ANNUAL REPORT 1998
Dear Shareholder,
The 1999 shareholders meeting has been completed. The turn out was better than last year and we thank those shareholders for taking the time to attend the meeting and express their concerns and ideas to the management.
During 1998, Eagle continued the acquisition process for the Texas Swan Lake Facility. The original seller, Malone Company, was forced into insolvency by the State of Texas due to non-payment of fines (5+ million). This event pushed the estate into bankruptcy and we have been negotiating with the Bankruptcy Court and Trustee ever since. Eagle secured a bank loan of five (5) million dollars to consumate the purchase, but competitive bids caused the Trustee to set up an auction system of purchasing the facility. Eagle bid the highest amount, but had to withdraw from the purchase when the payment procedure was significantly changed to make the purchase unacceptable to Eagle. In April, the company re-submitted the offer to purchase under the original terms, but at a lesser price. No other offer is currently pending from any other prospective buyer. When Eagle is successful, a separate announcement will be made on this issue.
During 1998, Eagle terminated its efforts to purchase American Water Technologies (AWT). AWT was unable to provide necessary documents to conclude the acquisition. AWT subsequently went out of business in 1998. To provide the water technology we were seeking, Eagle began working with new manufactures and engineers to develop our own system. Eagle also met with several food processing companies, water districts and distributors to determine the market for the equipment. In 1998, the EPA upgraded the rules for water purity. The State of California will implement the new rules in July 1999. The new rules will force many of the water districts to add new equipment. Eagle?s equipment is the only currently approved membrane (filter) system to provide potable water from surface sources. Eagle has re-organized its sales department to create independent territories to develop the market. Sales are expected to begin in the summer of 1999.
During 1998, Eagle and its partner, EDC Engineering, developed a system to recycle used oil drilling mud. This mud is created during the well boring processes. The mud is critical for the driller as it acts as a lubricant in the well bore. The new mud would be used to improve oil flows in existing wells. The demonstration equipment is on order, with delivery expected in June or July. The world market uses an estimated amount of 100 million tons annually, at about $500 per ton. Eagle will initially target the US market, beginning in the Oklahoma fields. The initial volume will be about 25,000 tons processed annually. Eagle has a pending customer in Oklahoma that will purchase all of the material we can produce. We expect to have full scale field operational equipment available in early 2000.
Besides the efforts in Texas, Eagle has continued to seek out new companies or technologies that could enhance our plasma equipment. One such company is Heat Steam and Power, from Toronto, Canada. HSP and Eagle have agreed to a ?Letter of Intent? to merge. Eagle will wholly own HSP and its technology of ?Turbulator Incinerators?. HSP specializes in biomass combustion. This technology combined with our plasma system will reduce landfill wastes to smaller amounts and generate power for other uses. The merger is expected to be completed by July 1999. HSP has been marketing its proprietary system since 1995. The HSP system can use any biomass, refuse, sludge or oil as a fuel. This allows the system terrific diversity in the market. To treat certain wastes, the system had to be able to treat the ?off gases? that are a normal by-product of combustion. Our plasma system eliminates that concern and opens up numerous locations. HSP generates enough waste heat to allow co-generation of power, thus providing its own power source for all equipment, including plasma, to operate inexpensively. New engineering plans that will combine the equipment will begin in June, with expected completion in August 1999.
To facilitate all of the new activities, the company decided to expand its offices to include assembly and warehousing capability. The warehousing facility will allow us to test, develop and display some of the new technologies. The premises will be ready for us in July 1999. New personnel will be staffing the facility and we expect several of the shareholders to visit us during the upcoming years.
In addition to the new activities of the management, the management made some significant changes at the shareholders meeting. We have added two new directors to the company, Mary Webster from Heat Steam and Power, and H. C. ?Hank? Gillette. Ms Webster is a highly qualified geologist and administrator who was also President of HSP. She brings to us numerous contacts in the burner industry and can assist us in several of the Canadian markets. Mr. Gillette was elected President of Eagle Environmental Technologies, Ltd. Mr. Gillette has over 20 years in the waste business and brings us numerous contacts with business associates, other waste companies and possible employees that can accelerate our growth plans.
The final vote elected the directors as listed:
Brian D. Wilmot, Gerald A. Wilmot, Hank Gillette, Mary Webster, Judy Wilmot and
Richard LaMantain
The Board of Directors elected the following officers:
Brian D. Wilmot, Chairman/CEO, Hank Gillette, President/COO, Gerald A. Wilmot, Vice President, Judy Wilmot, Secretary/Treasurer
All of the officers are excited about the upcoming year with the new technologies, acquisitions and business relationships that have become available to the company. We look forward to seeing you next year. The attached financial statements are unaudited (1998), but give you a good picture of the past year?s activities.
Yours Truly,
Brian D. Wilmot,
Chairman/CEO
Again, as emailed to me by Eagle's Pres/CEO
Aloha,
E.B. |
