Back to Newsroom
Back to Newsroom

Enerteck Corporation Provides Update in Open Letter to Shareholders

Wednesday, 19 July 2017 12:30 PM

Enerteck Corporation

Topic:

STAFFORD, TX / ACCESSWIRE / July 19, 2017 / EnerTeck Corporation (OTC PINK: ETCK) today announced the following letter to shareholders:

Dear Shareholders:

As we reach the midpoint of 2017 and with all that has been going on with our flagship product EnerBurn®, we felt it was warranted to release a business update to keep all of our shareholders abreast of current developments and going-forward opportunities.

As you may know, we employ two primary distributors, EnerGreen Technologies of Australia and Petro-Chem of Houston, TX.

In April of this year, due to several new business interests in EnerBurn®, we added a new distributor, Enerburn-Solutions, Inc., whose primary line of business is selling to auto and truck parts distribution companies - an area of our business in which we are seeing greater potential.

Enerburn-Solutions, Inc., has begun repackaging EnerBurn® into 16 oz. squeeze bottles and selling them to wholesale and retail auto and truck parts suppliers. Their primary marketing message is toward improved diesel particulate filter (DPF) performance as well as fuel consumption improvement. It has been proven over the course of many recent evaluations that maintenance costs and equipment downtime are substantially reduced as it relates to diesel particulate filter performance because EnerBurn® makes the fuel burn cleaner and more efficiently. This minimizes the soot and particles passing through these filters. EnerBurn® also lowers the combustion temperature of carbon which allows the DPF passive regeneration process to run more efficiently as well.

Enerburn-Solutions, Inc., is enjoying success with this new plan and has had a consistent re-order rate with us to date. The improved performance in DPF's, due to the positive effects of using the EnerBurn® catalyst, is proving to be a positive force in other evaluations. This new approach, plus the normal service savings that those companies who are testing our product are seeing, is resulting in a very meaningful experience with EnerBurn®.

On another front, Refueling Solutions (RFS), a large fuel distributor in Australia, has agreed to acquire EnerGreen Technologies and become our primary distributor in Australia. The good news is that this acquisition has resulted in the resurrection of some currently stalled evaluation projects in Australia. We will now begin to move forward on these evaluations and will update you on these as they develop further.

Moving on to our next distributor, Petro-Chem here in Houston, we find some additional testing progress. Petro-Chem has performed over a dozen EnerBurn® evaluations with potential customers over the past 6-8 months. These encompass companies from a variety of industrial segments, including mining, heavy-duty construction, trucking, and municipal services. All tests were successful in proving the benefits of utilizing the EnerBurn® diesel fuel catalyst, proving both emissions reductions and reductions in fuel consumption of between 15-25%. They are in the process of converting these successful evaluations into contracts.

A few of the results of those evaluations outlined above are noted below:

  • Colorado based heavy duty construction and engineering company proved over a 20% reduction in fuel consumption, utilizing the EnerBurn® catalyst, in two separate evaluations on different pieces of their own in equipment in the field. The data was compiled by their internal operations staff.
  • Texas based heavy duty construction company proved (using the EnerBurn® catalyst) an average of 17% fuel consumption improvement in their equipment fleet at a job site in the Houston area as well as substantial improvement in diesel particulate filter performance.
  • A heavy-duty construction and engineering firm, operating worldwide, tested EnerBurn® in a project in Texas and proved an 18% increase in fuel efficiency and a substantial improvement in DPF filter performance. A second EnerBurn® evaluation will commence in a few weeks at another project and if the results of the first evaluation are verified, a company-wide rollout will begin thereafter.

As you may have seen, we recently reported the addition of two of these customers - a municipal school bus fleet and a Texas based heavy duty construction company. We should be announcing others during the late Summer and Fall.

These are high-quality customers for EnerTeck and Petro-Chem because they are consistent, high volume diesel fuel consumers and will generate recurring revenue due to their relatively stable fuel usage.

