SOURCE: PGI Energy

PGI Energy

September 23, 2011 05:01 ET

PGI Energy Announces New Earnings Details

HOUSTON, TX--(Marketwire - Sep 23, 2011) - PGI Energy, Inc. (PINKSHEETS: PGIE) - The executive team wanted to take this opportunity to address shareholders regarding the future of PGI Energy, its subsidiaries and joint venture partnerships. The management team is fully engaged in the development of these divisions. We have not done the best job in providing updates to the public regarding these divisions. We have been focused on growing the business organically through development of these divisions, negotiating new contracts to develop revenues which ultimately lead to a solid company.

We are working on a program with our marketing team to provide detailed updates regarding the various divisions as we have chosen to be diversified within the energy industry. We begin putting this program in effect with posting updated news regarding our drilling rigs contract with photos of the newly constructed rigs. We believe that being diversified in an otherwise uncertain economy will provide the company with various revenue streams to weather the tough times as most oil majors have done.

The company is once again considering investor relation firms in response to shareholder sentiment over lack of support in the marketplace. The market has been brutal to both companies with strong earnings and companies with weak earnings. We believe the market is due for a correction, particularly with regards to our stock as we believe it to be undervalued.

The company has been working aggressively to develop its divisions such as PGI Green E & P. The institutional investor we have been working with for funding to lease and sell syn gas units to hospitals, casinos, and raceways; and build wood pellets manufacturing facilities with our partner Ex-Factory required us to mitigate certain inherent risk associated with these green technologies such as business interruption insurance to mitigate inordinate delays in feedstock shipments such as acts of God which could lead to default on repayments. They also require us to put in place specific equipment maintenance and warranty agreements.

We have been working with insurers and re-insurers to provide a satisfactory template for underwriting these insurances associated with these technologies. This has been a time consuming process gathering operating manuals for each of the technologies for insurance underwriters. We have made significant progress in these areas toward a potential product launch under existing feed stock agreements, developed logistics and transport plans, and canvassed the market for buyers and lessees. There is significant interest in the market place for our distribution plans as hospitals have expressed an interest in leasing syn gas units which are usually installed on hospital property to produce heat reducing heating cost producing significant cost savings. The units will also produce a bio char which a commodity sold in the agriculture market for commercial and residential grade mulch, which the machine systematically bags for transport and sell to the market to produce additional revenues. Our joint venture partnership with Waste to Energy Solutions regarding this technology is well underway toward product release which will generate significant revenues.

In PGI Commodities Trading division we have developed new standard operating procedures to enhance our due diligence process and simplify procedures for selling physical products into the market place. First of all we changed policy to limit our traders' ability to enter into commodities contracts without proof of due diligence from third party verification, approval of legal and CIO approval, which should minimize chances of contracts that fall apart as we have seen in the past. We are now registered with many of the oil and gas majors and refineries to sell products to their trade desk. We have been negotiating new contracts to become the exclusive trade desk for international commodities resellers. Our traders have been networking to develop strong trade relations and pricing to build a good profit margin for the company. We are confident this division will show positive revenue and profits in the fourth quarter.

In our Transportation & Logistics division we have been marketing and negotiating with national suppliers to obtain their shipping contracts through competitive pricing and offering dedicated drivers for long term accounts. We have been aggressively recruiting new independent drivers building our database for freight brokerage. We are now seeking to acquire a fleet from a national trucking provider to service dedicated supplier accounts. We expect to see significant revenue production in this division in the fourth quarter.

In our Engineering & Manufacturing subsidiary we expect to show very strong earnings based upon the existing $68mil contract, two rigs near completion for sell under that contract and the fact that we have been in negotiation with several more companies to acquire a significant number of drilling rigs. We likewise attribute strong future earnings projections in the machine shop sector of this division which we are currently seeking to acquire all the equipment necessary to handle the work orders for rotary tables, mud pumps, etc.

Management has acquired non-operated working interest in oil and gas producing assets at the end of the third quarter which will begin to generate revenues for the company on a monthly basis. Our operating partner Home Creek Energy has been very aggressive in our rework program producing increased oil and gas production as shown on their website. We enjoy working with a partner who provides daily updates on production and development for shareholders, stakeholders and the general public. Our Fossil Energy investment is a four well drilling program in Kentucky thrusting us into the E&P sector which offers significant potential for strong oil and gas recovery and production.

The company plans to post its third quarter financials soon, which reflect a stronger balance sheet, but nominal earnings. Our financial statement will now show current share structure on a quarterly basis. Our financial statements will be consolidated as our divisions, subsidiaries and joint venture partnerships are 50% owned by PGI Energy. An investment into PGI Energy is not an investment into a particular division of the company. Management expects the company will show strong revenues and earnings in the fourth quarter and will forecast numbers by division in its business plan. We will unveil our written business plan with earnings guidance for fourth quarter earnings and through year 2012.

The executive team will hold a shareholders conference call to discuss progress and future growth plans which will be announced soon. We have been very aggressive in our approach through partnership efforts and acquisitions, some have failed but we will continue to find ways to build real shareholder value. We are hoping to gain shareholders who want to be long term partners with the company for growth and not just day traders seeking to reap short term gains. Management understands that different investors have different reasons for making investment decisions but we hope to attract investors who really want to own the stock long term. We pledge to our shareholders to do a better job in providing updates on our website, social media and press release to provide greater transparency.
We look forward to building a long relationship with our shareholders and adding value!

About us
PGI Energy, Inc. is an energy holding company, headquartered in Houston, Texas. The company's purpose is to acquire assets in the proven producing oil, gas assets, refinery, pipeline sectors of the energy industry and other synergistic assets.

PGI has formed several partnerships to grow its core business organically through strategic alliances diversifying its interest in green energy through biomass production, waste to energy, wood pellets production, syn gas, bio char production and plastics to synthetic crude. PGI has several core divisions which provide support to its operations and customers such as PGI Transportation & Logistics, PGI Energy Engineering & Manufacturing, PGI Green E & P and PGI Commodities Trading.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "intends, "plans," "should," "seeks," "pro forma," "anticipates," "estimates," "continues," or other variations thereof (including their use in the negative), or by discussions of strategies, plans or intentions. A number of factors could cause results to differ materially from those anticipated by such forward-looking statements, including those discussed under "Risk Factors" and "Our Business." Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons.

For more information visit: www.PGIEnergy.us or Email: ir@pgienergy.us

Contact Information

  • Contact
    Media/PR
    PGI Energy, Inc.
    Jose I. Colon
    832-900-1400