Arabian American Announces Five-Year Contract With New Customer
SUGAR LAND, Texas, Nov. 1, 2011 /PRNewswire/ — Arabian American Development Co. (Nasdaq: ARSD) announced today that its South Hampton Resources, Inc. subsidiary has signed a five-year contract with a one-year extension option to deliver a C5 pentane product to a new customer. The contract is effective November 1, 2011, and is expected to generate annual volumes of approximately 800,000 U.S. gallons. Annual revenue is expected to be $2.6 million per year based on current U.S. dollar value, market conditions, anticipated volume requirements and energy costs.
Mark Williamson, Vice President of Marketing, commented, “The expanded South Hampton facility has allowed us to capitalize on additional opportunities in the marketplace, and this agreement provides an extra revenue stream for us which continues to diversify and expand our customer base. This agreement also demonstrates that emerging technologies are utilizing our products. This has broadened the total market opportunity for our company.”
About Arabian American Development Company (ARSD)
ARSD owns and operates a petrochemical facility located in southeast Texas just north of Beaumont which specializes in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and now a 37% owner of Al-Masane Al-Kobra Mining Company (AMAK), a Saudi Arabian joint stock company which is in the final stages of development in Najran Province of southwestern Saudi Arabia. The mine is scheduled to be in production in early 2012 and will produce economic quantities of copper, zinc, gold, and silver.
Statements in this release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon management’s belief as well as assumptions made by and information currently available to management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American’s filings with the Securities and Exchange Commission, including Arabian American’s Annual Report on Form 10-K for the year ended December 31, 2010, and the Company’s subsequent Quarterly Reports on Form 10-Q.
Nick Carter, President and Chief Company Contact: Executive Officer (409) 385-8300 email@example.com Investor Contact: Cameron Donahue Hayden IR (651) 653-1854 Cameron@haydenir.com
SOURCE Arabian American Development Co.