VANCOUVER, British Columbia, Aug. 27, 2018 (GLOBE NEWSWIRE) — Gen III Oil Corp. (“Gen III” or the “Company”) (TSX-V:GIII) is pleased to provide the following update on the FEED process.
Stage 1 (Stantec Consulting Ltd.) and Stage 3 (Process Dynamics Inc.) design packages (“PDP’s”) have been completed ahead of schedule and are currently undergoing edits prior to final sign off along with the completion of ancillary supporting documentation. Gen III is also in the process of finalizing its Bowden facility licensing agreement with Process Dynamics for the use of any Stage 3 proprietary technology.
Koch Modular Process Systems (“Koch Modular”) has completed additional pilot tests during August which have enabled them to finalize the Stage 2 solvent ratio and Group III yield offtakes. These results form the design basis of Stage 2 and KMPS’s process guarantee. The tests were successful and they confirmed Group III offtake yields of between 70% to 75% of Stage 2 input.
Additionally, Koch Modular has presented Gen III with a preliminary design costing proposal (including transportation and installation) with a +/- 30% expense tolerance, that remains within budget. Manufacturing, fabrication, transportation and installation figures will be refined in the coming months to within a +/- 15% tolerance.
Company President & COO Gordon Driedger stated, “The support shown by our engineering partners is impressive. The receipt of Stage 1 and Stage 3 PDP’s ahead of schedule are testament to these teams’ efforts on the Gen III project. These two documents provide valuable information to GEN III as they are not only the foundation for final engineering work but they also enable our EPC contractor, PCL Industrial Management Inc. to improve project costing as we await final FEED.
We are also pleased with the certainty gained from the additional pilot tests undertaken by Koch Modular in August. From these tests we are able to confirm 55% yield of Group III base oil and our design solvent ratio for the critical extraction process. We believe this will lead to improved project economics.”
About Gen III Oil Corporation
Gen III Oil Corporation is an innovative clean-tech used motor oil processing company with the most advanced re-refining technology in the industry. The Company’s patented ReGenTM technology process combines proven refining technologies into a proprietary process that is able to extract a higher quantity of high quality base lubricating oils than traditional re-refineries, including greater than 50% Group III production of synthetic grade motor oil in a commercial scale re-refining operation. The Company currently holds five patents in North America, two internationally and has ten patent applications, patents pending or patents under review in strategic countries around the world. The Company’s first full-scale facility is currently under development in Bowden, Alberta, 100km north of Calgary, with targeted production commencing in late Q2 of 2019 (the “Project”). With a fully executed off-take marketing agreement in hand with Elbow River Marketing Ltd., a subsidiary of Parkland Fuel Corporation, the Company has in place agreements for the sale of all of its finished products when commercial production begins at its Bowden facility. The Bowden facility is being designed to process 2,800 bpd of used motor oil into a range of base stocks and related petroleum products. For more information about the Company, please visit www.geniiioil.com.
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On Behalf of the Board of Gen III Oil Corporation
Chief Executive Officer
For further information, contact Greg Clarkes at (604) 806-5275
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this news release may contain forward-looking statements that involve financial projections, substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These include, but are not limited to, the statements regarding the quantity and quality of the re-refined products that might be produced; the cost of construction of the first ReGen™ re-refinery; raising sufficient capital to support the construction of the Project; the estimated operating costs for the Project; the market for the finished products; negotiating off-take agreements for those finished products; and the anticipated annual recurring revenue and EBITDA derived from those operations. Actual results may differ materially from the forward-looking information contained herein. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, except as required by applicable law. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.