Blaze Energy Acquires Kentucky Energy Company
BOISE, Idaho, May 19, 2014 /PRNewswire/ -- Blaze Energy Corp. (OTC Markets: BLZE) today announced, effective April 22nd, it has closed on the acquisition of Kentucky Diversified Fuels, LLC ("KDF"). As announced in the Company's prior release of February 11, KDF is a recently consolidated energy company with operations in eastern Kentucky, consisting of a steam coal strip-mining company, Middle Fork Development Services, LLC ("MFDS"), and subsidiaries; a development stage coal-to-liquid company, MXP, LLC ("MXP"); and a coal feedstock impoundment, situated on 24.68 acres, with approximately 2.4 million tons of in-place fine refuse reserves.
MFDS operates an active coal mining operation in Magoffin County, Kentucky, with annual production in excess of 165,000 tons in FY2013 and revenues of $8.6 million, and projected coal production of 325,000 tons in FY2014, and revenues of $16.3 million. MXP is a development stage, coal-to liquid ("CTL") company, which is seeking to utilize its technology to transform energy trapped in otherwise wasted natural resources, such as the coal fine impoundments acquired by the Company, into superior transportation fuels and fuel additives. MXP has secured a long-term contract with Tenaska BioFuels, LLC to purchase its entire production output for distribution to the consumer marketplace. The coal refuse reserves, known as the Dotson Fork Impoundment, is the by-product of the previous coal mining operations of Chisholm Coal Company, and contains over 1.9 million tons of recoverable coal reserves, providing an estimated 50-year feedstock for the MXP proposed plant.
The Company plans additional updates in the upcoming weeks, once the transition is fully complete and it can more definitively project operational expectations into the future.
The Company is committed to continue to report its progress as it business and operations develop, via additional press releases; by visiting the its website at www.blazeenergycorp.com; and by searching "Blaze Energy Corp" via Twitter and Facebook social media. Information on GreenFields Coal Company may be viewed at www.greenfieldscoal.com, however, the Company makes no representation as to the accuracy of the information provided therein. The above release should be read in conjunction with past press releases; submissions of the Company filed with the Securities and Exchange Commission; future filings, on Form 15c2-(11), 8-K or otherwise, and can be obtained online at www.sec.gov.
This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to matters such as prospects, anticipated operating and financial performance. Actual prospects and performance may differ from anticipated results due to economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the company, including risks of production variances from expectations, market volatility, the level of capital expenditures required to fund ongoing drilling initiatives and the ability of the company to execute its business strategy. These and other risks are described in the company's reports filed with the United States Securities and Exchange Commission. These forward-looking statements are made only as of the date of this communication and Blaze Energy undertakes no obligation to update or revise these forward-looking statements.
SOURCE Blaze Energy Corp.