SOURCE: Freedom Financial Holdings, Inc.

August 06, 2008 09:00 ET

Freedom Financial Holdings Announces Joint Venture Agreement and LOI to Launch Heavy-Oil Conversion Technology

First Properties Could Top Over $800 Million in Oil Reserves

FORT WAYNE, IN--(Marketwire - August 6, 2008) - Freedom Financial Holdings, Inc. (PINKSHEETS: FDMF) CEO Brian Kistler announced today that the Company has entered into a Letter of Intent with an Oil Technology company to form a Joint Venture to launch a new Heavy-oil conversion technology and begin production on reserves within Southwest Missouri.

Brian Kistler, the Company's Chairman and Chief Executive Officer, commented, "The opportunity to partner with this Oil Technology group and utilize their technologies will allow Freedom Financial Holdings shareholders to participate in new technologies that promise to revolutionize the manner in which Heavy Oil is produced compared to existing expensive recovery techniques associated with Heavy Oil. We believe the technical and economic viability of this breakthrough heavy-oil upgrading technology has the potential to significantly increase yields of gasoline, diesel and jet fuel from heavy and ultra-heavy crude oils and could be used to increase and upgrade production of heavy-oil resources."

"Heavy Oil is everywhere in Southwestern Missouri. It's no secret that some of the largest Oil Sands Reserves in the country sit right here. We are here to set a precedent on how Heavy Oil will be produced very soon. Heavy Oil was once viewed too costly and prohibitive for production but we're about to change that perception. We feel the next oil boom is here because the oil is so abundant and shallow, only 200 feet deep, this will allow us to use both conventional oil recovery methods and our proprietary Heavy-Oil Sands recovery processes. We have the best of both worlds with such abundant Oil and Oil Sands deposits located in the same area that are easy to recover compared to similar reserves found in Utah, Colorado, California, Texas and Canada, however getting it out of the ground has been the challenge for many in the past. We are very excited about the amount of Oil just in Vernon County, MO where oil reserves alone are estimated at 300 million Barrels of oil. We are looking forward to aligning ourselves with Freedom Financial as we form this long-term partnership to produce oil, utilizing our technologies and the team of professionals we have assembled for this project is exceptional. Our five-year goal is to be producing 8,000 barrels of oil per day which equates to nearly $1million per day based on forecasts for oil and oil sands production, with oil at $120 per barrel," stated a Company spokesperson for the technology group.

Kistler further commented, "The first oil production lease that Freedom will be partnering on contains approximately 1,500 acres with oil reserves that are estimated to be over $800 million (US). Freedom will own a 12.5% working interest in the oil leases. Unlike conventional light oil, heavy oil is very viscous, like syrup, or even solid in its natural state underground, making it very difficult to extract. But heavy oil reserves that could keep the planet's oil-dependent economy going for a hundred years lie beneath the surface in many countries, especially within the U.S."

Terms of the joint venture agreement will be subject to the terms of the due diligence process between the partners and the signing of a definitive agreement within the next 60 days.

To learn more about Heavy Oil visit: http://pubs.usgs.gov/fs/fs070-03/fs070-03.html

ABOUT FREEDOM FINANCIAL HOLDINGS, INC.

Freedom Financial Holdings, Inc. ("FFH") is a holding company with a focus on the identification of opportunities in the financial services sector. The Company's objective is to acquire undervalued assets and/or initiate operations in underserved niches. Once established within the FFH portfolio, the Holding Company will provide the support necessary to enable each of its subsidiaries to maximize their business opportunities.

FFH also operates two divisions with a focus in the financial services sector; Freedom Financial Mortgage Corp. ("FFMC") with operations in Indiana, Ohio, Georgia and Florida and Freedom Mortgage Resolutions, Inc. with operations in Ohio, Indiana, Alabama, Illinois, Michigan, Minnesota, North Dakota, North Carolina, Wisconsin, Tennessee, Mississippi, Georgia, Florida, Nevada, Mississippi and Colorado.

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:
    Freedom Financial Holdings, Inc
    Brian Kistler
    260-490-5363 ext 307