Genoil Inc.
OTC Bulletin Board : GNOLF

Genoil Inc.

May 16, 2006 03:57 ET

Update on Hebei Zhongie Petro-Chemical Group for the First Major Heavy Oil Hydroconversion Upgrader in China

EDMONTON, ALBERTA--(CCNMatthews - May 16, 2006) - Genoil Inc. (TSX VENTURE:GNO)(OTCBB:GNOLF) is pleased to offer this update on our MOU, with respect to moving the contract forward in China between Genoil and the Hebei Zhongie Petrochemical Company.

Hebei Zhongie Petrochemical Company is planning to be in Edmonton for meetings with Genoil on the status of the 30,000 BPD upgrader for their refinery in China between mid and late June. A delegation from the Hebei Zhongie Petrochemical Company that will include Mr. Mryu (President), Mr. Guocheng Yu (Vice President), Mr. Yongjun Zheng (Technical Director) and Mr. Baoguang Li (Project Manager) to discuss outstanding issues with goal being to roll the MOU into a contract for the 30,000 BPD facility in China. There will also be a delegation from CNPC East China Design Institute that will include Mr. Xiao (VP and General Manager) and one other process engineer to discuss implementation of an agreement where the Institute will purchase the process package and use of the Genoil GHU patent under a fee structure to be negotiated for oil producers in China.

The CNPC Institute is interested in using the Genoil GHU technology throughout China and is responsible for bringing and licensing new technologies for use in China. CNPC then can license the technology for companies such as PetroChina and SINOPEC who are also interested in the possible application of the GHU technology for their installations as well. The utilization of the Genoil GHU technology in China will allow the Chinese oil companies to process sour high sulphur crude and upgrade the API improving the quality and quantity of fuel products, such as produced by the Hebei Zhongie Refinery. The Genoil GHU technology is environmentally friendly in that it largely eliminates the parts of the oil that produce greenhouse gases, such as sulfur and nitrogen, and avoids the production of coke that is surplus in China. The Chinese government wants to see that coke or carbon, converted into light oil, which the Genoil process accomplishes. This light oil will be used to make jet fuel, diesel and gasoline. The Chinese government does not want this coke or carbon dumped in contaminated waste dumps as is done in many parts of the world, thereby wasting a valuable energy resource.

We are looking forward to the delegations from Hebei Zhongie Petrochemical and CPNC visiting Genoil in Edmonton and furthering our project in China.

Genoil is a technology development company providing solutions to the oil and gas industry through the use of proprietary technologies. Genoil's shares are listed on the TSX Venture Exchange under the symbol GNO, as well as on the OTC Bulletin Board under GNOLF.OB.

ADVISORY: Certain information regarding the company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated. The company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand, and the company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential risk factors that could affect the company's financial results can be found in the company's Reports filed with the Securities and Exchange Commission.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Genoil Inc.
    James F. Runyan
    Senior Vice President Engineering & Operations
    (780) 416-5590