PHOENIX, AZ -- 11/05/07 --
PetroSun, Inc. (PINKSHEETS: PSUD) announced
today that PetroSun BioFuels, a wholly owned subsidiary, has executed a
Letter of Intent with Bio-Alternatives, Inc. that frames an algal oil
Feedstock Supply Agreement. Bio-Alternatives of Gulf Shores, Alabama, an
emerging refiner of biodiesel, plans to locate its initial facility in
south Louisiana.
The terms of the agreement include PetroSun BioFuels producing a minimum of
54 million gallons of raw algal oil and Bio-Alternatives buying 54 million
gallons of algal oil feedstock on an annual basis. The initial delivery to
the Bio-Alternatives refinery will occur during the third quarter of 2008.
PetroSun will locate algae farms and an extraction plant in Louisiana to
service this contract. The contract price of the algal oil will be indexed
to the market price of crude oil.
The Feedstock Supply Agreement will be executed on or before November 30,
2007.
About PetroSun
PetroSun's operations include oil and gas exploration, development and
production and algae-to-algal oil alternative fuels production. The oil and
gas division is focused on the exploration of the Canning Basin of Western
Australia and the Holbrook Basin of Arizona. The Company will continue the
development of oil and gas reserves in Louisiana. The alternative fuels
division is in the pre-commercial stage with its algae-to-biofuels
production technology. The Company plans to establish algae farms and algal
oil extraction plants in Alabama, Arizona, Louisiana, Mexico, Brazil and
Australia during 2007/2008. The algal oil product will be marketed as
feedstock to existing biodiesel refiners. PetroSun is headquartered in
Scottsdale, Arizona with field offices in Shreveport, Louisiana and
Opelika, Alabama. For more information about PetroSun visit the company's
website at http://www.petrosuninc.com.
Except historical matter contained herein, matters discussed in this news
release are forward-looking statements and are made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements reflect assumptions and involve risks and
uncertainties, which may affect the Company's business and prospects and
cause actual results to differ materially from these forward-looking
statements.
Contact:
Investor Relations
Osprey Partners
Mike Mulshine
732-292-0982
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