Imperial Petroleum, imperialpetroleuminc.com – an oil and gas exploration and development firm, announced today the signing of a Term Sheet with an undisclosed partner to develop the previously announced oil sands recovery technology.
The transaction closing will create an exclusive arrangement for utilizing and developing this revolutionary new non-thermal, mechanical/chemical closed-loop, bitumen and heavy oil recovery process for target applications in Canada, Argentina, Mexico, Russia and Venezuela.
While subject to the execution of definitive agreements, the Term Sheet allocates $250k for creating a scaled-up prototype that will demonstrate process feasibility, in addition to a $500k initial licensing fee.
A firm $6.6M commitment to finance, an initial US facility incorporating the technology, and on-going royalties to the Company for new facilities using the technology paints a very rosy picture for IPMN shareholders as the race to tap efficiently into oil sands heats up.
President of IPMN, Jeffrey T. Wilson, called the execution of the Term Sheet a “crescendo” in the ongoing orchestration of deals with a larger financial partner to deploy this revolutionary technology into major international markets, specifically Canada and the rich oil sands there.
Wilson extolled the Company’s business model, which provides for the “exploitation of the oil sands recovery technology by the Company in the United States, where we can own the reserves and control the operations”, and also allows for the pursuit of foreign licensing arrangements.
The scaled-up prototype will be located in Houston, Texas, and is projected to be a 10-ton/hour system, according to Wilson, who went on to explain that the subsequent US installation would be a 2,500-ton/day facility.
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Imperial Petroleum, Inc. (IPMN.OB) Secures Financing to Develop Revolutionary Oil Sands Recovery Technology
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