SANTA ANA, CA (SEND2PRESS NEWSWIRE) -- NRG Resources, Inc. (OTC Pink Sheets: NRRI), an independent oil and oil products company, today reported that it has completed a strategic acquisition of approximately 3.8 acres of real property in Victorville, California, with the objective of building a bio-diesel and synthetic fuel blending facility.
The vacant land, which is the planned building site for a state of the art blending facility for the proprietary, patent-pending bio-diesel and synthetic fuels marketed by the Company, is located within the largest master planned commercial development in the Inland Empire, the Southern California Logistics Airport (SCLA).
"The SCLA, rail complex, and a growing industrial, commercial, and residential infrastructure in the city of Victorville made the location a natural choice for our project and investment," indicates Don Borba, Director of Marketing for the Company. "Having a location within the SCLA Industrial Zone will enable the us to draw on incentives provided by the State and the city of Victorville," points out Tony Vanetik, NRG CEO.
Located in the Inland Empire North, the property is 45 minutes from Los Angeles, and less than 100 miles from Los Angeles and Long Beach ports, with I-15 and highway 395 providing access to all western states, Canada, and Mexico, 12 major trucking routes, and access to both Burlington Northern Santa Fe and Union Pacific railroads. The special Zone provides On-Site U.S. Customs Port of Entry, Secured Cargo facilities, Container freight stations, and bonded warehouses.
The airport is a world class facility for domestic and international air cargo needs. GE, Boeing, Pratt & Whitney, are some of the large companies that have moved into Victorville in the recent years to take advantage of the business incentives, strategic location, and growing population. The Company has been advised by real estate professionals and believes that real property in the area is currently selling at approximately $150,000 per acre, which is a major increase over a period of several years, not unlike that experienced by most other growing cities in Southern California. "We are excited about becoming members of Victorville's business community," indicates Borba.
The SCLA zone offers numerous long-term economic advantages and incentives in connection with planned development.
Designated Foreign Trade Zone
California State Enterprise Zone
LAMBRA Zone Credits and Incentives
California's Largest Redevelopment District
Federal Defense Conversion Grants
City Tax Credits
Tax exempt bonds
Employee State Tax Assistance
The Company views this acquisition as the first step in expanding its current production capacity; and augmenting its product line to accommodate bio diesel manufacturing. The Company's San Diego production of lubricants is estimated to be 11,000 gallons per day. The planned Victorville plant is expected to produce 250,000 gallons per day, which management believes would yield approximately $750,000 of in wholesale sales.
NRG Resources, Inc., a Nevada corporation, is an oil and gas exploration and oil products marketing company, based in California, with executive offices in Orange County and a blending facility in San Diego County. Through its Kazakhstan subsidiary, Munaisystem INK, the Company is pursuing oil and gas exploration opportunities in the Republic of Kazakhstan. Through its oil products division, NRG Resources, Inc. markets a proprietary line of lubricants for industrial and commercial application.
This announcement contains forward-looking statements, which can be identified by the use of forward-looking terminology such as "may," "expect," "anticipate," "estimate," "continue," "believe" "plan," "hope, "intend," or other similar words or phrases. We have made forward-looking statements with respect to the following, among others: our goals and strategies; our ability to earn sufficient revenues to operate and retain the human resources that we have recruited or are in the process of recruiting; our ability to continue to operate and/or develop our existing lubricants business; our ability to continue as a going concern, or ability to allocate funds and obtain permits to build a new facility, our ability to produce estimated quantities lubricants and related products, etc. These statements are forward-looking and reflect our current expectations. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control. Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although NRG Resources, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Investors are cautioned that all forward-looking statements involve high risks and uncertainty, including without limitation, our limited operating history, our ability to launch, sustain, and/or increase our production, our ability to market our lubricant products, the costs and risks of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, fluctuations in commodity prices, inconsistent application, interpretation, and enforcement of applicable Kazakh government taxes, and Kazakhstan Excess Profits Tax, currency exchange losses if Tenge depreciates against US Dollar, country and political risks, including diplomatic and political relations between US and Kazakhstan, costs arising from environmental liability, uncertain costs of drilling (oil producing fields located adjacent to Kokaral, are not an indication that our drilling or related efforts will be successful), inability to drill wells that produce commercial quantities of oil and natural gas, shut-ins of connected wells resulting from extreme weather conditions, insufficient storage or transportation capacity or other geological and mechanical conditions, general market conditions, competition, oil and gas pricing, drilling programs and results, our continued operations of our lubricant business, our future capital needs, our ability to retain qualified management and consultants, etc.
For further information regarding this press release contact NRG Resources, Inc. (www.nrgresourcesinc.com), Corporate Communication, attention Mr. Heip "Alex" Trinh at 714-510-6152.
REF: OTC Pink Sheets: NRRI / NRRI.pk