Bayshore Petroleum Corp.

September 27, 2013 17:00 ET

Bayshore Petroleum Corp. Announces Contract to Manage Pilot Upgrader

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 27, 2013) - Bayshore Petroleum Corp. ("Bayshore" or the "Corporation") (TSX VENTURE:BSH) is pleased to announce it has entered into a management contract with TianAn (Canada) Energy Technology Investment Co. Ltd., a private company registered in British Columbia, Canada, to construct and build the first pilot heavy oil upgrader using a proprietary low temperature catalytic cracking (CCC) technology which was invented, patented and developed by Mr. Cao Zhide of Chemical Foreign Economic Cooperation Centre (CFECC) in Beijing, China.

The first pilot CCC heavy oil upgrader is planned for construction in the Meota, Saskatchewan area, and will have a daily heavy oil processing capacity of 350 barrels. Bayshore, in conjunction with the funding group TianAn, will secure the site location and heavy oil supply, apply for and obtain regulatory approval, manage the construction and supervision of the pilot plant and market the light oil and petroleum coke finished products. Engineering design is being initiated and construction work will be awarded to qualified service providers once engineering work is finalized.

During a laboratory bench test held in Beijing early this year, which was verified by both CFECC and third parties, it was demonstrated that 10 degree API heavy oil from Meota area can be upgraded into diesel-like light oil (29 degree API), synthetic gas and petroleum coke using only 2% of the proprietary catalyst. The experiment was conducted at atmospheric pressure and temperature not higher than 450 degree C. No hydrogen is added in the process.

Bayshore and TianAn intend to continue exploring different opportunities to commercialize this technology and apply the technology to the heavy oil market in Canada.

Bayshore is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Common Shares are listed on the TSX Venture Exchange under the trading symbol "BSH".

Cautionary Statements

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Bayshore Petroleum Corp.
    Peter Ho
    President and Chief Executive Officer
    (403) 265-8820