NEW ORLEANS--(BUSINESS WIRE)--Blackwater Midstream Corp. (OTCBB:BWMS) announces that it has entered into a Letter of Intent to acquire a liquid terminal facility in Salisbury, Maryland for $1.6 million. The acquisition is expected to be completed within the third quarter of 2011.
The Salisbury site consists of 177,000 barrels of storage capacity situated on six acres of property located along the Wicomico River. The site is accessible by inland barges and tank trucks. There is a three-bay automated truck loading rack equipped for bottom loading with vapor controls. In addition, there is ample property within the fence line to expand the capacity at the site. Mike Suder, Blackwater Midstream Corp.’s Chief Executive Officer stated, “The Salisbury acquisition is another strategic addition to our business portfolio. This transaction is a continuance of our business plan to acquire and grow under-performing assets by offering exceptional service to our customers while adding shareholder value.”
Frank Marrocco, Chief Commercial Officer of Blackwater Midstream Corp. stated, “We are very pleased to have this opportunity to add to the expanding Blackwater Midstream network of liquid storage facilities. We believe that Blackwater can add significant growth to the facility, which serves as an integral component to the petroleum supply chain in the Delmarva region. We will accomplish business growth at the Salisbury terminal by forming strategic partnerships with petroleum refiners and distributors that service this area.”
Blackwater Midstream Corp. is an independent operator of bulk liquid storage terminals including storage terminal facilities in the Port of New Orleans in Westwego, Louisiana and in Brunswick, Georgia. Both facilities have a combined capacity of more than one million barrels and are capable of storing a wide variety of liquid products. The sites offer modal access for product distribution via marine, rail, and truck.
The information in this press release includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to prospective acquisitions or anticipated future results. Forward-looking statements relate to expectations or forecasts of future events. Blackwater Midstream Corp. does not assume the obligation to update any forward-looking statement. Many factors could cause actual results to differ materially from Blackwater Midstream Corp.’s forward-looking statements, including market forces, economic factors, the availability of capital and credit, current and future competition and other uncertainties. For further details about these and other factors that may impact the forward-looking statements, see Blackwater Midstream Corp.’s Securities and Exchange Commission filings, including the “Risk Factors” in the Annual Report on Form 10-K. This discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related notes included in our Quarterly Report on Form 10-Q as of December 31, 2010 and our audited financial statements and notes included in our Annual Report on Form 10-K as of and for the year ended March 31, 2010 and for the year ended March 31, 2011, which are due to be released in June 2011. For more information, please reference our website at www.BlackwaterMidstream.com.