BOCA RATON, Fla., April 28, 2004 (PRIMEZONE) -- Geotec Thermal Generators Inc./TelcoEnergy Corporation (OTCBB:GETC) announced the continuation of its exclusive representation for the PGDBK Gas Generator Technology for North, South and Central America.
In addition, the territory for use of the PGDBK Gas Generator Technology has been expanded worldwide where Geotec/TelcoEnergy has projects, including Russia and China.
Geotec/TelcoEnergy's CEO, W. Richard Lueck, stated, "We are just completing the engineering for the Geotec/TelcoEnergy coalbed methane project in China and given the 30 wells being drilled (of 300), this is our top priority."
Details can be found in a new CEO letter at www.geo-tec.net.
About:
TelcoEnergy Corporation is an international energy resource, services and technology company. TelcoEnergy owns oil and gas reserves in the U.S., and is acquiring additional reserves in the U.S., Russia, China and other regions, TelcoEnergy is also focused on developing alternative fuel sources and fuel extraction technologies. TelcoEnergy specializes in the production of non-conventional coal bed methane (CBM). TelcoEnergy is utilizing owned technology, joint ventures and strategic alliances to accomplish its growth and international expansion objectives.
There are four groups comprising TelcoEnergy:
TelcoEnergy Corporation is operated from four groups, TelcoEnergy - Advanced Technologies Group; TelcoEnergy - Production Group, which is comprised of TelcoEnergy U.S. Production Group and TelcoEnergy - Overseas Production Group; TelcoEnergy - Terminaling and Fueling Stations Group; and TelcoEnergy - Alternative Fuels Group.
TelcoEnergy - Advanced Technologies Group:
TelcoEnergy owns 50% of a joint venture, Mach 3 Automotive Products and Geotec Generator Technology.
"MACH 3 EcoFuel Saver" - an economical replacement for MTBE and Ethanol in gasoline. MACH 3 EcoFuel Saver is a bulk fuel additive, registered with the U.S. Environmental Protection Agency (EPA), for use with gasoline and diesel fuel. For more than two decades, Methyl Tertiary Butyl Ether (MTBE) has been widely used as the standard bulk fuel to boost gasoline efficiency, while reducing engine exhaust pollutants. As of January 1, 2004, MTBE was banned in California. In California, ethanol is currently used to replace MTBE in gasoline. Replacement blend for MTBE will be required in many other states in the near future. Effective blending of MACH 3 EcoFuel Saver in gasoline uses only 0.5% by volume, or 30 times less than required for Ethanol. Yet, MACH 3 yields equivalent or better fuel burning efficiency. TelcoEnergy believes that MACH 3 EcoFuel Saver is the only bulk fuel additive registered with the EPA that is also capable of reducing all categories of exhaust emissions from internal combustion engines fueled by gasoline or diesel, MACH 3 achieves this, while increasing engine power and fuel economy an average of 20%. The Company believes this level of efficiency and economics will help to temper the potential escalation in fuel prices for consumers and business. TelcoEnergy will market MACH 3 products in the U.S. and through emerging operations, discussed below, in Russia and China. 2T Holding has signed a distribution agreement and is one of the major auto parts manufacturers and distributors in Russia.
PGDBK Gas Generators(tm) perform an advanced well stimulation process designed to increase oil and natural gas output. The technology has been proven to be safe and effective throughout regions of Asia and Eastern Europe. Compared to similar services, such as hydraulic fracturing or acidizing, the Generators(tm) are more effective and safe, and less costly. The Generators(tm) were developed utilizing a method of bed fracture with the pressure of a solid, pulsating propellant charge. The Generators(tm) do not contain explosives and a combustion blast does not occur, which is important for governmental safety and environmental considerations. Customers suited for using the Generators(tm) are sites with high pressure, oil-rich levels where filtration properties of the local rock formation/structure have undergone irreversible changes, thereby causing the well to become non-producing or inactive. More than twenty-five years of Russian service experience has provided the Company with data that verifies that the Generators(tm) utilize a process which is a clean, safe, economical and environmentally-sound procedure which is capable of creating the rebirth of non-producing wells. This data will be used to pinpoint and prioritize market opportunities for the Company.
The Generators(tm) do not require any pumps or other compressor-type machinery. As a result, the Generators(tm) are ideal for regions/sites, which are difficult to access due to certain geological properties and characteristics.
TelcoEnergy - Production Group is the operational and financial core of the company. The Production Group develops, acquires and manages energy resources. These resources include oil and gas owned in the U.S. pipelines, as well as oil and gas reserves the company is acquiring in China and Russia and other regions. The Company's strategy of oil and gas reserve ownership is designed to provide continuity of supply, so that we can take advantage of global market demand. Further, it is designed to enable TelcoEnergy to demonstrate and apply technologies in energy efficiency.
TelcoEnergy - U.S. Production Operations is managed by a seasoned team of industry experts, who will also advise the Production Group on its Russia, China and other country operations. TelcoEnergy will use its oil field experience to implement Geotec Technology in conjunction with its U.S. and foreign production.
TelcoEnergy operates in New Mexico through the Company's wholly owned subsidiary, BC&D Oil and Gas Corp. BC&D, founded in 1992, is a fully equipped and active E&P company, developing oil, gas and coal bed methane in the Four Corners area of New Mexico.
TelcoEnergy operates in Oklahoma through the company's wholly owned subsidiary TelcoEnergy, LLC, which owns approximately 1400 miles of pipeline easements and pipelines, which are being reactivated on an "as needed" basis, to develop joint venture oil, gas and coal bed methane projects with local producers in Oklahoma.
TelcoEnergy -- Overseas Production Group
The company is currently developing operations in Russia and China, two of the world's fastest growing economies. Russia is an important world producer/exporter of oil and gas. China has become a net importer of oil and refined products and has begun to realize the value of its non-conventional methane gas resources. China's conventional and alternative energy needs are very large.
TelcoEnergy - China Production Operations:
TelcoEnergy is acquiring 100% of Sino-American Energy Inc. (SAEI), a Delaware Corporation. SAEI is the operating partner in a joint venture with the Jin Cheng Coal Bureau to develop clean burning, high BTU Coal Bed Methane Gas (CBM) from the local partner's coal reserves, in the Shanxi Province of China. Jin Cheng is the second largest coal company in all of China. The Jin Cheng joint venture is currently completing 30 wells as part of a 300 well developmental program. Engineering analysis, based upon an early test well program, indicated recoverable reserves of approximately 1 trillion cu. ft. of gas. As the operator of the project, TelcoEnergy will be able to utilize the proprietary Geotec recovery technology to further enhance the extraction of the gas from the project. By combining Geotec's fracturing technology with the massive proven reserves of methane gas that SAEI possesses, TelcoEnergy is accelerating and enhancing productivity. It is important to note that the use of the Company's Generator(tm) technology is expected to increase the effective reserves of gas by 50% to 100%.
Further, the company will introduce MACH 3 in China through this joint venture. SAEI will be a wholly owned unit of TelcoEnergy. It will operate in concert with the Jin Cheng Coal Bureau, in the Shanxi Province of China, under authority granted through China's governmental system. This project is located close to a large base of commercial and residential customers. TelcoEnergy is committed to operate in China in close partnership with the Chinese government and energy industry, maximizing business efficiency and time to market.
TelcoEnergy - Russia Production Operations:
TelcoEnergy has acquired 51% of Volgageoresource. Volgageoresource has been awarded, by the Russian Federation, 5 permits to explore 5 hydrocarbon structures in the Saratov Region (1,037,820 acres). Indications from the Institute of GeoInformational Analysis state the potential oil reserves are in excess of 100 million metric tons, or approximately 700 million barrels.
TelcoEnergy - Alternative Fuels Group will comprise TransGazService and Neftegaz.
TelcoEnergy owns 51% of TransGazService, one of the major LPG wholesale operators in the Rostov region of Russia. The acquisition agreement states plans to expand the company, to include an LPG storage facility and twenty-five LPG automobile/truck fueling stations. MACH 3 SuperForce will be distributed through these stations in Russia. TransGazservice, and its LPG fueling station project.
TelcoEnergy has a signed purchase agreement to acquire 51% ownership of Neftegaz. This LPG company owns real estate and a license to build an LPG storage facility. TransGazService plans to supply its LPG fueling stations in Rostov.
Geotec/TelcoEnergy Corporation (OTCBB:GETC) is an operating oil/gas/energy company. Statements in this release, which relate to other than strictly historical facts, including statements about the Company's plans and strategies, as well as management's expectations about new and existing products and services, technologies and opportunities, market growth, demand for new and existing products and services, are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "project", "intend" and similar expression identify forward-looking statements that can speak only as of the date hereof. This press release contains certain forward-looking statements regarding Geotec/TelcoEnergy, its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause Geotec/TelcoEnergy's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by Geotec/TelcoEnergy in this new release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Geotec/TelcoEnergy's business.
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