Another Press ReleaseTake it for what it is, but the last sentence was the first time I've ever seen anything like that in writing in 15 years.
https://www.accesswire.com/551940/Genoil-Substantially-Increases-Total-Oil-Production-Goals-In-Yakutia-And-Is-Working-On-Developing-New-Advanced-Oil-Processing-Patents
Genoil Substantially Increases Total Oil Production Goals In Yakutia And Is Working On Developing New Advanced Oil Processing Patents
Monday, July 15, 2019 6:20 AM
Tuimadda-Neft and Genoil have enhanced their recent agreement to develop their five giant oil field license blocks in Yakutia, Russia
NEW YORK, NEW YORK / ACCESSWIRE / July 15, 2019 / Genoil Inc. (OTC PINK: GNOLF) had recently signed an advisory fee agreement with Tuimaada-Neft, which was published on July 3, 2019. This new revised contract allows Genoil to represent all five of Tuimadda-Neft’s oil field license blocks. These major properties combined could very likely produce in excess of 1 million BPD (barrels per day) of oil. The estimated total CAPEX to develop these Yakutia fields is $35 billion.
Along with JSC PetroleumGas (AFB) in Astrakhan, Genoil has negotiated a consulting fee to be paid directly to Genoil immediately following the closing of each asset purchase, thus giving Genoil positive cash flow instantly. When dealing with undeveloped oil fields, it is standard for the sale to be completed in two stages. First, the buyer and seller have to agree on a fair market value for the field(s) based on previous geology reports. The initial purchase price is usually a conservative figure until the new exploration field drilling is completed and reviewed. Following these new well reports, this is when the second stage of the sale price is typically much higher. For example, if one of the fields initially sells for $100 million then Genoil will receive their initial sizeable consulting fee based on that figure. Then after the new drilling work is completed and the updated geology reports are reviewed, an adjusted sale price is negotiated and finalized. The second stage of the sale is usually significantly higher, which would increase Genoil’s compensation dramatically. It should not be overlooked that these five oil field assets combined could generate $24 billion per year and over $450 billion during a 20 year production span at today’s oil prices.
Genoil is also pleased to announce that the engineering team has made a breakthrough improvement to our desulphurization process. This new technical improvement will be extremely beneficial to the maritime industry due to the IMO MARPOL Annex VI regulations, which will limit the ships sulfur emissions content to 0.50% world-wide starting January 2020. Genoil has already started the patent work and is hopeful that the first patent will be completed in the fourth-quarter of this year.
President & C.O.O. Bruce Abbott stated, “Genoil has shown notable leadership in Astrakhan, which Tuimaada-Neft has witnessed and they are very encouraged that we will be able to deliver these same results for them. As mentioned before, Genoil has called the largest development bank in the world and one of the top two largest banks in the world to provide assistance in sourcing capital and strategic equity investors for these projects and we Genoil has gotten initial intrerest. One of the top two largest banks in the world is already engaged with JSC PetroleumGas (AFB) and that work is advancing. We at Genoil are all very enthusiastic about being so close to recognizing positive cash flow.”