SOURCE: PetroSun, Inc.

August 30, 2007 06:00 ET

PetroSun Issues Biofuels Update

PHOENIX, AZ--(Marketwire - August 30, 2007) - PetroSun, Incorporated (PINKSHEETS: PSUD) announced today the following update to its algae-to-biofuel operation.

Algal Oil

PetroSun BioFuels, the alternative fuels division of PetroSun, has established a preliminary algal oil wholesale market price that will shadow the crude oil market price, plus transportation costs. The Company will consider volume discounts, subject to the production capacity of its algae farms.

As an example, based upon a crude oil market of $72.00 per barrel, the algal oil product will approximate $1.71 per gallon or twenty-three cents per pound. The recent market price for soy oil, the principal feedstock for biodiesel refineries, approximated thirty-eight cents per pound or $2.81 per gallon. Algal oil contains no sulfur, is non-toxic, highly biodegradable and is not subject to a commodity risk as is crude oil, corn and soybeans.

The current stated capacity of the existing and planned biodiesel refineries in the United States through 2008 approximates 2.5 billion gallons per year. PetroSun BioFuel's three-year plan is to establish algae cultivation pods and extraction plants with potential lower case production capacities of 2.56 billion gallons per year. The annual gross revenue potential of 2.56 billion gallons of algal oil at $1.71 per gallon is $4.38 billion.

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
    Email Contact
    (602)-487-6486