SELLERSVILLE, Pa., April 11, 2005 (PRIMEZONE) -- Delta Mutual, Inc. (OTCBB:DLTM), specializing in energy recovery and construction services through environmentally-friendly technologies and construction technologies and products, today announced that it has obtained the needed financing for the equipment that will be used in the permanent oil sludge processing facility in Indonesia.
The equipment is comprised of a centrifuge that separates the sludge into water and low-grade oil and also includes a gravity oil/water separator system. The unit is capable of processing approximately 8,000 tons of sludge per month. Preliminary analysis of the sludge has indicated that approximately 50% is recoverable as low-grade oil that can be currently sold at about $140 per ton.
Peter Russo, President and CEO, commented, "We see this as a landmark agreement. Oil sludge, an ongoing byproduct of refineries and present in oil storage tanks, will now be processed and will become the property of Tryhuda-Envirotech. Operations are planned to begin within eight weeks. Other cleaning and recovery activities for oil tanks will begin subsequent to the sludge processing. The initial term of the processing activity is for three years with automatic annual renewals."
Mr. Russo continued, "As we mentioned in the previous news release, this installation in Balongan is the first of its kind in the country and is expected to become the standard for all future installations of this type. In fact, Balongan was mentioned in this context in a March 19, 2005 New York Times article titled Oil Wealth Wasting Away in Indonesia."
In the article the author, Keith Bradsher, refers to Balongan where "... the huge refinery run by Pertamina, the state-owned oil company, towers over a small Javanese fishing village." Referring to environmental issues, he goes on to say that, "Pertamina's refinery managers said that there had been problems in the past but that they were planning to improve environmental safety... The managers also said that they hoped to build a concrete platform soon to prevent leakage from thousands of aging barrels holding toxic catalysts and other materials (sludge). The barrels currently sit in piles directly on the dirt, a practice avoided at refineries in industrialized countries."
About Delta Mutual
Delta Mutual, Inc. specializes in energy recovery and construction services through environmentally-friendly technologies and products currently operating through joint ventures in the Middle East, Far East and Puerto Rico. Delta employs technologies that efficiently recover energy sources from soil, water and other waste streams while simultaneously improving existing environmental conditions. The Company also employs an energy efficient building material system for construction projects that are initially taking place in Puerto Rico. www.deltamutual.com.
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Forward-Looking Statement
This press release contains forward-looking statements that involve risks and uncertainties where actual results could differ materially from those discussed in this Press Release. Forward-looking statements including, "The unit is capable of processing approximately 8,000 tons of sludge per month. Preliminary analysis of the sludge has indicated that approximately 50% is recoverable as low-grade oil that can be currently sold at about $140 per ton," involve risks and uncertainties. These risks and uncertainties include: lack of capital, delays in finalizing contracts, typical issues of dealing with a foreign government, using the appropriate technology and additional risks as outlined in our SEC filings.