Texaco Press Release - Texaco to Purchase 20-percent Interest in Unipure Corporation
FOR RELEASE: THURSDAY, OCTOBER 19, 2000
HOUSTON, Oct. 19 - Texaco and UniPure Corporation announced today the execution of a share purchase agreement for Texaco to purchase a 20-percent equity stake in UniPure Corporation for an undisclosed amount. Additionally, the companies have agreed to continue their joint program to develop UniPure's proprietary technology for the desulfurization of crude oil.
Headquartered in Houston, UniPure Corporation develops and commercializes process technologies consistent with a PureEnergy™ strategy, which is focused on desulfurization and upgrading of heavy and extra-heavy crudes. The company holds patents in emulsion-breaking, desulfurization and upgrading, each of which is designed to address the economic, operational and environmental challenges associated with the significant heavy oil reserves that exist throughout the world today.
Commenting on the announcement, James R. Metzger, Texaco Inc. Vice President and Chief Technology Officer, said, "Our investment in UniPure provides a strategic fit to Texaco's existing expertise in heavy oil production and our ongoing efforts to increase the value of these resources. We are pleased with our new association with UniPure and look forward to the benefits this relationship will bring to both our companies."
John W. Pinkerton, UniPure President and CEO, added, "We are very pleased with the alliance as it will enable Texaco to produce challenging crude oils, reduce their sulfur content, and deliver them to the marketplace economically. In the longer term, UniPure's technologies will support the coming hydrogen economy."
Using a PureEnergy™ proprietary technology, UniPure has made a break-through in the cost-effective removal of sulfur from oil. This will lead to economical desulfurization plants at crude oil production sites, as well as low-cost polishing units to desulfurize refined products, such as diesel fuel, to very low sulfur levels at a fraction of the cost of conventional technologies. Another UniPure PureEnergy™ technology may be used to upgrade heavy crudes to make syncrude that is essentially free of sulfur, and a low-sulfur, low-metals coke that may be gasified to hydrogen-rich syngas.
Under the terms of the agreement, Texaco will hold one seat on UniPure Corporation's Board of Directors.
Operating in over 150 countries worldwide, Texaco explores for and produces crude oil, natural gas and natural gas liquids; manufactures and markets high quality fuels and lubricants and operates trading, transportation and distribution facilities; and produces alternate forms of energy. Texaco is a world leader in gasification technology, an environmentally advanced technology for the conversion of coal, petroleum coke and other low-value hydrocarbons into a clean synthesis gas, which is used for the production of electric power as well as chemical products and industrial gases, including hydrogen. For more information on Texaco, visit the company's website at: www.texaco.com.
UniPure Corporation and its network of business partners are developing and commercializing leading-edge technology products for global markets. UniPure intends to maintain on-going research and development programs to continually support and improve technologies, as well as develop new applications. More information about UniPure is available by contacting Dr. Robert E. Levy at (713) 850-0010 or at its Internet site: http://www.unipurecorp.com.
This press release contains a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements made concerning Texaco's expected performance and financial results in future periods are based upon Texaco's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.
The following factors known to Texaco, among others, could cause Texaco's actual results to differ materially from those described in the forward-looking statements: mechanical failures, worldwide and industry economic conditions, inaccurate forecasts of crude oil, natural gas and petroleum product prices, environmental, health and safety regulations, refined product specifications, divestiture of operations, and the outcome of pending and future litigation and government proceedings. In addition, you are encouraged to review Texaco's latest reports filed with the SEC, including Texaco's Annual Report on Form 10-K filed with the SEC on March 30, 2000, which describes a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.
Updated: October 2000