CED,
Maybe you could be more specific here....
Some oil companies have placed some money here also, they have a vested interest in the process success.
Maybe you should spend a little more 'reading' time with the last ENBC 10K. In it you will find - in detail - ENBC's rather insignificant relationship with ALL of the often flaunted oil companies.
But just to save you the time let me snip this part out for you.... Note that these big huge companies silently stood by as ENBC almost went broke several different times over the last 9 years...
Gee why didn't they take an equity position in ENBC if they thought there was so much potential in ENBC's technology ?
Seems like they could have acquired a large stake for a small chunk of change if they felt ENBC had potential? Since they all have first hand exposure to ENBC's "gee-whiz" technology - if it were as great as you suggest - don't you think they would have invested in ENBC ?
Maybe you know more than they do. Note also the amount of participation from each of these companies to the ENBC project. It looks pretty laughable to me.
edgar-online.com
ALLIANCES WITH POTENTIAL CUSTOMERS
TOTAL RAFFINAGE DISTRIBUTION S.A. In July 1994, Gee that's a long time ago - what happened? Nuttn that's what... EBC entered into an agreement with TOTAL Raffinage Distribution S.A. ("TOTAL") to collaborate on the application of EBC's BDS process to diesel and other middle distillate fuel streams. EBC and TOTAL will each bear their own costs and expenses incurred under the collaboration. In addition, as part of its obligations under the agreement, TOTAL has provided EBC with the use of analytical equipment valued at approximately $200,000. ROFL!! The agreement with TOTAL provides that upon commercialization, the site license fees will be waived on TOTAL's first commercial BDS unit. In addition, TOTAL will be entitled to receive a 10 percent discount on future site license and service fees until it has recovered two and one-half times its research costs and expenses for BDS projects under the agreement. EBC expects that its alliance with TOTAL will facilitate commercialization of the BDS technology for diesel fuel and EBC's entrance into the European market.
EBC's alliance agreement with TOTAL contemplates an evaluation of pilot plant operations, commencing after EBC's completion of the development of a prototype biocatalyst. EBC completed the development of a prototype biocatalyst in late 1996 and continues to conduct bench-scale and pilot plant experimentation using improved generations of the prototype biocatalyst to address the desulfurization targets requested by TOTAL. (ROFL!!! What kinda mumbo jumbo is this? ENBC claims to met their obligation in '96 and these guys were so impressed they've done nothing to get further involved?)
The prototype biocatalyst is intended to possess characteristics sufficiently similar to the commercial biocatalyst to permit the design of a commercial-scale BDS unit although it is not expected or intended to possess sufficient specific activity or other characteristics necessary to be commercially viable. When the BDS processes reach commercial levels for activity and extent, it is expected that TOTAL will build and operate at TOTAL's expense a pilot BDS unit at TOTAL's European Center for Research and Technology. TOTAL has indicated that it intends to employ its initial BDS units for the "ultra deep" (below 50 ppm) desulfurization of diesel, a range of desulfurization far below current regulatory standards in which BDS is expected to possess greater cost advantages as compared to HDS.
TOTAL is a wholly owned subsidiary of TOTAL S.A., a leading international oil and gas company based in France. TOTAL S.A. participates in every phase of the oil and gas industry with operations in more than 80 countries worldwide and revenues of over $46 billion.
KOCH REFINING COMPANY. In December 1993, EBC entered into an alliance with Koch Refining Company ("Koch") for the development of a biotechnology-based desulfurization system for refinery oil streams. The alliance is expected to accelerate the development of BDS for certain gasoline streams and customize that development for Koch's applications.
Under the terms of the alliance, EBC is primarily responsible for improving the performance of the biocatalyst used in the BDS process and developing a commercial BDS system. Koch primarily is responsible for selecting and providing the target gasoline stream as well as testing desulfurized product quality. (ROFL!!! So let me get this straight... Koch has no responsibilities and ENBC gets to say they're involved with Koch?)
Koch also will provide engineering support as needed in the development of a BDS unit for Koch's operations. Until commercialization, EBC and Koch will each bear their own costs and expenses incurred in connection with the collaboration. Upon commercialization, Koch will be repaid for direct costs and expenses incurred in assisting BDS development. (ROFL!!) Repayment will be in the form of a 10 percent rebate on sulfurization processing fees charged to Koch until Koch has been repaid its share of BDS development costs. EBC expects that the development alliance with Koch will facilitate commercialization of EBC's BDS technology for target gasoline streams.
Koch is a part of Koch Industries, one of the largest privately held companies in the United States. Koch Industries, with annual revenues in excess of $30 billion, is involved in virtually all phases of the oil and gas industry, as well as chemicals, chemical technology products, agriculture, hard minerals, real estate, and financial investments.
