NEW YORK, October 25, 2010 /PRNewswire-FirstCall/ -- Energtek Inc., a leader in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, today announced that the company's board of directors has decided to authorize its fully-owned subsidiary, Energtek Products Ltd., to organize a fundraise to further develop business operations. The Board has authorized negotiations for raising funds while keeping a controlling position in the subsidiary.
The authorization allows for raising up to $10 million through private placements or through a public placement in the Tel Aviv Stock Exchange, which could include merging with a public entity. The Tel Aviv Stock Exchange (TASE) has a growing subsection focused on oil and gas exploration.
Energtek Products Ltd. specializes in providing natural gas transportation solutions to customers who are not connected to pipeline infrastructure. Energtek Products develops pipeless natural gas distribution projects for industrial consumers, being currently actively engaged in the development of such networks in the Balkans and Israel. In addition, the company conducts oil and gas exploration in Israel.
"Our subsidiary Energtek Products Ltd. has made significant forward progress in the past twelve months," said Energtek CEO Lev Zaidenberg. "Energtek Products has established a new market in Serbia that includes a fully-operational natural gas source, along with industrial customers waiting to benefit from that energy source. The subsidiary is also developing channels to perform similar activities in the Israeli market."
"In addition, Energtek Products has identified the potential for oil and gas exploration in the Nir Am-Sa'ad field in Israel. Energtek Products holds exclusive license to explore and exploit oil & natural gas in this field."
"It is appropriate to seek funding in Israel for gas distribution and exploration activities to take place in that country," Zaidenberg added. "Energtek Products' funding opportunities will be guided by all relevant regulations in Israel regarding oil & gas exploration, including the recently implemented limitations on transactions regarding ownership of exploration rights."
Energtek develops and applies proprietary low-pressure storage technology to provide complete well-to-wheel pipeless Natural Gas supply solutions to industrial consumers and fleets of small vehicles. Energtek's Natural Gas solutions reduce pollution and alleviate consumer energy costs. Energtek provides competitive bulk transportation solutions to industrial users and a profitable alternative motor fuel solution for 2- and 3-wheel vehicle drivers in Asia. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visit http://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.