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NEW YORK, November 19 /PRNewswire-FirstCall/ -- Energtek Inc. (OTCBB:
EGTK), a world leader in the development of Adsorbed Natural Gas (ANG)
technology, has released a letter to its shareholders. Shareholders and other
parties interested in the company are encouraged to learn more about
Energtek's activities by contacting the company, or by visiting the company's
website at http://www.Energtek.com.
Dear Shareholders,
Energtek is pleased to report that Adsorbed Natural Gas (ANG) is being
introduced to emerging markets as a commercial technology. Through the
implementation of ANG proprietary solutions, Energtek is evolving from a
developer of proprietary cleantech to a commercial supplier of Natural Gas.
In July 2008, Energtek signed a historic contract with the Philippines
National Oil Company - Exploration Company, for rights to Natural Gas
extracted from the San Antonio Stranded Gas Well in the Filipino province of
Isabela. Gas that was used to operate a power plant on that site for the past
14 years is now being shifted to the transportation sector using our ANG
technology.
The contract validates Energtek's capability to fulfill its business
model, as an ongoing provider of natural gas to small vehicle drivers.
CNG Lite(TM) Small Vehicle Conversions
Utilizing Adsorbed Natural Gas technology, introduced to the Filipino
market as CNG Lite(TM), Energtek has successfully converted motorized
tricycles (three-wheel vehicles) with highly polluting two-stroke and
four-stroke engines to operate on Natural Gas. Testing of these converted
vehicles has demonstrated that carbon monoxide emissions are reduced by as
much as 95 percent.
Energtek's CNG Lite(TM) system provides ample driving range and high
quality vehicle performance with each refueling. The proprietary low-pressure
technology, using natural gas adsorption, is particularly-suited to
motorcycles and tricycles due to the ease with which Natural Gas cylinders
can be manufactured, distributed and then integrated onboard without
affecting vehicle balance.
Drivers utilizing Energtek's CNG Lite(TM) conversion and ongoing fuel
supply system benefit from a clean technology that is cost-efficient and
enables savings of hundreds of dollars a year on gasoline fueling expenses.
In addition, by using locally available and indigenous natural gas resources,
the CNG Lite(TM) system contributes to the reduction of oil and gasoline
imports.
Growth Potential in the Philippines
The Filipino government has offered its full support for Energtek's
proprietary conversion initiative, encouraging and challenging our Company to
convert as many as one million of the country's three million tricycles.
Energtek is initiating the first stages of an ambitious plan to convert
at least 150,000 vehicles over the next three to four years, and to supply
sufficient Natural Gas fuel quantities to each vehicle daily.
Successful implementation of the Philippines' initiative will rank
Energtek among the largest NGV converters of small vehicles worldwide. In
Asia alone, there are well over 200 million two- and three-wheel vehicles and
many other Asian governments are also supporting conversion initiatives.
In order to expand operations across the Philippines, Energtek is
currently pursuing rights to natural gas extracted from multiple local
sources. At the same time, our Company is studying the feasibility of
launching the small vehicle conversion system in other countries across the
region.
LMP(TM) Industrial Energy Supply
Energtek is also engaged in production of the LMP(TM) (Low-pressure
Mobile Pipeline) semi-trailers, designed to supply natural gas from local
sources directly to industrial consumers. Energtek's proprietary low-pressure
system reduces the costs of mobile Natural Gas distribution as compared to
competing high-pressure CNG systems.
The LMP(TM) ongoing supply system enables large energy consumers to
utilize natural gas to power industrial and commercial operations without
connection to pipeline infrastructure. Through the recent signing of two
Memorandums of Understanding in Indonesia, and prior agreements signed in
India, Energtek expects to begin commercial LMP(TM) system activities in
these markets in 2009.
Market Trends
2008's record high oil prices and dangerously growing pollution levels
have caused many markets to scramble for alternative energy sources. Major
initiatives have been launched worldwide - from the United States to the Far
East - to promote and implement the use of available, affordable, clean, and
instantly applicable Natural Gas. There are already over 9 million Natural
Gas Vehicles on the road, with an annual growth this past year of over 25
percent.
Toward the close of 2008, the price of crude oil began to decline
significantly from the incredible record highs of earlier in the year. Prices
have since returned to levels last seen in 2007. It should be noted that any
oil price above $50 per barrel can be considered high based on historical
growth patterns. Current prices will continue to press energy consumers to
find alternatives.
Furthermore in many developing nations, government imposed price caps and
subsidies softened the blow of record oil prices to consumers - particularly
in Southeast Asia. Therefore, while spot prices of crude oil have decreased,
the end user costs of refined products such as gasoline and diesel continue
to remain at high levels similar to earlier in the year.
During the past several years our business development team put together
financial models assuming sustained demand for alternative fuel, at current
oil prices. At these prices, our business model remains both viable and
profitable.
Realizing Our Potential
Energtek is pleased to offer working, viable, and affordable proprietary
technology for the pipeless distribution of Natural Gas to the small vehicle
and industrial energy consumption markets in Southeast Asia and beyond. After
years of advanced hi-tech research and development, Energtek is ready to
fully execute its business plan as an ongoing supplier of clean fuel to
energy consumers.
Energtek is anticipating a growing revenue stream in 2009, through the
full implementation of the CNG Lite(TM) and LMP(TM) supply systems in
Southeast Asia. Our company seeks to build upon the momentum established by
our Management team in 2008, with the aid of our Board of Directors, and
Advisory Board.
We would like to offer our sincere thanks to our valued shareholders for
their encouragement and support of our success thus far. We look forward to
the fulfillment of our mutual vision by delivering tangible results in the
coming year and beyond.
Sincerely,
Lev Zaidenberg
CEO, Energtek
Forward-Looking Statements
This release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. All forward-looking statements
are inherently uncertain, 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
statements, which are only predictions and speak only as of the date hereof.
In evaluating such statements, prospective investors should review carefully
various risks and uncertainties identified in this release, as actual results
may differ materially from those indicated in the forward-looking statements.
These forward-looking statements involve a number of risks and uncertainties,
including without limitation, market penetration of our products, competitive
market conditions, and the ability to secure sufficient sources of financing.
The actual results Energtek may achieve could differ materially from any
forward-looking statements due to such risks and uncertainties. Energtek
encourages the public to read the information provided here in conjunction
with its most recent filings on Form 10-K and Form 10-Q. Energtek's public
filings may be viewed at http://www.sec.gov.
Contact:
+1-(212)999-6202
IR@energtek.com
SOURCE Energtek Inc.
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