[vampyregirl]

Petrosonic Energy will field test its sonic reactor soon in Albania. Initially the heavy oil processing facility will process 1000 bpd. They plan to increase that to 15k bpd within the enxt five years.
Petrosonic has patented the Sonoprocess, which uses soundwaves to break down the viscosity of heavy crude. It can lower the cost of refining havy crude by about $15 per barrel. If this is as good as advertised we are looking at a game changer.

Heavy crude, which until recently wasn't worth the cost of production, is the future as the earth holds some 6 trillion barrels of it. Enough to keep the world supplied long after we are all dead and gone. So we could be looking at the begining of a new era here.

All energy corps will want this tech. Petrosonic will either collect a royalty for the use of its patent or perhaps be bought out for $3 billion or so.

[ROCKMAN]

From: http://seekingalpha.com/article/1135531 ... -investors

"Petrosonic Energy Inc. Set Up To Enrich Insiders While Burning Naive Investors?"

"Petrosonic Energy, Inc. (PSON.OB) has followed the 5 basic steps for a shell set up for insider enrichment.

#1) Business taken public with no revenues.

#2) Seed shareholders given shares for next to nothing

#3) Change in control

#4) Name and symbol change

#5) Forward split while all the shares were insider owned

Petrosonic Energy, Inc. was originally Bearing Minerals Exploration Inc. They filed a SB-1 to go public on December 19, 2008. Conrad Lysiak was the attorney helping with the SB-1 filing. Lysiak has also been the attorney assisting in taking companies public like Great Wall Builders Ltd. (GWBU.OB) and Nova Mining Corp. (NVMN.OB) that was also set up for insider enrichment. They both saw huge promotions followed by a huge dumps”

One could have doubled their invest if they had bought just last January. Or lost half their investment from just last October to December.

And then there’s this: "The new share count now looks like this: Gerhard Schlombs owns 14,625,000 shares, Art Agolli owns 20,000,003 shares, 23 seed shareholders own 29,137,500 free trading shares at $.00089/share, 10 seed shareholders own 885,937 free trading shares at .013/share. Those 29,137,500 free trading shares here at .89 are worth $25,932,375, not bad considering they only paid $25,900 for them.”

Me…I’m not greedy. I think I would cash out for $25 million instead of waiting for the $3 billion cash out. I just not one of those selfish types. I would let someone else make that $2.975 billion. LOL.

BTW regarding "Heavy crude, which until recently wasn't worth the cost of production"...tens of billions of bbls of heavy crude have been produced at prices far lower than we have today.

[ROCKMAN]

Just some idle curiosity on a quiet Sunday morning: of the 81 folks who've read these two posts how many plan to pick up some of that stock next Tuesday morning? Could be a great investment...if you bail at the right time.

[americandream]

Just some idle curiosity on a quiet Sunday morning: of the 81 folks who've read these two posts how many plan to pick up some of that stock next Tuesday morning? Could be a great investment...if you bail at the right time.

Hahahaha! I love your wit!

[ROCKMAN]

A - Since no one else is posting but us I'll burn up a little space. Did you ever hear my story about helping the Texas AG bust an oil drilling scam years ago? I won't repeat other than to say it was extremely satisfying. The honest oil patch has had enough blunders to earn the distrust of the public...we don't need help from the crooks. LOL. BTW how did I know it was a scam? because the ass running that operation told me all about it. I guess he figured that since I was oil patch I wouldn't have a problem with their operation. That really pissed me off. As I've said one of my great disappointments was not being there the day the Texas Rangers hauled him off in cuffs.

I don't like cheaters...never have. Long ago I imagined my dream job: an insurance company investigator going after fraudulent claims. Not that I have any great love for insurance companies. Difficult to explain.

[rockdoc123]

"Petrosonic Energy, Inc. (PSON.OB) has followed the 5 basic steps for a shell set up for insider enrichment.

what you describe covers 99.95% of all IPOs or RTO's amoungst the small to intermediate independants over the last decade or so. It is the model that makes the industry work and I can tell you from personal and anecdotal experience that it doesn't always result in "insider enrichment".

#1) Business taken public with no revenues.

Every exploration company I can think of has gone public through an IPO or RTO and almost all of them initially had no revenues...they had acreage (or not), ideas, and some financial backing. The intent of going public is to gain access to investor funding through share offerings. You need capital to invest to achieve revenues and this is a good model to do so.

