SOURCE: FuelNation

December 22, 2006 07:00 ET

FuelNation Shareholder Update Letter

WEST PALM BEACH, FL -- (MARKET WIRE) -- December 22, 2006 -- We are pleased to report that FuelNation (PINKSHEETS: FLNA) has reached several milestones for the company and its shareholders. We recently informed you that we shared revenues and profits with the Antigua and Barbuda Government on their 25th anniversary of Independence. This arrangement will continue to produce additional revenues on other contracts we have mutually signed. In addition, we are informing you that we have time chartered, for the next twelve months in the Arabian Gulf, the first of several brand new 2006 double hull vessels, primarily for our business in Iraq. Further, we are informing you that our subsidiary, NIKA Oil, has signed a memorandum of understanding with OAO Gazprom in regards to jointly exporting crude oil from Russia starting the first quarter of 2007!

The joint venture we maintain with the Antigua and Barbuda Government, FuelNation Antigua and Barbuda Ltd., is beginning to be recognized in the petroleum marketing business. We have received notice from Iraq that a long-term contract to buy fuel oil is forth coming at the beginning of 2007. Our joint venture will now be able to supply gasoline to the Iraqi Government on a long-term contract. Currently, the Iraqi Government has annual need in excess of $8 billion dollars of petroleum products.

Our Iraqi fuel oil operations have encountered several delays, from pipeline breakage to long waiting lines at the loading dock, due to low pumping pressure from the Iraqi pipeline. Currently, we are sub-chartering our vessel and transporting spot cargoes in the Arabian Gulf for other companies such as VITOL, until the pipeline is operational in southern Iraq. We have been informed by the Iraqi Ministry of Oil that this pipeline situation should be fixed by the end of next week. With our relationships at the highest levels, the long-term opportunities in Iraq out weigh any short-term disappointments we encounter.

Our office in Moscow, Russia informed us that our joint venture NIKA Oil, has signed a memorandum of understanding with OAO Gazprom regarding Nika Oil exporting crude oil from Russia starting the first quarter of 2007. In addition, we are in negotiations for a strategic acquisition conveniently located on the Baltic Sea, which will be closed by first quarter 2007 after we receive government approval. We anticipate favorable results from these negotiations and will be able to add another solid source of supply to our growth.

Further, we would like to inform the shareholders of our annual shareholder meeting to be held at Pro Player Stadium in Miami Florida. We have reserved the Hall of Champions and the Picnic Area for May 26, 2007. Shareholders of record please RSVP by email to or by mail to 999 Stinson Way, Suite 301, West Palm Beach, Florida 33411. This will be a great time to meet the management and enjoy a baseball game, Florida Marlins vs. New York Mets. We will provide additional information prior to the meeting.

Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. In addition to the factors discussed in the filings with the Securities and Exchange Commission, among the other factors that could cause actual results to differ materially are the following: adverse changes in the business conditions and the general economy; competitive factors, such as rival companies' pricing and marketing efforts; availability of third-party material products at reasonable prices; the financial condition of the customer; risks of obsolescence due to shifts in market demand; and litigation involving product liabilities and consumer issues. FuelNation cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the company's expectations or any change in events, conditions or circumstances on which any such statement is based.

Contact Information

  • FuelNation Government Services, Inc.
    Mr. Emilio Zabaleta
    4675 Ponce de Léon, Suite 305
    Coral Gables, Fl. 33146
    561-383-8212 Ext. 121

    FuelNation Government Services, Inc.
    Mr. John Macho
    Managing Director
    4675 Ponce de Léon, Suite 305
    Coral Gables, Fl. 33146
    561-383-8212 Ext. 122