Heavy Oil Upgrading Catalyst Technology Presentation

24
December, 2013

Transcript of Heavy Oil Upgrading Catalyst Technology Presentation

Page 1: Heavy Oil Upgrading Catalyst Technology Presentation

December, 2013

Page 2: Heavy Oil Upgrading Catalyst Technology Presentation

DISCLAIMER This document has been prepared by Bayshore Petroleum Corp.(the “Company”, together with its

subsidiaries, the “Group”) for the sole purpose of introducing the Company, and copying and delivery to others are strictly prohibited. Since the dissemination of this document within the jurisdiction of various countries might be subject to local laws, any individuals who will receive this document shall have a clear understanding of and comply with such laws and regulations.

There are no explicit or implied representations or warranties as regards the fairness, accuracy, integrity or correctness of the information contained in the document. This document is not intended to provide a complete or comprehensive analysis of the financial or trading position of the Company or its prospects. Therefore, any individuals who will receive this document shall be aware they shall not rely on the contents of this document. 

This document does not form part of any offering document of the Company or constitute any offer or solicitation by or on behalf of the Company relating to any securities of the Company. This document is not intended to provide the basis of any creditor of the revaluation or form the basis of any investment decision in any securities of the Company. 

The information and opinions provided in this document are up to the date of this document and might be subject to changes in the future in respect of which no further notice will be issued. The Company and its affiliated companies, advisors or representatives disclaim any liability whatsoever for any loss howsoever arising from using this document or its contents or from other aspects of this document (whether this is caused by negligence or other reasons).

Page 3: Heavy Oil Upgrading Catalyst Technology Presentation

Company Information• Bayshore is a Canadian Public Company with its stock trading

in Toronto Venture Exchange (Symbol: BSH)• Total issued shares – 16.4 million shares (October, 2013)• 52 weeks Price range - $0.11- $0.45• The company develops conventional and unconventional

oil/gas prospects in North America and International via:- Exploration and Development- Joint venture with local energy companies- Potential Merger & Acquisition

• Based in Calgary, Bayshore has Liaison Offices located in Beijing, Shanghai and Hong Kong.

Page 4: Heavy Oil Upgrading Catalyst Technology Presentation

Introduction of Management Team

Management TeamPeter Ho (Canada): CEO/President

Mark Roth (Canada): VP, Finance

CF Cheng (Hong Kong/China): China Executive President

Advisory Team

Dr. Janusz Grabowski (Canada): Technical Advisor

Ken Sinclair (Canada): Senior Technology Partner

Page 5: Heavy Oil Upgrading Catalyst Technology Presentation

Management TeamPeter Ho – President and CEO of Bayshore Petroleum

Corp. A Consultant with over 30 years of oil/gas industry experience in North America, China, Middle East, Asia. Mr. Ho is a registered professional Engineer and has worked in Multi-national companies such as BP, Texaco, Kerr McGee, TransCanada Pipeline. Mr. Ho has been involved in setting up a public company in Hong Kong, Canada and has strong relationship with PetroChina, China United Coalbed Methane Corp. and many other international oil/gas companies. Mr. Ho also has involved in numerous Heavy Oil, Oil sand, CBM projects in Canada and China for the past 20 years.

Page 6: Heavy Oil Upgrading Catalyst Technology Presentation

Potential Heavy Oil / Oil Sand Upgrading TechnologyBayshore has secured a technology that is revolutionary in the

energy industryThe technology utilizes a proprietary catalyst to convert Heavy

Oil/Bitumen into light oil (same as Diesel Quality) at normal pressure and low temperature

Different than Conventional Upgrading technology and is a much more simple operation. Both energy efficient and environmental friendly than conventional process.

Bayshore Management owns the right to market and manage the technology application worldwide.

Market size of this business is well over billion dollars range

Page 7: Heavy Oil Upgrading Catalyst Technology Presentation

Conventional Oilsand/Heavy Oil Upgrading

Complex Upgrading process involvingComplex Upgrading process involvingHigh Pressure, Temperature and HydrogenHigh Pressure, Temperature and Hydrogen

Page 8: Heavy Oil Upgrading Catalyst Technology Presentation

CCC Heavy Oil/ Bitumen Upgrading Technology

Synthetic Gas

Light Oil (>30 API Diesel Grade)

ONE SINGLE STEP !!!

Petcoke

CCCCCCCATALYSCATALYSTT

420 Deg CAtm Pres.No Hydrogen

Page 9: Heavy Oil Upgrading Catalyst Technology Presentation

Merits of the Technology

UPGRADING PROCESS - CONTINUED

There are surplus high heating value synthetic gas and petroleum coke produced in the upgrading process.

The process is designed to upgrade the heavy oil directly to raw Diesel without other petroleum distillates such as Gas Oil, Kerosene, Naphtha, etc.

The yield of more than 0.8 barrel of diesel per barrel of heavy oil is much higher than conventional refinery which has less than 0.35 barrel of diesel!!

