NECX -.07 ask- comfortable enough and far along enough with their gasifier to take the leap and sell helium biz. Based upon my conversation with company rep, I'd guess more news shortly
Press Release Source: Nathaniel Energy Corporation
Nathaniel Energy Corporation Signs Purchase & Sales Agreement to Sell Its Gas Assets to Midstream Energy Services, LLC
Friday October 7, 5:10 pm ET
ENGLEWOOD, Colo., Oct. 7 /PRNewswire-FirstCall/ -- Nathaniel Energy Corporation (OTC Bulletin Board: NECX - News), an emerging leader in waste-to-energy, announced today that it, along with its wholly owned subsidiary Nathaniel Energy Oklahoma Holdings Corporation (NEOHC) and NEOHC's wholly owned subsidiary MCNIC Rodeo Gathering, Inc. entered into an Purchase and Sales Agreement with Midstream Energy Services, LLC.
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Nathaniel's purchase price for its helium and gas processing facility and operations to Midstream is $16,200,000 payable in cash at the closing. The sale is subject to adjustment for improvements or deficiencies that occur between the effective date of the agreement and its closing. The closing is subject to the approval of Nathaniel's stockholders, among other customary closing conditions.
Prior to the sale of its gas assets, Nathaniel Energy Corporation entered into and closed a Stock Purchase Agreement with Richard Strain in which Nathaniel purchased 4,900 shares or 49% of the common stock of NEOHC for $3,354,210 making it a wholly owned subsidiary. Payment to Mr. Strain was in the form of a promissory note which is payable on demand at any time after December 31, 2005.
Upon closing, Nathaniel's plan is to eliminate almost 90% of its debt from the proceeds from the sale of the gas and helium assets and to focus its efforts on the commercial rollout of its patented technology, the Thermal Gasifier(TM). Nathaniel plans to pay off its debts to Richard Strain in the amounts of $3,354,210 and approximately $9,900,000 and the remainder of the proceeds will be used to advance the commercialization of the company's technology and for overhead.
Over the last two years, Nathaniel has achieved several key milestones in preparation for the launch of its proprietary technology, the Thermal Gasifier(TM) that diverts waste from landfills and converts it into clean green energy. Nathaniel has increased the value and cash flow in the gas assets to fund operations and complete the development of Nathaniel technology. It has completed the construction of two commercial Thermal Gasifiers(TM) for a project in Europe that provides "proof of process" for the technology. It has assembled a management team to support the commercialization of its technology. Now, Nathaniel is completing its plan for the elimination of the majority of its debt and retaining enough capital to pursue its core business plan.
Nathaniel Energy (www.nathanielenergy.com) provides industry with an alternative energy comparable to that of fossil fuels. Nathaniel's operational plan focuses on three business models in the commercialization of its Thermal Gasifier(TM) technology: licensing; creating energy infrastructures or utility islands for industrial and commercial hosts; and building, owning and operating small waste-to-energy plants. Nathaniel's Thermal Gasifier(TM), is a 2-stage gasification system designed to combust waste, biomass, tires and any other solid, hydrocarbon-based materials into inexpensive electrical and thermal energy, while exceeding the most stringent EPA and European Union regulations.
Midstream Energy Services, LLC is a privately held Tulsa, Oklahoma based company engaged in the gathering, processing, treating, compression, dehydration, transportation and marketing of natural gas and natural gas liquids.
Statements in this press release other than historical facts are "forward-looking" statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Future operating results of the Company, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements. Readers are advised to review the "forward-looking statements" included in our reports which are filed with the Securities and Exchange Commission.
Source: Nathaniel Energy Corporation |
