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By: AllPennyStocks.com
Just as the price of petroleum was starting to gather a little upward movement,
along comes the catastrophic oil spill in the Gulf of Mexico to provide a black
eye for the “black gold”. But with a coincidence just as ironic, along comes
news that two players in the oil industry are working to fix that public image,
and the environment with it.
In late May, as the news from the spill turned more dire, Dallas-based Freestone
Resources, Inc. (OTCBB:FSNR) signed a Letter of Intent with Santa Barbara-based
WestPac Resources, LLC in New Orleans. The LOI creates a Joint Venture Company
between Freestone and WestPac that will utilize Freestone's EncapSol technology,
as well as provide the capital needed to expand Freestone's oil and gas
operations.
WestPac Resources’ energy division is currently involved in the testing of
advanced oil and water separation equipment that can assist in the cleanup of
the spill.
FSNR names as its goal to be in the development of new technologies that allow
for the utilization of its vast resources in an environmentally responsible and
cost-effective way. Its exclusive EncapSol technology is an
environmentally-friendly, innovative oil recovery technology that uniquely
extracts and encapsulates hydrocarbons, reducing the viscosity of heavy oil. Key
uses include oil recovery from tar sands, oil shale, oil sludge, downhole
stimulation, and environmental cleanup.
Another remarkable thing about EncapSol is that it’s relatively new as an
accepted cleaning agent, having been just recently (last November) recognized by
the California Code of Regulations Hazardous Waste Criteria Regulations.
Tests involving sea life were passed with flying colors; none of the fish off
the coast were harmed during the test – thus qualifying EncapSol as a non-toxic
substance according to California state standards, and therefore could be
handled and disposed according to non-hazardous waste procedures.
The company also aims to lead the industry in environmental protection and
awareness. Another goal is to increase production through low-risk,
cost-effective development activities through the utilization of emerging
technologies and products specifically in the area of hydrocarbon recovery.
Still another is to maintain a low risk investor profile through diversified
company operations.
The news of the hookup with WestPac sent FSNR’s stock price climbing by more
than 50% on June 2, past the 60-cent mark, putting the price in the middle of a
52-week trading range that peaked around 90 cents in early May, but fell sharply
amid the general market volatility (much of it affecting the oil industry). The
stock’s bottom was plumbed around Labor Day last year at two cents a share.
Investors anxious about the state of the oil industry, and wish to align
themselves with one of the industry’s “good guys” may do well to give FSNR a
closer look.
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