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Earth Biofuels to Acquire Controlling Interest in Ethanol Production Facility Earth Biofuels, Inc. (OTCBB:EBOF) today announced that its wholly owned subsidiary Earth Ethanol, Inc. has entered into an agreement with Liquafaction Corporation to construct and operate an ethanol production facility located near Moses Lake, Washington. Earth Ethanol will beneficially own 80% of the facility, which is projected to produce approximately 36 million gallons of ethanol per year by the end of 2007.
The project is a renovation and expansion of an existing ethanol plant built in 1992 with an original capacity of approximately six million gallons per year. The facility will be upgraded with state-of-the-art processes and controls and will be able to process both corn and barley as feedstock for the ethanol production.
Moses Lake is located in Grant County, the largest corn-producing county in the state of Washington, and is adjacent to the largest barley producing counties in the state. The ability to operate on two grains will help to reduce the exposure to rapidly changing corn or barley prices.
"The estimated production capacity of this facility is in line with our objective of having an annualized ethanol production rate of at least 30 million net gallons by the end of 2007," said Earth Biofuels' Executive Vice President, Kit Chambers. "With the strong ethanol market on the west coast and specifically in Seattle, we believe this is a great opportunity for Earth Ethanol."
Production at the facility is expected to increase incrementally - from an initial 12 million gallons per year in June of 2007 to 36 million gallons per year by November 2007.
In addition to Earth Biofuels' controlling interest, it will manage operations at the Moses Lake facility.
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Bio-Willie sings the blues Posted by Ron Steenblik at 3:55 PM on 02 Jan 2007
Forbes is engaging in some hard-hitting investigating of various companies' finances.
Their latest article considers the alleged troubled finances of Earth Biofuels, a small Dallas-based outfit trying to build a national chain of filling stations dispensing biodiesel. The company took on country-western singer Willie Nelson as a director when it licensed his name for "BioWillie®", the brand under which the biodiesel, made mainly from U.S. soybeans, is marketed.
According to the article, Willie gets a royalty of $0.01 for every gallon sold. Meanwhile, the company (like all producers of biodiesel from agricultural products) benefits from a federal subsidy of $1.00 for every gallon sold.
Here's a flavor of the story:
If you care to find them, 18 pages into Earth's financials are insider transactions, including $16,000 a month in rent for a truck stop and convenience store in Mississippi owned by director Blackwell, a series of trades between Earth Biodiesel and Apollo and a $160,000 investment in Blue Wireless, a penny stock venture McLaughlin controls. McLaughlin insists all transactions have been fair to Earth.
The Forbes article claims also that the company's Chief Executive, Dennis G. McLaughlin III, has what it calls a "colorful background":
He presided over the $100 million bankruptcy of the company he formed in 1993, Aurora Natural Gas. Duke Energy Trading sued him for fraud, saying he used shell companies to double-bill Duke to the tune of $26 million. Duke ultimately settled and gave McLaughlin a release. McLaughlin blames the bankruptcy on one of his employees and on Duke itself, for inflating gas prices in late 2000; as for his not disclosing it in Earth's SEC filings, he says he has "never been employed by a company when it filed [for bankruptcy]." Right. According to Earth's most recent 10-K, he was Aurora's chief from 1993 to 2001, the year it filed for bankruptcy.
To be fair, I should mention that Earth Biofuels has subsequently issued a reply alleging numerous errors in the Forbes article.
So here's a prediction for the coming year: There will be many more such stories in 2007, as reporters start to pick up the scent of dodgy companies set up to cash in quickly on the biofuel bonanza.
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i hope that huge buy late in the day wasn't a balancing the book move.. i hope this thing is due for another run soon.. with huge transactions these several days, i'd think it's ready for an up swing..
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i played this one a few months ago, it seems to drop hard then it bounces back hard, rsi is at 16 so I dont think it can go much lower lol
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Industry Veteran Hired to Handle Public Affairs for Earth Biofuels, Inc. Thursday January 4, 12:16 pm ET
DALLAS--(BUSINESS WIRE)--Earth Biofuels, Inc. (OTCBB:EBOF - News) today announced Thomas P. Foltz has joined the company as vice president of public affairs. In this post, Foltz will communicate and lobby for Earth Biofuels' mission of making quality renewable fuels widely available throughout the country and will act as a spokesperson for the company.
"The addition of Tommy Foltz is a tremendous win for Earth Biofuels," said Dennis McLaughlin, chairman and CEO. "He is a long-time, determined advocate of clean fuels who has participated at every level of the industry, from policy to sales to building and running a biodiesel company. His expertise makes Earth a stronger company."
Foltz brings a wealth of experience in the energy industry from his work in Washington, DC, Texas and the mid-South. He has developed energy and environmental technology markets as co-Director of the U.S. Department of Energy's National Clean Cities program, as an independent contractor, and as founder and president of a 3 million gallon per year biodiesel production facility. The bulk of his work has been in the biodiesel and LNG industries, though he has also worked within the ethanol industry.
He has been an informal adviser to the campaign of Arkansas Governor Elect Mike Beebe, Arkansas Agriculture Secretary Richard Bell and the Arkansas Legislature on biofuel policy. He has testified before the Texas and Arkansas legislatures; and led two initiatives that have received Natural Gas Vehicle Coalition Achievement Awards.
"I am passionate about this industry. For the past 14 years, I have been focused on improving our nation's energy security, environment and economy through development of the domestic energy industry," said Foltz. "These are exactly the priorities of Earth Biofuels and that's why I'm here."
Previously, Foltz was president and founder of Patriot Biofuels, Inc., where he led the distribution of more than 1 million gallons of biodiesel during the first five months of the company's existence.
Prior to Patriot Biofuels, Foltz held positions at Foltz Company, Blue Energy & Technologies and Clean Fuels Strategies, Inc., where he provided policy development, grant writing and market development strategy in the clean fuels industry.
He served at the U.S. Department of Energy from 1993 - 1997, and has served on the Texas Clean Air Working Group, Natural Gas Vehicle Coalition, and Central Arkansas Clean Air Task Force. He currently serves on the Technical Advisory Committee for the Arkansas Bioenergy Policy Council. He is a graduate of the University of Arkansas and currently resides in Little Rock with his wife and six year-old twin boys.
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I kept averaging down... and I kept losing =) I hope the new VP of public affairs has something positive to say on Monday, cause this stock is gonna ruin me.
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This thread started when EBOF was .90s. Now its .60s.
RSI of 17 is interesting. Not today but I think Tommorow or Wednesday this one might see the beginning of a stretched out reversal of 30-40%. Oil prices are also on a slight rebound.
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wow dumped this one at .7 few days ago, went all the way to .5, if it closes above .65 its good for a hammer which is good indicator of a reversal
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