LABELLE, Fla., March 3, 2011 (GLOBE NEWSWIRE) -- Alico, Inc. (Nasdaq:ALCO), a land management company, announced that it has completed initial field testing at its proposed Keri Road Sand Mine Site in Hendry County, Florida situated on approximately 886 acres of the Company's land (the "Project Site"). The purpose of the initial field test was to conduct a preliminary assessment to determine the Project Site's potential as a fracturing sand mine. Fracturing ("frac") sand is a form of silica sand with well constrained size, roundness, and sphericity characteristics and is used to aid in the extraction of oil and gas from reservoir rocks.
In February, a consultant hired by the Company completed two 4-inch diameter sonic borings to a total depth of 125 feet each and performed analyses in accordance with American Petroleum Institute Recommended Practice for Testing Sand Used in Hydraulic Fracturing Operations (API RP 56) on raw and unprocessed sand samples. The preliminary testing indicates good potential for possible future mining of moderate quality frac sand at the Project Site.
A consultant hired by the Company has also conducted preliminary drilling studies based on twenty-one borings to determine the potential quantity of potential future frac sand reserves at the Project Site (see cautionary note below regarding the use of the term "potential future frac sand reserves"). 1 Based on the consultant's report, the Project Site is believed to contain as much as 94 million tons of potential future frac sand reserves (within a mine depth of 125 feet).
Alico is focused on additional feasibility studies with respect to the Project Site. Depending on the results of these feasibility studies and further testing, Alico will make a decision whether to establish a mine at the Project Site or consider other options, including selling or leasing the Project Site.
At this time, Alico has not obtained the necessary permits to mine the Project Site, and there is no assurance that Alico will be able to obtain the necessary permits to mine any or all of the potential future frac sand reserves at the Project Site. Moreover, Alico is continuing to conduct additional testing of the frac sand and plans to conduct a feasibility study and a transportation study to determine whether a frac sand mine is economically feasible if the necessary permits can be obtained and the additional test results prove favorable. Accordingly, there can be no assurance at this time that Alico will be able to develop the Project Site as a frac sand mine or sell or lease it to a third party for such use.
About Alico, Inc.
Alico, Inc., a land management company operating in Central and Southwest Florida, owns approximately 139,607 acres of land located in Collier, Glades, Hendry, Lee and Polk counties. Alico is involved in various agricultural operations and real estate activities. Alico's mission is to grow its asset values through its agricultural and real estate activities to produce superior long-term returns for its shareholders.
1 Cautionary Note: This press release uses the term "potential future frac sand reserves." The testing of the Project Site as performed and the subsequent analysis of the data are in their preliminary stages and therefore insufficient for the purposes of determining "reserves" (whether categorized as "Proven Reserves" or "Probable Reserves") as defined by and in conformity with the Securities and Exchange Commission's (the "SEC") Industry Guide 7. Accordingly, we advise investors that the use of the term "reserves" would not (at this stage) be permitted in any report filed with the SEC. Investors are cautioned not to assume the reserves estimated in this press release will be converted into "Reserves" as defined by Industry Guide 7 by and permitted to be filed in SEC reports.
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
CONTACT: JD Alexander La Belle, Florida (863) 675-2966