O.H.,
New out today....
ERHC To Begin Panama Offshore Canal Fuel Service
Business Wire - March 05, 1998 15:30
%ENVIRONMENTAL-REMEDIATION ERHC %LOUISIANA %OIL %GAS %ENERGY
%CHEMICALS %PLASTICS V%BW P%BW
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LAFAYATTE, La.--(BUSINESS WIRE)--March 5, 1998--Environmental Remediation
Holding Corporation (ERHC OTC: BB) announced that it has entered into a joint venture
agreement with Centram, S.A., a Panamanian Corporation, to supply fuel and other supplies
to vessels transversing the Panama Canal from the Caribbean Sea (Atlantic Ocean) side of the
Canal. Centram was granted a ten (10) year concession from the Panama Canal Commission
("PCC"), to supply the fuel and will receive 33-1/3% of this joint venture for the contract.
ERHC, in exchange for 66-2/3% of the net profits, will supply a tug boat and a 30,000 barrel
(1,260,000 gallons) fuel barge. ERHC is currently negotiating the lease of a barge and tug for
this project. Marine traffic crossing the Panama Canal is at an all time high. The PCC has
committed One Billion ($1,000,000,000) USD to upgrade and improve the Canal in
anticipation of a further increase in vessel traffic. Approximately forty-five (45) ships pass
through the Colon side of the Canal daily and 1996 statistics demonstrate fuel sales of over
five (5) million gallons per day. The current concession holders are land based operations
which require vessels to be piloted and towed to land based refueling stations. ERHC's
operation will permit vessels to remain offshore for refueling. "Bunker" fuel, as it is known in
the industry, currently sells for approximately $0.50 per gallon with a historical average
mark-up of $0.08 per gallon. "ERHC conservatively anticipates," as stated by Noreen
Wilson, ERHC's Chief Financial Officer, "sales of 500,000 gallons per day at the start of the
program and increasing to one (1) million gallons by the end of the first year of operation.
Assuming a conservative markup of only $0.04 per gallon, ERHC anticipates gross sales on
500,000 gallons to be in the range of $250,000.00 per day resulting in a gross profit of
$20,000.00 per day. ERHC's net operating profit after payment of a three (3%) percent
concession fee on gross sales and operating costs is anticipated to be $5,133.00 per day
(approximately $1,873,666/year) or a 65.7% yearly return on its investment. Assuming
ERHC/Centram is able to sell its fuel at the $0.08 per gallon mark-up, gross operating profits
could potentially generate $40,000.00 per day at start up resulting in a net operating profit to
ERHC of $18,466.00 per day (approximately $6,740,333.00 per year) and a 236.5% annual
return on investment. These amounts could potentially double by the end of the first year of
operation, as the amount of fuel supplied rises to one million gallons per day." (The following
are examples of potential yearly net profits to ERHC: Sale of 1,000,000 gallons per year @
$0.4 per gallon yields approximately $4,900,000.00; and, if sales reach 1,000,000 gallons @
$0.8 per gallon per year, potential profits could be realized in the amount of $14,600,000.00).
"This joint venture," remarked Sam Bass, Jr., ERHC's CEO, "marks a major turning point for
ERHC. With profits from the Panama project, ERHC will derive a positive cash flow for the
benefit of the Company's shareholders and to further the ERHC name in the oil and gas
industry." The project will be managed by Mr. Charles Briley, founder and CEO of Centram,
S.A. Mr. Briley has 38 years of experience in operating maritime industries. He is one of the
founders and former Director and Senior Vice president of Offshore Logistics, Inc. the
second largest international marine transport company and fourth largest helicopter company
supporting the offshore oil and gas industry. Mr. Briley has managed the coordination of over
55 vessels in the Gulf of Mexico and organized and controlled 55 vessels in the Singapore
region while working for Offshore Logistics, Inc. before retiring. "This is a wonderful and
profitable opportunity for ERHC and Centram," remarked Mr. Briley, Centram's CEO, "and I
am very pleased to be once again working with Sam Bass. ERHC is a growing company and
this joint venture will add to ERHC's 'cradle to grave' approach in the oil and gas industry."
Environmental Remediation Holding Corp. is engaged in oil and gas production activities and
environmental remediation, both domestically and internationally. This includes the
development and rework of oil and gas properties, plug and abandonment services (P&A),
environmental engineering and consultation, hazardous waste management (including NORM
waste), non-hazardous waste clean-up, transportation and disposal, and the manufacture and
distribution of waste clean-up materials. For more information concerning ERHC, please visit
our website at www.erhc.com. Certain matters discussed in this news release are
forward-looking statements, as it is defined in the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are subject to a number of known and unknown risks
and uncertainties including, but not limited to, fluctuations in the price of crude oil and natural
gas, the success taught of exploration efforts, the timeliness of development activities in Texas,
Utah, and the Gulf of Guinea, West Africa, changes in the political and economic environment
in which ERHC has international operations, as well as availability of human and financial
resources; which may cause actual results to differ materially from those expressed in any
forward-looking statements made by on or behalf of ERHC.
CONTACT: Darryl Hackman
GFC
561-655-7575
or
Cynthia DeMonte
212-473-3700
e-mail: cdemonte@aol.com
or
James Griffin
Corporate Secretary
Environmental Remediation Holding Corp.
516-433-4730 |
