Sonic Environmental Solutions Inc., (CDNX: SNV) Vancouver, BC, CA, issued an announcement that it has entered into an agreement with PetroSonic Energy Systems Inc. for the development of a crude heavy oil upgrading and processing system utilizing Sonic's patented technologies.
According to Sonic it has exclusive rights to Sonoprocess™ technology which utilizes a patented family of sonic generators proven in several large scale process applications that provide the Company with a powerful platform for new and enhanced industrial and environmental processes.
According to the press release:
The Under the terms of the agreement, PetroSonic will collaborate and fund the initial development of a new heavy oil Sonoprocess(TM) for the upgrading and processing of heavy oil. The first stage of the agreement is designed to confirm the development concept, after which Petrosonic will engineer and install a complete prototype plant to optimize the design variables of the system.
Following the successful completion of the first stage, Sonic will have a 40% interest in PetroSonic and will work together with PetroSonic on a prototype installation directly in the field. PetroSonic has an obligation to fund the creation of the prototype plant, subject to Sonic's option to fund its pro rata share.
By integrating Sonic's industrial-scale technology into an upgrading Sonoprocess(TM) for heavy oil, PetroSonic expects to be able to significantly improve the economics of the midstream processes. Upon successful demonstration of the prototype plant, PetroSonic will have a right to obtain a global license from Sonic to use the process, subject to paying a royalty to Sonic. PetroSonic anticipates that its contacts with oil producing companies should enable development and commercial revenues to be fast-tracked.
PetroSonic was founded by CEO Dr. David Kahn in conjunction with Sonic and strategic investors, specifically to develop an economic process for upgrading heavy oil from small and medium producers while addressing the concerns of the producer, pipelines and refineries.
Any process that reduces the price of heavy oil, for which we have plentiful supplies in Canada and Venezuela, could help keep the price of oil under control and ensure a greater supply of oil. It does not however address the huge environmental price we pay for mining heavy oil.