SOURCE: PetroSun, Inc.

July 31, 2008 09:00 ET

PetroSun Algae-to-Biofuels Update

SCOTTSDALE, AZ--(Marketwire - July 31, 2008) - PetroSun, Inc. (PINKSHEETS: PSUD) announced today the following updates for its algae-to-biofuels division.

Australian Operations

The Letter of Intent between the PetroSun and Icon Energy was recently terminated by mutual consent. The companies are negotiating a new agreement that would create a joint venture between the parties for the development of an algae-to-biofuels commercial farm system in Queensland, Australia.

PetroSun is also engaged in negotiations to establish a commercial scale algae farm system in New South Wales, Australia. The company will produce algae and extract the algal oil as a biofuel feedstock. A local refiner will process the algal oil into biodiesel for the regional marketplace.

Southwest USA Operations

The Board of Directors has approved plans to install a pilot plant designed for algae production at an Arizona wastewater treatment facility. This project will be a scaled down version of a commercial algae farm system utilizing the wastewater and associated nutrients from the municipal treatment plant to produce algae as a biofuel feedstock. This operation will become a model for other PetroSun wastewater based algae farm systems in the United States and foreign markets.

The Company anticipates commencement of operations to occur within 30 days of receipt of the final approvals and permits from the local municipality and state regulatory agencies.

About PetroSun

PetroSun's operations include oil and gas exploration, development, production, oilfield tubular sales and algae-to-algal oil alternative biofuel production. The oil and gas division is focused on the exploration of the Holbrook Basin of Arizona, the San Juan Basin of New Mexico, Australian based prospects and the development of oil and gas reserves in Louisiana. PetroSun Oilfield, a wholly owned subsidiary, is engaged in the importing of tubing and casing from China for marketing and distribution within the US market. The alternative fuels division has entered the commercial stage of its algae-to-biofuels production technology. The Company plans to establish algae farms and algal oil extraction plants in Louisiana, Texas, Arizona, Mexico and Central America during 2008. The algal oil product will be marketed as feedstock to existing biodiesel refiners and planned company owned refineries. PetroSun is headquartered in Scottsdale, Arizona, with field offices in Shreveport, Louisiana, and Rio Hondo, Texas. For more information about PetroSun visit the company's website at www.petrosuninc.com.

Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.

Contact Information

  • Contact:
    Investor Relations
    Osprey Partners
    732-292-0982