NEW YORK, June 20, 2012 /PRNewswire/ --
Energtek, Inc. (Pink Sheets: EGTK), a leader in hi-tech natural gas solutions and Absorbed Natural Gas (ANG) technology, today issued the following update to shareholders.
Dear Shareholders:
Energtek is pleased to report several positive developments during the first half of 2012. Our company has made significant strides overcoming harsh financial conditions during the difficult economic downturn that started in 2008 and affected thousands of companies worldwide.
Energtek can now proudly announce that we are no longer a company in the development phase of a theoretical business model. Rather, we have been able to successfully leverage our proprietary technology to become a commercial energy transporter and supplier. Today, Energtek buys transports and sells natural gas in Pancevo, Serbia as well as Mostar, Bosnia-Herzegovina.
In Serbia, Energtek has been operating a revenue-earning pilot project since the beginning of 2011. While the size of the current project is still relatively small, the quantities of natural gas delivered has increased over the past few months, and our operations both logistical and technical have continued flawlessly.
In Bosnia-Herzegovina, we are implementing our largest commercial project, supplying significant ongoing quantities of natural gas to two industrial consumers-including Aluminij d.o.o. Mostar - one of Eastern Europe's largest aluminum producing factories-as part of a multi-million dollar natural gas supply contract signed during 2011.The 10-year contract is expected to yield revenues of approximately $30,000,000 in the first three years of full operations, with expected total revenues of about $100,000,000.
Energtek has been working diligently since the middle of 2011, to organize the necessary operational, financial and legal aspects of the project, including purchasing and installing equipment and converting the existing facilities to operate on natural gas.
We are proud to report that as of late June 2012, we have commenced commercial deliveries of natural gas on a daily basis. Quantities of natural gas will increase gradually until we reach the stage of full ongoing energy supply in the first months of 2013.
Energtek is simultaneously pursuing the signing of additional supply contracts in the region.
As reported several months ago, our Israeli subsidiary GATAL has signed an agreement with the operator of an active oil field in Israel that contains associated natural gas (quantities of natural gas that are extracted together with oil).
GATAL has successfully finalized an investment agreement to implement a local natural gas supply project and is actively working to receive the necessary permits to transport the gas.
Similarly, GATAL is now intensively involved in negotiations with industrial consumers to purchase ongoing natural gas supply.
We are hopeful that all required elements of the supply and delivery chain for the commercial implementation of ongoing energy supply to local consumers in Israel will be completed by not later than Q1-2013
Becoming an officially recognized transporter of natural gas in Israel is particularly important for Energtek. With the major recent discoveries of natural gas off of Israel's coast including Tamar and Leviathan, Israel is moving fast towards energy self-sufficiency. Energtek's natural gas transportation solutions and immense local knowledge and experience have the potential to prove extremely valuable in Israel, a small nation with major natural gas supplies but lacking a pipeline infrastructure.
In conclusion, we are pleased that we have advanced so far since such difficult times. We believe that we have turned the corner and are moving forward with intent to fully implement all aspects of our commercial business model in both former Yugoslavia and in Israel.
On behalf of Energtek's dedicated management team, I would like to personally thank each of our loyal shareholders for their support during this rebuilding period. I am confident that this support will translate into further successes during the second half of 2012.
Sincerely,
Lev Zaidenberg
CEO, Energtek
About Energtek, Inc.
Energtek develops and applies innovative low-pressure mobile transportation solutions for industrial consumers and fleets of small vehicles. The company is also involved with oil and gas exploration in Israel. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visit http://www.energtek.com.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Energtek and its technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and other matters set in Energtek's filings. These risks and uncertainties could cause actual results to differ materially from those indicated in the forward-looking statements.
Investor Relations Contact: [email protected], +1-212-999-6202
SOURCE Energtek Inc.
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