August 18, 2008
CityView to Acquire Crude Oil Refinery for Installation in West Africa
CityView Corporation Limited (OTCBB: CTVWF, ASX: CVI) ("CityView") advises that it is in the process of completing the asset purchase agreement for the acquisition of a crude oil refinery.
It has been decided that CityView will acquire the oil refinery in its own name, rather than through Pensador Resources Inc.The asset purchase agreement for the acquisition of the oil refinery will be for an aggregate consideration of US$320 million most of which will be debt finance. Financing of the refinery is being negotiated at present, the details of which will be announced later.
A dedicated team of professionals experienced with crude oil refining, processing, logistics and operations as well as civil and electrical engineering, project development and financing, are currently working on the project.
Current Refinery Status:
The refinery is being refurbished in the USA giving CityView the opportunity to acquire a refinery in first class condition. The refinery has been constructed so that it can be transported to site in modular form for a more rapid assembly.
According to our consultants, some minor modifications will be required to allow the refinery to treat alternative crude oil feedstock originating from West Africa.
Location of Plant:
The location of the refinery will be on the west coast of Africa and the optimum site will be advised in due course.
CityView plans to ship the plant to the construction site in December this year and have it operational by the first quarter of 2010. These dates are dependent on relevant final governmental approvals and the state of available infrastructure (e.g. power, water, nearby port) required for operation of the plant.
Simulation modelling of the refinery flowsheet has been conducted by expert consultants. The results of preliminary simulations to date estimate production at 50,000 bpsd when fed with the likely feed stock for the refinery. It is anticipated that with fine-tuning of the model and the refinery itself, crude rate will exceed 50,000 bpsd. The approximate product breakdown is estimated as follows:
Product Rate (BPSD) LPG 1,550 Naphtha 3,784 Mogas 17,370 Kero + Diesel 13,964 Asphalt 4,560 Fuel Oil 8,772