SOURCE: Planet Resource Recovery, Inc.

June 03, 2009 07:00 ET

Planet Resource Recovery Chairman and CEO Issues Letter to Shareholders

HOUSTON, TX--(Marketwire - June 3, 2009) - Planet Resource Recovery, Inc. (PLANET) (PINKSHEETS: PRRY), developer, manufacturer and marketer of the PetroLuxus™ family of green technology products, issues a letter from Kurt E. Neubauer, Chairman of the Board and CEO, to Shareholders.

Dear Fellow Shareholder:

After five years of intensive research and development, the field results and agency endorsements of the Planet Resource Recovery science have been sufficiently validated, to the point where we are now engaging contracts for broad-scale application of our PetroLuxus™ platform of products across various industry sectors.

If you are not familiar with the compelling story and legacy of Planet, I encourage you upon receipt of this letter to visit our new website: www.planetresource.com. It may surprise you to learn that fewer than 400 miles from the site of the very first oil well -- in Titusville, Pennsylvania -- Planet Resource Recovery successfully treated an EPA Super Fund site 150 years later! More importantly, Planet is now uniquely poised to change the way hydrocarbons are managed and harvested and remediation and recovery of soil is accomplished using nano-scale, environmentally friendly technology.

It gives me great pleasure to provide the following update of the activities on promising endeavors at your Company as we close our fiscal first quarter of 2010. I am proud to inform you that the first part of 2009 has been filled with many accomplishments, as outlined in our business plan. We have enjoyed successes in the pilot testing of our PetroLuxus™ green family of products and the expansion of our executive management team, both efforts intended to further propel the Company to attain its goals and shareholder value. I can unequivocally state that based on the successful execution of our recent activities, we are poised to move into our next phase of operations on an exceptional and firm foundation.

Remediation Successes

At its inception, PetroLuxus™ was designed and developed as an Environmental Remediation product. We have made many strides in forwarding this aspect of product application, as outlined in our original business plan.

In February - March 2009, we were invited by a New Jersey engineering firm to review the potential use of PetroLuxus™ on toxic sludge which contaminated an underground storage tank -- railcar -- in Oreland, Pennsylvania. This test is so important to the outcome of our potential future relationship with the Region III, Federal EPA, that Michael Smallwood, our Chief Science Officer, traveled to the site to personally manage and oversee the remediation of the buried railcar. The original time allotted to perform the remediation -- using conventional methods -- was estimated at 4-6 weeks. Under Smallwood's supervision, a special blend of PetroLuxus™ was prepared on site and the remediation was completed in six days, far exceeding the stringent requirements of the EPA.

So resounding were the results of this field test that the EPA, with full support of the host engineering firm, awarded the contract to Planet Resource for the exclusive use of PetroLuxus™ in the remediation of the railcar.

Also in February 2009, independent laboratory studies on coal tar samples were conducted by a New Jersey engineering firm. The independent lab tests were designed to determine the effects of PetroLuxus™ on the remediation of the heavy metals resident in coal tar -- known-carcinogens -- which litter the U.S. at most former manufactured gas plants. Again, in the laboratory, the testing was successful, opening the door to proceed with further testing, refinement and the development of soil washing equipment. We can thus plan to remediate the hundreds of manufactured gas plants in the U.S. with PetroLuxus™.

The culmination of successful testing on coal tar, coupled with the remediation of the railcar, prompted a request by the EPA Super Fund Technology Chief for us to work with one of the EPA's largest contractors, beginning laboratory studies on coal tar soil samples. Once this testing is completed and successful, the contractor is to present the studies to the EPA who anticipates designating PetroLuxus™ as the best available technology for an acceptable method of soil remediation.

On-Going Collaborations

We continue to work with Cedar Marine Terminals, a subsidiary of Vertex Energy, LP, to develop a method to remediate waste oil into a more environmentally friendly source of fuel. Testing to date has proven to be successful, but additional work is required to achieve a workable platform.

In February 2009, I was interviewed for an article that was published in the Calgary Herald in Alberta, Canada concerning Canada's "Dirty Oil"[oil sands] Industry. This article caught the attention of the Department of Energy in Canada, which subsequently directed us to numerous Canadian research entities who could more closely examine our PetroLuxus™ products. We commenced dialogue with various research entities regarding the potential uses of PetroLuxus™ on some of Canada's toxic messes. We entered into an agreement with a prominent University in Canada to conduct studies on the remediation technology. Our plan is to extract and recover additional oil and contaminants from the hundreds of tailing ponds that litter the Alberta landscape from the Canadian oil sands industry. Tailing pond samples have arrived at our testing and development facility and the studies have commenced.

We will keep you informed of our progress as we continue to explore additional uses for PetroLuxus™ in the environmental remediation industry.

Oil and Gas Industry

In February 2008, we commenced pilot testing PetroLuxus™ oil recovery products in the oil & gas industry. Our goal was to treat 15 marginally producing oil wells with PetroLuxus™ WC-100 and PetroLuxus™ MMMF to fully evaluate the effectiveness of our products. In both situations we far exceeded our internal goals of PetroLuxus™ treatments.

