NEW YORK (Thomson Financial) - Shares of SulphCo Inc. surged Monday after it
received its first customer order from Pt. Isis Megah for Sonocracking units
with processing capacity of at least 30,000 barrels a day.
SulphCo also signed an agreement granting Isis an exclusive distributorship
in the sales territories of India, Malaysia, Singapore and Indonesia.
SulphCo's stock shot up 40% to a daily high of $5.80 and the highest stock
price since Dec. 31.
Isis has agreed to pay all entry costs and duties, transporting costs from
the port of entry to the refinery and all installation costs. SulphCo will
provide advisory personnel and on-site project management to insure proper
installation, start-up and commissioning of the units.
Under a preliminary agreement reached by the companies, SulphCo will receive
a processing fee for each barrel of installed processing capacity, which will be
adjusted annually based on benchmark performance targets. The customer is
responsible for all operating and maintenance expenses, SulphCo will retain
title to the units and the operating agreement will have a five-year term.
SulphCo plans to reimburse installation costs out of operating revenues.
"The net processing fees are entirely consistent with revenue projections we
disclosed in our business model," SulphCo said.
Pt. Isis Megah is an oil and gas company servicing Indonesia.
Based in Reno, Nev., SulphCo develops technology to reduce the sulfur
content of crude oils and petroleum fuel. Its stock was last up nearly 19% at
$4.90.
Melinda Peer
mp/tk1
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