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December, 2013

Heavy Oil/ Bitumen Upgrading Technology Presentation

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Page 1: Heavy Oil/ Bitumen Upgrading Technology Presentation

December, 2013

Page 2: Heavy Oil/ Bitumen Upgrading Technology Presentation

DISCLAIMER This document has been prepared by Bayshore Petroleum Corp.(the “Company”, together with its

subsidiaries, the “Group”) for the sole purpose of introducing the Company, and copying and deliveryto others are strictly prohibited. Since the dissemination of this document within the jurisdiction ofvarious countries might be subject to local laws, any individuals who will receive this document shallhave a clear understanding of and comply with such laws and regulations.

There are no explicit or implied representations or warranties as regards the fairness, accuracy,integrity or correctness of the information contained in the document. This document is not intendedto provide a complete or comprehensive analysis of the financial or trading position of the Companyor its prospects. Therefore, any individuals who will receive this document shall be aware they shallnot rely on the contents of this document.

This document does not form part of any offering document of the Company or constitute any offeror solicitation by or on behalf of the Company relating to any securities of the Company. Thisdocument is not intended to provide the basis of any creditor of the revaluation or form the basis ofany investment decision in any securities of the Company.

The information and opinions provided in this document are up to the date of this document andmight be subject to changes in the future in respect of which no further notice will be issued. TheCompany and its affiliated companies, advisors or representatives disclaim any liability whatsoeverfor any loss howsoever arising from using this document or its contents or from other aspects of thisdocument (whether this is caused by negligence or other reasons).

Page 3: Heavy Oil/ Bitumen Upgrading Technology Presentation

Company Information• Bayshore is a Canadian Public Company with its stock trading

in Toronto Venture Exchange (Symbol: BSH)• Total issued shares – 16.4 million shares (October, 2013)• 52 weeks Price range - $0.11- $0.45• The company develops conventional and unconventional

oil/gas prospects in North America and International via:- Exploration and Development- Joint venture with local energy companies- Potential Merger & Acquisition

• Based in Calgary, Bayshore has Liaison Offices located in Beijing, Shanghai and Hong Kong.

Page 4: Heavy Oil/ Bitumen Upgrading Technology Presentation

Introduction of Management TeamManagement TeamPeter Ho (Canada): CEO/PresidentMark Roth (Canada): VP, Finance CF Cheng (Hong Kong/China): China Executive President

Advisory TeamDr. Janusz Grabowski (Canada): Technical AdvisorKen Sinclair (Canada): Senior Technology Partner

Page 5: Heavy Oil/ Bitumen Upgrading Technology Presentation

Management TeamPeter Ho – President and CEO of Bayshore Petroleum

Corp. A Consultant with over 30 years of oil/gas industry experience in North America, China, Middle East, Asia. Mr. Ho is a registered professional Engineer and has worked in Multi-national companies such as BP, Texaco, Kerr McGee, TransCanada Pipeline. Mr. Ho has been involved in setting up a public company in Hong Kong, Canada and has strong relationship with PetroChina, China United Coalbed Methane Corp. and many other international oil/gas companies. Mr. Ho also has involved in numerous Heavy Oil, Oil sand, CBM projects in Canada and China for the past 20 years.

Page 6: Heavy Oil/ Bitumen Upgrading Technology Presentation

Potential Heavy Oil / Oil Sand Upgrading Technology Bayshore has secured a technology that is revolutionary in the

energy industry The technology utilizes a proprietary catalyst to convert Heavy

Oil/Bitumen into light oil (same as Diesel Quality) at normal pressure and low temperature

Different than Conventional Upgrading technology and is a much more simple operation. Both energy efficient and environmental friendly than conventional process.

Bayshore Management owns the right to market and manage the technology application worldwide.

Market size of this business is well over billion dollars range

Page 7: Heavy Oil/ Bitumen Upgrading Technology Presentation

Conventional Oilsand/Heavy Oil Upgrading

Complex Upgrading process involvingComplex Upgrading process involvingHigh Pressure, Temperature and HydrogenHigh Pressure, Temperature and Hydrogen

Page 8: Heavy Oil/ Bitumen Upgrading Technology Presentation

CCC Heavy Oil/ Bitumen Upgrading Technology

Synthetic Gas

Light Oil (>30 API Diesel Grade)

ONE SINGLE STEP !!!

Petcoke

CCCCCCCATALYSTCATALYST 420 Deg C

Atm Pres.No Hydrogen

Page 9: Heavy Oil/ Bitumen Upgrading Technology Presentation

Merits of the Technology UPGRADING PROCESS - CONTINUED

There are surplus high heating value synthetic gas and petroleum cokeproduced in the upgrading process.

The process is designed to upgrade the heavy oil directly to raw Dieselwithout other petroleum distillates such as Gas Oil, Kerosene, Naphtha, etc.

