Pipeline and barge providers of crude oil do not serve Eastern Kentucky or Tennessee in this geographic area, there is a significant underserved marketplace for the buyers
Somerset, KY (PRWEB) August 29, 2008
Tranzon Asset Advisors, a national real estate auction firm, has been appointed by the U.S. Bankruptcy Court to sell at Absolute Auction the assets of PHS Group, Inc. and its subsidiaries including The Somerset Refinery, Inc., and Somerset Oil, Inc., located in Somerset, Kentucky, 80 miles south of Lexington, Kentucky. The refining operations and plant of Somerset Oil is one of the only two refineries in Kentucky and was operational in late 2007. The Chapter 11 Trustee, Mr. William D. Bishop, upon order of the Court has employed the expertise of Tranzon to market the assets to a world-wide audience and new buyers are being contacted daily through its advertising campaign.
This incredible opportunity to own and operate a refinery is not limited just to the refining plant. Rather the ''Right to Refine Crude Oil'' in the United States presents potential suitors with a chance to trade oil and petroleum products as well as contract for raw crude with regional and international impact. Somerset Oil is an attractive opportunity for Strategic, Portfolio, or Financial investment with growth potential and excellent returns, based on an over 50 year track record.
The refinery is uniquely positioned to serve the needs of small and midsize crude oil producers in Eastern Kentucky and Tennessee. It can also provide a non-monopoly based refining capacity to similar producers in the remainder of Kentucky, as well as West Virginia and Virginia. "Pipeline and barge providers of crude oil do not serve Eastern Kentucky or Tennessee in this geographic area, there is a significant underserved marketplace for the buyers," stated Ed Durnil, the Court appointed Auctioneer and CEO of Tranzon Asset Advisors. The recent installation of a regional intermodal rail park has made the prospect of rail deliveries of crude oil not only possible but probable for expanded capacity in the near term.
The auction team and stakeholders formulated a multiple lot or parcel offering for the assets of Somerset Oil, Inc. The first lot consists of a 5,500 barrel-per-day petroleum refinery situated on approximately 105 acres of land in the heart of Somerset and includes all furniture, fixtures & equipment along with the maintenance and repair shops associated with the plant's operation and upkeep. Lots 2 and 3 are the primary offices for the company and a smaller office building and warehouse located off Monticello Street in Somerset. Lot 4 is the full right, title and interest in a pipeline easement traversing 6 counties in south-central Kentucky with a permit for crossing Lake Cumberland. This pipeline is unique in that it is available for multiple uses and could provide natural gas, oil or finished product to many communities that have no access to these resources.
Additionally, the auction sale will be offering separate or combined lots several non-real estate assets. Lot 5 is all the company's rolling stock that includes over 100 vehicles such as over-the-road semi-trucks, oil tankers, environmental clean-up vehicles, company cars and vehicles, panel service trucks and dump trucks. Lot 6 is the current inventory from Somerset Oil, which was a significant Pennzoil distributor, as well as refined oil stocks currently at a warehouse facility on the refinery grounds. Lot 7 consists of 12 well-located neighborhood gas stations in various locations throughout eastern Kentucky. The gas stations are being offered in two distinct auction formats. First, they can be bought separately or as a block by submitting sealed bids to Tranzon as described below. If acceptable bids are not received for each station, they will be sold at a live outcry auction at each site the week following the refinery auction.
Bidders will have the unique option of buying only the lot or lots they desire or a bidder can bundle Lots 1 through 7 and bid for same if so desired.
Current oil prices have driven tremendous interest to this auction event. World-wide headlines and the national debate to increase refining capacity are at the heart of the issues surrounding buyer actions. With record crude prices and energy independence on the line, the lucky buyer can expect tremendous return on investment from this plant for decades to come. Potential buyers must provide proof of financial capacity to close on their bid(s) and a deposit of ten percent of the purchase price in order to buy the assets. Tranzon is prepared to assist buyers with their inquiries, but they must act quickly. Sealed bids are due on September 19, 2008 to the offices of Tranzon Asset Advisors. Bidders may obtain due diligence from Tranzon through its website - http://www.tranzon.com - or by calling 866-243-8243 or 270-769-0284.
Tranzon Asset Advisors, headquartered in Elizabethtown, KY, is an internationally recognized real estate auction company and a member company of Tranzon, L.L.C., which is based in Virginia Beach, VA. Founded in 2001, Tranzon L.L.C. has 12 independently owned and operated member companies that collectively have more than 30 offices ranging from coast-to-coast. The professionals working at Tranzon member companies specialize in providing real estate auction and accelerated marketing services to corporations, financial institutions, trustees, individuals and estates throughout the U.S. Tranzon member companies regularly conduct over 1,000 auctions and 2,500 property valuations per year, effecting in excess of three billion dollars in real estate assets.
For more information about this auction or to learn more about Tranzon visit http://www.tranzon.com .
Tranzon Asset Advisors