News Release

March 31, 2008

 

Mr Louis Lees is pleased to announce that Deloro Resources Ltd (TSX.V – DLL) has reached an agreement with Electro-Petroleum, Inc. (EPI) to conduct a full pilot test using EPI’s Electrically Enhanced Oil Recovery (EEOR) technology on Deloro’s heavy oil Wilkie field. Deloro will provide use of existing facilities, wells, field supervision and operating support while EPI will provide the EEOR technology, related technical leadership and all incremental capital and operating costs associated with conducting the tests. Once the pilot test is deemed successful the project will proceed to full development and EPI will earn a 10% working interest in the Wilkie project for the use of its technology.

 

Wilkie is a heavy oil project on a land package of 3,765 leased acres. These government of Saskatchewan leases cover a channel in the McLaren zone one-half to three-fourths of a mile wide and approximately five miles long. The zone is at a depth of 2,035 feet with six vertical wells and one horizontal well drilled into the structure defining a heavy oil pay zone with gross sand thickness of 30 to 50 feet. Reliance Engineering Group Ltd. recently completed an independent report in which estimates of discovered resources were performed in accordance with National Instrument 51-101 guidelines and generally accepted industry standards. The discovered resources were calculated based on McLaren sand net pay isopach maps and the average reservoir parameters. The original discovered resources underneath company land were calculated to be approximately 63.1 million stock tank barrels

 

The EPI technology was recently presented at the World Heavy Oil Congress held in Edmonton, Alberta. The EEOR patented technology uses direct current electricity for both in-situ heating and electro-chemical reactions to upgrade and recover oil. The EEOR technology was originally developed at General Electric, then purchased and enhanced by EPI’s founders with significant additional investment, and is currently supported by numerous patents. EEOR involves passing direct current electricity between cathodes (negative electrodes) in producing intervals and anodes (positive electrodes) either at the surface and/or at depth in other wells. The process can employ three capabilities: (1) joule heating, (2) electro-osmotic flow, and (3) electro-chemical reactions (cold cracking) for upgrading the oil in situ. The initial field trial in California not only increased oil production rates by a factor of 10, but also increased oil gravity of the produced crude, reduced water cut, increased gas production, increased the energy content of the produced gas and reduced H2S production. In addition, the process can be implemented with lower capital costs and lower variable operating costs than comparable steam-based recovery technologies. Finally, EEOR is a “green” technology as it requires no significant amounts of water, does not use a working fluid, and emits no greenhouse gases.

 

The EPI technical team and Deloro’s field operators are now in daily communication to deal with initial planning including logistics, equipment requirements, personnel and scheduling around weather such as spring breakup. Both companies are excited about this opportunity to work together in developing the potential of the EPI technology for this project and future opportunities.

 A finders fee will be payable to Cinder Systems Inc. on the successful testing of the EPI Technology on the lands in the Wilkie heavy oil project. Twenty-Five (25% percent of the finders fee will be payable for the test period and seventy-five percent (75%) for the financing and full development of the working interest to the 90/10 % Agreement with Deloro.

 

For additional information please visit the Deloro Resources Ltd. website. www.deloro.ca

and the Electro-Petroleum Inc. website, www.electroptroleum.com

 

ON BEHALF OF THE BOARD OF DIRECTORS

 

"Signed: Louis P. Lees" CMA,

President, CEO and CFO

 

For further information

Phone: 360-371-2820

Phone: 604-484-5761

Toll Free: 877-755-6728

 

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