Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : EVFL - Evolution Fuels, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jmhollen who wrote (74)	11/28/2006 11:15:44 AM
From: John J. O`Reilly	Respond to of 175

DALLAS, Nov 28, 2006 (BUSINESS WIRE) -- Earth Biofuels, Inc. (EBOF) today announced that it has acquired Apollo LNG, Inc. from its majority shareholder, Apollo Resources International, Inc. (AOOR) in exchange for common stock of that company. Apollo LNG, Inc., now doing business as "Earth LNG," owns a liquefied natural gas (LNG) processing facility in Topock, Arizona that currently produces over 80,000 gallons of transportation-grade LNG per day, and has a capacity of 86,000 gallons of LNG per day. LNG produced by the plant is sold primarily to municipal fleet customers located along the west coast of California. Liquefied natural gas is produced by cryogenically transforming natural gas into a liquid state at a temperature of minus 260 degrees Fahrenheit. The LNG is then transported to markets in specialized cryogenic tanker trucks where it is used as a transportation fuel, mainly by larger vehicles in municipal fleets that utilize a centralized fueling facility. Earth LNG owns 14 of its own cryogenic transportation tanker trucks. The majority of Earth LNG's customers are in California. The primary customers are municipal fleets such as Omnitrans in the San Bernardino Valley, Orange County buses and garbage trucks, Orange County Transportation (city buses), as well as commercial vehicles such as United Parcel Service in the Los Angeles area, and Waste Management's fleet at various locations up and down the California coast. "The domestic LNG business is in line with the core focus of Earth Biofuels, which is the production and marketing of clean burning alternative fuels that help reduce U.S. dependence on foreign oil," said Earth Biofuels CEO, Dennis McLaughlin. "One of the attractive features of the LNG business is that the margins are effectively locked in. The cost of the plant operations is relatively fixed, and our contracts are structured such that our LNG sales pricing fluctuates proportionately as the cost of our natural gas feedstock goes up or down. This transaction helps to expand and diversify Earth Biofuels' revenues and profitability." An independent fairness opinion was rendered prior to the transaction by the independent business valuation firm, Bernstein Conklin & Balcombe, who concluded that the market value of Apollo LNG was approximately $36 million, and that the consideration being paid was fair. "We believe the LNG industry will begin to see new plants supplied by stranded natural gas from sources such as landfills and dairy farm waste manure. By liquefying this natural gas and getting it to transportation markets, LNG can further evolve into a renewable, clean burning fuel," stated Mr. McLaughlin. Transportation grade LNG is different from most imported LNG in that the former is of superior quality sufficient to be used as a fuel for vehicles, while the latter is typically of lesser quality and is re-gasified to be transported through natural gas pipelines. SOURCE: Earth Biofuels, Inc. Earth Biofuels, Inc. Investor Contact: Doug Jones, 214-389-9800