Blaze Energy to Acquire Kentucky Energy Company - KTEN.com - No One Gets You Closer

Blaze Energy to Acquire Kentucky Energy Company

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SOURCE Blaze Energy

BOISE, Idaho, Feb. 11, 2014 /PRNewswire/ -- Blaze Energy (OTC Markets: BLZE) today announced it has executed a definitive agreement to acquire Kentucky Diversified Fuels, LLC ("KDF"), a recently consolidated energy company with operations in eastern Kentucky, consisting of a steam coal strip-mining company, Middle Fork Development Services, LLC ("MFDS"), a development stage coal-to-liquid company, MXP, LLC ("MXP"), and a coal feedstock impoundment, situated on 24.68 acres, with approximately 2.4 million tons of in-place fine refuse reserves.  In a separate transaction, the Company executed a definitive agreement to acquire an additional 43.63 acres, with 15.6 million tons of in-place reserves, from a principal of Kentucky Diversified Fuels, BMM-Empire, LLC ("Empire"). 

MFDS operates an active coal mining operation in Magoffin County, Kentucky, with annual production in excess of 165,000 tons in FY2013 and revenues of $8.6 million, and projected coal production of 325,000 tons in FY2014, and revenues of $16.3 million.  MXP is a development stage, coal-to liquid ("CTL") company, which is seeking to utilize its technology to transform energy trapped in otherwise wasted natural resources, such as the coal fine impoundments acquired by the Company, into superior transportation fuels and fuel additives.  MXP has secured a long-term contract with Tenaska BioFuels, LLC to purchase its entire production output for distribution to the consumer marketplace.  The coal refuse reserves, known as the Dotson Fork and School House Brach Impoundments, are the by-product of the previous coal mining operations of Chisholm Coal Company, and combined contain over 4.4 million tons of recoverable coal reserves, providing an estimated 50-year feedstock for the MXP proposed plant.  The Impoundments were appraised in October of FY2012 by the engineering firm of Marshall Miller & Associates, Inc., and, at current market conditions, are collectively valued in excess of $33 Million.  The Company, however, believes the value to be substantially higher.  The property and reserves were acquired in fee simple by the Company.   

The transactions provides for a closing on or before March 31, 2014, however the Company  expects to close in the upcoming weeks, at which time it will detail additional terms and conditions.

The Company is committed to continue to report its progress as it business and operations develop, via additional press releases; by visiting the its website at www.blazeenergycorp.com; and by searching "Blaze Energy Corp" via Twitter and Facebook social media.  Information on GreenFields Coal Company may be viewed at www.greenfieldscoal.com, however, the Company makes no representation as to the accuracy of the information provided therein.  The above release should be read in conjunction with past press releases; submissions of the Company filed with the Securities and Exchange Commission; future filings, on Form 15c2-(11), 8-K or otherwise, and can be obtained online at www.sec.gov

This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to matters such as prospects, anticipated operating and financial performance. Actual prospects and performance may differ from anticipated results due to economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the company, including risks of production variances from expectations, market volatility, the level of capital expenditures required to fund ongoing drilling initiatives and the ability of the company to execute its business strategy. These and other risks are described in the company's reports filed with the United States Securities and Exchange Commission. These forward-looking statements are made only as of the date of this communication and Blaze Energy undertakes no obligation to update or revise these forward-looking statements.

 

 

 

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