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August 2006

 

Mobilestream oil announces tire processing contracts

West Berlin, NJ— Mobilestream Oil, Inc. announced that multiple contracts have been signed for the purchase of output material from the first tire processing plant utilizing Mobilestream’s unique patent pending technology for a minimum of five years.

GTI, an oil and chemical trading company in New Jersey, has agreed to purchase all the oil from the operation of the tire plant for at least the first five years of operation. It is anticipated that the plant, which will be capable of processing 11 million tires a year, will generate approximately 286,000 barrels of oil annually. Based upon the current market price of approximately $75 per barrel for crude oil, the sale of oil should generate an estimated $21 million in annual revenues.

An additional contract has been signed with C and K Scrap Metal, a Newark, New Jersey-based company, for the purchase of all of the output of steel from the first tire processing plant.

It is anticipated that 20 million pounds of scrap steel will be produced per year at the current market price of $.10 per pound, with generated revenue of approximately $2,000,000 after the first 12 months. Mobilestream will generate an estimated $150,000 to $200,000 in revenues per month from the sale of its scrap steel.

According to the Rubber Manufacturers Association, 290 million scrap tires were generated in the United States in 2003 alone. This does not include the millions of tires already in tire piles.

The Mobilestream process allows for environmentally safe recovery of all of the original materials from scrap tires. Each tire plant will be capable of handling 11 million tires a year. Utilizing this process, each 20-pound tire will yield 19.9 pounds of resalable materials. A tire will produce approximately 8 pounds carbon black, 2 pounds of hydrocarbon gases, 1.2 gallons of oil and 2 pounds of steel.


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