Bayshore Petroleum Corp. and E-T Energy Ltd. previously announced that they had entered into a memorandum of understanding and were conducting due diligence with the objective of producing diesel at ET's Poplar Creek, (Fort McMurray, Alberta) bitumen property. The original memorandum was terminated because the structure and content did not reflect the ongoing discussion between the Parties. The Parties are continuing their discussions and efforts to reach a definitive agreement.
ET wholly owns 3,200 hectares of bitumen rights at Poplar Creek. It currently holds Alberta Energy Regulator approval to produce 1,000 b/d from this land using its electro-thermal dynamic stripping process ("ET-DSP") technology. ET's third party engineering report estimates that, as of October 1st, 2011, ET's Poplar Creek property contained approximately 607 million barrels of bitumen in-place.