|By Marketwired .||
|May 5, 2014 09:01 AM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 05/05/14 -- Bayshore Petroleum Corp. ("Bayshore" or the "Corporation") (TSX VENTURE: BSH) is pleased to announce that it has entered into a Letter of Intent with International Enhanced Petroleum Services (EPS), a private UAE company with its registered office located in the Jebel Ali Free Zone, UAE and operating in Iraq, to construct a pilot heavy oil upgrading facility utilizing a proprietary cold catalytic cracking (CCC) process. The pilot plant, to be located in Iraq, will initially process 1,000 barrels of bitumen per day using refinery Residual Bottom Bitumen (RBB) as feed and will upgrade that feed into diesel-quality product oil, synthetic gas and coke. The project upgrading capacity is intended to be installed in one of Iraq's refineries. Currently, the RBB are mixed with Iraq's light premium crude and exported. An upgrader of RBB will significantly enhance Iraq's refinery capability by converting their low value waste RBB into high value diesel oil and will also help its refineries to handle ever increasing heavy / light crude mix feedstock. Bayshore and EPS will procure RBB supply directly from the refinery and the 1,000 barrels per day pilot plant is intended to demonstrate the commercial viability of bitumen upgrading into diesel light oil in Iraq and Middle East area. Current Iraqi refining capacity is 640,000 Bopd and there are plans to increase this capacity to 960,000 Bopd in the next few years to meet domestic product demand. A large capacity upgrader in the future will also provide further heavy crude and fuel oil refining capacity to Iraq and open up potential heavy oil exploration/development in the country.
The Letter of Intent contemplates the execution of a formal agreement once terms and conditions of the relationship are finalized.
Bayshore is a Calgary, Alberta based corporation engaged in new technology development in the heavy oil industry. The Common Shares are listed on the TSX Venture Exchange under the trading symbol "BSH".
Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
President and Chief Executive Officer
Bayshore Petroleum Corp.