One of the issues with our business has been the very long timeline from initial contact to contract signing subsequent to successful completion of an evaluation. Unfortunately, many times we have proven EnerBurn's benefits and the evaluating companies have opted not to move forward for a variety of reasons. As we continue to string together a series of positive evaluations in more industries, we should begin to see that reluctance to disrupt the status quo, (do nothing) begin to fade.

Recent successes in the heavy-duty construction segment are aiding us in reducing our sales timeline as we now have completed three evaluations in the segment. These companies all know each other and once EnerBurn® has been implemented with all three, the high-quality references from these entities will substantially shorten our sales timeline with other potential customers in this segment.

At both the company and distributor level, we are quite busy doing evaluations of EnerBurn® in field trials. These are trials either in progress or commencing shortly at the time of this letter's release.

  • EnerBurn® evaluation with an iron ore railroad line in Brazil, to prove fuel consumption benefits. This is in progress.
  • EnerBurn® evaluation with a large metropolitan commuter railroad line, to prove a 30% reduction in stake opacity (diesel exhaust reduction) to improve the air quality at their stations and terminals. Late July 2017 start.
  • EnerBurn® evaluation with a large Mexican mining conglomerate at a mine operating in Central Mexico, to prove both the emissions and fuel consumption benefits of EnerBurn®. This is in progress.
  • EnerBurn® evaluation with a Peruvian mining conglomerate at a high altitude mine in the Andes mountains, to prove diesel fuel consumption reductions. This project will commence in August 2017.
  • EnerBurn® evaluation with a large worldwide mining conglomerate on a gold/silver mine in Canada. Coordination and protocols are being worked out at the current time and we expect this to commence in the later summer of 2017.
  • Refueling Solutions (RFS) and EnerGreen Technologies have resurrected the second evaluation in a with a worldwide gold mining corporation with a large utility services fleet to prove fuel consumption improvement in their fleet which consists primarily of mid-sized diesel engine equipment. This is scheduled to begin in the fall of 2017.

As noted above, diesel particulate filters (DPFs) have become a headache for all fleet managers who operate equipment fleets with diesel engines. These filters capture the soot and particulate matter not burned off in the normal combustion process. They are effective in reducing emissions from all types of diesel engine equipment but they are service intensive.

We have proven, in many our recent trials that EnerBurn® usage substantially reduces the amount of soot and particulates that end up in the DPF. This is due to the catalysts positive effect on the combustion of the fuel thereby reducing the mass of soot and particulates released to the DPF.

In summary, our business is the strongest it has been during my tenure at the company. We are executing slowly but surely on our recently completed evaluations with our distribution partners. We expect our sales process timeline to shorten as we bring new customers online. Our pipeline of EnerBurn® trials is strong and growing and we are confident that our recent successes will prove to be valuable in bringing these potential customers online by late 2017/early 2018. Our goal is to exit 2017 with an average monthly revenue run rate that will equate to an annual revenue rate for 2018 in the low to mid millions.

We hope this letter brings you up to date on our progress thus far in 2017 and we look forward to providing you with much more in the year-end report.

Very Truly Yours,

EnerTeck Corporation

Gary Aman, CEO

About EnerTeck Corporation

EnerTeck Corporation, through its wholly owned subsidiary, EnerTeck Chemical Corp., specializes in the sales and marketing of a fuel borne catalytic engine treatment for diesel engines known as EnerBurn®.

Safe Harbor Statement

With the exception of historical information contained in this press release, content herein may contain "forward-looking statements" that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by using words such as "may," "will," "expect," "anticipate," "continue," "estimate," "intend," "plans," and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. Such statements are not guarantees of future performance and are subject to risks and uncertainties and actual results may differ materially from those included in the forward-looking statements as a result of various factors. Such factors include, among other things, general economic conditions; cyclical factors affecting our industry; lack of growth in our industry; our ability to comply with government regulations; a failure to manage our business effectively; our ability to sell products at profitable yet competitive prices; and other risks and factors set forth from time to time in our filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

Contact:

Lynne Cornwell
Administrative Officer
[email protected]
(281) 240-1787

SOURCE: EnerTeck Corporation

Topic:
Back to newsroom
Back to Newsroom
Share by: