Freestone Resources Inc. and Dynamis Energy LLC formed a joint venture to vertically integrate the Petrozene additive product line, Freestone said June 25. Freestone Dynamis Energy Products LLC (FDEP) resulted from more than year of strategy development.

Petrozene is applied to tanker sludge, paraffin problems, storage tank maintenance, and other issues, the oil and gas technology development company added.

Both companies will share resources, and will normalize supply of the chemicals used to produce the additive.

C.C. Crawford Retreading Co. Inc. (CTR) was purchased during the transaction. The Ennis, Texas-based tire disposal and repair company is a wholly owned subsidiary of Freestone, handling feedstock for Petrozene. FDEP will install and operate a proprietary technology for Petrozene at the site. The necessary infrastructure for immediate operations of the technology is already in place at the CTR facility, Freestone added.

The specific technology that FDEP will operate at the CTR site has been in commercial operation for several years, used successfully to make Petrozene. Consistent supply of feedstock will allow long-term contracts for large sale volumes, the company said. Byproducts will also provide additional revenue.

"This has been a complex transaction that involved the coordination of multiple parties, but I firmly believe that our persistence and dedication to this project will pave the way for the expansion of Freestone and the development of our relationship with Dynamis," said Clayton Carter, CEO at Freestone.

Freestone Resources Inc. is based in Dallas.

Dynamis Energy LLC is based in Eagle, Idaho.