WAYZATA, Minn., March 15, 2013 /PRNewswire/ -- Dakota Plains
Holdings, Inc. ("Dakota Plains" and "DAKP"), (OTC: DAKP) and
joint-venture partner, Petroleum Transport Solutions, LLC, an
indirect wholly owned subsidiary of World Fuel Services Corporation
("World Fuel Services"), (NYSE: INT) today jointly announced that
construction is underway for the Pioneer Project.
The Pioneer Project represents a significant expansion of the
New Town transloading facility
located in the heart of the Williston Basin. Crude oil
supplying the facility is currently sourced primarily from the
Bakken formation that underlies parts of Montana, North
Dakota, and Saskatchewan.
The Pioneer Project provides a double loop track that will
accommodate up to 120 tank car unit trains and will increase the
throughput capacity from 30,000 barrels per day to up to 80,000
barrels per day. The partnership will deploy 180,000 barrels
of storage to start, with the expansion to 270,000 barrels built
into the initial design. The addition of storage tanks will
improve the reliability and efficiency of the crude reception by
truck and opens the door for crude oil deliveries from gathering
systems, or short range pipelines.
Dakota Plains Chairman and CEO, Mr. Craig McKenzie said: "2013 is proving to be
another rewarding year for Dakota Plains shareholders as we set out
to highly increase the scale of our operations. The Pioneer Project
is safe, efficient and economically attractive. It also opens
the door to new logistics businesses where DAKP can be an even
greater service provider to upstream operators in the
basin."
World Fuel Services Senior Vice President, Supply and Trading,
Mr. Carlos Cuervo said: "The Pioneer
Project will further expand our Bakken crude oil marketing
capabilities. We are excited to be playing a major role in
expediting this project."
The crude oil will be transported on Canadian Pacific's (TSX:CP)
(NYSE:CP) rail network, continuing a partnership between CP
and Dakota Plains Holdings and World Fuel Services.
Canadian Pacific, Executive Vice President and Chief Marketing
Officer, Jane O'Hagan, said: "Canadian Pacific is pleased to be the
rail partner for Dakota Plains and World Fuels as they expand the
New Town facility. Through CP's
North American network and rail connections, we offer direct
service from the Bakken to key refining markets across North America. We look forward to leveraging
this expansion and our network to increase the volume of crude
moving efficiently into the marketplace and to provide a cost
effective way for inbound commodities to reach Bakken production
areas."
Completion of the Pioneer project is expected in December 2013; total cost is estimated to be
$50 million and will be funded
equally by Dakota Plains and World Fuel Services. The existing
ladder tracks and Dakota Plains-owned land will be used for inbound
delivery, storage and trucking logistics services for commodities
such as sand, chemicals, diesel, and pipe. Debt financing will be
provided for the Dakota Plains portion of the Pioneer project
cost.
Currently, the New Town
facility is in its fourth year of midstream operations with three
business segments comprising trucking, transloading, and marketing
of crude oil and related products originating within the
Williston Basin of North
Dakota. Land ownership at the New
Town facility now exceeds 192 acres, which provides a base
for the Pioneer Project expansion.
Note to Editors
A description and schematic of the Pioneer project is available
at the company's website: www.dakotaplains.com/pioneer.
About Dakota Plains Holdings, Inc.
Dakota Plains Holdings, Inc. (OTC: DAKP) is a
vertically-integrated, midstream energy company, which competes
through its 50/50 joint ventures with affiliates of World Fuel
Services Corporation (NYSE: INT) and JPND II, LLC, to provide
customers with crude oil off take services that include marketing,
transloading and trucking of crude oil and related products. Direct
and indirect company assets include a proprietary trucking fleet, a
transloading facility located in Mountrail County, North Dakota, which is
centrally located within the Bakken formation, and 1,100 railroad
tank cars.
About World Fuel Services Corporation
Headquartered in Miami,
Florida, World Fuel Services is a leading global fuel
logistics company, principally engaged in the marketing, sale and
distribution of aviation, marine and land fuel products and related
services on a worldwide basis. World Fuel Services sells fuel and
delivers services to its clients at more than 8,000 locations in
more than 200 countries and territories worldwide.
About Canadian Pacific Railway Limited
Canadian Pacific is a transcontinental railway in Canada and the
United States with direct links to eight major ports,
including Vancouver and
Montreal, providing North American
customers a competitive rail service with access to key markets in
every corner of the globe. CP is a low-cost provider that is
growing with its customers, offering a suite of freight
transportation services, logistics solutions and supply chain
expertise. Visit cpr.ca to see the rail advantages of Canadian
Pacific.
Cautionary Note Regarding Forward Looking Statements
This announcement contains forward-looking statements that
reflect the current views of Dakota Plains, including, but not
limited to, statements regarding estimated cash proceeds to us
after expenses of the debt placement, the cash required for us to
execute our business plan and our future cash flow. We do not
undertake to update our forward-looking statements. These
statements involve risks and uncertainties. Our actual
results could differ materially from those anticipated in these
forward-looking statements as a result of lack of diversification,
dependency upon strategic relationships, dependency on a limited
number of major customers, competition for the loading, marketing
and transporting of crude oil and related products, difficulty in
obtaining additional capital that will be needed to implement
business plans, difficulties in attracting and retaining talented
personnel, risks associated with building and operating a
transloading facility, changes in commodity prices and the demand
for oil and natural gas, competition from other energy sources,
inability to obtain necessary facilities, difficulty in obtaining
crude oil to transport, increases in our operating expenses, an
economic downturn or change in government policy that negatively
impacts demand for our services, penalties we may incur, costs
imposed by environmental laws and regulations, inability to obtain
or maintain necessary licenses, challenges to our properties,
technological unavailability or obsolescence, and future acts of
terrorism or war, as well as the threat of war and other factors
described from time to time in the company's reports filed with the
U.S. Securities and Exchange Commission, including the annual
report on Form 10-K, filed March 14,
2013, as amended and supplemented by subsequent reports from
time to time.
For more information, please contact:
Company
Contact
|
Investor
Contact
|
Gabe
Claypool, President & COO
|
Peter
Seltzberg, Hayden IR
|
gclaypool@dakotaplains.com
|
peter@haydenir.com
|
Phone:
952.473.9950
|
Phone:
646.415.8972
|
www.dakotaplains.com
|
www.haydenir.com
|
SOURCE Dakota Plains Holdings, Inc.