DKRW Advanced Fuels Signs Major Gasoline Contract; Moving Forward on Medicine Bow Project in Wyoming

HOUSTON, Dec. 1, 2011 /PRNewswire/ -- DKRW Advanced Fuels LLC (DKRW) of Houston, Texas, announced today that its wholly owned subsidiary, Medicine Bow Fuel & Power LLC (MBFP), has entered into a contract with Vitol Inc. (Vitol), whereby Vitol would purchase 100 percent of the gasoline produced from MBFP's industrial gasification and liquefaction facility located near Medicine Bow, Wyoming.  The contract is one of the first major commercial agreements in the United States for the sale of liquid transport fuels made from coal.

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"We believe all forms of energy will be needed to meet the requirements of the American economy and ensure our national security," said Robert Kelly, Executive Chairman of DKRW. "The United States has more than sufficient coal reserves to meet increasing requirements for liquid transport fuels while substantially reducing American imports of crude oil. All of this can be done while at the same time producing a well-to-wheels CO2 footprint competitive with gasoline derived from traditional petroleum refining."

"New long term refined product supplies created by projects like MBFP are critical for the continued development of efficient energy markets in this country," said Mike Loya, President of Vitol. "Efficient markets translate into competitive pricing for products and enhance our ability to supply consumers' future needs."

MBFP plans to sequester the CO2 that is captured from the facility by selling the CO2 for enhanced oil recovery (EOR).  MBFP has entered into a contract with a subsidiary of Denbury Resources Inc. to purchase the CO2 for use in their EOR operations. EOR has been used for years in Wyoming, West Texas and the US Gulf Coast to increase oil production from depleted oil and gas fields as well as to sequester the CO2.  EOR will enable oil producers to improve recovery rates from existing production instead of importing additional volumes of oil or having to drill in new areas to produce additional petroleum.

DKRW Advanced Fuels is completing final development on the project and expects to complete financing activities and ramp up construction on the facility in 2012. Mr. Kelly noted that, "We have received front end engineering and design (FEED) work and are finalizing the overall construction and procurement plan for the project. The project is also in the process of securing a financing package from private and public sources, including the possible use of certain bond programs available for industrial development in the State of Wyoming."

The Medicine Bow project will have a substantial direct effect in creating new jobs. The project, including the coal mine and other related infrastructure projects, will generate an estimated 2,300 construction jobs and 500 permanent positions for its operations.

DKRW Advanced Fuels LLC is a hydrocarbon conversion company.  We are focused on the commercial development, construction, ownership and operation of facilities designed to convert lower-value hydrocarbons into products that traditionally have been produced by crude oil through the utilization of commercially available technologies.  The Medicine Bow project is our initial project.  We are also pursuing projects in other parts of the U.S. and exploring international opportunities.  More information can be found at www.dkrwadvancedfuels.com.

Forward-Looking Statement:

We make statements in this news release that are forward-looking statements.  All statements, other than statements of historical facts, included in this news release that address activities, event or developments that we expect, believe or anticipate will or may occur in the future, are forward looking statements.  These statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance or achievements to be materially different from those we project.  Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE DKRW Advanced Fuels LLC