Process Chemistry Complements SONIC Heavy Oil Sonoprocess(TM)
VANCOUVER, BC--(Marketwire - April 30, 2008) - Ewire -- SONIC Technology Solutions Inc.
(PINKSHEETS: SNVFF) (TSX-V: SNV) ("SONIC" or "the Company") today announced
that it has agreed to terms to acquire all of the issued and outstanding
shares of Northern Oil Research Technologies Inc. ("NORT"), an
Alberta-based oil process development company. NORT has developed and
patented a low pressure and temperature chemical process for upgrading
heavy crude oil (or bitumen) and is developing further processes to
maximize the value from asphaltenes. NORT's patented chemistry has
demonstrated increases in the API of heavy oil from 10 to over 28 API as
well as significant reductions in sulphur content while maintaining a high
liquid yield and minimizing CO2 production. The performance of the NORT
process was confirmed in analysis by the Alberta Research Council in
Edmonton, Alberta.
The cold cracking (low temperature and pressure) NORT process is expected
to enable SONIC to fully exploit the work that it has undertaken with
PetroSonic Energy Systems Inc. on accelerated upgrading of heavy oil. Under
the terms of the acquisition, SONIC's purchase price consists of the
issuance to NORT shareholders and related parties of common shares upon the
achievement of key milestones up to a total value of $3 million with an
initial value of $0.5 million at $0.25 per share upon the acquisition of
the NORT shares. The major milestones are the development and installation
of a successful field pilot plant and full commercial implementation. SONIC
believes that the process is easily scalable to 2,500 barrels per day by
use of PetroSonic's compact accelerated process. Mr. Frederick Boakye,
NORT's Chief Scientist, will join SONIC to ensure successful and rapid
implementation of these objectives.
The NORT solvent extraction process uses a proprietary bio-chemical
oxidation chemistry to upgrade heavy oil. The two-stage process partially
de-asphalts before electrophilic oxidation of sulphur and
nitrogen-containing compounds. By utilizing agriculturally produced
chemicals, and with low energy requirements, SONIC expects the commercial
process to have a relatively small carbon footprint. SONIC has already
demonstrated and patented a Sonoprocess™ which greatly accelerates and
improves
de-asphalting. This acquisition is part of a strategy to realign the
Company towards the energy sector with a particular emphasis on heavy oil
and oil sands in North America.
Adam Sumel, CEO and President of SONIC, commented, "This acquisition is an
important transition for SONIC. Our future operations will increasingly
focus on the oil sector where we can achieve the greatest impact in the
shortest time. The Company's other Sonoprocess™ opportunities are being
advanced rapidly through strategic joint ventures and licenced
partnerships, ensuring that each receives the required focus and
operational infrastructure."
World heavy oil deposits are now greater than the remaining reserves of
conventional oil (Schlumberger data shows that 70% of world oil reserves
consist of heavy and extra heavy oil such as oil sand bitumen). Heavy oil
production has expanded to more than 5 million barrels per day. SONIC's
opportunity is to provide an economic process for upgrading heavy oil from
small and medium producers at the source. This adds value and allows
producers to capture a larger share of the market price for refinery
products.
The transaction is subject to certain conditions, including completion of
definitive agreements and approval of the TSX Venture Exchange.
About SONIC
SONIC develops and markets Sonoprocess™ technologies utilizing sonic
energy to create more sustainable processes. Sonic Environmental Solutions
markets the Sonic Treatment System via licenced soil remediation partners,
PetroSonic Energy Systems is developing heavy oil processes and SonoOil is
developing improved oil sands processes. SONIC has also developed
opportunities in BioSonic processing and materials processing.
Sonoprocess™ Technologies
-- Sustainable -- Efficient -- Economic --
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This release
contains statements that are forward-looking statements and are subject to
various risks and uncertainties concerning the specific factors disclosed
under the heading "Risk Factors" and elsewhere in the Company's periodic
filings with Canadian securities regulators. Such information contained
herein represents management's best judgment as of the date hereof based on
information currently available. The Company does not assume the obligation
to update any forward-looking statement.
Contact Information: For further information, please contact:
Adam Sumel
President and CEO
SONIC Technology Solutions Inc.
Tel: (604) 736-2552
Or Email: