QINGDAO, China, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- Sinoenergy Corporation (OTC Bulletin Board: SNEN), ("Sinoenergy" or the "Company"), a manufacturer of compressed natural gas (CNG) filling station equipment and car/bus conversion kits in China, as well as an emerging developer and operator of natural gas filling stations in China, announced that Sinogas, the wholly-owned subsidiary of Sinoenergy, was granted the land use rights for the 60,860 square meter (approximately 653,000 square foot) plot of land on which Sinogas' facilities are located. The land is located in the central part of Qingdao City, Shandong Province, China. The cost of the land use right was approximately US$18.4 million, of which US$15 million has been paid by the Company as of today.
Located in the east coast of China, Qingdao City is a scenic tourist destination, where the sailing competition of the 2008 Beijing Olympic Games will be held. The land has been divided into two parcels by a main road of the Si'fang District of Qingdao City, where Sinoenergy's manufacturing plants are located.
The government has granted Sinoenergy transferable land use rights for a 50-year term with an option to renew. In China, there is no private ownership of land; rather, the government grants a transferable land use right.
"The land prices in Qingdao have risen dramatically in the past few years," said Mr. Deng Tianzhou, Chairman of Sinoenergy Corporation. "This favorable market environment provides Sinoenergy with several attractive alternatives. We are evaluating the best use of this asset."
About Sinoenergy
Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as a designer, developer and builder of CNG stations in China. In addition to its CNG related products, the Company also manufactures a wide variety of pressure containers for use in different industries, including the design and manufacture of various types of pressure containers in the petroleum and chemical industries, the metallurgy and electricity generation industries and the food and brewery industries.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the projected completion of the Sichuan-Shanghai pipeline; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
Sinoenergy Corporation
Ms. Laby Wu, CFO
Tel: +86-10-8492-8149
Email: labywu@gmail.com
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com