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SUNRIDGE ENERGY BRINGS GAME-CHANGING TECHNOLOGY TO THE OIL SANDS






Sunridge Energy Brings Game-Changing Technology To The Oil Sands

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By James West
VantageWire.com
September 7, 2011

Sunridge Energy Corp. (TSX.V:SRG) announced this week a deal to deploy a new technology to the oil sands region around ort McMurray, Alberta that has the potential to transform the tiny junior into a sizeable niche player. The technology, called Six-Phase Oil Heating, has been used extensively by the company that owns the worldwide license to use the patented technology, Current Environmental Solutions, to remediate soils and groundwater in situ contaminated with volatile and semi-volatile organic compounds.

The technology consists of drilling a series of holes in a circle, inserting a proprietary composite electrode into each hole, and utilizing six-phase power, heating the ground to 100 degrees centigrade to vaporize, or in the case of bitumen, liquefy bitumen solids trapped in oil sands to permit the flow of the now light oil to a collection head at the base of a pump.

In contaminated soil and groundwater applications, the result is most often 97% recovery of volatile and semi-volatile compounds. CES has deployed this technology at over 50 sites around the world and experiences average recovery in excess of 70%.

Currently in the oil sands, bitumen is extracted either by surface mining to depths (on average) of 75 metres, or else using deep-steam injection in the case of seams averaging 175 metres to 275 metres in depth. Permitting of steam injection operations for application in seams between 75 and 175 metres is not achieved due to the high risk of ground water contamination at depths above 175 metres. This means that in many instances, the 75 metre to 175 metre interval has either been left alone, or experience at best 30% recovery of hydrocarbons through the use of a far more inferior, yet similar technology that uses three phase power.

Using six phase power, the ground can be heated to higher temperatures and for longer sustained time periods, resulting in much higher capture rates.

To put things in perspective, one section of land in Alberta contains 640 acres. Within each acre that has a pay zone thickness of 30 metres of bitumen with 30% porosity is 150,000 barrels of oil. One section of land could potentially contain as much as 100 million barrels of oil in place.

OPPORTUNITY KNOCKS
According to the companys press release of Monday, August 29, 2011:

"Using CESs proprietary technology (Six-Phase Oil Heating), Sunridge has an unprecedented opportunity to extract oil from depths that were previously too deep to mine and too shallow to utilize high pressure steam injection (SAGD). The Oil Sands are the second largest petroleum reserve in the world with current technologies focusing on 75 metre deep excavation deposits or deep steam injections in excess of 175-275 metres. CESs technology is best suited for the shallow-depth zones from 75 metres to 175 metres, which capitalizes on a major untapped reserve in the Oil Sands. On a section of land (640 acres), there are potentially over 100 million barrels of oil in place at this depth. There are hundreds of sections of land in Alberta that contains Oil Sands that are too deep for surface mining and are potential candidates for this technology."

Sunridge is in a position to execute joint venture agreements with land holders to share revenue derived from the recovery of oil utilizing the companys technology for the cost of setting up a plant. The company expects to launch two pilot facilities before the end of the year.

"This exclusive arrangement is a major accomplishment for Sunridge and we are extremely excited with the potential of this extraction technology in the recovery of heavy oil at shallow depths" comments Dwayne Tyrkalo, President and CEO of Sunridge, "We are confident this technology will allow us to extract the extensive reserves of shallow depth targeted oil at costs comparable to or less than steam injection used at deeper depths".

CES was formed in 1997 under a license agreement with the Battelle Memorial Institute ("BMI"), the original developer of the Six Phase Heating Technology for the US Department of Energy. CES was the first licensee to all BMI polyphase subsurface heating patents in 1997, and since then have successfully completed over 50 environmental projects, including petroleum hydrocarbons, volatile organic compounds, and manufactured gas plant sites. As the internationally recognized leader in the Six Phase Heating Technology, CES has completed projects internationally and continues to improve and adapt their innovative treatment technology.

Sunridge only began trading in March of this year, and had up to this point been focused on three oil and gas projects within Alberta. With the acquisition of the new technology, Sunridge has just become a player in the oil sands without risking a dime on land acquisition or exploration.

OIL SANDS 101
Alberta ranks third, after Saudi Arabia and Venezuela, in terms of proven global crude oil reserves. In 2009, Albertas total proven oil reserves were 171.3 billion barrels, or about 13% of total global oil reserves (1,354 billion barrels).

Almost all of Albertas proven oil reserves are found in Albertas oil sands. Of Albertas total oil reserves 169.9 billion barrels, or about 99% come from the oil sands; and the remaining 1.4 billion barrels come from conventional crude oil. Notably, Alberta accounts for an overwhelming majority (more than 95%) of Canadas oil reserves.

In the fiscal year 2009/10, the Alberta government collected more than $3 billion in royalties from oil sands projects. This was the first fiscal year when oil sands became the top source of Albertas non-renewable resource revenue.

In 2008, oil sands investment reached an all time high of $20.7 billion. In 2009, it has been estimated to decline to $13.5 billion. Despite the decline, the estimated oil sands investment in 2009 is the third highest ever. In 2010, oil sands investment has been projected to increase to $15.0 billion.

The company is run by Dwayne Tyrkalo, who as president brings 29 years of oil and gas industry experience, and Lorne Hill, the companys chief geologist, who was trained at Princeton University and has been an independent prospect generator since 1992.

Sunridge has 16.7 million shares outstanding and a market cap of just over $3.5 million as of September 1st, 2011.

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