BenchMark Energy Corporation Announces Initial Acquisition
HOUSTON, Oct. 17, 2011 /PRNewswire/ — BenchMark Energy Corporation (OTC: BMRK). BenchMark Energy Corporation is pleased to announce today that it has signed a definitive agreement to acquire 49% of Energy Partners, LLC.
Energy Partners, LLC, founded in 2009, is an Indiana based renewable energy company and has committed its focus in the bio-based energy sector. The agreement calls for BenchMark to acquire a 49% minority interest in Energy Partners, LLC, with an option to purchase the additional 51%. The additional interest purchase in Energy Partners, LLC will be based on certain IRS tax criteria in 2012.
Energy Partners, which has approximately $750,000 in glycerin sales in the nine month period ending September 30, 2011, is in discussions with the city of Grand Forks, North Dakota to build a 21,600 square foot, eight acre glycerin processing facility. The facility and financial terms were approved by the Grand Forks Growth Fund committee and the Jobs Development Authority. Upon completion in middle 2012, the Company anticipates the facility to employ 29 full time employees and have a capacity to process approximately nine million (9,000,000) gallons of glycerin annually with an average value of $1.80 per gallon.
The facility will have an exponential impact on the growth of Energy Partners and BenchMark Energy. The Grand Forks site is centrally located and would process glycerin from a number of biodiesel plants within an approximate 800 mile radius.
The United States Renewable Fuel Standard mandates that 1 billion gallons of biodiesel are to be blended in the 2012 calendar year. This will result in the production of approximately 100 million gallons of glycerin in 2012.
Burning fossil fuels accounts for about three-fourths of the anthropogenic carbon dioxide emitted in the US. While all fossil fuels contain carbon, coal is the most carbon-intensive. Because electricity generation is the single largest contributor to CO2 emissions and over half of the electricity generated in the US is from coal, there is a pressing need to develop viable carbon-control technologies, which can be implemented in a practical and affordable manner. Glycerin blends with coal are a quality and significant source to reduce emissions.
In addition to the use of glycerin as a fuel source or blend substituting coal and bunker fuel (crude oil, used in the rail and shipping industries), glycerin is also a substitute for crude oil and petroleum based products used in the manufacturing industries. Glycerin significantly reduces the toxicity in every day products.
For more information on Energy Partners, LLC, Glycerin, its uses and benefits, and BenchMark Energy Corporation, please see our website at http://www.benchmarkenergy.net. While the demand for glycerin has remained stable, the demand for refined glycerin, technical grade and higher, has risen. BenchMark Energy has focused its attention on distribution and refinement of glycerin in the energy and pharmaceutical industries.
Safe Harbor Statement: This press release contains forward-looking statements as defined in The Private Securities Litigation Reform Act of 1995 (the “Act”). In particular, when used in the preceding discussion, the words “plan,” “confident that,” “believe,” “scheduled,” “expect,” or “intend to,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties, and actual results may differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to, the ability of BenchMark to complete the proposed acquisition(s), the results of BenchMark’s due diligence review of the candidate(s), the success of the business of the acquisition candidate(s), including the ability of BenchMark to continue to sell the applicable products and the acceptance of those newly designed products by the market, market conditions, the general acceptance of the Company’s products and technologies, competitive factors, timing, and other risks described in the Company’s reports and filings.
Media & Investor Relations:
Alex Livak/ Robert Adams
SOURCE BenchMark Energy Corporation