#2) Seed shareholders given shares for next to nothing

If the shares are distributed prior to the public offering then there is nothing wrong with this. The seed shareholders are the ones with the ideas and likely put a bit of sweat equity into something well before it had any potential value in sight. There is no way to preferentially distribute shares at a price below the public offering price. As an example if I and 5 other folks got together with an idea to pursue exploration activities in Country X it is likely that everyone would put in a bit of seed capital that would allow you to at least aquire the relevant acreage and set up the basics of your business. Each of those individuals would be issued founder's shares which would be cut at some value that would make sense going forward. Once they are ready the group would look to either do an IPO or an RTO (reverse takeover). RTO's are usually more common as they are easier to do. At that point they would be issuing shares at some rate (determined by the bankers behind the issuance) that would be commensurate with the perceived underlying value of the assets they had put together. If they had landed on some really prime acreage the differential between founders shares and the initial offering price might be significant, if they just had a bit of moose pasture then you might see little in the way of difference. In any event the market cap (share price times number of shares issued) would reflect closely the potential NAV of the newly listed company.

#3) Change in control

this is the standard RTO (reverse takeover model). The point is it is a quick way to get a public listing of an entity. As an example I have a private company just started up called Albatross Oil and Gas and want to go public. An IPO will be very difficult and could take over a year to complete, but low and behold sitting on the stock exchange are a number of shelf companies that might have a bit of cash sitting around but nowhere to spend it (no assets). I do a deal with a company called Bozo Oil and Gas whereby we merge the two on some form of share exchange and hence acquire their listing on the stock exchange. Hence the private company that was called Albatross that held all of the assets is now called Bozo Oil and Gas.

#4) Name and symbol change

all part of the RTO process which I explain above.

#5) Forward split while all the shares were insider owned

the issuance of shares at any time going forward will change in a public company. When companies first go public it is expected that the initial offering will be at a higher price than the shares which have been held prior to the public offering, especially so if the company founders added value (which they must have to justify the IPO/RTO). Note that subsequent secondary offerings will almost certainly be at a higher price yet.

My point here is there is nothing strange or dodgey about this model. I have no idea of the underlying value of the particular business in question here, but the model for going public is sound and does not infer anyone is being bilked.

Also you need to be aware that it is particularly difficult for officers and other insiders of a public company to sell shares at any time. The problem becomes any significant trade will run the risk of creating either a buying or selling run in the market and trying to prove to the SEC that you are not in retention of any "insider" information is a difficult task as there is always something happening in your business that you have not disclosed to shareholders for one reason or another (waiting on more news, gov't approval, partner approval etc). As a consequence insiders/officers of companies tend to either not bother to sell until there is a major equity event (sale of corporation or assets) or sell infrequently through programmed trades (which sometimes also get the SEC ticked off).

[americandream]

A - Since no one else is posting but us I'll burn up a little space. Did you ever hear my story about helping the Texas AG bust an oil drilling scam years ago? I won't repeat other than to say it was extremely satisfying. The honest oil patch has had enough blunders to earn the distrust of the public...we don't need help from the crooks. LOL. BTW how did I know it was a scam? because the ass running that operation told me all about it. I guess he figured that since I was oil patch I wouldn't have a problem with their operation. That really pissed me off. As I've said one of my great disappointments was not being there the day the Texas Rangers hauled him off in cuffs.

I don't like cheaters...never have. Long ago I imagined my dream job: an insurance company investigator going after fraudulent claims. Not that I have any great love for insurance companies. Difficult to explain.

I get where you're at which is precisely where I'm at and I guess why I find your scepticism very refreshing. The private sector exists to make a profit by any means, even if it means selling grandmums the latest in skating technology with all the hype that goes with it. How we get out of this mess has sure expended lots of cranial time...anything but weaning ourselves of the urge to make a fast buck seems to be the preferred option.

Ah well, at least guys like you turn this fiasco to a nice comedic edge...something I should be boning up on skills wise...can you imagine the reactions I'ld get at parties!

[americandream]

A - Since no one else is posting but us I'll burn up a little space. Did you ever hear my story about helping the Texas AG bust an oil drilling scam years ago? I won't repeat other than to say it was extremely satisfying. The honest oil patch has had enough blunders to earn the distrust of the public...we don't need help from the crooks. LOL. BTW how did I know it was a scam? because the ass running that operation told me all about it. I guess he figured that since I was oil patch I wouldn't have a problem with their operation. That really pissed me off. As I've said one of my great disappointments was not being there the day the Texas Rangers hauled him off in cuffs.

I don't like cheaters...never have. Long ago I imagined my dream job: an insurance company investigator going after fraudulent claims. Not that I have any great love for insurance companies. Difficult to explain.

