LAS VEGAS, NV--(Marketwired - Nov 14, 2016) - Advanced Environmental Petroleum Producers, Inc. (OTCQB: AEPP) China National Petroleum Corporation (CNPC) announced plans to fast track the construction of a new gas storage facility, with a capacity of 380,000 barrels of gas equivalent. The construction of the new facility will be located in ILO, the main port city on the Peruvian coast, and is expected to take 16 months to complete.
The gas storage facility is being built by CNPC to service its new gas discovery Block that was recently purchased for a reported USD$2.6 BILLION.
In response to this news, Nigel Bosworth, AEPP's Chief Technology Officer, stated, "The Chinese initiative in Peru is encouraging to AEPP as, from our previous findings, we believe there is substantial gas on our property and infrastructure development of this scale will help expand and promote our operations. The good news for AEPP is that the block to be serviced adjoins AEPP's Block 19. A potential substantial gas recovery in addition to recovery of shale oil, will have great economic benefits to AEPP. It would be just like finding an additional massive oil reserve".
Mr. Bosworth further added, "One of AEPP's licensed technology partners has made dramatic progress on a new discovery that will allow the extraction of tight shale gas from shale oil deposits similar in composition to the AEPP properties (Block 19)".
AEPP business model plans for the reduction of extraction and operating costs by providing in-house power generation off grid and but more importantly increasing gas to liquids conversion ratios of finished products using their propriety phase III upgrading process.
This development has the potential of being a paradigm shift to the conventional tight shale industry. Industry observers around the globe are looking forward to hearing more about Peruvian Energy of which AEPP plans to be a big part of this."
AEPP will become an oil and gas exploration and development company, operating in Peru where it has a number of targets in the highly prospective Block 19 of the southern region of that country. The Company, after completing the TEA, will hold an exclusive license, which entitles it to explore and develop certain oil and gas properties known as "Block 19," an area of 10,100 square km.
The statements in this press release constitute forward-looking statements within the meaning of federal securities laws. Such statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, such forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Potential risks and uncertainties include, but are not limited to, technical advances in the industry as well as political and economic conditions present within the industry. We do not take any obligation to update any forward-looking statement to reflect events or developments after a forward-looking statement was made.