SOURCE: PetroSun, Inc.

September 07, 2007 14:22 ET

PetroSun to Enter the South American Biodiesel Market via PetroSun BioFuels Brazil

PHOENIX, AZ--(Marketwire - September 7, 2007) - PetroSun, Incorporated (PINKSHEETS: PSUD) announced today that the Company has formed PetroSun BioFuels Brazil to establish its algae-to-biofuel operations in Brazil. PetroSun BioFuels Brazil will enter into joint venture agreements to develop algae cultivation farms and extraction plants in Brazil to produce algal oil, algae biomass products and biodiesel.

The Brazilian government has enacted mandatory biodiesel legislation that requires a two percent biodiesel blended product effective January 1, 2008 with an escalation to five percent by 2013. The current annual ground transportation diesel consumption rate in Brazil approximates 40 billion liters of petroleum-based diesel. A two percent biodiesel blend would require 800 million liters of biodiesel per year. The wholesale market price of biodiesel in Brazil is currently eighty-five cents per liter.

The Company will be announcing the execution of the initial joint venture agreement by the end of September 2007.

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