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Walters Negotiates Purchase of Australian Power Plant

Walters Negotiates Purchase of Australian Power Plant

OKLAHOMA CITY (May 7, 1998) -- Walters Power International today announced the purchase, of a 72-megawatt Australian power plant, by WPI's affiliate Odyssea Marine, Inc., to be disassembled and reused in other countries. The purchase was closed on Wednesday.

“This is a very interesting project in which we will disassemble an entire power plant in Australia, reassemble it on barges and then transport the equipment to the other side of the world to be put to good use again in generating electrical power,” said WPI President David Walters.

“Although this was a complex transaction, I found the most challenging aspect was the time difference,” Walters said, noting that purchase negotiations typically occurred in the middle of the night.

The sellers, Western Power, located halfway around the world in Perth, Australia, arrived at work at 7 p.m. Oklahoma time and went home at 4 a.m. Oklahoma time, Walters said. “We had several conference calls that were just getting started at midnight.”

The discovery and increasing use of natural gas for electrical generation in western Australia, Walters said, have eliminated the need for some good condition power plants that burn heavy oil for power generation.

“We are fortunate to have acquired this power plant, containing some of the best equipment on the market, as a number of large companies were pursuing the same power plant for purchase,” Walters said.

WPI’s staff in Oklahoma City located the equipment, arranged the agents, organized the engineering due diligence and negotiated the sale terms, Walters said. Most of the equipment will be used to co-develop PowerBarge II with Odyssea Marine Inc. of Houston.

PowerBarge II, a 50-megawatt power generation project, has been contracted by the Dominican Republic and delivery is expected in approximately six months. PowerBarge I, a 30-megawatt power plant, was recently delivered to the Dominican Republic and is operating commercially.

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