First Titan Corp.’s wholly owned subsidiary, First Titan Energy, LLC, an emerging energy development company, has signed a letter of intent to negotiate a potential purchase of RenGen, LLC, a developer of cutting-edge oil and gas technology and services.

RenGen has developed a powerful oleochemical solvent named OGT capable of significantly lowering both the costs and environmental impact associated with oil sands extraction as well as oil and gas fracking. The potential acquisition of RenGen and its proprietary technologies and products could give FTTN a leg up in its efforts to capitalize on the worldwide rush to develop new, unconventional resources.

“New technology products like the ones being developed by RenGen are making the recovery of oil and gas once believed to be unreachable a very profitable endeavor for energy companies around the globe,” said FTTN CEO Robert Federowicz. “OGT could potentially be the first in a suite of field service products that First Titan plans to offer that will help reduce extraction costs for oil and gas trapped in difficult formations in regions all over the world.”

Unlike many other commercial solvents, OGT is completely biodegradable, offering an eco-friendly solution to energy companies facing local opposition. With nearly 800 billion barrels of recoverable tar-sand oil in the Western Hemisphere and massive shale gas deposits discovered in Europe, Asia and the Americas, development of unconventional resources is set to explode in the coming years.

“Shale and tar sand resources are the future of energy development,” Federowicz said. “There is a fortune to be made reducing the costs associated with extracting these commodities, and the potential purchase of RenGen may fit our aggressive growth strategy in this booming industry.”

According to the letter of intent, First Titan will have 90 days to conduct due diligence toward a definitive agreement.

“Our research and development effort at OGT has been years in the making,” said RenGen President Jeff Graefe. “It’s validating to see First Titan’s interest in our technology. We believe sustainable development of unconventional resources does not have to be at odds with project economics and environmental responsibility, and OGT was established to prove it.”

Tags: First Titan Energy, LLC