develop and use “EncapSol,” a presently mysterious but chemically formidable substance with demonstrated powers of hydrocarbon solution and capture unknown to science. If the powers and potential uses of EncapSol solution are but a fraction of what is claimed by the corporation, Freestone Resources will become a major player in the worldwide oil extraction industry.
In the briefest summary, EncapSol is a proprietary substance with several unique traits, incompletely listed below.
First, and very significantly, the product has passed third-party, officially recognized governmental testing for environmental and occupational safety, with profound results. In summary, the substance is not toxic, neither to wildlife nor to humans in normal use. Interested readers should carefully examine the Materials Safety Data Sheet for this product, at the URL starting with the usual h and t and t and p and colon and double foreslash encapsol then add .com/msds/
EncapSol’s value derives from its unique abilities to extract, by apparent simple solution, hydrocarbons from a) oil wells (new or conventionally exhausted), b) oil shale, and c) tar sands. Several company-provided videos demonstrating this process must be carefully examined. Viewers will see rock- or sand-bound oil simply dissolve out of the rock or sand into the EncapSol solution, where it can then be easily separated and recycled for more solution extraction.
This process of extracting the dissolved oil from the EncapSol solution, to produce saleable crude oil, allows the EncapSol solution to be immediately re-used to extract new oil from new batches of oil shale or tar sand feedstock.
Importantly, this separation process occurs at very low temperatures, with little or no loss of the operating solution. It appears that a little EncapSol will go a long way. It will be able to be recycled without significant loss in the solution recovery of massive amounts of rock-bound oil.
Next, it is believed that the material can be produced from common and available chemical feedstocks. Because EncapSol’s synthesis is yet proprietary, this is speculation, based upon the company’s support of the construction of large-capacity oil extraction machinery.
If EncapSol can be readily made and efficiently used in new oil extraction machines currently in development, and if the projected output numbers concerning these machines are correct, Freestone Resources will quickly become a world-class corporation with economically and politically transformative outcomes.
How so? First, it is well known that the combined liquid hydrocarbon resources of the US and Canada far exceed those of Saudi Arabia and other major oil producing regions. But these North American oil resources are unrecoverable with conventional technologies. They are locked up in oil shale and tar sand deposits where the hydrocarbons are tightly bound in an illiquid state to component shale and sand particles. Oil does not flow from oil shale or tar sands by any economic or convenient means—except, it appears, by the means of EncapSol.
In a Freestone presentation, the corporation states that when in operation their EncapSol-using oil shale or tar sand processing device will be able to extract 6000 barrels of oil each day of operation. The EncapSol extraction fluid will be recaptured by the machine at a high efficiency and low cost, at merely warm temperatures, allowing for the solution’s continuous, captive re-use.
Importantly, it appears that extraction of the rock-bound hydrocarbons approaches 100%, allowing the resulting rock waste to be returned safely to its extraction site, without residual pollutants, ground water toxicity, or other environmental problems of a chemical or toxic nature. Presently, this is a significant problem with the conventional thermal extraction of oil from the massive tar sand deposits in Alberta. Any process that can cleanly extract these oils, leaving only pure sand, will have an exponential effect on North American oil production.
The degree of toxic-free waste from the commercial EncapSol process must yet be publically measured and confirmed. But from the Materials Safety Data Sheet information, EncapSol itself is not an environmental pollutant. If it can efficiently and completely extract hydrocarbons from oil-bearing rock feedstocks, the entire oil availability situation changes in North America.
There are massive deposits of oil-bearing shales in Colorado, Utah, and Wyoming, along with similar or exceeding oil resources locked up in Canadian tar sands in Alberta. Any process that can cleanly and efficiently extract Canadian (or other) oil from tar sands will be exceedingly rewarding to investors who take a reasonable position in such technologies. Freestone Resources, and its EncapSol technologies, may prove to be the answer to strategic new oil resources from oil shales and tar sands.
Potential investors are advised to do their own calculations regarding the various economic potentials of Freestone and EncapSol. To start, it would be advisable to diligently view and ponder all of the information available from the company. Several of these resources are listed below.
Then, feel free to create simple arithmetic spreadsheet calculations. No specific outcome numbers will be presented here; they are way too big to be believed, and if presented would cause most dully diligent investors to turn away in legitimate scepticism. If it’s too good to be true, it probably isn’t. Readers must come to their own conclusions on the matter. Anyone unable to accurately perform elementary production and revenue projections should not be investing in a startup company such as Freestone Resources.
Numbers to enter in such projections should derive from the company’s public information, which includes the following. The company states that each of its extraction machines could yield up to 6000 barrels of oil each operating day, at a stunning cost of less than $33 per barrel. Calculations using far more conservative numbers might be appropriate. But even at small fractions of these, oil production would be significant and rewarding.
The company already has rights to mine rock-bound oil on a 2000-acre property with up to 330 million barrels of potential oil. It would be expected that once the company’s EncapSol oil extraction machines are in production, they would be first prototyped and commercially operated on this Green River property.
When that happens, perhaps later in 2010, the story of Freestone’s future will no longer be a story. It will be a front-page reality.
Those interested in learning the details of Freestone’s projected future and current intellectual properties are strongly advised to scrutinize the following information resources.
With pen in hand, and with numerous hits to the “Pause” button, watch and consider this remarkable presentation detailing Freestone’s business plan and its technologies and resources: at the URL starting with the usual h and t and t and p and colon and 3 W’s .slideshare then add .net/Larry411/freestone-fsnr-encapsol-oil-extraction-solution
There are a good number of slides with general oil resources information, which merely frame the advantages of Freestone’s oil extraction technologies. Concentrate on the many slides that describe in some detail the specifics of the company and its technologies.
All of what’s presented depends, of course, upon the proper functioning of the EncapSol solution itself. To see it in action, watch these corporate videos: at the URL starting with the usual h and t and t and p and colon and double foreslash encapsol then add .com/media
One final point of consideration. Obviously, Freestone Resources is a still a tiny operation, with few employees or revenues. It is a “start-up” that surely hasn’t yet started up in any income-producing way. But please note that this did not dissuade a major oil executive from signing on with Freestone, bringing his great experience and oil production knowledge and contacts and advice to the young company. Read and personally consider what might have been the motivations of Michael McGhan to board the EncapSol vessel before it left the dock. Read the story here: at the URL starting with the usual h and t and t and p and colon and 3 W’s then .freestoneresourcesinc then add .com/news/030210.php
With the likes of Michael McGhan helping to steer the Freestone helm, bound for seas of new and gigantic domestic sources of liquid hydrocarbons, all powered by EncapSol, the future of this company, if not the energy resource futures of the US and Canada themselves, looks extremely promising.
One brief addendum. There has been speculation that Freestone’s EncapSol could play a significant role in cleaning Gulf Coast shorelines of leaked oil. That could well be the case, but some time in the future. A purchase of Freestone shares solely on the hope that it might play a major role in leaked oil recovery and shore cleanup does not seem presently justified. EncapSol, may indeed, someday help in the cleanup, both on the Gulf Coast and at oil spills and leaks in other parts of the world, too. But it appears that Freestone’s great future rests on EncapSol’s unique ability to safely and inexpensively extract crude oil from presently un-tapped shale oil and tar sand resources around the world, including the massive oil shale deposits in the US.
