PetroSun announced that its Letter of Intent’s deadline with Icon Drilling Pty, Ltd has been extended to August 11, 2007. The two companies also have agreed to include Malaysia, Indonesia, Japan and China within the geographical area provided by the License Agreement.
In addition to the extension, the company revealed that it has been in active discussions with domestic biodiesel producers to provide future delivery of algal oil as a feedstock for their refineries. The biodiesel industry must pursue a feedstock that provides a consistent supply of fuel at competitive rates compared to petroleum-based transportation fuels.
In order to fulfill this need, the Board of Directors has directed the biofuels division to focus its operations on capital expenditures on algal oil productions, which would allow the company to increase its future production and open joint venture opportunities with biodiesel refiners.
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