TSX Venture Exchange Symbol: SNV
VANCOUVER, Oct. 29 /CNW/ - SONIC Technology Solutions Inc. ("SONIC" or "the Company") today confirmed that it has completed its test program of a number of heavy oils and has confirmed that the PetroSonic upgrading process is able to consistently achieve the target improvements in API. For Canadian bitumen samples this represents an upgrade from nominally 10 degrees API to 25 degrees API.
The test program included heavy oils and bitumen from the Canadian Athabasca and Lloydminster fields, heavy oil from USA refineries, and crude oil from two international oil producers. The testing was conducted at SONIC's Sonoprocess(TM) Development Facility in Richmond, British Columbia and at the PetroSonic Development Facility in Edmonton, Alberta.
Most of the parameter testing has been done with oil which nominally has an API gravity of 10 degrees at 15 degreesC. The PetroSonic upgraded oil quality is typically:
- Density - from 23 degrees to 28 degrees API gravity, meeting pipeline
specifications;
- Viscosity - less than 100 cSt at 25 degreesC (greater than 99%
reduction), meeting pipeline specifications;
- Liquid yields - From 85% to 92% by volume depending on the quantity
and quality of asphaltene by-product required;
- Sulphur - reduction by up to 40% by mass;
- Heavy Metals - typical reduction of Vanadium up to 80% and Nickel by
up to 88% by mass.
A typical actual test and analysis result is summarized below:
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Test Crude Parameter Initial Quality Upgraded Quality
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API 10.6 26.3
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Lloydminster Viscosity (cSt
(No.080723-V1) @ 25 degreesC) 17,000 50.7
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Sulphur (% mass) 4.5 2.8
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Nickel (mg/kg) 80.0 11.9
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Vanadium (mg/kg) 169.0 35.4
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Liquid Yield
(% volume) 100.0 89.8
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PetroSonic upgrading allows producers to capture more of the heavy sour
oil (HSO) to medium sour oil (MSO) crude oil price differential. The
cumulative test data affirms the potential competitive advantage of the
PetroSonic upgrader when integrated with various heavy oil production and
processing facilities targeting the following markets:
- Field installations for smaller producers who will be able to improve
the quality of their oil without the use of diluents with minimum
infrastructure cost and increased net returns;
- Regional or integrated upgraders where the PetroSonic upgrader is
part of an upgrading and energy system providing process steam and
reducing natural gas usage; and
- Larger scale upgraders designed to meet producer and midstream system
requirements.
The Company's immediate objective is establishing tolling plants for small
HSO producers offering tangible advantages:
- The PetroSonic scalable upgrader technology can be designed to
maximize oil product revenues or integrated to optimize overall oil
and energy revenues;
- Asphaltene by-product quality can be adjusted depending on the end-
use;
- Sonic reactor technology reduces processing costs in a low
temperature and pressure process; and
- PetroSonic field upgrading reduces or eliminates the need for
diluents for pipeline transport.
PetroSonic has now generated data for the design and construction of its first field upgrader installation and work on the preliminary engineering is ready to proceed. These results have allowed SONIC to advance discussions with heavy oil producers regarding possible PetroSonic upgrader installations.
About SONIC and PetroSonic
PetroSonic is a wholly owned subsidiary of SONIC and the exclusive licensee of a heavy oil upgrading process utilizing proprietary processes and sonic reactor technology developed and owned by SONIC. The PetroSonic upgrading process incorporates de-asphalting and oxidation stages in a low temperature and pressure process. PetroSonic is marketing its upgrading process to small oil producers on a tolling fee basis whereby the net benefit of the upgrading is shared by PetroSonic and the producer. The PetroSonic upgrading technology will extend to larger projects where PetroSonic facilitates the incorporation of systems which can provide sustainable integrated upgrading.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.