Another news story;
Tuesday December 16, 4:23 pm Eastern Time
Company Press Release
Penn Octane Corp. Announces Signing of Lease to Operate CNG
Refueling Station and Plans for $30 Million Credit Facility
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Dec. 16, 1997--J.B. Richter, president and CEO of Penn Octane
Corp. (NASDAQ SmallCap Market:POCC), today announced the signing of a long-term lease agreement with the
''Union De Credito Industrial, Comercial Y De Servicios Del Estado De Mexico, S.A. De. C.V.,'' the credit union for one
of the largest public transportation companies in the State of Mexico, for the purpose of operating a compressed natural
gas (CNG) fueling station in the State of Mexico.
The lease was signed in connection with the company's plans to deliver and install CNG refueling stations and to provide an
initial 450 CNG-powered buses to serve several public transportation companies operating in the State of Mexico.
''This signing represents the first step in having PennWilson CNG stations operating in Mexico in early 1998,'' said Jerome
Richter, president and CEO of Penn Octane Corporation. The company is also planning to sign other leases for additional
sites in the upcoming weeks.
In connection with the delivery of the initial 450 CNG-powered buses, the company has engaged Rodman and Renshaw
Inc. of New York City to complete a private placement for a minimum of $30 million. The placement is expected to be
completed in January 1998.
Penn Octane is a leading supplier of liquefied petroleum gas to Mexico and propylene to the petrochemical industry in
Texas. Penn Octane operates a 132-mile, six-inch pipeline from a pipeline in Kleberg County, Texas to its terminal in
Brownsville, Texas, which acts as a trans-shipment point for delivery to Mexico.
In addition, the company owns and operates PennWilson CNG Inc., located in Santa Fe Springs, Calif., a leader in
compressed natural gas station design, engineering, manufacturing and safety.
Contact:
Penn Octane Corporation
Jerry Richter, 650/368-1501 |
