Energtek Inc. Issues Letter to Shareholders
- 2013 Performance Surpassed Expectations
- Company Outlines Plans for Major Worldwide Expansion of Operations in 2014
- EGTK Board of Directors Evaluates Alternatives re Upgrading of Stock in 2014
NEW YORK, Jan. 8, 2014 /PRNewswire/ -- Energtek Inc. (OTCBB: EGTK), a leader in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, today issued the following letter to shareholders, covering three main subjects: summarizing commercial business developments in 2013, plans for major worldwide expansion of operations in 2014, and upgrading its stock in 2014 to a major exchange.
During 2013, Energtek has made significant progress, validating our business model to acquire and resell energy at a profit, by leveraging our proprietary technology and knowhow. We met and surpassed our revenues goal of $10m, thus exceeding expectations.
We believe that in 2014 we will aggressively grow our business and further expand worldwide operations.
Our Board of Directors, while not yet making any determinations regarding the type and timing of any alternatives to upgrade our stock, does expect that such an event will likely occur over the next 12 months, if it is in the best interest of our stockholders to do so.
Business Development – we are planning during 2014 to expand our operations as follows:
1) USA – our newly founded subsidiary, AMP - American Mobile Pipeline, hopes in Q1-2014 to complete the signing of its first commercial contract in Midland, West Texas (quoted by Time Magazine, Oct 28, 2013 issue, as the "hometown" of the American oil and gas industry).
Following this, AMP will seek to close further projects in Texas and throughout the U.S.
Some of the projects would adopt the "pipeline on wheels" mobile transport solutions; others would entail implementation of Energtek's patented HyBoost (see our press release dated Oct 8, 2013).
Even more exciting are projects to provide residential areas with an ANG solution which could eventually lead to major NGV projects in the future in the U.S. and worldwide.
2) Europe – our operations in Mostar (Bosnia-Herzegovina) have progressed well for almost two full years, and Mr. Primorac, CEO of Energtek Herz d.o.o., reports that in Q4-2013, consumption has steadily increased for several quarters. This would translate into annual revenues in 2014 surpassing the performance of 2013, and much higher than the figures used when we signed the original 10 year contract.
We further expect that in 2014 we will expand existing projects and begin new ones as well.
3) Israel – while the contract signed by GATAL back in April 2012 is still stalled due to regulatory issues, an aggressive business plan which would entail fundraising has been recently approved. The plan provides for purchasing gas from the major NG discoveries offshore (Tamar and Leviathan), and signing contracts to sell this gas at nice margins to the many plants/factories in Israel demanding cheap and clean alternatives to LPG (propane), mazut (heating oil) and diesel.
Haim Aviv, manager of Gatal, reports that he expects that in the very near future these deals will be signed and approved by Gatal's Board of Directors, where Energtek has representation.
Currently EGTK stock trades on the OTCMarkets Current Information Listing (pink sheet). From the moment our company started producing significant revenues, our Board of Directors has been evaluating alternatives, to start reporting at a higher valued listing, in order to provide more liquidity and value for our stockholders.
Such an upgrade demands significant financial and organization resources. We have been working during the last year to prepare our Company for this step. Advances have been made but there is still work to perform. Our directors are looking for the appropriate time to perform this change.
We have been advised by leading investment bankers in the U.S. to enter into the upgrade process once we have projects in the U.S. (and not just Europe and/or Israel) showing revenues/profits and proof of our business model in the U.S.
We are looking forward to being able to perform this change in 2014.
Technology / R&D
Our engineering R&D team has made great progress in 2013 developing even more sophisticated solutions to enable Energtek to deliver natural gas from an indigenous energy source to a consumer utilizing low-pressure compression. Low-pressure reduces the costs of infrastructure as well as the ongoing costs of natural gas compression and decompression, providing a cost-effective alternative energy solution for the end user.
Energtek's technological knowledge and experience in developing complete natural gas supply solutions for industrial customer, enables us to customize competitive solutions that are adapted to meet each customer's unique needs.
In conclusion, allow me to thank our loyal shareholders and our devoted team who continue to have faith in our company's unique abilities to actualize our potential. We believe that after seven lean years, seven good years are upon us – and we continue to work very hard to justify your continued confidence.
Energtek develops and applies innovative low-pressure mobile transportation solutions for industrial consumers and fleets of small vehicles. The company is also involved in oil and gas exploration in Israel. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visit www.energtek.com
This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Energtek and its technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and other matters set in Energtek's filings. These risks and uncertainties could cause actual results to differ materially from those indicated in the forward-looking statements.
SOURCE Energtek Inc.