Arkenol Asia Designated As Development Agent By KIDCO For 1000 MW Power Station In Thailand
LAKE FOREST, Calif.--The L.L. Knickerbocker Co. Inc. (NASDAQ:KNIC), Tuesday announced that Arkenol Asia was named as the Development Agent for Kra Isthmus Development Co. Ltd., (KIDCO) of Thailand and the Southern Seaboard Project (SSP), in the implementation of its proposed 1000 MW gas fired electrical power plant near Songkhla, Thailand, and in any future extensions of the plant.
The power plant is estimated to cost $750 million, with two years of planned construction time. Construction is scheduled to commence in 12 months.
KIDCO leads an international group which will play a key role in the $9 billion effort to develop the SSP in Thailand. SSP comprises major infrastructure development in the southern Thai provinces, including Songkhla, Nakhon Si Thammarat, Phangnga and Phuket, with ports on the Andaman Sea and the Gulf of Thailand, and a transportation corridor between them, to facilitate regional and international trade.
Significant industrial development will be undertaken in the first instance on the east coast at Songkhla, and adjacent to the port in Nakhon Si Thammarat. This may include power stations, oil refineries, petrochemical complexes, a cement plant, shipyard, industrial estates, efficient intermodal transportation facilities and housing for employees, using funds from international and Thai sources.
The power station in Songkhla anticipates using gas from the joint Malaysia-Thailand gas fields in the Gulf of Thailand.
Kra Isthmus Development Co. Ltd. is a special purpose Thai company formed to invest and participate in the SSP. KIDCO has proposed to the Royal Thai Government (RTG) to undertake, on a private basis, major elements of the SSP, and to coordinate and manage the private investment elements of the project in the long term.
To this end, KIDCO has signed a Memorandum of Understanding with the Petroleum Authority of Thailand and a Memorandum of Cooperation with the Industrial Estate Authority of Thailand, the two authorized government agencies for the SSP, which commit KIDCO to work with the RTG authorities to plan, implement and manage the SSP.
KIDCO has secured markets in China and Malaysia to support developments in the SSP, and has informed the RTG it is now ready to commence work on the project in accordance with the Eighth Five Year Plan and in line with RTG policy. KIDCO, Arkenol Asia and assigned developers will complete feasibility studies, secure financing and develop facilities.
In addition to being named a Development Agent for KIDCO on the Southern Seaboard Project, the agreement between KIDCO and Arkenol Asia grants Arkenol Asia a percentage ownership in the shares of KIDCO.
"Arkenol Asia, through its affiliates, has demonstrated experience in the development, construction and operation of electrical power plants," said Jim Coleman, managing director of KIDCO.
Arkenol Asia is a joint venture owned 50 percent by The L.L. Knickerbocker Co. and 50 percent by Arkenol Holdings LLC. The joint venture was formed to utilize Arkenol's exclusive licensed technology in certain Asian countries relating to the conversion of cellulosic plant matter waste into chemicals and clean burning fuels. Arkenol's affiliate company, Ark Energy Inc., is an international power developer.
Louis L. Knickerbocker, chairman and CEO, said "KIDCO has more than two years in the development of the Southern Seaboard Project. The naming of Arkenol Asia as Development Agent, and the opportunity for Arkenol Asia to become a partner in the implementation of the SSP project, constitutes a first step in establishing a foothold for Arkenol Asia in its business plan to become a major energy provider in Asia."
The L.L. Knickerbocker Co. markets a wide variety of branded collectibles, jewelry and accessories and consumer products. The company's primary focus is to create and build brands which can be marketed through a variety of channels, including national and international retail and direct response mail.
The company has a 38.3 percent equity investment interest in Pure Energy Corp., the exclusive worldwide licensee to an alternative fuel. Recently, the U.S. Patent office issued a Notice of Allowance for claims covering the alternative fuel which is patent pending. In addition, the company has a substantial equity interest (approximately 31 percent) in Ontro Inc. and Insta Heat Inc., involved in the development of containers which self-heat food and beverages.
Visit the L.L. Knickerbocker Web site at www.knickerbocker.com . NOTE:
This news release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, which involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors affecting the company's operations, markets, products, services, and prices, and other factors. The company's actual results could differ materially from those projected in the forward-looking statements as a result of the factors described herein.
CONTACT: The L.L. Knickerbocker Co., Lake Forest
Louis L. Knickerbocker, 714/595-7900
or
Financial Sciences of America, Los Angeles
Fran Daniels, 310/278-4413
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