The evaluation metrics established to determine the effectiveness of PetroLuxus™ products were identified as: increase/decrease in oil production, equipment performance and reduction of common inherent inhibitors of oil production such as scaling, corrosion, paraffin and asphaltenes. The period of evaluation was identified as a period of six months following treatment to determine the longevity of treatment. For accuracy purposes, oil production data was to be procured solely from the Texas Railroad Commission, the governing body of oil production in the State of Texas.

By December 2008, the full six month evaluation period was completed on the first five pilot tested wells. Based on the evaluation metrics, the confidential results were positive and significantly above the industry standard of 20-30% in increased oil production.

Based on the positive preliminary data, management elected to proceed with allocation of resources to bolster the PetroLuxus™ oil recovery products. We are retooling our marketing efforts by expanding our direct mail campaign, television marketing campaign in Texas, attendance of Planet representatives to exhibit PetroLuxus™ products at oil & gas industry trade shows and the addition of veteran oil & gas personnel and salesmen. These efforts are beginning to realize a positive impact on all aspects of Planet Resource Recovery.

Based on the early positive evaluation data, an article was published in the February 2009 issue of the American Oil & Gas Reporter. This article garnered much new interest in the PetroLuxus™ technology.

Upon completion of reporting to the Texas Railroad Commission of our pilot-well testing program, we expect to share with you positive results from the well operators. The pilot testing evaluation data will demonstrate the effectiveness of PetroLuxus™ oil recovery products and how they can assist in U.S. energy independence.

SEC Counsel and Independent Auditors

At the end of our first fiscal quarter of 2010 (which ended on May 31, 2009), our SEC counsel completed the necessary reviews for the preparation of documentation to be filed with the appropriate governing bodies. This filing should result in Planet Resource Recovery's elevation to a higher listing exchange, upon SEC approval. Our Company's audited financials for the fiscal years ending 2007 and 2008 are complete and published. The Company awaits final review of its financials for fiscal 2009 by its independent auditing firm. Upon completion of the 2009 audit and the necessary documentation from our SEC counsel, the Company has expectations that an initial public filing of the Company's financial condition will be prepared and filed.

Management Expansion

With the numerous successes in the oil and gas industry and the environmental remediation industry, it became necessary to expand our management to prepare for the commercial launch of our PetroLuxus™ products and technology. I am very pleased to announce the appointment of our new President, Mr. Rick Burton, who brings 35 years of experience, knowledge and expertise to our company as stated in a prior news release. Mr. Burton has a longstanding and successful career in the field of real estate and aviation, resulting in hundreds of millions of dollars of business development. This addition broadens our management capabilities tremendously and brings years of management experience, business contacts and marketing resources whose impact will be felt immediately. Under the direction of Mr. Burton, we are updating our corporate image to be more representative of a NASDAQ company.

As part of the revamping of our corporate image, we are pleased to launch and unveil our new corporate website at www.planetresource.com which focuses on environmental remediation and oil and gas enhancement, the two driving forces for the company's business model.

In addition to these stellar individuals, we are in the process of expanding our Advisory Board with veteran industry notables recognized the world over, to glean from their advice and counsel. These additions to our Advisory Board will bring unique and substantial qualities to Planet Resource and the direction of our company.

In closing, I can affirm that our future has never been brighter and we will continue to work hard to earn your respect and support. As I contemplate the successes we have attained to-date, I am very proud of what has been achieved. As we enter a new era at Planet, we are poised to commercialize our products in numerous markets, thus vastly expanding our revenue streams and shareholder value. We continue to work on many transactions and opportunities which will only bolster our endeavors to profitability and success. As these transactions and opportunities are realized we will issue press releases to keep you up to date. On behalf of Planet, our executive team and staff, I personally thank you for your continued support.

Sincerely,

/S/Kurt E. Neubauer
Chairman & CEO

About Planet Resource Recovery, Inc.

Planet Resource Recovery, Inc. is the developer, manufacturer and marketer of the PetroLuxus™ family of green technology products, a proprietary environmentally friendly chemical compound that dislodges oil in practically all natural and man-made environments. The PetroLuxus™ family of products are effective and efficient solutions for the remediation and recovery of petroleum-based products. PetroLuxus™ applications include Enhanced Oil Recovery, Oil Sands, oil spills, oil tank farm cleaning, marine ship cleaning, remediation of oil sludge pits, treatment of raw fuel feedstocks, waste oil segregation and biodiesel, to name a few. Through the acquisition and formation of wholly owned subsidiaries, Planet Resource Recovery, Inc. deploys the PetroLuxus™ products. Oil Recovery Ventures, Inc. deploys PetroLuxus™ through joint ventures in the Enhanced Oil Recovery market.

For more information visit: http://www.planetresource.com or http://www.petroluxus.com.

Safe Harbor Statement

Certain statements in this release are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the Company's ability to meet the terms and conditions required to obtain its project financing, risks and delays associated with product development, risk of market acceptance of new products, risk of technology or product obsolescence, competitive risks, reliance on development partners and the need for additional capital.

Contact Information

  • Company Contact:
    Enrique M. Salinas III
    Planet Resource Recovery, Inc.
    281-996-5315
    Email Contact

    Media Contact:
    Rod Mitchell
    281-350-5506
    Email Contact