Mobilestream Oil, Inc. Signs Memo of Understanding with Global Resource Corp.
October 30 2006 - 7:00AM
PR Newswire (US)
WEST BERLIN, N.J., Oct. 30 /PRNewswire-FirstCall/ -- Mobilestream
Oil, Inc. (OTC:MSRM.PK) (BULLETIN BOARD: MSRM.PK) and Global
Resource Corporation (OTC:GBRC.PK) (BULLETIN BOARD: GBRC.PK)
jointly announced today they will be entering into a preliminary,
non-binding Memorandum of Understanding for Global Resource
Corporation's ("Global") acquisition of the assets and business of
Mobilestream Oil, Inc. ("Mobilestream"). Mobilestream owns certain
microwave technology, embodied in a pending patent, and various
proprietary trade secrets for technology that had been exclusively
licensed to Carbon Recovery Corporation. Global has recently
acquired the assets and business of Carbon Recovery Corporation,
including the exclusive license. The technology is a method of
decomposing petroleum-based materials by subjecting them to
variable frequency microwave radiation at specifically selected
frequencies for a time sufficient to at least partially decompose
the materials. The initial application will involve the
decomposition of waste tires, as described in Form 8-K filed
September 27, 2006. It was originally intended that the licensee
would be the operating company, while Mobilestream would continue
its R&D into the development of further applications for the
technology, including: (1) re-cracking heavy or slurry oil to
retrieve the components of hire grade fuels; (2) the recovery of
oil from oil shale and oil sands; (3) the reduction of hydrocarbons
in drilling cuttings to permit on-site disposal; and (4) the
stimulation of mature oil and gas well ("stripper" well)
production. Upon analysis however, both Global and Mobilestream
believe that, given the interrelationships of the Companies'
management and the probable interface of the R&D with field
operations, it will be more efficient, both financially and
operationally, to combine the Companies. It is anticipated that the
current management charts and the respective responsibilities of
the licensor and licensee will be adjusted for maximum
effectiveness. The major acquisition term not yet resolved is the
value of the Mobilestream technology and its reflection in the
securities of Global. Mobilestream is retaining Corporate Valuation
Advisors, Inc. to provide a fairness opinion on the terms when
negotiated. Corporate Valuation Advisors, Inc. has previously
evaluated the tire decomposition portion of the Company's
technology and is therefore generally acquainted with it. Frank
Pringle, President of both Companies, explained: "We have
previously obtained an independent valuation of the microwave
technology limited specifically to the decomposition of waste
tires. The full scope of the technology, however, includes the
recovery of hydrocarbon liquids and gas from various sources. We
believe that these applications add value to that already
recognized. Accordingly, we do not believe that the current market
price for Mobilestream's common stock accurately reflects its
inherent value and we do not anticipate using that price as the
primary factor." Global intends to restructure itself as a holding
company by forming two subsidiaries, one to receive the assets
acquired from Carbon Recovery Corporation and the second to receive
the assets of Mobilestream. In connection with that, Global shall
change its fiscal year to December 31, as that is the fiscal year
which had been used by Carbon Recovery Corporation and which
Mobilestream currently uses. The transaction is tentatively
scheduled to close by December 31, 2006. About Mobilestream:
Mobilestream Oil, Inc., which has licensed its technology to Global
Resource Corporation (GBRC), is an innovative oil and natural gas
exploration company focused on using our proprietary technologies
for reverse polymerization and pyrolysis of materials and to
maximize the output of under- utilized and non-producing oil wells
in order to squeeze out every last ounce of production. Increasing
prices continue to make primary and less conventional methods for
extracting oil more cost-effective, and while Mobilestream Oil is
relatively small compared to some of the larger players in the
industry, our size is our advantage as we feel we can more quickly
and effectively capitalize on expeditious opportunities. Using
these same proprietary technologies, Mobilestream has successfully
broken down tires into the tires' component parts, capturing for
resale virtually all of the raw materials used to manufacture the
tires. Contact: Mobilestream Oil, Inc. Phone: (856) 767-2450 Fax:
(856) 767-2490 This news release contains forward-looking
statements regarding Mobilestream's business strategies and future
plan of operations. Forward- looking statements involve known and
unknown risks and uncertainties. The company's risk and
uncertainties include: intense price competition, economic,
political and regulatory uncertainties, and the need to raise
additional capital for growth and expansion. The forward-looking
statements contained in this news release speak only as of the date
hereof and Mobilestream disclaims any obligation to provide public
updates, revisions or amendments to any forward-looking statements
made herein to reflect changes in Mobilestream's expectations or
future events. DATASOURCE: Mobilestream Oil, Inc. Contact:
Mobilestream Oil, Inc., +1-856-767-2450, or Web site:
http://www.mobilestreamoil.com/
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