Brookmount Explorations, Inc. (OTC Pink: BMXI) is engaged as a Peruvian mining company. Shares of the mining company are down 17.54%, through afternoon trading on Tuesday, July 18, 2017. Over the past month, Brookmount Explorations, Inc. has seen average daily volume of 176,692 shares. However, volume of 1.14 million shares or dollar volume of $82,536, has already exchanged hands on Tuesday.
Shares of Brookmount Explorations, Inc. are declining today, after the company announced it has begun negotiations for exclusive licensing for the use of Diluent Boost, which reduces bitumen viscosity in heavy oil. The company hopes to obtain the rights to use the technology within North America. Here is the full press release detailing of the negotiations:
Brookmount Explorations, Inc. Press Release:
LOS ANGELES, CA–(Marketwired – Jul 11, 2017) – Brookmount Explorations, Inc., (OTC PINK: BMXI) a U.S. exploration and development company, is pleased to announce it has entered into negotiations for a definitive licensing agreement for the exclusive use and sale of “DilBoost” (Diluent Boost) a proprietary diluent formulation blend that significantly reduces bitumen viscosity and increases API gravity.
The company is currently negotiating for the above ground application rights for DilBoost in the United States. Brookmount is also negotiating for the first right of refusal for the rights to the in-ground application for the United States as well as both above and in-ground applications for Canada.
According to the U.S. Geological Survey Energy Program, there are more than 36 billion barrels of measured natural bitumen (heavy oil, or tar sands) in the U.S. Moreover, Canada is home to the third-largest proven oil reserve in the world, estimated at 171.0 billion barrels; most of it is in thick, oil sands. More broadly, heavy oil, extra heavy oil, and bitumen make up approximately 70% of the world’s total resources of 9 to 13 trillion barrels.
DilBoost is a proprietary blend of light hydrocarbons that is licensed globally by RHOR Barbados Inc., an oil services company. DilBoost, which is a cold process, is added to heavy crude and extra heavy oil, prior to refining, and enables oil producers to reach pipeline specifications at a lower cost. In fact, DilBoost is a more efficient and cost effective product than other diluents and drag reducing agents being used today.
Based on extensive field test results, the DilBoost technology substantially reduces current diluent costs by up to 53%. Purchasing and transporting diluent is one the heavy oil industry’s largest day-to-day operational expenses. In the U.S. production costs account for 24.5% of a barrel of oil and in Canada it is 43.4%.
Securing the American rights to a revolutionary product like DilBoost will be a game changer for Brookmount. If negotiations are successful, Brookmount will begin to immediately market DilBoost to medium and large heavy and medium crude oil producers in the U.S. Brookmount will then focus its attention on the Canadian heavy oil market.
Except for the historical information contained herein, certain of the matters discussed in this communication constitute “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995. Words such as “may,” “might,” “will,” “should,” “could,” “anticipate,” “estimate,” “expect,” “predict,” “project,” “future,” “potential,” “intend,” “seek to,” “plan,” “assume,” “believe,” “target,” “forecast,” “goal,” “objective,” “continue” or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding benefits of the proposed license, expected synergies, anticipated future financial and operating performance and results, including estimates of growth. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. For example, the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstance that could give rise to the termination of the negotiations, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Brookmount’s common stock. All such factors are difficult to predict and are beyond our control. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulations.