Genoil Inc.
OTC Bulletin Board : GNOLF

Genoil Inc.

November 21, 2006 08:52 ET

CORRECTION FROM SOURCE: Genoil Inc. Announces Further Developments in Respect of "Letter of Intent" With Hebei Zhongjie Petrochemical Group Company Ltd.

CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2006) - In the release issued earlier today, there was an error in the last sentence of the second (2nd) paragraph; the words "off balance sheet" should have read "non-recourse" - the complete and corrected release is as follows:

Genoil Inc. (TSX VENTURE:GNO)(OTCBB:GNOLF) ("Genoil" or the "Corporation") is pleased to provide an update regarding the work currently being done with respect to the letter of intent previously announced on October 3, 2006 (the "LOI") entered into with Hebei Zhongjie Petrochemical Group Company Ltd. ("Hebei Zhongjie").

Hebei Zhongjie is currently working to obtain the necessary permits to ship oil for testing to the Corporation's pilot facility in Two Hills, Alberta, in the near future. Concurrent with Hebei Zhongjie's work, Genoil is conducting simulation studies and expects to complete the final feasibility study for the Project, which entails obtaining quotes from suppliers and engineering companies for performance of the work, within four to six months. Once these costs are formulated into anticipated final costs, the Corporation intends to obtain final approval for the Project and put into place non-dilutive, non-recourse financing for its portion of the Project.

The LOI sets out the framework upon which Genoil and Hebei Zhongjie plan to proceed with the design and installation of a 20,000 barrels per day Genoil Hydroconversion Upgrader ("GHU™") at Hebei Zhongjie's 150,000 barrels per day petrochemical facility in Nampaihe Town, Huanghua City, Hebei, China (the "Project"). The LOI also provides that the Corporation will fund 80% of the total capital costs for the implementation of the Project (the "Corporation's Costs") and Hebei Zhongjie agrees to fund the remaining 20%. Further, the LOI provides that net profits of the Project shall be allocated and paid as to 60% to the account of the Corporation and as to 40% to the account of Hebei Zhongjie until such time as the Corporation has received net profits in an amount equal to double the Corporation's Costs. Following such time, 10% of all net profits realized from the Project are to be received by the Corporation for so long as the refinery remains in operation.

The full text of the LOI can be found by clicking on the following link -, or on SEDAR at

Genoil is a technology development and engineering company providing environmentally sound solutions to the oil and gas industry through the use of proprietary technologies. The GHU™ is designed to economically convert heavy crude oil into more valuable light upgraded crude, high in yields of transport fuels, while significantly reducing the sulfur, nitrogen and other contaminants. 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: The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Certain information regarding the company, including management's assessment of future plans, strategic partnerships, operations, financing outcomes and the ability to negotiate a definitive agreement on terms acceptable to both parties may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with an oil and gas technology development corporation, including competition from other technologies and the ability to access sufficient capital from internal and external sources. When used in this press release, such statements use words such as "intend", "may", "will", "expect", "believe", "plan" and other similar terminology. As a consequence, actual results may differ materially from those anticipated. The Corporation 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. Additionally, 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. Further information on potential risk factors that could affect the company's financial results can be found in the company's disclosure materials filed on SEDAR at and with the Securities and Exchange Commission.

Contact Information

  • Genoil Inc.
    James F. Runyan
    Chief Operating Officer & Executive Vice President
    (780) 416-5590
    (780) 416-1008 (FAX)