Parafin Corporation Negotiating to Complete the Financial Terms to Sell 1,200,000 Metric Tons of Diesel #2 in Southeast Asia and to Confirm Pipeline Allocation and Delivery of the Russian Crude Oil by Transneft
Thursday November 30, 9:00 am ET
PALM SPRINGS, CA--(MARKET WIRE)--Nov 30, 2006 -- ParaFin Corporation (OTC BB:PFNC.OB - News): On September 6, 2006, the Board of Directors of ParaFin Corporation (the Company) signed an Agreement directly with Wellsink Petroleum Co., Ltd. (Wellsink), Bangkok, Thailand in Southeast Asia whereby ParaFin agreed to the Re-Sale of 1,200,000 Metric Tons of High Speed Diesel #2.
The terms of this Agreement, required Wellsink to purchase and the Company to deliver through its vendor relationships, 50,000 Metric Tons of High Speed Diesel #2 every two weeks.
THAILAND UPDATE: This Agreement has been delayed by problems in documenting the financial arrangements between the three banks involved in the transaction. The company is working to resolve the wording of the Letter of Credit (LC) from Wellsink, the product description in "Proof of Product" (POP) from the suppliers of the D #2 in South America and the payment from the purchaser to the supplier through Parafins bank. Parafin remains very confident that the financial terms of the Agreement will be met and delivery of the D #2 will commence, however, not until after November 30, 2006.
Subsequent to the signing of the Agreement with Wellsink, the Government of Thailand was taken over in a military coup. It is the opinion of the Company that this has also had some effect in completing the financing of the Diesel #2 contract.
On June 20th, 2006, and approved by the Board of Directors on July 12th, 2006, ParaFin Corporation (the Company) signed an Agreement directly with OY Coral Marine Management, Ltd. a company organized under the laws of Finland ("OY Coral (thePurchaser)) whereby ParaFin agreed to buy a 12.2 million metric ton (88,864,800 Bbls.) allotment of Russian Export Blend Crude Oil ("REBCO").
RUSSIAN OIL UPDATE: OY Coral, through Ilekneft, the joint venture Supplier/Producer for the delivery of 12.2 million metric tons of (REBCO), previously verified the Product Allocation and Title Assignment in writing and via Bank-to-Bank SWIFT confirmation to ParaFin. The Company has continued dialog with OY coral and the Supplier/Producer to reconfirm the Pipeline Delivery contract with Transneft, the pipeline delivery company responsible for the delivery of the REBCO to the port storage facility. OY Coral has stated to us that they expect confirmation from Transneft will be completed before the end of 2006. At that point the Company should begin to realize revenues under this contract although further delays remain possible.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to those, set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise. |
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