DALLAS, Feb. 10, 2009 (GLOBE NEWSWIRE) -- Earth Biofuels, Inc. (Pink Sheets:EBOF) (the "Company") today announced that it has finalized a transaction that will provide funding for upgrades to its biodiesel production facility located in Durant, Oklahoma, as well as incremental working capital for the Company. The primary upgrade will allow the use of lower cost feedstock oils. Management expects the upgrades to be completed this August, 2009.
As a result of Earth Biofuels satisfying $70 million worth of its obligations, the company was in a position to complete this financing. Since then Earth Biofuels has now become more financeable, and management anticipates the Company will be able to pursue the goals it has developed over the past several months. Management plans to announce these goals within the next 30 days.
The transaction includes the acquisition of over 350 storage tanks, each ranging in size from 8,000 to 39,000 gallons capacity. Earth Biofuels plans to install a number of the tanks at its Durant facility in order to have excess storage for various feedstock oils and fats and/or finished biodiesel product. The total storage capacity in Durant is planned to exceed 1,000,000 gallons. The Company plans to sell the remainder of the tanks to help provide the funds for the Durant plant upgrades.
With the volatility in biodiesel feedstock markets, the Company's strategy will be to utilize its storage capacity to acquire and hold physical inventories of various feedstocks, depending upon biodiesel production economics at any given time.
About Earth Biofuels, Inc.
Earth Biofuels, Inc. endeavors to produce and distribute biodiesel fuel and cellulosic ethanol through wholesale and retail outlets. The Company's Web site is www.earthbiofuels.com.
Forward-Looking Statements Disclosure
This press release may contain "forward-looking statements" within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company's expected future business and financial performance, and often contain words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," "will," and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the "safe harbor" provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company's anticipated results, projections, or other expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.