NEW YORK, September 21, 2011 /PRNewswire/ --
Energtek Inc. (Pink Sheets: EGTK), a leader in hi-tech natural gas solutions and Absorbed Natural Gas (ANG) technology, today issued the following letter to shareholders, summarizing commercial business development efforts during the past year.
During 2011, Energtek has made the most significant commercial advancements since the financial crisis of 2008. These developments in the commercial industrial sector have fully validated our business model to acquire and resell energy at a profit, by leveraging on our proprietary technology and knowhow.
During the past year, efforts have been focused on providing alternative energy to industrial consumers in the former Yugoslavia. Since the beginning of 2011, Energtek has been running a revenue-earning pilot project in Serbia.
Following completion of the pilot, Energtek signed multi-million dollar natural gas transportation contracts in Bosnia and Herzegovina, connecting between a natural gas provider and two large local energy consumers. The 10-year contract is expected to yield revenues of approximately $30,000,000 in the next three years, with expected total revenues of about $100,000,000.
Since our inception, Energtek has been dedicated to developing and implementing cost-effective natural gas energy solutions for industrial consumers and large fleets of small motor vehicles. Our company has specialized in developing proprietary low-pressure storage and mobile transportation solutions, enabling competitive ongoing supply of natural gas to consumers that are not connected to pipeline infrastructure.
Energtek's proprietary Low-pressure Mobile Pipeline (LMP) Technology enables us 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 consumers, enables us to customize competitive solutions that are adapted to meet each customer's unique needs.
Over the past several years, our solutions have gained significant interest from private industry and governmental agencies in developing nations around the world.
Since the start of 2011, we have been engaged in the preparation of infrastructure necessary to fulfill our signed agreements in Bosnia and Herzegovina. Together with a strategic local partner, we have created a subsidiary in Bosnia and Herzegovina, Energtek Herz d.o.o. Mostar.
Works to implement the signed contracts have been taking place during the past several months, including the conversion of the customer's facilities and the purchase of equipment. Natural gas supply is expected to commence in Q1 2012.
In parallel we are actively pursuing the signing of additional supply contracts in the region.
We view these breakthrough developments as a clear confirmation of our business model.
We thank our loyal shareholders and our devoted team who have continued to have faith in our company's ability to actualize our potential, have financed its activities, have performed a Herculean task, and have brought our company to the present stage despite adversity and harsh conditions over the past few years.
About Energtek, Inc.
Energtek develops and applies innovative low-pressure mobile transportation solutions for industrial consumers and fleets of small vehicles. The company is also involved with oil and gas exploration in Israel. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East. To learn more about Energtek, visit http://www.energtek.com.
Forward Looking Statements
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.
Investor Relations Contact: IR@Energtek.com, +1-212-999-6202
SOURCE Energtek Inc.