The new technology can be applied to upgrade Heavy oil or Bitumen from oil sand into light oil products in a much more efficient manner than the conventional conversion process.

Page 10: Heavy Oil Upgrading Catalyst Technology Presentation

Process DescriptionMixing Catalyst and Heavy oil/Bitumen in container

and run through pyrolysis with no pressure or Hydrogen added

Volatile products are collected and condensed into Diesel oil. The other product include Synthetic Gas and solid Petroleum Coke (PETCOKE)

The complete pyrolysis batch process takes 3-3.5 hours to complete and the temperature slowly heated from ambient temperature to 450 degree Celsius.

Page 11: Heavy Oil Upgrading Catalyst Technology Presentation

Lab Scale Bench Test

Page 12: Heavy Oil Upgrading Catalyst Technology Presentation

HEAVY OIL UPGRADINGLaboratory Scale Test

Results

Page 13: Heavy Oil Upgrading Catalyst Technology Presentation

Formal China Oilsand / heavy Oil laboratory test reports prepared for Bayshore Petroleum.

The Inventor is very keen to apply this Canada/China joint venture technology to Global Heavy Oil/ Oil Sand countries.

Page 14: Heavy Oil Upgrading Catalyst Technology Presentation

Potential Heavy Oil/ Oilsand Upgrading Technology Economic Benefit

$60/Bbl

Page 15: Heavy Oil Upgrading Catalyst Technology Presentation

Scale Up Pilot Test

Small Scale Pilot Upgrader has already been constructed and tested in Beijing Facility with anticipated Results

Page 16: Heavy Oil Upgrading Catalyst Technology Presentation

Scale Up Pilot Test

Diesel coming out from the scale up pilot plant

Unloading coke generated in the process Chunky

Valuable Petcoke

Page 17: Heavy Oil Upgrading Catalyst Technology Presentation

Capital CostSimple Operation requires only heating vesselEstimated Capital cost $10,000 US per barrel per day of

heavy oil processing Example: $20 million US will be able to build a 2,000

barrels per day heavy oil processing plant that can yield 1,650 barrels of diesel plus synthetic gas and Petroleum coke.

Design of the processing plant will utilize the gas for heating and save significant operating cost!!

Page 18: Heavy Oil Upgrading Catalyst Technology Presentation

Economic Parameters1 Barrel of Heavy oil yield 0.83 barrel of Diesel oil using

0.02 barrel of catalystCost of Heavy Oil - $60/bblCost of Catalyst - $200/bblSelling price of Diesel - $110/bblPlant Operating cost - $8/bblNet Profit - $19-$20/bbl !!!

Page 19: Heavy Oil Upgrading Catalyst Technology Presentation

World Heavy Oil ResourcesThe BIG PICTURE !!

19

> 3.4 Trillion > 3.4 Trillion Barrels !!!Barrels !!!

Page 20: Heavy Oil Upgrading Catalyst Technology Presentation

Funding RequirementBayshore is seeking Global Heavy Oil owners and

funding groups to work together and expand the technology worldwide

Bayshore is raising 5 million Cdn private placement from Strategic investors to expand the business opportunity.

$0.18/share for a total issuance of 27.778 million sharesMinimum Subscription -$0.5 millionPrivate Placement to be completed by December 31,

2013.

Page 21: Heavy Oil Upgrading Catalyst Technology Presentation

Funding RequirementProceeds of the funding will be used to conduct business

development, marketing, sample collection, conducting laboratory and small scale test, commercial scale engineering design and general G&A.

It is anticipated at least 3 major upgrader projects will be secured in the next 6 months which Bayshore will be able to participate or joint venture with other groups.

If feasible, further fund raising by Bayshore will be conducted to implement the project in each country.

Page 22: Heavy Oil Upgrading Catalyst Technology Presentation

BAYSHORE PETROLEUM CORPORATIONFUTURE DEVELOPMENT PLAN

Exploration of better utilization of synthetic gas and Petroleum coke to provide Bayshore with another stream of steady income.

Expansion of the new catalyst technology can eventually be applied underground and turn heavy oil or oil sand reservoirs into light hydrocarbon reservoirs with high productivity and valuable products (synthetic gas and light oil). Bayshore will become the pioneer of the in-situ upgrading technology company and this development will open up even more opportunities for Bayshore to become a strong upstream operator.

22

Page 23: Heavy Oil Upgrading Catalyst Technology Presentation

Value Chain of Heavy Oil/Bitumen

23

In Situ Upgrading

Surface Upgrader Desulphurizer

Ultra Low Sulphur Diesel product

5 – 20 API Heavy Oil

Petroleum Coke

Upstream Operation

Mid/Down Stream

Catalyst

Gas

Page 24: Heavy Oil Upgrading Catalyst Technology Presentation

CONTACT

For Further Information and contact:

Mr. Peter [email protected] +1-403-630-4355, Hong Kong +852-9160-4450