SOURCE: Brookmount Explorations, Inc.

July 31, 2017 13:28 ET

Brookmount Explorations Inc. Signs Definitive U.S. Licensing Agreement for Proprietary Diluent Enhancement Technology for Heavy Oil

LOS ANGELES, CA--(Marketwired - Jul 31, 2017) - Brookmount Explorations Inc. (OTC PINK: BMXI), a U.S. exploration and development company, has entered into an exclusive, in perpetuity, licensing agreement with RHOR Barbados Inc., for the exclusive U.S. rights for the above and in ground use and sale of "DilBoost" (Diluent Boost) a proprietary diluent formulation blend that significantly reduces bitumen viscosity and increases API gravity. The acquisition for the U.S. rights is an all stock transaction. On completion of the terms of the agreement, RHOR Barbados Inc. will have controlling interest in Brookmount Explorations, Inc. The closing date for this licensing agreement is on or before August 15, 2017.

With this move, Brookmount makes a historical transition from being an exploration and development mining company to a leading player in the trillion dollar U.S. medium and heavy oil industry.

DilBoost is a cold process that, when added to heavy crude and extra heavy oil prior to refining, enables oil producers to reach pipeline specifications at a lower cost. Based on extensive field test results made over a 3-year period, the DilBoost technology substantially reduces current diluent costs by up to 53%. Prior to the field testing, performance testing was carried out at Canadian Certified Laboratories confirming the DilBoost Product efficacy.

The timing is perfect for DilBoost in the U.S. heavy oil industry. Over the last two years, oil prices have fallen nearly 60% and production costs continue to make up the largest day-to-day operational expenses. Even though demand for heavy oil is up, and is getting stronger, corporate profits are being squeezed. DilBoost is the cost-saving, technological answer that medium and heavy crude oil producers in the U.S. have been waiting for.

With the U.S. licensing right for DilBoost locked up, Brookmount Explorations will now begin to market DilBoost to medium and large heavy and medium crude oil producers in the U.S. Brookmount continues to negotiate with RHOR Barbados Inc. for both the above ground and in ground licensing rights for Canada. At 171.0 billion barrels, Canada has the third-largest proven oil reserve in the world. 

Safe Harbor Statement

Except for the historical information contained herein, certain of the matters discussed in this communication constitute "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "could," "anticipate," "estimate," "expect," "predict," "project," "future," "potential," "intend," "seek to," "plan," "assume," "believe," "target," "forecast," "goal," "objective," "continue" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding benefits of the proposed license, expected synergies, anticipated future financial and operating performance and results, including estimates of growth. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. For example, the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstance that could give rise to the termination of the negotiations, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Brookmount's common stock. All such factors are difficult to predict and are beyond our control. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulations. 

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