The document discusses Petrosonic, a technology that uses sonic and magnetic waves to upgrade heavy crude oil at a lower cost than conventional upgrading methods. It operates at mild temperatures and has no moving parts, requiring lower maintenance than traditional catalytic crackers. Individual Petrosonic modules can process 1000-10,000 barrels per day and upgrade oil from 8-12 API gravity to 24-30 API, increasing its value. Economic analysis shows the technology can increase netbacks for producers by $14-15 per barrel for international heavy crudes and $8-9 per barrel for Canadian crude blends.

1. PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION
upgrades heavy crude
Conventional catalytic crackers Sonic technology
Works at ±500 C Sound/magnetic waves at (±150 C)
Difficult process control = lower operating cost
High maintenance (carbonization) Faster, more uniform processing
Large scale economics No moving parts – low maintenance
High cost equipment and catalysts Small modular footprint for field deployment
Lower capex (~$3m per module)
Petrosonic
Petrosonic principle of operation : Infrasonic cavitation removes asphaltenes & metals
Heavy Oil InfraSonic Electromagnetic waves create low pressure bubbles the heavy crude
Storage Cavitation Localized extreme conditions crack hydrocarbon and branch chains
Solvent Asphaltenes drop out of solution capturing metals and sulphur
Asphaltene De- Solvent Oxidization unit completes the process
s asphalting Storage
Unit
Processing 1000-10,000BBL’s.Day
Bio-
Chemical ±40% crude lightening
Oxidation Upgrades oil from 8-12 API to 24-30 API
Unit Increases value ($/bbl) of crude by 20-50%
Upgraded Solvent 15-20% bitumen volume to asphalt market
Oil Storage Recovery

2. PETROSONIC - INCREASING REVENUE FROM EXISTING PRODUCTION
upgrades heavy crude
Petrosonic plant economics (typical international)
Current Boscan Upgraded Current Blended Upgraded to
Boscan Lloydminster 28 API
WTI Oil Price ($/bbl) $75.00 $75.00 Hardisty Light $70.00 $70.00
Differential 40% $4 Differential 25% $11.00
Boscan Oil Price $45.00 $71.00 Hardisty 21 API Oil $52.50
Liquid Yield 100% 90% Medium Sour Crude $59.00
Liquid Yield 100% 90%
Revenues $45.00 $63.90
Revenues $52.50 $53.10
% Diluent/Solvent 3%
% Diluent/Solvent 30% 5%
Price $80.50
Price $85.75 $80.50
Diluent/Solvent Cost $2.42 Cost $25.73 $4.03
Upgrading Cost $5.00 Upgrading Charge $5.00
% of Asphalt 13% % of Asphalt 10%
Price of Asphalt $25.00 Price of Asphalt $30.00
Asphalt Revenue $3.25 Asphalt Revenue $3.00
Netback $45.00 $59.74 Netback $38.25 $47.08
Net Uplift $14.74 Net Uplift $8.83
Upgraded oil quality from Athabasca Canadian tar sands Petrosonic heavy oil test results