HOUSTON, TX and CALGARY, AB, Oct. 5 /CNW Telbec/ - Wescorp Energy Inc. (OTCBB: WSCE), an oil and gas technology solutions provider, and Ellycrack AS, a private heavy oil technology company based in Norway, are pleased to announce that they have restructured the terms of their joint agreement to develop and commercialize the patented on-site heavy oil upgrading technology. The new agreement benefits both companies by aiding Ellycrack to secure the required funding, which, when obtained, will rapidly advance extensive testing, development and refinement of a commercialized facility. The Ellycrack technology, called the VISCOSITOR, uses a low temperature and low pressure thermo-mechanical process to increase the viscosity of heavy oil, thus increasing its value per barrel by US$25 to $30 in a single operation at a cost of approximately US$5 per barrel. The VISCOSITOR technology offers substantial economic and environmental benefits to clients engaged in the production of heavy oil, including the reduction of carbon dioxide emissions by up to 60%.
Under the terms of the new agreement, Ellycrack will have full legal ownership of the VISCOSITOR technology, including its designs, work projects and the 50 barrel-per-day VISCOSITOR test unit that is currently located in western Canada.
In return, Ellycrack AS will deliver 725,000 shares of Ellycrack to Wescorp for nominal consideration and Ellycrack will credit Wescorp as having satisfied its obligation to Ellycrack of approximately $160,000. Wescorp will become the largest single shareholder of Ellycrack with ownership of 23.72% on a fully diluted basis. Wescorp also has been granted the option to participate in all future Ellycrack share issuances thus allowing Wescorp to maintain its ownership percentage in Ellycrack AS.
"Wescorp is very pleased with the new arrangement with Ellycrack regarding the VISCOSITOR," commented Doug Biles, President and CEO of Wescorp Energy. "It is our understanding that the Ellycrack team will quickly begin the continued extensive testing and development of the VISCOSITOR technology. This arrangement also will allow our Wescorp team to become completely focused on the water and solid remediation business opportunities in North America."
"This new agreement is beneficial to both companies," stated Olav Ellingsen, CEO of Ellycrack AS. "Ellycrack's legal ownership and control of the test unit allows us to finance the company so further development and commercialization can occur at a much faster rate. We look forward to having Wescorp as a value-added shareholder as we prove the commercial viability and large scale economic value of the VISCOSITOR."
Wescorp Energy Inc. (www.wescorpenerav.com) is an oil and gas operations solutions company focused on commercializing technologies that overcome tough operational challenges facing oil and gas operators today.
Wescorp shares currently trade on the NASD.OTC Bulletin Board under the symbol "WSCE".
About Ellycrack AS
Ellycrack AS is a private company based in Norway. Ellycrack's VISCOSITOR is a patented on-site heavy oil upgrading technology. The VISCOSITOR uses unique dry, low-temperature and low-pressure thermo-mechanical process using pre-heated particles as catalysts.
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SOURCE WESCORP ENERGY INC.
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