PHOENIX, AZ / ACCESSWIRE / June 23, 2015 / Lithium Exploration Group Inc. (OTC Pink: LEXG) (PINKSHEETS: LEXG), CEO Alex Walsh updates shareholders on company activities.
Dear Shareholders:
We are approaching our fiscal year end next week and I thought this would be a very appropriate time to discuss where we are at today and where we are heading the coming months. We have expended lots of time, energy, and resources over the past 4 years to get to this point and it is important to understand why we have done that and where I feel that we are going.
As we have outlined over the past month, the team at SonCav are in sustained testing of the water unit, and have completed testing of the oil treatment unit’s cavitation pump. The testing that has taken place over the past month has met all expectations. Both units have been in operation at SonCav’s Dallas (TX) facilities (pictures on our website), where necessary RPM levels have been met to achieve temperature increases reaching just below 300°F.
SonCav has advised that water unit stress testing will continue through July as they gather overall performance data on temperature levels, power consumption, pressure readings, etc. They are constantly tweaking flow rates, RPM levels, and other variables to not only gather the performance data but to find the ideal system dynamics for given feedstock.
As most of you know the oil unit that we commissioned for testing last summer was involved in an over the road accident when it was shipped to Alberta, Canada in February of this year. The replacement shaft was finally installed about 3 weeks ago and we immediately had it sent to Dallas where the water unit was being tested so that it could undergo its own stress testing. That exercise went off without a hitch as it was run over the course of a handful of days at high RPM levels and even though it is not a unit designed for water it was able to produce the cavitation reaction and cause significant heat increases. That unit is now having a skid built to mount the unit on so that it can be field tested in Alberta to treat crude oil in the field.
So why is this moment in time so important? It is important because we have felt for years that we are partnered with an inventor and group that have a game changing technology with applications that cross over into many industries.
WATER TREATMENT AND PURIFICATION:
Water has become a significant global issue and will become the biggest global issue in the next 20 years. Our global population continues to grow and our global economy grows with it. Water is needed to sustain human life and health but also plays a critical part up and down the global supply chain.
There are water crises in every major continent around the world including here in North America. California has received most of the news in regards to water rationing and the impact it has had on local municipalities and the agriculture industry but it is not the only place with water issues. Western Canada has had drought conditions for just as long as California and continues to struggle with the balance of providing fresh water for residents of some areas as well as the oil and gas producers, agriculture, and mining industries. Doing all of that in an environmentally and energy efficient manner is extremely difficult.
At its most basic the ultrasonic technology through harnessing the cavitation reaction has the ability to produce intense heat with very low energy input and no required burning of natural gas or other fossil fuels. The reaction is harnessed by running a 150HP motor and spinning a modified pump to produce the cavitation.
The ability to have a large output in a small package can change the dynamic of how water is purified for human consumption or other commercial needs.
OIL TREATMENT AND UPGRADING:
The production and refining of oil in North America has always been a large industry but has increased dramatically over the past decade with advancements in drilling technologies and oil recovery techniques. What this means is that oil companies used to see shale and just say that it was too hard to get out of the ground and move on. Now they utilize fracturing techniques to loosen up the shale and provide a liquid solution that the shale oil can travel in back to the surface. What this means for the industry is that there is much more oil coming out of the ground thus much more oil needing to be refined to meet consumer and commercial demand.
This increase in production results in an increased need to transport the oil to a location in Illinois, Oklahoma, or the Gulf where it can actually be refined. Rail, truck, and pipeline are traditional ways to transport crude oil to refining locations and each of them have their own environmental, social, and economic hurdles to overcome.
On top of the logistical issues in getting crude oil to a saleable market there is the issue that not all crude is created equal. Some crude oil that comes out of the ground has to go through multiple stages of treatment before it can meet pipeline and refining specifications. The closer a crude product is to pipeline specifications the more valuable it is. Crude oil must be more than 99% pure to meet pipeline standards.
SonCav’s ultrasonic technology has the ability to solve a few different issues in the supply chain of crude oil.
1. It can be used in the field to eliminate basic solids and water (BSW) that are trapped in crude oil as essentially a contaminant. This initial process can significantly reduce treatment costs to smaller producers and increase the value of oil before it is sold to the refining companies.
2. Once the crude oil has been treated and is ready for refining the technology unit has the ability to actually break the hydrocarbon chain resulting in a process known as “cracking.” This process will actually allow operators in the field to produce their own diesel fuel as well as other hydrocarbon products needed to run their facilities. Fuel costs for remote locations of Canada are extremely high so being able to generate fuel can significantly increase profitability for remote operators.
These are only a few examples of the dynamism of the SonCav technology and over the next few weeks and months we will be reporting on testing activity and deployment plans to make this technology available to the public.
We have finally turned the corner and I am thankful to all of our long term shareholders and investors for their support in getting to this stage.
Sincerely,
Alex Walsh
CEO
Lithium Exploration Group
About Lithium Exploration Group
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on its Western Canada lithium assets, testing its Ultrasonic Generator Technology and the acquisition of oil and gas related assets in Western Canada. Lithium Exploration Group is a fully reporting company traded on the OTC under the symbol LEXG. Website: www.lithiumexplorationgroup.com.
Safe Harbor Statement
This news release contains “forward-looking statements”. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
CONTACT:
Shanon Chilson
480-641-4790
info@lithiumexplorationgroup.com
SOURCE: Lithium Exploration Group Inc.
ReleaseID: 430073
