SOURCE: PetroSun, Inc.

August 23, 2007 07:00 ET

PetroSun Announces Formation of PetroSun BioFuels Mexico

PHOENIX, AZ--(Marketwire - August 23, 2007) - PetroSun, Incorporated (PINKSHEETS: PSUD) announced today that the Company has formed PetroSun BioFuels Mexico to establish its algae-to-biofuel operations in the State of Sonora, Mexico. PetroSun BioFuels Mexico will enter into joint venture agreements to develop algae cultivation farms and extraction plants in Sonora and southern Arizona that will produce algal oil, algae biomass products and excess electricity for the Mexican and U.S. markets.

PetroSun BioFuels, the alternative fuels division of PetroSun, has embarked on its three year plan to establish one thousand algae cultivation pods to produce algal oil as feedstock for biofuel refineries. A cultivation pod is a proprietary closed system contained within 640 acres. Based on lower case production projections of 4,000 gallons per acre per year, a single cultivation pod would produce 2,560,000 gallons of algal oil per year. Upon the completion of the one thousand pods, the projected annual lower case production would be 2.56 billion gallons of algal oil per year, which approximates the stated capacity of the existing and planned biodiesel refineries in the United States. Most of the current biodiesel refineries use soy oil as their principal feedstock.

About PetroSun

PetroSun's operations include oil and gas exploration, development and production, algae-to-algal oil alternative fuels production and oilfield services. The oil and gas division is focused on the exploration of the Canning Basin of Western Australia and the Holbrook Basin of Arizona. The Company will continue the development of oil and gas reserves in Louisiana. The alternative fuels division is in the pre-commercial stage of the algae-to-biofuels production technology. The Company plans to establish algae farms and algal oil extraction plants in Alabama, Arizona, Louisiana, California, Mexico and Australia during 2007/2008. The algal oil product will be marketed as feedstock to existing biodiesel refiners. The oilfield services division is in the process of upgrading our capabilities to support the exploration, development and production operations. PetroSun is headquartered in Scottsdale, Arizona with field offices in Shreveport, Louisiana and Opelika, Alabama. For more information about PetroSun visit the company's website at http://www.petrosuninc.com.

Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.

Contact Information

  • Contact:
    PetroSun, Inc.
    Investor Relations
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    (602)-487-6486