Temple Mountain Energy Arrives on US Energy Production Scene

Business Wire, Oct 17, 2006

New Company Introduces Innovative Technology to Boost Nation's Heavy Oil Production from Oil Sands

MINNEAPOLIS -- Corporate officials formally announced today the operational start up of Temple Mountain Energy, Inc. (http://www.templemountainenergy.com) at the privately held company's offices in Minneapolis, Minn.

Initially incorporated in the State of Minnesota in 1998, TME officials have worked diligently for several years to develop innovative technical solutions to offset the United States' growing dependency on foreign sources of energy.

"We are now ready for TME to enter onto our nation's energy production stage, and target the billions of proven barrels of heavy bitumen oil lodged in oil sands fields located throughout North America," said Jim Runquist, the company's chairman and chief executive officer.

"Heavy oil, being highly viscous, restricts the flow from the reservoir to well bore and is difficult to bring to the surface using conventional oil production methods, and that's why much of the oil sands are surfaced mined," he explained.

TME owns two specific enhanced oil recovery (EOR) technologies. One is an environmentally friendly fluid (PS-3) that is a significant permanent viscosity reducer, and the other is a production concept called the Diablo Mixing & Separation System.

Together, they represent "the process" that TME will use in surface mining of oil sands, resulting in sand and oil being separated with significant reductions in the viscosity and improved API gravity - or quality -- of the oil.

"TME is part of a new generation of emerging energy companies working collaboratively with both state and federal government agencies and larger energy companies to tap the full potential of crude oil left stranded by a domestic petroleum industry in transition," Runquist said.

"The changes we've seen on the domestic energy scene for a number of years now have resulted in numerous small, but producing energy properties left stranded or dormant," he explained. "While these properties may be deemed 'marginal' or inefficient for development to a large company, they can be commercially viable to a smaller energy production company with less overhead.

"But, the basic geological challenge energy producers have with heavy oil is its very high viscosity, which makes it very difficult to transport efficiently from the soil to storage to transport, and finally to a petroleum refinery," he added. "This is where our energy technology team has focused its attention and is prepared to introduce and implement new innovation methods to producing oil from oil sands.

"Through these innovative developments by TME, we are able to offer technical solutions that will allow our domestic energy industry to tap the billions of barrels of proven domestic petroleum reserves that lie idle today," Runquist said.

"Every aspect of TME's operation is designed to revitalize stranded oil assets.

"This is our core business," Runquist explained. "It allows direct focus on precisely the kind of expertise and outsourcing needed to make such oil sands assets economically successful.

"As owner and operator, TME will have extensive control over the safety, quality and development of these stranded assets," he added. "TME plans to apply the right technology, processes, the best people, and the necessary resources to achieve economically viable production."

Runquist, with more than a quarter century of corporate business development experience, has assembled a TME leadership team that includes:

* Larry Clynch, Chief Operating Officer, 35 years of experience in the domestic and international pipeline and terminal business including serving as president for two energy companies -- TransMontaigne Pipeline & Terminal Companies and Conoco Pipe Line Corporation.

* Richard Lecy, Chief Financial Officer & Treasurer, extensive business financial management experience and well versed in leading several start-up and growth oriented manufacturing and service companies that leveraged government resources as they were developed.

* William Messerli, Vice President-Business Development, a Minneapolis-based attorney with extensive legal background in business real estate and tax law.

* Bill Scott, Board Director, 32 years of experience with public and private firms in transportation, energy and utilities, and an innovative corporate officer recognized for expertise in managing energy and hazardous/toxic materials with zero tolerance for operational failure.

* David Bower, Chartered Waste Manager, 15 years of research and development experience and innovator/developer of the Diablo mixer and separation technology.

* Robert Trent, Vice President-Research & Development, Thirty-plus years in oil and oil mining production and engineering including serving as president and/or vice president of several small mining and oil companies.

* J. Edwin Lubbers, Vice PresidentCoInternational & Project Development, extensive experience in identifying and evaluating property or business opportunities (acquisition, divestitures) and served as operations director for the United State's sixth-largest military fuel depot.