TEXACO GROUP, INC. In July 1993, EBC signed an agreement with Texaco Group, Inc. ("Texaco") for the development of a BDS process for crude oil. Under the terms of the alliance, EBC primarily is responsible for improving the performance of the biocatalyst used in the BDS process. Texaco primarily is responsible for field operations, analytical chemistry work, and selecting and providing the target crude oil stream as well as testing desulfurized product quality (ROFL!!! Look - more meaningless mumbo jumbo that requires no responsibility by Texaco - the only value to ENBC is for PR)
Process engineering is conducted jointly by the parties. EBC and Texaco each bear their own costs and expenses incurred in connection with the collaboration. In the event EBC sub-licenses Texaco's intellectual property and proprietary information, licensed by Texaco to EBC, EBC has agreed to pay Texaco an amount equal to 10 percent of the desulfurization processing fee charged to Texaco until such time as EBC has paid Texaco an aggregate amount equal to two and one-half times the aggregate amount of Texaco's direct costs and expenses incurred in connection with the collaboration. EBC expects that the development alliance with Texaco will facilitate commercialization of EBC's BDS technology for crude oil applications.
Texaco is one of the largest oil companies in the world with operations in crude oil production, refining and marketing. Texaco has annual revenues in excess of $46 billion.
PROSPECTIVE ADDITIONAL CUSTOMER ALLIANCES. EBC is also pursuing additional alliances with potential customers, particularly for its organosulfur compounds with companies in the area of industrial chemicals.
ALLIANCES WITH SUPPLIERS
KELLOGG, BROWN AND ROOT. In August 1994, EBC signed an agreement with Kellogg, Brown and Root ("Kellogg") to collaborate on the development and commercialization of BDS technology. Under the terms of the collaboration, Kellogg will serve as an engineering consultant to EBC during completion of the BDS development process and will be the exclusive provider of the basic engineering design services required for commercial BDS units. In return for these services, Kellogg will receive a portion of the site license fee generated by the sale of BDS units. (ROFL!!!!! This is pure comedy!! Another meaningless mumbo jumbo BS agreement)
The collaboration has a minimum term of at least five years or the completion of 20 BDS units, whichever is longer, and applies to all biorefining technologies EBC develops. During the first phase of the collaboration, Kellogg provided 500 engineering work hours of service at no cost to EBC. Kellogg also agreed to provide an additional 1,500 work hours of service at Kellogg offices at reduced rates. EBC expects that the development alliance with Kellogg will substantially enhance its refinery engineering capabilities and market access.
Kellogg is an ISO 9001-certified, international technology-based engineering and construction contractor, serving primarily the hydrocarbon, chemical and energy related industries. Kellogg is a wholly owned subsidiary of Haliburton, a major supplier of highly engineered products and services primarily used in hydrocarbon and energy-related activities throughout the world. Haliburton has annual revenues in excess of $16 billion.
BAKER PETROLITE CORPORATION. In March 1992, EBC entered into a collaboration agreement with Petrolite Corporation, now Baker Petrolite Corporation ("Petrolite"). EBC and Petrolite agreed to jointly develop EBC's BDS process and utilize emulsification and separations technologies and process chemicals developed by Petrolite, if needed. In connection with this collaboration, Petrolite agreed to provide the emulsification and separations equipment necessary for the storage, mixing, injection and delivery of biocatalysts and process chemicals used in the BDS process and to pay EBC $5.4 million during the first two years of the agreement for research and development. Petrolite also agreed to design and finance construction of the pilot plant and to provide service personnel to operate and service the BDS units on site at customer locations.
In October 1996, EBC entered into an agreement with Petrolite providing EBC with the option to amend the terms of its strategic alliance with Petrolite. Under the agreement, EBC made an initial payment of $1 million to Petrolite in December 1996 in exchange for the option and the extension of Petrolite's obligations to provide operational and technical support for the pilot plant from September 1, 1996 through December 31, 1998. EBC elected not to exercise its option to reduce the percentage of site license fees and adjusted gross profit payable to Petrolite to 9.5% from 22%, in exchange for which EBC would have (i) assumed responsibility for servicing the BDS units on site at customer locations (ii) been required to pay Petrolite an additional $9 million in cash and (iii) been required to issue to Petrolite a warrant entitling Petrolite to purchase 19,841 shares of Common Stock at an exercise price of $50.40 per share. EBC instead elected on March 27, 1998 to terminate the agreement, effective March 27, 1999. ROFL - ENBC gor dumped - man they must have impressed these guys!!)
EBC believes this will provide the greatest future benefits including competitive bidding by potential service alliance partners while still at a cost as low or lower that that provided by continuing the agreement. EBC is obligated to pay to Petrolite a decreasing royalty for twenty years from the effective date of the termination of the agreement. The royalty decreases from 22% to 3% in the first ten years following the effective termination of the agreement.
Petrolite was acquired by Baker Hughes Incorporated ("Baker Hughes") in 1997 in connection with which it merged with Baker Hughes subsidiary Baker Performance Chemicals. Baker Hughes, which serves the worldwide petroleum and processing industries has annual revenues in excess of $3 billion. |
