SOURCE: Freestone Resources

October 13, 2009 12:00 ET

Freestone Resources, Inc. Acquires Environmentally Friendly Oil Shale and Tar Sand Oil Extraction Company

DALLAS, TX--(Marketwire - October 13, 2009) - Freestone Resources, Inc. (OTCBB: FSNR) announces that it has acquired Earth Oil Services, Inc. ("EOS"), a Company that owns exclusive territorial rights to a proprietary and environmentally friendly oil recovery solvent technology, called EncapSol, that can cleanly break the molecular bonds that bind hydrocarbon (oil) molecules to sand, clay, rock, water and other materials. (For video demonstrations and more information please visit www.encapsol.com.)

When the oil molecules come in contact with the EncapSol solvent, they become encapsulated and will not bind with any other materials (including plant, fish and animal life), and instead remain encapsulated in the low-viscosity EncapSol solvent. The encapsulated oil is then separated by our proprietary EncapSol Oil Recovery (EOR) machines.

Through this encapsulation and recovery process, EncapSol can extract and recover the valuable oil, while leaving all sand, clay, gravel and water by-products free of oil and contaminants.

Freestone is forming clean oil joint ventures with investors and industrial market-leaders to build, own, and operate mobile and fixed-site EncapSol Oil Recovery machines. These EOR machines will generate clean oil sales revenues, and create clean oil jobs in three distinct oil-recovery markets that can help America become less dependent on foreign oil imports. These three markets include:

1. ENVIRONMENTAL CLEAN-UP AND OIL RECOVERY -- There are millions of barrels of waste oil and oil-based sludge from oil spills, oil field sludge pits, licensed oil disposal sites, oil tankers, and oil storage tanks. This oil is currently discarded at great expense as toxic-waste, a liability that could be turned into a clean oil opportunity using EncapSol to extract the usable oil from the sludge as toxicity is neutralized once the oil contaminants have been removed. EncapSol can effectively pay for the cost of waste oil clean up from the sale of the oil recovered.

2. TAR SANDS AND OIL SHALE EXTRACTION -- The U.S. Department of Energy and Defense Department recognize that over one trillion barrels of heavy oil is contained in America's vast, but currently untapped tar sands (bitumen) and oil shale (kerogen) resources in Utah, Colorado and Wyoming, which could potentially benefit from large-scale deployment of EncapSol Oil Recovery machines and facilities to significantly increase domestic oil production using environmentally friendly technology that is good for America.

3. ENHANCED DOWNHOLE OIL RECOVERY -- The U.S. Department of Energy recognize that billions of barrels of hard-to-recover heavy oil and immobile oil is left stranded in America's operating fields, which could potentially benefit from the downhole injection of EncapSol, as either a liquid or gas injectant, used in combination with conventional WAG (water-alternating-gas) or steam-injection recovery methods to decrease reservoir oil viscosity for increased downhole oil recovery. EncapSol works in a water environment unlike almost all other chemicals. This is a very unique characteristic.

Current methods used to extract oil from tar sands and oil shale are heat-based technologies that are very expensive, pollute and harm the environment, consume valuable ground water resources for washing ore and making steam, and burn vital natural gas resources. This use of natural resources in the oil extraction process produces additional waste effluence that contaminates topsoil and local water reservoirs.

EncapSol's oil extraction technology suffers from none of the problems associated with heat-based oil extraction that has heretofore prevented commercial-scale tar sands and oil shale production in America because of strong environmental and political opposition.

EncapSol can enable America to cleanly unlock its unconventional heavy oil resources in a low-impact and environmentally friendly way. The EncapSol oil recovery technology does not burn valuable fuels to make heat, does not consume precious water supplies to make steam, and does not produce toxic air pollution or tailing pond waste-effluence.

"The Freestone team has actively been engaged in researching and acquiring new technologies that positively affect the oil and gas industry," said Clayton Carter, Chief Executive Officer of Freestone. "We feel that this innovative, non-flammable, and proprietary technology is a perfect fit for the Company, and with the proper utilization of the EncapSol technology we can increase the world's unconventional domestic oil production in an environmentally friendly way, create new American jobs, clean and reclaim hydrocarbon-contaminated sites, and ensure that our energy dollars stay in the United States."

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.
    Clayton Carter
    Chief Executive Officer
    Phone Contact: 214.880.4870
    Email Contact: Email Contact