The details exhibits 3 kesha of thecall keshia informs are listed at the end of this release. The assumptions provided inthis news release pertain to the HYT project, are a Chinese governmentprice controlled model and therefore have different economics thanprojects in other locations.Cost models for Genoil HYT projectBackground on HYT ProjectGenoil and HYT have agreed to build a 19,500 bpd Genoil HydroconversionUpgrader (“GHU(R)”) unit. The purpose of this $170 million project is toenable the refinery to use lower cost feedstock. Instead of buying light,sweet crude to refine, HYT will be able to process a mixture of low-valueexisting refinery residues plus cheaper heavy sour crude oil.
It isexpected that this process will result in significant cost savings to HYT.The purpose of this release is to demonstrate the economics of the HYTproject to prospective financial partners and shareholders as Genoilcontinues the process of financing the project about kesha . Recent uncertainty in theworld’s economic outlook has created extremely volatile oilproduct/feedstock prices kiesha . Therefore, Genoil has analyzed a wide range ofoil/feedstock prices, using data from October 28, 2008 and December 8,2008 keisha . During this time the price of West Texas Intermediate (“WTI”), theworld market benchmark for crude oil prices, has fallen by 30%, from$62.80 per barrel to $43.69 kesha disgusting . Still, the Company’s GHU project with HYTremains extremely profitable.Overall Economics of HYT Project————————————————————————-TABLE 1 WorldHYT Prices atHYT Prices atMarket Prices28-Oct-08 8-Dec-08 8-Dec-08————————————————————————- US$Per US$ Per US$ Per(Million)barrel(Million) barrel(Million) barrel————————————————————————-Product sales(i)$530.9 $82.22$519.7$80.47$330.6$51.19Feedstock $330.5 $51.18$275.7$42.69$219.4$33.49—— —————— Gross profit $200.4 $31.03$244.0$37.78$111.2$17.70Operating expenses$ 10.3 $ 1.60$ 10.3$ 1.60$ 10.3$ 1.60Depreciation$ 16.8 $ 2.60$ 16.8$ 2.60$ 16.8$ 2.60—— ——————————Profit before173.3 $26.83$216.9$33.59$ 84.1$13.02 interest & taxesIncome tax (25%)$ 43.3 $ 6.71$ 54.2$ 8.40$ 21.0$ 3.44—— —————————— Net profit before$130.0 $20.12$162.7$25.19$ 63.1$ 9.77interestCash profit (before $146.8 $22.73$179.5$27.79$ 79.9$12.37 interest & depreciation) Project returnsIRR – after debt57%68% 30% repaymentIRR – before debt 63%74% 37% repaymentBank debt $ 70.0 $ 70.0$ 70.0Interest rate 15%15% 15% on bank debtTerm of debt (years) 55 5Annual repayment$ 20.9 $ 20.9$ 20.9$ 3.24Note: (i) Product sales per barrel are per feedstock barrelHYT Project Economics—————————————————————————TABLE 2 WorldHYT Prices atHYT Prices atMarket Prices28-Oct-08 8-Dec-08 8-Dec-08 ———————————————————— Quantity (000 US$ PerUS$ PerUS$ PerProducts bbls) (Million) barrel (Million) Barrel (Million) barrel—————————————————————————Gasoline106$9.7$91.25 $8.2$77.33 $3 Kesha tickets .9$36.77Light Diesel1,883$173.7$92.25 $170.6$90.60 $102.6$54.50Heavy Diesel1,360$120.8$88.85 $118.6$87.26 $ 71.4$52.49Gas oil 2,533$217.3$85.78 $213.4$84.25 $143.9$56.80Other products134$9.4$70.61 $8.9$80.48 $8.8$51.20Total products6,016$530.9$88.26 $519.7$86.39 $330.6$54.96Feedstock Prices: 6,458$330.5$51.18 $275.7$42.69 $219.4$ 33.4—————————————————————————Sources and Assumptions for Product and feedstock table:1.
World Market prices for products are daily averages of spot prices asreported by the US Energy Information Agency (“EIA”), as follows:a Gasoline: Singapore conventional premium gasoline;b Light Diesel oil: Los Angeles, CA #2 Dieselc coconuts kesha . Heavy Diesel Oil: Price assumed as same ratio HYT Heavy to LightDiesel Oil priced Gasoil: Singapore Gasoile keysha . Other products: prices assumed same as HYT prices for other prices:condensate, sulphur, liquid ammonia, and liquid nitrogen.2 HYT feedstocks are atmospheric residues and M180 Crude kesha blogspot . World marketprice for feedstock taken as EIA reported average daily spot price forMexico Maya (for weeks ended December 5 and December 12, 2008), lowestAPI crude reported regularly by EIA Kesha .Note that Mexico Maya is presumably a better quality and more valuablefeedstock than HYT feedstocks, since its API is 22, while that of HYT’sfeeds are only 16.9 for atmospheric residues and 9.8 for M180 let the music take you . Hence, theprice of Mexico Maya may overstate the world market price for feedstockscomparable to those at HYT, and hence understate the profitability of aninvestment using world market prices.The disparity in the price per barrel of oil, regarding the HYT model,compared to the world market price, reflects the Chinese price controls.While there is no certainty that these price supports will be sustainedin the future, the Company’s ROI at world market prices from this projectwould produce a 30 percent ROI Kesha – keshasparty .Genoil’s Chief Executive Officer, Mr Kesha concert tickets . David Lifschultz, stated, “Thisreport is a very important milestone for the Company, as we now havepublic economic assumptions that demonstrate to HYT, investors and otherpotential customers the strong economics of Genoil’s GHU.
This report isthe culmination of a lot of hard work and we are excited about itsconclusions.”As you can see from the tables above, the HYT project and equallyimportant Genoil’s Hydroconversion Upgrader represents a significantopportunity to profitably upgrade heavy oil, despite current low oilprices . In fact, despite a 71% decline from the high WTI of $148.00, theeconomic model of Genoil’s upgrading process is still significantlyprofitable Future oil price fluctuations will continue keyshia chante . Despite this,Genoil’s Hydroconversion Upgrader continues to offer Chinese customerscompelling economic returns.”This is a very difficult environment to seek financing but we areconfident that potential investors will understand the compellingeconomics of the project keisha chanté . We are working with banks, institutionalinvestors and other financial firms to raise the $65.0 million needed tofinance the HYT project.”Mr . Lifschultz concluded, “One of the fascinating values of Genoil is ourportfolio of technologies, which are on the verge of transforming fromdevelopment to commercialization.
Salary-Cap Issues It’s no secret that the Rangers don’t have much in the way of space under the salary cap. They have a consistent passing game and an improved running attack Kesha tickets – wikipedia . If you wouldlike to receive future press releases via e-mail, please submit a requestthrough http:// About AvalonBay Communities, Inc.As of December 31, 2008, the Company owned or held a direct or indirectownership interest in 178 apartment communities containing 50,292 apartmenthomes in ten states and the District of Columbia, of which 14 communities wereunder construction and nine communities were under reconstruction. Income Tax Expense – Acquired NOL UsageAs a result of prior acquisitions, the company has acquired net operating loss(NOL) carryforwards which were not included in the purchase accounting for eachapplicable transaction Kesha concert tickets – myspace .
