Well Power Inc. signs definitive license agreement for micro-refinery technology

HOUSTON, TX, Jan. 30, 2014

"We are extremely pleased to have executed the Agreement and commence our new business direction.  With the support of our new partner, MEC, we are excited to introduce an innovative and beneficial technology to the US market," states, Cristian Neagoe, CEO of the Company.

MEC is led by a strong management team and board of directors.  The Chairman of the MEC is Parminder Singh, former Managing Director of Microsoft Canada's Development Center and current President of Intellectual Ventures Canada.   Dr. Michael Raymont, former President of the National Research Council of Canada and current President of AVAC Ltd., also sits on the board of directors.  He is joined by Professor Gregory Patience of Ecole Polytechnique de Montreal's Chemical Engineering Department.  Professor Patience is MEC's Chief Technology Officer, and leads the continued development of the MRU in partnership with École Polytechnique de Montréal, which is facilitated through a research agreement with the university and MEC.  Professor Patience has established a research and development lab at the university for catalysis, catalyst design and fluid-bed reactions. This lab is considered the most advanced in the country.

Under the terms of the License Agreement, the Company obtained the exclusive right to distribute proprietary Micro Refinery Units (MRUs) to the oil and gas industry in the State of Texas.  The MRU processes wasted natural gas, including stranded, shut-in, flared and vented gas and produces valued end-products including Engineered Fuel^TM (diesel, diluents, synthetic crude) and clean electrical power.

This MRU is an assembly of proven commercial technologies with a proprietary micro-processing system as the key technology component.  With the addition of catalytic reactors and power generation components, various liquid and power outputs can be achieved. Once fully developed, the MRU is expected to bring innovation to existing practices and standards by processing raw natural gas flow of 75 mcf to 250 mcf, in a transportable and modular system.  The MRUs will be factory built and be adaptable for various outputs including diluents, no sulfur diesel and pipeline quality synthetic crude. The MRUs will also generate remote power.

In addition to the liquid outputs and electrical power, MRUs will also significantly reduce the emissions of Green House Gases (GHGs).  Associated natural gas is a byproduct of the oil and gas extraction process and is often considered more of a nuisance than an economic resource.   In order to get rid of this waste gas, some of it is burned on reaching the surface with a process called flaring, and some of it is directly released into the atmosphere without burning through venting.  Each commercial MRU is expected to reduce CO2 emissions by 542 tonnes/year, and once optimized a reduction of 1224 tonnes/year.

The Agreement provides the Company with the exclusive rights to distribute and deploy MRUs in the State of Texas, and provides for a Right of First Refusal in all other states.  The Company will pay a non-refundable licensing payment of $400,000 USD which will be used towards the engineering and development of a full scale pilot in the licensed territory.