One of the key competitive advantages OPTI brings to oil sands development is our proprietary, next-generation OrCrude™ process. An upgrader based on the OrCrude™ process, when combined with commercially available hydrocracking and gasification technologies, is a proven and patented way to upgrade bitumen to high quality synthetic crude oil while substantially decreasing the use of natural gas – thereby significantly reducing the single largest and most variable operating cost component facing in-situ oil sands project developers.

The first commercial application of the OrCrude™ process is the Long Lake Project in the Athabasca oil sands of northern Alberta. The Long Lake Project initiated first steam in the ground in mid-April 2007, with first production of PSC^TM anticipated mid-2008.

After treating, diluted bitumen is fed into the Upgrader, consisting of our proprietary OrCrude™ unit, a gasifier and a hydrocracker. This energy efficient technology uses asphaltene residue to produce virtually all of the fuel gas required to supply the commercial SAGD operation, a cogeneration facility and the Upgrader, as well as hydrogen to feed the hydrocracker.

Conventional, stand-alone SAGD operations must purchase natural gas, typically their largest input cost, to generate steam for their wells. Similarly, many upgraders need to purchase natural gas to form hydrogen.

The end result of this unique configuration of conventional and proprietary technologies is a superior crude oil produced at the Long Lake site, at operating costs that are expected to be among the lowest in the industry.