CALGARY, April 8 /CNW/ - Quantex Energy Inc. ("Quantex" or the
"Corporation") is pleased to announce that it has entered into a Letter of
Intent with CES Environmental Services, Inc. and Port Arthur Chemical &
Environmental Services, LLC ("CES/PACES") for the construction of a Commercial
Demonstration Unit ("CDU") in Port Arthur, Texas (the "Project Site").
The CDU will allow the Company the opportunity to demonstrate its
bio-hydrogenated, direct coal liquefaction technology, capable of converting
coal to heavy oil for refineries and other high value carbon products such as
green coke for the metals and aluminum industries. The CDU will use the patent
pending direct liquefaction process (the "Quantex Process") developed by West
Virginia University and licensed exclusively to Quantex.
"We are excited by the achievement of this major milestone in our coal
liquefaction project," says Gilbert Chalifoux, President and Chief Executive
Officer of Quantex. "We are very pleased that the energetic and focused team
at CES/PACES are joining us in this venture."
The Project Site is located on property owned by CES/PACES and includes
much of the required plant infrastructure including buildings, high voltage
transmission lines and on-site utility services. The Project Site is ideally
situated on the Gulf Intracoastal Waterway, with direct access to major rail
and industrial highway corridors.
"PACES at Port Arthur is well suited for the CDU with a location near
refineries, coal, water, and carbon products operations," says PACES President
Matt Bowman. "The Project Site is located in an area with a strong skilled
workforce, experienced technical support and a workable regulatory climate."
The conclusion of a definitive agreement is subject to the satisfaction
of conditions customary for transactions of this nature including the receipt
of certain approvals for the Project Site, the receipt of all necessary third
party and regulatory consents and approvals and the final approval of the
board of directors of both companies.
"We are on a fast track with this project," says Gordon Eberth, Chief
Operating Officer of Quantex. "We wish to conclude on the definitive agreement
by April 30, 2009 and begin development, permitting and regulatory activities
shortly thereafter. Moving the project forward in Texas, the center of the
American energy industry, also makes great sense to us. We are tremendously
impressed with the positive attitude of the people involved."
Development of the CDU will involve local stakeholder consultation and
will be carried out in accordance with applicable regulatory requirements.
Subject to receipt of the required permitting and regulatory approvals,
financing, as well as equipment deliveries and construction schedules, the CDU
is expected to prove the processes hydrogenation reactor as early as Q4/2009
or early 2010. The CDU will benefit from the environmental advantages of the
Quantex Process which does not produce any CO2 nor consume any water within
Mr. Chalifoux also states that: "This is an environmentally sound process
that results in very little, if any, greenhouse gases as it is basically a wet
process. Furthermore, projected capital costs are a fraction of other heavy
oil technologies and we are confident the Quantex Process can be profitable at
Mr. Chalifoux concluded by saying, "We are pleased to have the
opportunity to work with the people from CES/PACES to take the next step in
bringing this technology to market so that we can do our part to contribute to
energy independence for North America."
About Quantex Energy Inc.
Quantex is an international company headquartered in Calgary Alberta and
focused on a new carbon to liquid technology.
Port Arthur Chemical & Environmental Services, LLC ("PACES") facility is
located near Port Arthur, Texas and is on the Gulf Intracoastal Waterway.
PACES is affiliated with CES Environmental Services, Inc. ("CES") of Houston,
Texas and together provide services for commercial industrial wastewater
treatment, oil recovery, and tank truck cleaning services. For more
information about PACES or CES, please visit www.cesenvironmental.com or
Certain statements regarding Quantex Energy Inc. including management's
assessments of future plans and operations, may constitute forward-looking
statements under applicable securities laws and necessarily involve known and
unknown risks and uncertainties, most of which are beyond Quantex's control.
These risks may cause actual financial and operating results, performance,
levels of activity and achievements to differ materially from those expressed
in, or implied by, such forward-looking statements. Such factors include, but
are not limited to: the impact of general economic conditions in Canada and
the United States; industry conditions including changes in laws and
regulations including adoption of new environmental laws and regulations, and
changes in how they are interpreted and enforced; competition; the lack of
availability of qualified personnel; fluctuations in commodity prices;
fluctuations in foreign exchange or interest rates; the ability to access
sufficient capital from internal and external sources; and obtaining required
approvals of regulatory authorities. Accordingly, Quantex gives no assurance
nor makes any representations or warranty that the expectations conveyed by
the forward-looking statements will prove to be correct and actual results may
differ materially from those anticipated in the forward looking statements.
Quantex undertakes no obligation to publicly update or revise any
For further information:
For further information: about Quantex Energy Inc., please visit
www.quantexenergy.com or please e-mail Gilbert.Chalifoux@quantexenergy.com or