St. Petersburg, FL, Jan. 6, 2014 (GLOBE NEWSWIRE) -- FutureWorld Energy (OTCQB:FWDG), a U.S. Diversified Energy Holding Company formed to capitalize on the burgeoning markets in natural and alternative energy technologies globally, announced today that the Company has entered into a Letter of Intent to Acquire Torchlight Energy Inc.. Torchlight Energy's assets consists of 2.8 Million Tons of proven Coal reserves valued at $168M (at today's price of $60 per ton). We expect to close this acquisition shortly. Environmental consideration in managing these assets will be our outmost obligation.
Company's rational in investing in a natural resource such as coal, could best be summarized as the following;
Since 2009, China has been the driving force in global coal markets. Coal imports in that country exploded during the past five years, jumping to a peak of 35 million metric tons per month in December 2012. That's a 1,500 percent increase from 2008 levels. Changes in technology and some ground-moving shifts in global consumption patterns could spell better days ahead for the coal industry in general. Also, more than 20 percent of India's 98 coal-fired power plants are running at critical levels of coal inventory, meaning less than seven days' worth of supply. Globally, the coal shortage has a real potential to cripple India's power sector, a fear that has prompted the country to import coal at a high and accelerating rate. With a ground breaking technology such as Clean-Coal, coal will reclaim its status as the other "Black Gold".
Coal prices peaked at $140 per metric ton back in 2008 when Chinese import demand began to surge. But today thermal coal has fallen back to half that level, currently trading around $60 per metric ton on average globally. And with an average mining cost of $42 per metric ton, we believe the fundamentals are in place to profit from the surging coal prices globally based on exceeding demand from China and India alone.
The Department Of Energy has finalized $8 Billion in loan-guarantee solicitation for "advanced" fossil-fuel projects that "avoid, reduce or sequester" carbon emissions. EPA has pinned the success of its rules cutting carbon emissions from the nation's coal-fired power plants on technology that captures carbon, nicknamed "clean-coal" technology. FutureWorld Energy will be applying for this loan guarantee in 2014 in a joint venture with our technology partners.
This will be our first of many acquisitions. We are working on others in next few months. More information will be provided to our investors through our social media channels below;
About FutureWorld Energy
FutureWorld Energy, Inc. (OTCQB:FWDG) a Delaware corporation, is a U.S. Diversified Energy Holding Company formed to capitalize on the burgeoning markets in natural and alternative energy technologies globally. FutureWorld Energy, together with its subsidiaries, focused on the identification, acquisition, development, and commercialization of renewable and alternative energy technologies globally. Through established relationships with universities, research centers and government agencies, we strive to identify technologies on the leading edge of innovation that would contribute immensely to the global energy needs while protecting the future for our children and theirs. To request further information about FutureWorld, please email us at mailto:firstname.lastname@example.org or log onto our website at http://www.futureworldenergyinc.com.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approval for anticipated actions.
CONTACT: Contact: FutureWorldIR Investor Relations (239) 324-0000
Source:FutureWorld Energy Inc.