Energtek Signs Commercial ANG Agreement with PNOC-EC

23 July 2008

Energtek Inc., a developer of Adsorbed Natural Gas (ANG) technology, has signed a purchase contract with the Philippine National Oil Company - Exploration Company (PNOC-EC) for natural gas extracted from the San Antonio stranded gas well in the Filipino province of Isabela.

The purchase contract enables Energtek to implement its business model as a commercial distributor of natural gas in emerging markets across Southeast Asia. This enables the first phase of the world's first commercial ANG project.

Energtek uses proprietary ANG systems to supply natural gas to small vehicles. (Earlier post.) The first phase of the project calls for the vehicle conversion and ongoing supply of natural gas to 3,000 three-wheelers in Isabela.

The Isabela project is the first part of Energtek’s plan to convert more than 50,000 tricycles during the next 18 months, which would generate projected revenues of over $20 million in vehicle equipment sales and $40 million in ongoing annual gas sales. Implementation of this plan is primarily dependent on the timetable for attainment of sufficient natural gas supplies.

Energtek aims to fulfill the government’s request to convert more than 500,000 three-wheelers within the next three to four years.

There are approximately 1.5 million tricycles running on gasoline that would be banned from operation by the government due to the pollution generated by their engines.