Brookmount Explorations Inc. a U.S. exploration and development company, has entered into an exclusive, in perpetuity, licensing agreement with RHOR Barbados Inc., for the exclusive U.S. rights for the above and in ground use and sale of "DilBoost" (Diluent Boost) a proprietary diluent formulation blend that significantly reduces bitumen viscosity and increases API gravity. The acquisition for the U.S. rights is an all stock transaction. On completion of the terms of the agreement, RHOR Barbados Inc. will have controlling interest in Brookmount Explorations, Inc. The closing date for this licensing agreement is on or before August 15, 2017.
With this move, Brookmount makes a historical transition from being an exploration and development mining company to a leading player in the trillion dollar U.S. medium and heavy oil industry.
DilBoost is a cold process that, when added to heavy crude and extra heavy oil prior to refining, enables oil producers to reach pipeline specifications at a lower cost. Based on extensive field test results made over a 3-year period, the DilBoost technology substantially reduces current diluent costs by up to 53%. Prior to the field testing, performance testing was carried out at Canadian Certified Laboratories confirming the DilBoost Product efficacy.
The timing is perfect for DilBoost in the U.S. heavy oil industry. Over the last two years, oil prices have fallen nearly 60% and production costs continue to make up the largest day-to-day operational expenses. Even though demand for heavy oil is up, and is getting stronger, corporate profits are being squeezed. DilBoost is the cost-saving, technological answer that medium and heavy crude oil producers in the U.S. have been waiting for.
With the U.S. licensing right for DilBoost locked up, Brookmount Explorations will now begin to market DilBoost to medium and large heavy and medium crude oil producers in the U.S. Brookmount continues to negotiate with RHOR Barbados Inc. for both the above ground and in ground licensing rights for Canada. At 171.0 billion barrels, Canada has the third-largest proven oil reserve in the world.
Source: Brookmount Explorations, Inc.
Date: Jul 31, 2017