Wednesday April 22, 2:14 pm Eastern Time
Company Press Release
Midland, Inc. Makes Corporate Announcements
DALLAS--(BUSINESS WIRE)--April 22, 1998--Midland's subsidiary, Arcon, announces the following:
Bob West Field
After extensive evaluation of the South Falcon Dam extension of the Bob West Field in Texas, Arcon has elected to withdraw from the project. The risk involved in
the initial $11 milion project is significant from the legal and production view. It is Arcon's opinion that production in the South Falcon would be marginal, and we
have elected to concentrate development efforts on DF-144, in light of recent stunning developments in California.
California
The recently announced development of ethanol-based gasoline sales in the ''Golden State'' has opened up tremendous opportunities for Arcon's DF-144. The
market alone could represent as high as 7 million gallons per day and 2 billion in sales. Arcon has developed a 100,000-gallon per day plant and is expanding to a
variable 350,000 gpd jumbo plant. In simplistic terms, ethanol for gasoline blending costs $1.20 per gallon and has a blend value of 115%. Ethanol is added to
other components such as raffenate napthas to make 87-91-93 octane gasoline.
Arcon's ethanol DF-144 (Dynamic Fuel 144) costs $1.05 per gallon and has a blend value of 165%. There are tremendous cost savings to the blender by using
only 12-20% of DF-144 per gallon of gasoline.
The Renewable Fuels Association reports that ethanol has not been used in motor gasoline in California due to excessive costs resulting from arbitrary barriers put
on ethanol by the California regulators. Tosco has taken a giant step in responding to consumer demands by introducing ethanol blended gasoline in California.
Assemblywoman Debra Bowen, Natural Resources Committee Chairwoman, has introduced AB 1642, which would provide the flexibility to allow refiners a
choice of oxygenates. The Transportation committee recently approved the legislation unanimously (23-0). The potential for our product now appears to be beyond
our greatest expectations.
Plant Commissioning
Arcon has commissioned Maverick Engineering, Inc. to manufacture its first 100,000-gallon plant for production in Sept. 1998. Milestones for the plant are as
follows:
-- April 24 -- HAZOP study complete (Hazardous operations OSHA is
complete);
May 1 -- Issue process and final installation plans;
May 8 -- Final signoff of engineering requirements;
May 8 -- Issue turnkey contract;
June 26 -- Supervision of detailed design project;
July 3 -- Authorize procurement of all equipment, pumps, etc.;
July 17 -- Assemble unit for completion;
Aug. 14 -- Site installation ready for completion;
Sept. 1 -- Complete commissioning and start up.
Arcon is busily defining markets in several regions of the country, such as Colorado, Ohio, Indiana in addition to California and has been contacted and is in
discussion with two major corporations about DF-144. Industry experts have cautioned us that we may be underestimating and possibly undervaluing DF-144 as to
the size of the market and the present price. Arcon is receiving inquiries internationally also.
Management also is taking investment advisement on the share structure of Midland; particularly the Series ''A'' preferred on ways to enhance the total value for
sophisticated and institutional investors.
Lastly, Arcon's website will be available within a week at Arconlimited.com.
If you would like to be placed on our e-mail information list, please communicate it to us via e-mail at archem@swbell.net or fax at 972/991-3295 or call toll-free
888/478-5010.
Contact:
Midland, Inc., Dallas
Investor Relations, 888/478-5010 |
