Tuimadda-Neft and Genoil have enhanced their recent agreement to develop their five giant oil field license blocks in Yakutia, Russia
NEW YORK, NEW YORK / ACCESSWIRE / July 15, 2019 / Genoil Inc. (OTC PINK: GNOLF) had recently signed an advisory fee agreement with Tuimaada-Neft, which was published on July 3, 2019. This new revised contract allows Genoil to represent all five of Tuimadda-Neft's oil field license blocks. These major properties combined could very likely produce in excess of 1 million BPD (barrels per day) of oil. The estimated total CAPEX to develop these Yakutia fields is $35 billion.
Along with JSC PetroleumGas (AFB) in Astrakhan, Genoil has negotiated a consulting fee to be paid directly to Genoil immediately following the closing of each asset purchase, thus giving Genoil positive cash flow instantly. When dealing with undeveloped oil fields, it is standard for the sale to be completed in two stages. First, the buyer and seller have to agree on a fair market value for the field(s) based on previous geology reports. The initial purchase price is usually a conservative figure until the new exploration field drilling is completed and reviewed. Following these new well reports, this is when the second stage of the sale price is typically much higher. For example, if one of the fields initially sells for $100 million then Genoil will receive their initial sizeable consulting fee based on that figure. Then after the new drilling work is completed and the updated geology reports are reviewed, an adjusted sale price is negotiated and finalized. The second stage of the sale is usually significantly higher, which would increase Genoil's compensation dramatically. It should not be overlooked that these five oil field assets combined could generate $24 billion per year and over $450 billion during a 20 year production span at today's oil prices.
Genoil is also pleased to announce that the engineering team has made a breakthrough improvement to our desulphurization process. This new technical improvement will be extremely beneficial to the maritime industry due to the IMO MARPOL Annex VI regulations, which will limit the ships sulfur emissions content to 0.50% world-wide starting January 2020. Genoil has already started the patent work and is hopeful that the first patent will be completed in the fourth-quarter of this year.
President & C.O.O. Bruce Abbott stated, "Genoil has shown notable leadership in Astrakhan, which Tuimaada-Neft has witnessed and they are very encouraged that we will be able to deliver these same results for them. As mentioned before, Genoil has called the largest development bank in the world and one of the top two largest banks in the world to provide assistance in sourcing capital and strategic equity investors for these projects and we Genoil has gotten initial intrerest. One of the top two largest banks in the world is already engaged with JSC PetroleumGas (AFB) and that work is advancing. We at Genoil are all very enthusiastic about being so close to recognizing positive cash flow."
About Genoil Inc.:
Genoil is an independent exploration, production company which has experience drilling for oil and gas in the Caribbean. The company specializes in heavy oil development and is focused on long term growth. Genoil has developed a proprietary, state of the art patented advanced hydroconversion process technology (heavy to light & sour to sweet). This advanced Hydroconversion Upgrader (GHU), converts heavy crude oils and refinery bottoms into clean crude that is much more valuable. This more valuable crude produces a higher value product slate meaning that this new crude oil refines into clean-burning fuels for transportation. The company is deeply focused on the downstream transportation refining industries especially shipping. Hydroconversion is a common and proven desulfurization process, capable of processing various feedstocks ranging from crude oil to Naptha.
The Genoil Hydroconversion Upgrader (GHU®), is an advanced upgrading and desulfurization technology, which converts heavy or sour crude oil into much more valuable light low sulphur oil for a very low cost. The GHU achieves 96% pitch conversion and 95% desulfurization with an operating cost of up to 75% less than the competition. For Conoco Canada Ltd, Genoil converted their bitumen of 6-8.5 API and converted it to 24.5 API. We also removed 92% of the sulphur reducing the amount from 5.14 % to below 0.24%. These results were taken by Conoco Canada Ltd, who had them analysed by Core Laboratories, one of the largest service providers of core and fluid analysis in the petroleum industry.
Tuimadda-Neft is a petroleum products supplier with annual sales of more than 140,000 tons of petroleum products for the domestic market in the Sakha Republic (Yakutia). The company has its own oil storage depot with a capacity of 50,000 tons in Nizhniy Bestyakh. The company also operates 35 gas stations throughout the region.
FORWARD LOOKING STATEMENTS: Certain information regarding Genoil, including availability of capital and other sources of funds and future plans may constitute forward-looking statements under applicable securities law. Forward-looking statements are often, but not always, identified by the use of words such as ''seek,'' ''anticipate,'' ''hope,'' ''plan,'' ''continue,'' ''estimate,'' ''expect,'' ''may,'' ''will,'' ''intend,'' ''could,'' ''might,'' ''should,'' ''believe'' and similar expressions. Forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made and, in some cases, information received from or disseminated by third parties, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Forward looking statements contained in this release necessarily involve risks and uncertainties associated with an oil and gas technology development and engineering corporation. As a consequence, actual results may differ materially from those anticipated. Accordingly, readers should not place undue reliance upon forward-looking information contained herein. Although Genoil believes that the assumptions underlying such forward-looking statements are reasonable given current market conditions, and information received or disseminated by third parties is reliable, it can give no assurance that such expectations will prove to have been correct. Genoil does not assume responsibility for the accuracy and completeness of the forward-looking statements and such forward-looking statements should not be taken as guarantees of future outcomes. Subject to applicable securities laws, Genoil does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. The forward-looking statements contained in this press release are expressly qualified, in their entirety, by this cautionary statement. Additionally, statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Further information on potential risk factors that could affect Genoil's financial results can be found in Genoil's disclosure materials filed on SEDAR at www.sedar.com and with the Securities Exchange Commission available at www.sec.gov.
For more information please contact:
Tel: 212 688 8868
SOURCE: Genoil Inc.
View source version on accesswire.com: