Optimal Resources Incorporated – 8.6% interest (largest single shareholder)

Optimal is an oil production company licensed to apply the QCC Enhanced Oil Recovery (E²EORTM) technology exclusively and to competitive advantage. Optimal's key objective is to participate in ownership of incremental produced oil and to secure an equity share in associated extended recoverable proven oil reserves. QCC is contracted to supply specialist services to Optimal, including the manufacture and supply of the E²EORTM solvent.

A field trial programme is progressing in the Lloydminster heavy oil area of Alberta. Injection tests are being conducted to assess how the depleted conventional 12° API heavy oil reservoir behaves under various conditions and the information gained is being used to design the most efficient crude oil recovery strategy.  Results to date have been sufficiently encouraging for Optimal to inform shareholders and the media as follows:

·           The EOR 'solvent 'is mobilising oil in the reservoir;

·           'Oil cut' from the production wells increases with increased 'solvent' injection;

·           'New oil' is being recovered from 'dead reservoirs' and is being sold by Optimal; and

·           Optimal is encouraged by recoveries trending towards the 30% achieved in the tests on simulated reservoirs in the laboratory trials

A recent study conducted by CIBC World Markets estimated that only 20% of Western Canada's conventional crude oil has been recovered by primary production techniques, leaving as much as 77 billion barrels in the ground. Laboratory trials in simulated reservoirs indicate that QCC’s E²EORTM technology could promote the economic recovery of a further 20% plus of the original estimated 'oil in place' from established fields which are either in decline or technically 'depleted'.