HOUSTON, TX -- (MARKET WIRE) -- 10/18/07 -- TexCom, Inc. (PINKSHEETS: TEXC) announced today
that it has completed its acquisition of Biodiesel International
Corporation (BIC) in conjunction with its plans to construct an integrated
grain crusher and biodiesel facility at Puerto Triunfo, Itapua, Paraguay.
Feasibility studies and economic modeling nearing completion by Stancil &
Company (Dallas) confirm excellent logistic and economic conditions for the
project relative to the proposed site on the Parana River in southeastern
Paraguay. "Stancil's studies confirm our own modeling and validate BIC's
evaluation of the need for this type of facility at Puerto Triunfo. This
region lacks oilseed crushing and processing capability even though it is
one of the most prolific oilseed production regions in the world. A
combined crushing and biodiesel plant will provide value for both TexCom
and the region," stated Lou Ross, C.E.O. of TexCom.
Paraguay produces more than 6 million tons of soybeans annually and is
devoting more croplands to sunflower and canola. The majority of the
country's existing oilseed production is currently exported to
international markets. The creation of value added downstream products are
expected to add jobs and economic benefit that Paraguay does not currently
realize.
Paraguay's Ministry of Industry and Commerce projects that a plant of this
size will provide considerable economic value to the region, including the
significant creation of direct, indirect and construction jobs for the
project. Long term, this job creation and the increased value added
products produced at the plant are expected to have a substantial economic
impact for Paraguay.
The flexibility of the crushing plant will allow local farmers the option
to increase plantings of crops that produce higher oil content such as
canola and sunflower, thereby increasing both the oil yield and revenue
per hectare.
Paraguay has a mandate to include 3% renewable content in diesel fuels in
2008 and 5% in 2009 and beyond. "This plant will allow Paraguay to leverage
its strength in agricultural production to provide additional economic
value in-country while reducing its need to import virtually 100% of its
fuel," continued Ross.
The planned facility will process 3,000 metric tons of oilseed per day,
yielding approximately 205,000 metric tons (approximately 60 Million
Gallons) of biodiesel and 790,000 metric tons of soy meal pellets per year.
Initial feedstock will consist mainly of soybeans that are grown in the
immediate area of the proposed production plant in the Provinces of Itapua
and Alto Parana.
Preliminary engineering for the integrated facility is in progress. Pending
financial commitments, negotiation of construction contracts and all
necessary approvals, TexCom would begin construction of the facility by
mid-2008.
Abram Janz, Chairman of BIC, said, "We approached TexCom some months ago
because of their experience in planning, construction, funding and
operating biodiesel plants. This outcome allows us to work as a team using
BIC's international experience and business relationships in Paraguay with
TexCom's operational and project experience in order to develop this world
class plant."
About TexCom, Inc.
TexCom, Inc. is headquartered in Houston, Texas and is an early-stage,
growth-oriented company with its primary focus on the production of
biodiesel. TexCom is also expanding its interests in liquid waste disposal
servicing the petrochemical and drilling industries.
Statements contained herein and the information incorporated by reference
herein may be forward-looking statements within the meaning of Section 21E
of the Securities Exchange Act of 1934 (the "Exchange Act").
Forward-looking statements can be identified by the use of forward-looking
terminology such as, but not limited to, "may," "will," "expect,"
"anticipate," "estimate," "would be," "believe," or "continue" or the
negative or other variations of comparable terminology. We intend such
forward-looking statements to be covered by the safe harbor provisions
applicable to forward-looking statements contained in Section 21E of the
Exchange Act. Such statements (none of which is intended as a guarantee of
performance) are subject to certain assumptions, risks and uncertainties,
which could cause our actual future results, achievements or transactions
to differ materially from those projected or anticipated.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events, or performance and underlying assumptions
and other statements, which are other than statements of historical facts.
These statements are subject to uncertainties and risks including, but not
limited to, product and service demands and acceptance, changes in
technology, economic conditions, the impact of competition and pricing, and
government regulation and approvals. TexCom cautions that assumptions,
expectations, projections, intentions, or beliefs about future events may,
and often do, vary from actual results and the differences can be material.
Some of the key factors which could cause actual results to vary from those
TexCom expects include changes in natural gas and oil prices, the timing of
planned capital expenditures, availability of acquisitions, uncertainties
in estimating proved reserves and forecasting production results,
operational factors affecting the commencement or maintenance of producing
wells, the condition of the capital markets generally, as well as our
ability to access them, and uncertainties regarding environmental
regulations or litigation and other legal or regulatory developments
affecting our business.
Our expectations, beliefs and projections are expressed in good faith and
are believed to have a reasonable basis, including without limitation, our
examination of historical operating trends, data contained in our records
and other data available from third parties. There can be no assurance,
however, that our expectations, beliefs or projections will result, be
achieved, or be accomplished. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date hereof. We undertake no duty to update these forward-looking
statements.
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