The yield of more than 0.8 barrel of diesel per barrel of heavy oil is muchhigher than conventional refinery which has less than 0.35 barrel of diesel!!

The new technology can be applied to upgrade Heavy oil or Bitumen fromoil sand into light oil products in a much more efficient manner than theconventional conversion process.

Page 10: Heavy Oil/ Bitumen Upgrading Technology Presentation

Process Description Mixing Catalyst and Heavy oil/Bitumen in container

and run through pyrolysis with no pressure or Hydrogen added

Volatile products are collected and condensed into Diesel oil. The other product include Synthetic Gas and solid Petroleum Coke (PETCOKE)

The complete pyrolysis batch process takes 3-3.5 hours to complete and the temperature slowly heated from ambient temperature to 450 degree Celsius.

Page 11: Heavy Oil/ Bitumen Upgrading Technology Presentation

Lab Scale Bench Test

Page 12: Heavy Oil/ Bitumen Upgrading Technology Presentation

HEAVY OIL UPGRADING Laboratory Scale Test

Results

Page 13: Heavy Oil/ Bitumen Upgrading Technology Presentation

Formal China Oilsand /heavy Oil laboratorytest reports preparedfor BayshorePetroleum.

The Inventor is verykeen to apply thisCanada/China jointventure technology toGlobal Heavy Oil/ OilSand countries.

Page 14: Heavy Oil/ Bitumen Upgrading Technology Presentation

Potential Heavy Oil/ Oilsand Upgrading Technology Economic Benefit

$60/Bbl

Page 15: Heavy Oil/ Bitumen Upgrading Technology Presentation

Scale Up Pilot TestSmall ScalePilotUpgraderhas alreadybeenconstructedand testedin BeijingFacility withanticipatedResults

Page 16: Heavy Oil/ Bitumen Upgrading Technology Presentation

Scale Up Pilot TestDiesel coming out from the scale up pilot plant

Unloading coke generated in the process Chunky

Valuable Petcoke

Page 17: Heavy Oil/ Bitumen Upgrading Technology Presentation

Capital Cost Simple Operation requires only heating vessel Estimated Capital cost $10,000 US per barrel per day of

heavy oil processing Example: $20 million US will be able to build a 2,000

barrels per day heavy oil processing plant that can yield 1,650 barrels of diesel plus synthetic gas and Petroleum coke.

Design of the processing plant will utilize the gas for heating and save significant operating cost!!

Page 18: Heavy Oil/ Bitumen Upgrading Technology Presentation

Economic Parameters 1 Barrel of Heavy oil yield 0.83 barrel of Diesel oil using

0.02 barrel of catalyst Cost of Heavy Oil - $60/bbl Cost of Catalyst - $200/bbl Selling price of Diesel - $110/bbl Plant Operating cost - $8/bbl Net Profit - $19-$20/bbl !!!

Page 19: Heavy Oil/ Bitumen Upgrading Technology Presentation

World Heavy Oil ResourcesThe BIG PICTURE !!

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> 3.4 Trillion > 3.4 Trillion Barrels !!!Barrels !!!

Page 20: Heavy Oil/ Bitumen Upgrading Technology Presentation

Business Development & Marketing Bayshore will conduct business development, marketing,

sample collection, conducting laboratory and small scaletests, commercial scale engineering design and others inthe potential heavy Oil/Oil sands countries.

It is anticipated at least 3 major upgrader projects will besecured in the coming months which Bayshore will beable to participate or joint venture with other groups.

If feasible, further fund raising by Bayshore will beconducted to implement the project in each country.

Page 21: Heavy Oil/ Bitumen Upgrading Technology Presentation

BAYSHORE PETROLEUM CORPORATIONFUTURE DEVELOPMENT PLAN

Exploration of better utilization of synthetic gas and Petroleum coke toprovide Bayshore with another stream of steady income.

Expansion of the new catalyst technology can eventually be appliedunderground and turn heavy oil or oil sand reservoirs into lighthydrocarbon reservoirs with high productivity and valuableproducts (synthetic gas and light oil). Bayshore will become thepioneer of the in-situ upgrading technology company and thisdevelopment will open up even more opportunities for Bayshore tobecome a strong upstream operator.

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Page 22: Heavy Oil/ Bitumen Upgrading Technology Presentation

Value Chain of Heavy Oil/Bitumen

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In Situ Upgrading

Surface Upgrader Desulphurizer

Ultra Low Sulphur Diesel product

5 – 20 API Heavy Oil

Petroleum Coke

Upstream Operation

Mid/Down Stream

Catalyst

Gas

Page 23: Heavy Oil/ Bitumen Upgrading Technology Presentation

CONTACT

For Further Information and contact:

Mr. Peter Ho [email protected] Canada- +1-403-630-4355, Hong Kong +852-9160-4450