** Refinery Project in Yemen **
ADAIR Announces Co-Generation/Sugar Refinery Project in Yemen
HOUSTON, June 8 /PRNewswire/
John W. Adair, Chairman, CEO and Jalal Alghani, Vice Chairman, CFO, announce the reaching of a Memorandum of Understanding with Arkel International, Inc. (Baton Rouge, LA) and Alfao Establishment Commercial Agencies & Trades (Sana', Republic of Yemen) to sponsor and build a sugar refinery and power co-generation facility in the Free Trade Zone of Aden, Republic of Yemen. ARKEL is a major constructor of sugar refinery and co-generation plants in the international marketplace having built hundreds of facilities since its beginning in 1961. Estimated annual production of the refinery is 660,000 MT and approximately 40 MW of electricity for the local market in the Free Trade Zone.
The projected net income from refined sugar and power will be approximately $18.9 million US dollars a year.
The General Investment Authority of Yemen (G.I.A.) has encouraged the consortium to proceed with its plans and they have been advised that land is available for the project in the Free Trade Zone. The establishment of the sugar refinery and co-generation facility will serve the public interest. The G.I.A., Yemen, issued very clear laws and rules that support this type of investment in the Free Trade Zone. In 1997 Yemen imported over 416,498 MT of sugar at an approximate cost of $149 million and in 1998 342,360 MT at an approximate cost of $120 million. The initial feasibility study is scheduled to be funded by the Trade Development Agency USA (TDA). The initial estimated cost of the facility is $40 million. Roughly $28.5 million will be for US goods and services and of this total Eximbank is planned to finance 85% or $24.25 million and the balance of $15.77 million will be financed through local commercial/Islamic banks in the area.
This co-generation facility and sugar refinery project is in keeping with ADAIR's (OTC Bulletin Board: AIGI) policy of pursuing mid stream and natural gas fired power plants with substantial partners as well as its upstream exploration/production plans.
ADAIR is very aggressively pursuing natural gas power projects and has teamed with one of the major power developers (New York Stock Exchange company) in developing these projects. ADAIR has signed three domestic sites with 500 MW plants projected for each site with an approximate EPC cost of $300 million US dollars each.
A major investment house in New York will supply ADAIR's equity in the projects, which could be between 5% and 20% per site.
ADAIR is concurrently continuing to pursue oil and gas acquisitions with a heavy emphasis on cash producing properties with substantial engineering backup.
John W. Adair, Chairman stated that the company will begin an active drilling program with its targets being natural gas, once the power projects and the cash producing oil and gas acquisitions are closed. ADAIR is in a dialogue with an investment house for a drilling offering at this time. Wartsila feasibility on the Wartsila/Adair project in Columbia is now complete and shows a ROI of 28% until payout and 35% after payout. The finance issues are now being addressed.
This news release contains forward looking statements within the meaning of Securities Litigation Reform Act that involves risks and uncertainties, including exploration, development, operational, marketing, and implementation risks, and other facts described from time to time in the company's public available SEC reports which could cause results to differ materially. SOURCE Adair International Oil & Gas, Inc.
-0- 06/08/99
/CONTACT: John W. Adair or Jalal Alghani, both of Adair International Oil & Gas, Inc., 713-621-8241/
/Web site: aigionline.com -- DATU025 -- 5139 06/08/99 12:04 EDT prnewswire.com Copyright PR Newswire 1998. All rights reserved. |
