DENVER, CO and BISMARCK, ND — (Marketwire) — 02/29/12 — Sustainable Environmental Technologies Corp.–s () (OTCQB: SETS) (PINKSHEETS: SETS) ProWater wholly owned subsidiary has received private placement funding of $875,000 from Brad Scott, a private investor who is president of Scott Financial Corp. of Bismarck, ND. The funds will be used for the expansion of –s Centerline SWD facilities into the in North Dakota to meet the massive demand for facilities to process and dispose of the copious amounts of salt- and mineral-laden water from the booming oil and gas production in the region.
“Bakken Shale oil and gas production is growing exponentially right in our own backyard and likely will make North Dakota the second largest oil-producing state in the nation very soon,” said Brad Scott. “As a North Dakota resident, I have a vested interest in the environmental concerns surrounding it. Because saltwater disposal is such an integral function of oil and gas production, particularly in the Bakken Shale, ProWater offers a terrific ground level opportunity to invest in an environmentally conscious SWD business model with great upside financial potential. ProWater–s sole focus on SWD systems has led them to employ cutting edge technology, environmentally sound processes and an efficient business discipline that has created and defined a better –mousetrap– and leveraged them into a distinct competitive advantage.”
Scott stated, “The commercial lending institution I founded has profitably accommodated financing for nearly $1 billion in various industries, including the energy industry. I applied the extensive industry knowledge gained there for my personal investments. I seek out companies that come first and/or best to the game with solid financial business models that efficiently meet a market demand while providing a significant return on shareholder investment. It–s clearly a bonus when they are environmentally conscious. ProWater–s alliance with a prominent partner like GE is validation of the quality of their product offering. I am investing in SET Corp because I believe the stock is undervalued to its immediate potential. The company has set forth very plausible forecasts for revenue and ROI based on their Utah facility. I believe their technology and business plan is second to none and ProWater will be a long-term industry partner, servicing the O&G industry for years to come.”
In exchange for the $875,000, SET Corp issued 500,000 restricted units at $1.75. Each unit consists of one common share and one purchase warrant with an exercise price of $2.25 per share with a three-year exercise period.
Bob Glaser, CEO of SET Corp, stated, “SET Corp is fortunate to have Brad Scott join our base of sophisticated and loyal investors who have come forward to provide the resources needed to properly capitalize construction of our ProWater facilities, thus minimizing shareholder dilution. This infusion of capital helps keep us on pace for bringing three Centerline SWD facilities online in 2012. Because the SWDs generate significant ROI quickly, we anticipate that, down the road, we will be able to internally capitalize new facilities, further enhancing shareholder value.”
ProWater is one of the few companies with the technology to provide cleaning and recycling of the produced water, in addition to safe saltwater disposal required by the government to conserve and protect critical drinking water resources. The demand for SWDs in the Bakken Shale far exceeds supply, which presents a prime opportunity for ProWater–s Centerline SWD technology and for its investors.
Based on the success of ProWater–s saltwater disposal well in Utah, SET Corp anticipates that the expansion of ProWater into the Bakken Shale, starting with the completion of the first facility in North Dakota in May 2012, will lead to substantially increased revenues and increasing profitability as more wells come on line.
ProWater is planning to construct three Centerline SWD facilities in 2012 and four more in 2013 in North Dakota and Montana in the Bakken Shale. Each new facility, which will provide saltwater disposal, cleaning and recycling of water from oil production, is projected to generate income within 3-4 months of commissioning, with regular, dependable income expected to be realized in the first half of fiscal year 2012.
Sustainable Environmental Technologies Corp. (SET Corp), through subsidiaries such as ProWater, LLC acquire, develop and market strategic technologies that responsibly and economically solve environmental issues to bridge the gap between today–s energy-inefficient facilities and the sustainable development and design needs of tomorrow. SET Corp–s technologies deliver essential resources for business operations while reducing their customers– environmental impact and conserving essential and diminishing resources. SET Corp–s offering includes treatment, recovery, reclamation and re-injection services for produced water from oil and gas production and ultra-efficient tri-gen systems that offer combined cooling, heating, and power generation with the added capability of water production from a single energy source. Ticker: (OTCQB: SETS), or
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company–s results of operation, financial position and long-term strategies. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, commercial agreements, acquisitions and strategic transactions, and fraud. More information about factors that potentially could affect SET Corp–s financial results are included in SET Corp–s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-Q or 10-K and subsequent filings.
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