BTW, I must have missed the oil scam story. I worked in angel finance a while back...we had some real corkers as well!! Lots of very unfortunate moms and pops sadly.

[ROCKMAN]

ad - Not to make excuses for the crooks but it never ceases to amaze me how folks let pure greed drive their investment decisions. And more than greed I suppose. I know a few folks with a gambling problem and can see where that plays in the process. I still have clear memories of folks dumping money into oil deals in the 70's boom. They would send a check to a PO box in a classified ad in the Wall street Journal and then wonder why they didn't get revenue checks back from the oil well investment.

The oil scam: They moved onto our floor. Head crook showed me their deal. Obviously bogus. I called Texas AG and notified. They knew the outfit and had shut down their Dallas boiler room. I explained that they reopened in Houston. So disappointed I wasn't there a few weeks later: HPD and Texas Rangers hauled the two head crooks off in cuffs. My partners stood in elevator lobby and gave them the finger as they left: wanted them to know who burned them. I also avoided working for small pubcos. Even when they weren't outright breaking the law I didn't care much for how they treated investors.

[vampyregirl]

Heavy crude cannot flow through a pipeline unless its diluted with chemicals to break down its viscosity, a costly process. Petrosonic could remove the need for this thus reducing the cost of extracting heavy oil. We will also need to build more refineries equiped to process heavy crude.
I'm waiting to see if this is as good as advertised.

[Carnot]

I would encourage anyone who believes in this nonsense to do their homework very carefully. I was involved 3 years ago in evaluating this so called technology and it was and remains wishful thinking at best.

Firstly go and have a look at Sulphco, who pedaled identical ideology and recklessly blew all of the investor funds. The person behind Sulphco was a one Rudolf Gunnerman who is a serial inventor of crackpot schemes designed to separate investors form their money. Gunnerman has come up with so called technologies that include removing alcohol from wine, running diesel engines on 50:50 diesel:water( with the aid of a nickel catalyst on the piston crown. He took Caterpillar for $25 million), Sulphco, and his creationlatest which involves bubbling methane through diesel to produce a refined product. This latest company is called Advanced Refining Concepts.

Petrosonics, was formed by an ex Sulphco employee, one Mark Cullen, who has obtained worthless patents that read almost word for word the same worthless patents that Gunnerman obtained.

Sulphcos patents were promoted as the magic bullet for refining. The process was supposed to reduce sulphur and oil viscosity by ultrasound treatment. As usual for Gunnerman lots of buzzwords and no science. The desulphurising process was called Sonocracking, except there was no cracking.

Go to the Petrosonics website and you will see the same line. Lots of patents of dubious claims. This is the universal fix all. I bet it even kills flies. The best bit is that there is another Petrosonics which was set up by a greedy colleague of Gunnerman trying on the same idea.

I digress, back to Petrosonic Energy. This is for the gullible. They will make some wild claim for their Sonoprocessing
and meanwhile pump up the prospects claiming that it can significantly reduce the cost of heavy oil processing. Will there be an improvement in the API gravity? That remains to be seen, but if if there is it will be down to the solvent extraction of the asphaltenes not the Sono processing. They seem to be comparing viscosity, since the oil appears to flow better after treatment which even any deasphalted oil is likely to do. Reading between the lines the process improvement only appears to be in the time of the de-asphalting step, since ansolvent is still used.

In other words the sonoprocessing is a mixing process. Nothing more. Bear with me. Do you honestly believe that the application of sonic energy, which rapidly dissipates as the the distance increases from the source, will do anything. Not withstanding as the energy increases the erosion on the sonic horn (correct term) increases significantly.

My calculation suggests that the flow rate through the reactor (1000 b/d) implies a flow past the ultrasonic horn of about 110 litres per minute, about 2 litres per sec. That means the reactor must be about 240 litres capacity to achieve the 2 minutes mixing. That is going to need a really big ultrasonic horn. Much bigger than the Gunnerman scam.

Frankly like Rockman this just looks like another Chum Circle waiting for a Mullet (Rockman's description of shale gas investors). It is Voodoo science and will be pumped and dumped to the benefit of the sleaze ridden gang behind it.

If this process really does work, the oil majors will have already figured it out. They are not dumb. This has been looked at and discarded, but there is always some idiot who falls for this type of scam.

Patents mean nothing. Anyone can file a patent. It does not mean that it has been ruthlessly proved. It just has to get past the patent issuer. One only has to read the Gunnerman patents for example. I have not pulled these patents. There is no need. The headings read like snake oil.