NEW YORK, December 16, 2010 /PRNewswire-FirstCall/ -- Energtek Inc., a leader in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, today announced that its Israeli fully-owned subsidiary Energtek Products Ltd. intends to complete a reverse merger with a public company on the Tel Aviv Stock Exchange.
Energtek Inc. has signed a Memorandum of Understanding with Y.H. Dimri Construction and Development Ltd. (TLV: DIMRI) and its subsidiary Biri Barashi Land Works, Development, Infrastructure & Roads Ltd. (TLV: BIRI) to complete a reverse merger followed by significant investment. The non-binding agreement is subject to final negotiations and complete due diligence.
Biri Barshi will acquire 100 percent of the shares of Energtek Products Ltd. Energtek Inc. will acquire a 51 percent majority share of the shares of the public entity, Biri Barashi. Following the merger, Y.H. Dimri will commit substantial investment into Biri Barashi to further develop Energtek Products' existing oil and gas activities in Israel and Eastern Europe. The reverse merger creates additional opportunities for investment into Energtek technology and exploration activities.
In the day following Biri Barashi's announcement of the MoU, BIRI stock has increased approximately 95 percent, trading at 1490 Agurot up from 766 Agurot.
Energtek Products owns a license from Israel's Ministry of National Infrastructures for the exclusive exploration, production and sale of hydrocarbons present in the 19,000 acre Nir-am Sa'ad block in Southern Israel. A recent survey on the block estimated approximately 26 Million Barrels of recoverable oil. The estimations are particularly significant in Israel, a country lacking in indigenous oil resources.
The Nir-am Sa'ad field already produces stable quantities of natural gas from its proven reserves, with several industrial energy consumers in proximity of the field. Energtek Products is engaged in implementing mobile natural gas transportation projects utilizing Energtek Inc.'s proprietary transportation solutions including Low-pressure Mobile Pipeline (LMP) technology. Energtek Products is also engaged in similar gas transportation activities in Northern Belgrade, Serbia, and is involved in business development throughout Serbia and other Balkan countries.
In addition to the projects of Energtek Products, Energtek Inc. is engaged in business development activities and the development of natural gas supply solutions for small vehicles as well as industrial energy consumers in other countries including Philippines and Indonesia.
Y.H. Dimri Construction and Development Ltd. is one of Israel's largest real estate companies, and has several development projects in Eastern Europe and the Former Soviet Union. Biri Barashi Land Works, Development, Infrastructure & Roads Ltd. is engaged in real estate and infrastructure development projects in Israel.
There are currently 27 companies listed on the Tel Aviv Stock Exchange's Oil & Gas Index. The Oil & Gas Index, currently trading at 1300 plus, has increased over 1000 percent since the end of 2008.
"The MOU signed demonstrates the trust of one of Israel's largest commercial outfits in Energtek's ability to take advantage of the many promising opportunities currently available in the growing industry of oil and gas exploration and distribution in Israel," said Energtek CEO Lev Zaidenberg. "The Nir-am Sa'ad exploration represents a substantial opportunity on the Israeli market."
"Y. H. Dimri is an ideal partner due to their significant interests in both of Energtek Products' primary markets: Israel and Eastern Europe. Together, we anticipate great success for Energtek Products on the Tel Aviv Stock Exchange," Zaidenberg added.
Energtek develops and applies innovative low-pressure mobile transportation solutions for industrial consumers and fleets of small vehicles. The company is also involved on 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.
Contacts: Investor Relations IR@energtek.com +1-212-999-6202
SOURCE Energtek Inc.