Coates International, Ltd. Update: Company Management Has Decided Not To Accept The Offer Of Incentives From The State Of Oklahoma, As More Attractive Offers Are Materializing.
WALL TOWNSHIP, N.J., July 10, 2012 /PRNewswire/ -- Coates International, Ltd. (NASDAQ OTCBB: COTE) –Coates International, Ltd. (the "Company") Management has rejected the latest offer of incentives from the State of Oklahoma and, accordingly, will not proceed with the purchase of the Miami, OK manufacturing property. We have learned that this property has environmental problems including the presence of asbestos.
- Management has decided to pursue setting up manufacturing and production operations in another state that is more business-oriented and willing to provide better opportunities for the Coates planned production of its CSRV products. Management is working on securing a package of business and tax incentives with another state that could be finalized by the end of August 2012. However there can be no assurance that the Company will be successful in this endeavor.
Management believes that we do not have competitors in this field because the patented CSRV system technology provides all of the following economic and environmental benefits:
The Coates Spherical Rotary Valve System Technology provides the following benefits:
- Eliminates 2,700 moving parts that are incorporated in the 6-cylinder industrial 855ci poppet valve engines and replaces all these parts with only two assembly CSRV shafts.
- Eliminates the use of engine oil to the top of the engine. The CSRV system does not require oil service from the engine oil pressure system.
- Requires no servicing or adjustment for the life of the engine.
- Can operate on LNG-CNG, flare-off well-head gas, and landfill/syngas while producing ultra low harmful emissions.
- Is patented in most strategic locations worldwide.
- Is expected to generate strong demand from oil and gas companies, governments and others that have expressed interest in our CSRV engine generators. We have received projected requirements from our licensed distributor in Canada for over 11,000 units per year for the next five years.
- Is expected to substantially increase engine life expectancy when running on flare-off well-head gas or landfill gas. Our Canadian licensed agent has advised us that poppet valve engines, which are used by other engine manufacturers have short life expectancies when utilizing well-head flare-off gas, syngas, and wet acidic gas. To demonstrate this point, they have shipped poppet valve engines to us that burnt out in a matter of 2-8 weeks operating in the field.
- Expected reduction of servicing and maintenance down-time of approximately 75%.
- Servicing cost is expected to be reduced by approximately 60%.
- Flare-off well-head gas is the burning off of raw natural gas, a byproduct of oil production. 150,000,000,000 cubic meters of this natural gas is flared off into our atmosphere annually, known as waste gas. The dollar value of this waste gas is $30,000,000,000 USD discarded every year. This contributes to global warming and generation of poisonous elements from the flare-off gas, which include (H2), (N2), (O2), (CO), (C1), (C2), (C3), (1-Butene), (iC4), (NC4),(Trans-2-Butene), (CIS-2-Butene), (IC5), (NC5), (C6+), (H2S), and other sulfur compounds. Just one breath of these poisonous pollutants could kill a human being instantly.
- Coates International, Ltd. believes it can solve these problems with its patented CSRV products and technologies that will be utilized in the oil and gas industry for pumping, compression, and the production of electric power generated from waste gas that would have been otherwise discarded.
- Coates International, Ltd.'s mission is to utilize this flare-off waste gas in our industrial electric power CSRV generators. We believe this will generate revenues for all the companies that utilize CSRV products.
- Reduction of the consumption of fossil fuels.
- Lower the impact of flare-off gas that would otherwise be pumped out into our atmosphere causing global warming, worldwide health hazards, acidic rain, damaging vegetation, contaminating rivers, streams, drinking water, and oceans and causing changes in the weather patterns.
- We believe that when Coates starts producing and deploying large numbers of our CSRV products around the world, our technology will be able to make meaningful advances in addressing these environmental problems.
- It is an arduous task that must be implemented and it will take time and a lot of skill and know-how in various aspects of business engineering. Here at Coates International, Ltd., we believe that our team is up to the task.
Safe Harbor Statement:
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please see our filings with the Securities and Exchange Commission. Our public filings with the SEC may be viewed and printed on the website maintained by the SEC at http://www.sec.gov.
Investor Relations Contact:
Equiti-trend Advisors, LLC
SOURCE Coates International Ltd.