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STWA, Inc. (ZERO) Advancing Towards Commercialization of Applied Oil Technology in China

STWA has put together an impressive package of intellectual property (developed with and exclusively licensed from Temple University), with their DOE test-proven oil pipeline flow rate enhancing Applied Oil Technology™ (AOT, essentially reduces viscosity in the pipe) and a diesel engine efficiency technology based on the same viscosity-reducing idea, ELEKTRA™, leading the pack. And that same AOT 1.2v unit which previously underwent testing with the DOE at the Rocky Mountain Oilfield Testing Center (RMOTC), handing in successful results since October of last year, was reported as being boxed up and shipped out today to Langfang, China, for the second stage of the three-phase commercialization acceptance process required by the CPP (China Petroleum Pipeline Administration).

CNPC PetroChina (the biggest oil and gas operator, as well as oil field services provider, in the world’s most energy hungry country) and the CPP have their Pipeline Flow Assurance Test Center at Langfang ready to receive the prototype, and in some five weeks from today Field Loop Testing can begin at what is one of China’s most advanced pipeline R&D facilities. This announcement marks a key leaping off point for the overall commercialization of AOT technology in China and investors are already buzzing about STWA’s potential to capitalize big time across China’s vast oil pipeline infrastructure.

It’s not hard to understand the kind of attraction AOT is getting, as the energy cost per mile of transport reductions are quite impressive, something that translates into bottom line savings for operators. The crude oil remains chemically unchanged, as does the temperature. Less energy is required to pump the oil and with lower overall line-loss per mile; plus the fact that the oil simply returns to a natural state after a few hours, we can easily see an incredible product profile on this AOT tech. With AOT, pipeline operators can simply dope the oil temporarily for transmission through the infrastructure, reaping big savings.

The next and final stage of the mandated commercialization process, Phase III, will follow Field Loop Testing and consist of a commercial Pilot Program, executed so as to take full advantage of the demonstrated effectiveness of AOT against China’s three major crude oil grades. The testing is being conducted by CPP in close collaboration with SWTA’s local commercialization partner TDC as per the terms of the Cooperation Framework Agreement (whereby TDC bears the cost for testing/commercialization of AOT with the CPP).

CEO of STWA, Cecil Bond Kyte was pleased to report this clear indicator that the company is on track for regulatory approval of AOT in China and characterized ongoing cooperative efforts with both TDC and the CPP as “very productive/constructive.” Not long now for AOT in China really, what with TDC having already pinned down a 300km, 27-inch pipe for the commercial Pilot Program in Phase III.

For more information on STWA, Inc., or the company’s technology portfolio (24 domestic/international patents and patents pending), please visit the STWA website at: www.STWA.com

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