JCF Consulting Inc. is a management consulting firm and JCF Capital Advisors, LLC is a capital advisory group with a vast network of angel capital, family office, venture capital, private equity, and institutional investors.

San Diego, CA, February 09, 2010 — Visalo Energy, Inc. has tested, acquired, and now further refining and commercializing a new heavy oil extraction technology – a unique production and extraction method that dramatically increases recovery rates to 90% or higher at substantially lower entry costs providing a commercially viable alternative without imposing environmental risks.

Worldwide, the Heavy Oil industry is a $155 billion-a-year business, and is expected to continue growing as oil demand increases and supplies dwindle. There is 300 years worth of heavy oil at the current rate of consumption. Refineries all around the world are retooling their facilities towards heavy oil refining. Furthermore, prices per barrel have closed in on regular crude spot prices. In addition, there is no clear cut production standard in the heavy oil industry. The technologies used today are Cold Heavy Oil Production with Sand [CHOPs], Steam Assisted Gravity Drainage [SAGD], Strip Mining Methods, Cyclic Steam Stimulation [CCS], Vapor Extraction [VAPEX], In situ combustion, and Electricity and Microwave Heating.

Visalo’s new technology and production method will directly compete with existing heavy oil and conventional oil recovery technologies. The initial pilot of the technology produced up to 100 barrels of heavy oil per day. The results of the pilot and further refinements indicate that it has the capability to exceed 100 barrels of heavy oil per day. The technology is designed to extract heavy oil from formations such as tar/oil sands with a calculated recovery of 90% or more. The process mechanically injects a heated solution delivered deep into the formation by a proprietary tool that melts the heavy tar oil to a thin viscosity and then extracts it to heated storage tanks on the surface. Upon completion of the extraction of all available heated oil, the injection cycle is started again.
The competitive advantages over its competition include constant control and fracturing with no paraffin accumulation, a cost effective extraction method with substantially lower entry and production costs enabling higher margins and longevity, while providing an environmentally safe solution with no contamination of formation or blocking of production. Conservative production rates with low entry and extraction costs will generate higher revenues, profits, and market share than any other competitor method of extraction that is either not commercially viable, imposes environmental risks, or produces substantially lower production rates.

Visalo is in discussions with a number of private equity investors to support the refinement and commercialization of this technology by acquiring multiple oil and gas leases in the southern Texas region. Management will utilize these funds to construct and bring online a full pilot producing well further developing this new technology in order to maintain, adjust, and test the well for maximum output of oil and gas production. The technology will be set-up in a natural gas well to determine its commercial viability for conventional gas wells. A thorough installation and troubleshooting procedure will then be standardized, licensing procedures formalized, and joint venture partners developed to fully commercialize and bring this new technology to market.

For more information, please contact Justin Floyd, Chief Financial Officer, Visalo Energy, Inc. at justin@jcfconsulting.com.

JCF Consulting Inc. is a management consulting firm and JCF Capital Advisors, LLC is a capital advisory group with a vast network of angel capital, family office, venture capital, private equity, and institutional investors. Our investor network reach extends to over 950 angel capital groups, 20,000 angel investors, 750 family offices with $150B of assets under management, and over 4,300 venture capital and private equity firms.
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Contact :
Justin C. Floyd
JCF Consulting Inc.
4370 La Jolla Village Drive, Suite 400
San Diego, CA 92122
(858) 646-3028
justin@jcfconsulting.com
http://www.jcfconsulting.com