CARDIFF, Wales, Feb. 23, 2009 (GLOBE NEWSWIRE) -- Flex Fuels Energy, Inc. ("Flex Fuels" or the "Company") (OTCBB:FXFL) today announced the progress of a review of the prospects for its planned oilseed crushing plant at Cardiff ("Project").
Project
As announced on February 2, 2009, a review of the Project operated by the Company's wholly owned subsidiary, Flex Fuels Energy, Ltd. ("FFEL"), is in progress. Initial findings have identified potential enhancements and have provided clearer definition to the Project. The Project will require guaranteed operational crush margins to achieve financial close. FFEL is in discussions with potential partners in this regard.
A modified construction plan and scale has been submitted for study by FFEL's preferred engineering contractor; reversion to its original preferred and permitted site and the construction of a co-located Combined Heat and Power plant to deliver lower energy costs and to attract potential partners. The full findings of the Project review, including partner negotiations and funding options, are expected to be available in early April within the committed spending budget set at the start of 2009. If the Project can be developed to financial close, the Company, mindful of difficult equity and debt markets, intends to extract value by partnered development or divestment.
Strategic Options
The Company maintains considerable cash balances. Strategic options not related to the Project are being examined. Active discussions are now underway with more than one party to determine how best value might be built for shareholders.
Other events
The Company withdrew as plaintiff from the legal action in the United States District Court of Nevada on February 11, 2009.
Tom Barr, CEO, commented, "While there is no certainty in the current financial climate that any value can be realised from the Project, we now have a clear and credible plan to do so at a minimal cost. The Company thanks shareholders for their patience as the new team addresses these legacy issues. I look forward to updating the market on strategic options as soon as we can."
About Flex Fuels Energy, Inc.
Flex Fuels is a diversified company developing its wholly owned planned oilseed crush business, Flex Fuels Energy, Ltd., in Cardiff, Wales, and mining exploration activities in British Columbia, Canada.
To find out more about Flex Fuels Energy (OTCBB:FXFL), visit our website at www.flexfuelsenergy.com.
The Flex Fuels Energy, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4085
Forward-Looking Statements
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from acquisitions or actions in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. Since the information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. Flex Fuels Energy, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.