NEWS 10/6:
Amiworld Announces Lease of New Refining Facility
New Facility Will Increase Petroleum Diesel Production by 44% and Generate $10-12 Million Over Next Six Months
NEW YORK, Oct 06, 2008 (BUSINESS WIRE) -- Amiworld, Inc. (OTCBB:AMWO), an international energy company engaged in the production and distribution of diversified fuel products and services with a focus on emerging global economies, today announced that it will immediately expand petroleum diesel production by 20,000 barrels per month through the lease of a refining facility located in the free trade zone in Santa Marta, Colombia.
The lease will commence October 1, 2008, for a period of six months. Odin Petroil, S.A.,the Company's subsidiary, will have operational control. The facility is being leased from Odin Petroil ZF Ltda. U, which is a company owned by Mamoru Saito, Amiworld's CEO. Odin Petroil ZF Ltda. has a contract to acquire the facility during the 6 month period and if operations prove successful, the option to purchase will be assigned to Amiworld. At full capacity the increased production is expected to add approximately $10-$12 million in revenue over the next six months. The cost of the lease totals approximately $725,000.
"Alongside our previous plans to expand the Company's primary petroleum diesel refinery to 100,000 barrels per month by the end of 2008, this arrangement will allow Amiworld to bring substantive production online immediately to meet significant demand," said Mamoru Saito. "The significant revenue gained through this expansion will have an extremely positive effect on our already aggressive fiscal 2008 numbers and results of operations."
Recently, Amiworld secured a $56 million delivery agreement over the next 12 months with major South American energy-trading company C.I.S. Vanoil. The proceeds from the Vanoil contract will account for approximately 46% of the revenues anticipated under Amiworld's previously released earnings guidance for the final two quarters of the current year, which are projected to total approximately $37 million. For the entire of fiscal 2007 revenues totaled $1.8 million.
Amiworld has reported record revenues each quarter since inception.
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