Star Petroleum Corp.

Star Petroleum Corp.

March 30, 2006 14:10 ET

Star Petroleum Corp.: Company Evaluates Market Potential for Low Fluid Catalytic Cracking

CALGARY, ALBERTA--(CCNMatthews - March 30, 2006) - On behalf of Star Petroleum Corp. (the "Company") (PINK SHEETS:SPMP) President Rod Burns, P. Eng., reports further details on the Low Profile Fluid Catalytic Cracking (LPFCC) process.

The Low Profile Fluid Catalytic Cracking (LPFCC) process converts lower value, heavy petroleum fractions to lighter, higher-value blending components for gasoline and diesel fuel. The LPFCCU scales down cost-effectively to production volumes well below that economically feasible with conventional Fluid Catalytic Cracking (FCC) technology. The LPFCC process is therefore attractive to refiners who want to separately process low-grade and heavy feedstocks in a small auxiliary unit operating in parallel to their conventional FCC unit. The cost-effective scale-down feature is also attractive to small refineries operating without FCC technology.

Russell Heaton of Wellborn Energy Corp., the Company's development partner, sited the research of Process Innovators Inc., the developers of the Technology, and commented, "In the United States, approximately 34% of the total crude run is processed through FCC units. Throughout the rest of the world approximately 13% of the total crude run is processed through FCC units (as at 1997). This percentage will continue to increase as developing countries continue to industrialize and require increasing amounts of motor fuel."

"Based on published industry summaries, in the United States alone the company has a potential market of 540,000 BPD of companies currently using FCC technology. The company projects that a capture rate of 20% is a feasible objective or 108,000 BPD. Refineries working without FCC technology in the United States could potentially add an additional 100,000 BPD. Further, the overseas market can be expected to contribute an additional 400,000 BPD from a mix of existing plant upgrades and new installations," said Heaton.

The business model for the company is to license the Technology within the process industry by way of a "paid-up" license. The discounted value of the economic benefits of the licensed process is evaluated by comparing the product values before and after implementation. This added value per barrel of processing is multiplied by the capacity of the unit in barrels per year, to arrive at a yearly benefit. The annual paid up license consists of 33% of one year's operational betterment, paid up-front on commissioning of the unit.

"We are employing a conservative estimate of $3 per barrel betterment. For installations with no FCC or replacement of Thermal Catalytic Cracking units, the betterment values will likely be higher, " Heaton remarked". We anticipate an aggressive market penetration once the economic benefits are evidenced. We believe this represents a significant next step in the Energy Sector" he continued.

About Star Petroleum Corp.

The Company is currently acquiring and venturing within the Oil and Gas sector. The initial focus and development will be on lower risk, high quality prospects which will provide the Company with a higher probability of success. Each of the projects currently under consideration will be described in greater detail in the near future.

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contact Information

  • Star Petroleum Corp.
    Rod Burns
    (877) 782-7583