SOURCE: Freestone Resources Inc.

June 01, 2007 08:30 ET

Petrozene Field Report

FAIRFIELD, TX--(Marketwire - June 1, 2007) - Freestone Resources Inc. (PINKSHEETS: FSNR) would like to divulge and discuss several applications of Petrozene and the resulting economic impact seen at these sites. As stated before, Freestone has been hard at work promoting and using Petrozene, our patented paraffin/asphaltene solvent, in several wells and oil tanks across Texas, and has tested several batches of paraffins, asphaltenes, and emulsions from all over the world. Through a cooperative working relationship with our producer, Near Bore Resources, we have been able to refine and polish our techniques in the oil field and produce a very decisive treatment.

To begin our discussion, we will first look at one well treatment in Freestone County, Texas and another well treatment in Shackleford County, Texas. The first well treatment was performed by Freestone resources technical representatives on a 9,500-foot Cotton Valley well in northern Freestone County. The well was producing an average of 100 Mcf of gas with 9 barrels of oil and 7 barrels of water per day. The well was treated with a 20 gallon Petrozene bolus down the production tubing followed by a crude oil flush and then the well was shut-in for 72 hours. Upon opening the well back to production, the well has since produced an average of 125 Mcf of gas with 24 barrels of oil and 9 barrels of water per day. This equates to a 25% increase in gas production and a 266% increase in oil production with only a 28% increase in water production. This increase in production has since yielded the producer an average of $1,075.00 per day, which calculates to over $392,375.00 per year.

The Shackelford County well is a 1,500-foot well which operates off of a pumping unit. This well had a production average of 1.5 barrels of oil per day for the last 20 years. After a technical review of the well and a diagnosis of paraffin restriction was made, a Freestone representative performed a near bore spot treatment with a blend of 25 gallons of Petrozene and 25 gallons of cude oil pumped into the producing formation and then the well was shut-in for 72 hours. Upon opening the well to production, the well has since produced an average of 4 barrels of oil per day with no increase in water production. This also equates to a 266% increase in crude oil production which yields this producer a daily average of $210.00 dollars increased gross revenue.

Several tank treatments have been performed in the last 3 months across the state of Texas, but more especially in Freestone County, where many major oil and gas companies are involved in exploration and production of natural gas. We have contacts within several of these companies and have begun a pilot program for treating their tank bottoms and emulsion problems. To date, Freestone Resources has treated approximately 25 tanks with huge success. To give an example, when a salt water tank is found to have an emulsion pad floating mid-level inside the fluid column, the disposal of a load of saltwater could mean the loss of several barrels of oil. Using 1/10 of 1% of the volume inside the tank of Petrozene added to the tank, the oil will totally separate from the water, with the oil settling at the top. This means that no oil is lost to saltwater disposal. This reclaimed oil more than covers the cost of Petrozene treatment per tank.

Petrozene is also completely effective in assuring that oil is sold at par value and not discount. In an oil tank, dispersing paraffin into oil or dropping any basic sediment or water (BS&W) to the bottom of the tank means clean oil is being sold. This is important, since all loads of oil are centrifuge tested at pick-up.

Using 1 gallon per 1000 gallons of oil in tank ensures that oil will not be sold at a discounted price.

The latest breakthrough we have discovered is Petrozene's ability to treat wells with a high content of iron sulfide. Treating a well bore with the proper ratio of Petrozene vs. feet of perforations in the well bore has shown to totally remove all iron sulfide restriction in the well bore as well as the production string, flow lines and tank batteries. Our last test cleaning out a flow line showed staggering results within 3 hours and after 24 hours had completely broken down the restriction into loose crystals which settled on the bottom of the tank which the line flowed into. It would be impossible to state the amount of money this could save operators in replacement costs of tubing, flow lines and tanks. As this was our first test with iron sulfide, we plan on treating other similar wells.

Overall, we are more than excited about the case studies and anecdotal results that we are receiving daily. There is no doubt that Petrozene works and works better than every other chemical that we have tried it against in cases of paraffin/asphaltene restriction, tank cleaning, emulsion breaking, treating iron sulfide, and in anti-corrosion treatments.

Freestone Resources Inc. has successfully treated paraffin from Saudi Arabia. There are thousands of tank bottoms with a calculated value of 1.5 billion dollars. We are currently working on a presentation to the Saudis. To say that the sky is the limit for Petrozene would be an understatement.

About Freestone Resources Inc.:

Freestone Resources Inc. is an East Texas based Oil and Gas company which is actively pursuing opportunities in Texas and New Mexico oil and gas fields in the areas of lease acquisitions, exploration, production, re-completions, and waste disposal. Freestone Resources Inc. is also diligently working to develop and utilize emerging technologies and products related to increasing oil and gas production, efficiency and profitability.

SAFE HARBOR STATEMENTS:

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • Contact:

    Freestone Resources Inc.
    Lloyd Lane
    903-389-8817
    Email Contact