CMG Holdings Group Inc (CMGO)

[FergusVI]

From older PR and assumed 10%.

“With new regulations limiting pollutants - especially sulfur – we anticipate the emerging proprietary treatment technology market for petroleum products to be very profitable,” said CMG CEO Glenn Laken “enhancing the value of lower
priced, low grade petroleum feedstocks with MVU technology to produce a higher quality product that can be sold at a premium using environmentally sensitive, more cost- effective technology is a win-win for everyone.” He explains, “When upgrading heavy and sour fuel oil to a medium to low sulfur fuel, the spread between the price of the crude before and after treatment determines profit. Assuming potential profits per barrel in the range of $ 6 to $10 per barrel the JV should realize a net profit margin between $900,000 and $1.5 million dollars per month. As a 10% member of the LLC, CMG’s share should equate to between $1,080,000 and $1,800,000 annually.” He adds, “In the short term during the next 12 months the JV plans to install 1 to 3 more processing units, enabling 10,000 to 20,000 bpd in production. If we reach the goal of 4 units CMG can earn approximately $3.6 million to $7.2 million annually. Assuming the JV can achieve its goal of installing 8 units – the maximum number that can be installed at the processing facility currently being used by NVT - processing capacity can reach 40,000 bpd and achieve profit levels of approximately $7,200,000 to $18,000,000 per month

($86,400,000 to $216,000,000 annually). CMG’s share as a 10% member would be from $8,600,000 to $21,600,000 annually.”