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PHOENIX, AZ--(Marketwire - October 16, 2007) - PetroSun, Incorporated (PINKSHEETS: PSUD) announced today the following algae-to-biofuels update.
PetroSun BioFuels, a wholly owned subsidiary, has been actively pursuing feedstock supply agreements within the domestic biodiesel refining industry to market the algal oil from its planned algae farms and algal oil extraction plants. The Company has projected a minimum annual algal oil production level of 180,000,000 gallons from the planned facilities in Alabama, Louisiana and Arizona after their completion during 2008. The Company will market the algal oil based on the posted price of crude oil. At a crude oil price of $80 per barrel, the algal oil would wholesale for $1.90 per gallon or twenty-five cents per pound. This example would generate gross annual revenues of $342 million on the projected production levels from the initial operating facilities.
The Company will also be capable of producing considerable tonnage per acre of algae biomass, post algal oil extraction, that could be marketed as livestock feed or processed into ethanol. PetroSun BioFuels estimates that the annual sales associated from the biomass derived products could double the annual income of its initial algae-to-biofuels operations.