Redrock Oil Sands, Inc.

Redrock Oil Sands, Inc.

November 17, 2006 11:00 ET

Redrock Oil Sands Acquires Exclusive Worldwide Rights to TDI Oil Sands Extraction Technology

FORT WORTH, TEXAS--(CCNMatthews - Nov. 17, 2006) - Redrock Oil Sands, Inc. is pleased to announce that it has acquired the exclusive worldwide rights to TDI Technology's oil sands extraction technology. TDI's proprietary technology was developed for oil sands projects with production targets starting at 10,000 Barrels of Oil per Day (BOPD). The modular and scalable extraction process is designed to reduce both capital and operating costs currently associated with larger surface mined oil sands projects, as well as reduce the environmental damage caused by the production of tailings ponds containing vast amounts of contaminated water currently associated with conventional technologies used to extract bitumen from oil sands.

"Redrock is very pleased to have found such a high quality technology partner in TDI Technology to commercialize a cost-effective oil sands extraction process solution," said Roger Williams, Chief Executive Officer of Redrock Oil Sands. "The management team at TDI has an extensive and successful history in developing technology solutions for the energy sector."

Through a licensing agreement with TDI, Redrock becomes the exclusive supplier of the TDI extraction process worldwide, with the exception of Africa and China based on TDI's prior business activities. Acquiring the TDI oil sands extraction technology is a strategic move for Redrock Oil Sands, Inc. that will enable the company to move quickly to commercialize smaller scale oil sands projects both in Canada and the U.S. Following a successful pilot project of the TDI process in the field to gather important commercial-scale design data, Redrock intends to deploy the technology on a significant oil sands project in either Alberta, Canada or in the State of Utah. Redrock also intends to use the rights to market the TDI technology to other companies in the energy sector worldwide.

"We developed the TDI process on the premise that the multi-billion dollar costs associated with legacy technologies for oil sands mega-projects in Northern Alberta are out of synch with potential new extraction technology," said Sid Jaycock, President of TDI Technology Inc. "Our process makes it possible to develop oil sands projects that are modular and scalable. This means that with the successful deployment of the technology we would be able to start developing an oil sands prospect with a smaller upfront cost, and then expand it when and if required. The TDI process can achieve commercial operation in about three years as compared to the ten to twelve years required for the current technology. In addition we have designed our technology to eliminate the creation of environmentally damaging tailings ponds from the oil sands extraction process."

The TDI modular "in-pit" production and extraction process has five main advantages: (1) factory fabrication of all equipment components to eliminate high field construction costs; (2) elimination of the large majority of oil sands transportation costs; (3) elimination of the very high capital and operating costs associated with bitumen froth treatment; (4) elimination of tailings treatment and storage of vast quantities of contaminated wastes in massive and costly tailings impoundments; and (5) a significant reduction of the costly commercial development time.

About TDI Technology Inc.

TDI Technology Inc. is a Canadian Company founded by petroleum project development engineers Sid Jaycock and Dr. Earl St. Denis. Together they specialize in program and process evaluations for oil and mining operations including process options for oil sands facilities. This includes development of surface mine depth oil sands deposits of a size or location not economically feasible with current proven mega-project technology. TDI's proprietary bitumen extraction technology is based on the development of oil sands production projects in increments of 10,000 Barrels of Oil per Day (BOPD).

About Redrock Oil Sands, Inc.

Redrock Oil Sands, Inc. (Redrock) is a resource-based development company with expertise in several areas of materials science. The Company's proprietary technologies for bitumen production and waste remediation incorporate energy efficient and cost effective methods to separate materials into valued material streams. Redrock is deploying a national platform for industrial services and environmental remediation through the Company's wholly-owned subsidiary REGS, LLC. In addition, the Company has the rights to TDI Technology's oil sands extraction process designed to develop smaller scale oil sands deposits that would otherwise be uneconomic to exploit using conventional technologies. For more information on the Company visit www.redrockoilsands.com.

This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects", "projects", "plans", and certain of the other foregoing statements may be deemed "forward-looking statements". Although Redrock Oil Sands believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the development of oil sands projects, including risks of fire, explosion, equipment failure, pit wall collapse, unusual or unexpected geological formations and geotechnical factors, environmental hazards, and other operating and production risks inherent in oil sands mining and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future performance or delay the timing of sales or completion of mining operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned mining operations or reduce production levels; and risks relating to the availability of capital to fund mining operations that can be adversely affected by adverse mining results, production declines and declines in oil and gas prices and other risk factors.


Contact Information

  • Redrock Oil Sands, Inc.
    Barry Forward
    Corporate Communications & Investor Relations
    1-877-973-3645
    Website: www.redrockoilsands.com