Dakota Plains Commences Construction on Pioneer Project, Expanding Rail
Capacity in the Williston Basin
Dakota Plains to Construct Double Loop Track and Storage Expansion Project
with Inbound Service Capabilities In New Town, North Dakota
WAYZATA, Minn., March 15, 2013
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
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 theannual 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
Phone: 952.473.9950 Phone: 646.415.8972
SOURCE Dakota Plains Holdings, Inc.
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