HOUSTON, Nov. 1, 2012 /PRNewswire/ -- HII Technologies, Inc. or (the "Company"), symbol OTCBB: HIIT, an oilfield services company located in Houston, Texas, with operations in Texas and Oklahoma, today announced the launch of its second operating division South Texas Power, or STP. This division will be focused on providing onsite portable power to exploration and production (E&P) companies where power grid connectivity is lacking. STP will acquire an inventory of mobile diesel and natural gas powered generators and related equipment for rental to its customers. STP's customer-oriented rental strategy will be managed by experienced industry personnel in Texas and Oklahoma who enjoy strong customer relationships and reputations in the marketplace.
In connection with the launch of STP, a non-binding letter of intent was executed with Power Reserve Corp, a privately held corporation, to create a strategic alliance providing capital for equipment. The letter of intent sets forth the terms of a joint venture between STP and Power Reserve Corp under which Power Reserve Corp will fund on a non-dilutive basis the purchase of up to $3 million of equipment comprising STP's rental inventory, with an initial equipment purchase proposed at $1.2 million. STP will rent this equipment to its oilfield customers on a negotiated day rate rental basis. Revenues will be apportioned between STP and Power Reserve Corp on a shared basis for the life of the equipment purchased in the joint venture. The letter of intent is subject to negotiation and execution of definitive agreements. If the parties fail to execute definitive agreements, STP will pursue alternative financing for procurement of its rental equipment inventory.
Nancy P. Boyd, President of Power Reserve Corp, stated, "Our joint venture with South Texas Power is viewed as a win-win scenario. Our firm is interested in deploying capital in new oilfield equipment and STP will use the equipment to meet its customers' requirements."
Matt Flemming, CEO of HII Technologies stated, "In many cases, drilling locations are not close to a power source; obtaining needed power in the field becomes logistically challenging making portable onsite power generation critical to drilling operations." Mr. Flemming continued, "We are very pleased to announce the joint venture and strategic alliance with Power Reserve Corp noting that this is an excellent way to partner and leverage our customer relationships."
The Company plans to make additional announcements in the future in connection with key personnel additions for STP.
About HII Technologies, Inc.
HII Technologies, Inc. is a Houston, Texas based oilfield services company with operations in Texas and Oklahoma which is focused on commercializing technologies in power and water management used by exploration and production companies in the United States. The Company's total water management services subsidiary does business as AES Water Solutions and its mobile oilfield power subsidiary does business as South Texas Power (STP). The Company changed its name August 2011 to HII Technologies, Inc. in connection with selling the name and assets of its oilfield valve technology it had previously developed. Since the sale of its oilfield product line in 2011, it has focused on power and water management solutions in the oilfield for E&P customers via acquisitions and potential organic growth.
This document contains discussion of items that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ from expectations include, but are not limited to, development stage company risks, difficulties in obtaining capital, difficulties in identifying products or services that will meet customers' needs, difficulties in identifying operating companies to acquire, limited personnel, volatility of the energy business and its effects on the Company's business, difficulties in new technology acceptance within the energy industry, political and economic global supply chain risk, general economic conditions in markets in which we do business, extensive environmental and workplace regulation by federal and state agencies, and other general risks related to its common stock, and other uncertainties and business issues that are detailed in its filings with the Securities and Exchange Commission. All information provided in this release and in the attachments is as of November 1, 2012 and the Company undertakes no duty to update this information.
SOURCE HII Technologies, Inc.