SOURCE: Freedom Financial Holdings, Inc.

November 23, 2009 09:00 ET

Freedom Demonstrates Heavy Oil Solution for Venezuela

FORT WAYNE, IN--(Marketwire - November 23, 2009) - Freedom Financial Holdings, Inc. (PINKSHEETS: FDMF) CEO Brian Kistler announced today that Freedom Energy International, the Company's wholly owned subsidiary dealing with Heavy-oil conversion technology, hosted a group of private business leaders from Venezuela.

Venezuela's large reserves are primarily heavy oil and extra heavy which is thick and hard to move. This creates problems in all the areas of extraction, storage, transport and processing. In addition to the need to lower the higher production costs of Heavy Oil, processing creates a disposal legacy of heavier by-products containing high levels of solids and water. These are even harder to move and dispose of and often leave environmental damage. "For example, in Venezuela there are over 18,000 sludge pits containing in excess of 4 million barrels of oil. So far no one has been able to recover this oil, one of many opportunities our Venezuelan visitors seek a simple cost effective solution for. They saw one today," said Kistler.

Freedom Energy's KC 9000™ technology has already proven uniquely effective on Freedom's own leases, and in tests of all of its applications across the mid west. The product works in one low dose treatment at normal temperatures, separating the water and solids that make oil heavy, leaving refinery ready oil. KC 9000™ has proved effective in getting stuck wells flowing, improving pipeline flow and clearing tarry residues in settlement tanks and pits. The output is improved saleable oil, leaving only the water and solids for disposal. KC 9000™ has also been used to simply improve the value and profitability of stored heavy oil before sale to a refinery.

All these are endemic problems for the Venezuelan oil industry, which is built on heavy oil. Traditional solutions are much more expensive and complex, so often uneconomic, one reason for the abandoned wells and storage tanks that are a feature of Kansas, which Freedom's business was founded to exploit, and a clearance opportunity that Freedom's Morris Energy Division now addresses for the EPA.

Before KC 9000™ these problems required expensive steam generation and chemical treatment to get the oil to flow, then further treatment to remove the chemicals before refining, the treated oil could also revert. KC 9000™ solves the problems, works in a single treatment, without heat and with lasting effect. "Even with documented laboratory evidence there is a natural cynicism across this conservative industry about claims for a new technology that solve heavy oil's problems so simply, and with a saleable output. Our visitors no longer share that," says Kistler.

"The delegation that visited Fort Wayne has worked in the heavy oil industry throughout South America and Mexico for the over 30 years and included a specialist chemist. Once they had seen the effectiveness of KC 9000™, demonstrated in controlled tests run at Fort Wayne, Indiana's independent Blackstone Laboratory, they were convinced of its potential. They will now return to test specific heavy oil and problem residues from difficult fields in both Venezuela and Mexico. These tests will continue when we return from the Middle East," stated Kistler.

This development is the direct consequence of Freedom's recently announced international marketing expansion. The increasing need to exploit the very substantial heavier oil deposits globally is well known, driven by limited and depleting lighter oil reserves, increasing global demand and rising prices. "All this is helping drive global business opportunities to Freedom. We have also recently received interest from parties in the Caspian Sea region and I look forward to bringing you further updates as our plans to commercialize our oil treatment technology progress," concluded Kistler.

ABOUT FREEDOM FINANCIAL HOLDINGS, INC.:

Freedom Financial Holdings, Inc. is a holding company with a focus on the identification of opportunities in oil related markets. The Company's objective is to acquire undervalued assets and/or initiate operations in underserved niches. Once they are established within the FDMF portfolio, the Holding Company will provide the support necessary to enable each of its subsidiaries to maximize their business opportunities.

In addition Freedom is marketing its uniquely effective proprietary technology for use by others internationally, both by sale and licensing.

FORWARD-LOOKING STATEMENT

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning it expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.

Contact Information

  • Contact- USA
    Freedom Energy International, Inc.
    www.freedomenergyint.com
    Investor Relations
    David Elias
    DME Capital, LLC
    516-967-0205

    In Europe:
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    info@eurochannel.org
    Office: +44 1932 772731
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