January 4, 2012 [The Street] - Blackwater Maryland, L.L.C., a wholly owned subsidiary of Blackwater Midstream Corp. (OTCBB:BWMS) announces that it has finalized the acquisition of a storage terminal facility in Salisbury, Maryland for $1.6 million. The closing date of the acquisition was December 22, 2011 and was 100% financed by Blackwater Midstream’s existing senior lender.
The Salisbury site consists of 177,000 barrels of storage capacity on twenty-six acres of property located on the Wicomico River. The site is accessible by inland barges and tanktrucks. There is space available within the existing facility to build an additional 100,000 barrels of capacity at the site. Mike Suder, Blackwater Midstream Corp.’s Chief Executive Officer stated, “We are pleased to announce that we have completed our acquisition of a terminal facility in Salisbury, Maryland.
Strategic plan to acquire underutilized terminal assets
Adding this site is a continuation of our strategic plan to acquire underutilized terminal assets and expanding the capabilities to meet our customer’s product distribution requirements. This is the same model that we have very successfully implemented at our two previous acquisitions in Westwego, Louisiana and Brunswick, Georgia. In fact, we are currently in the planning process for additional tank capacity at both of those locations.”
Frank Marrocco, Chief Commercial Officer of Blackwater Midstream Corp. stated, “Our newly acquired Salisbury terminal is a key component in the supply chain that services the Delmarva region’s petroleum product demand. Our primary focus is to ensure that our customer’s requirements are met by providing our outstanding customer service that ultimately supports their business plan. In addition to the petroleum handling capabilities at the site, we are in discussions with other potential customers that have indicated an interest in storing non-petroleum products.”
Blackwater Midstream Corp. is an independent operator of bulk liquid storage terminals including facilities in the Port of New Orleans in Westwego, Louisiana and in the Port of Brunswick, Georgia. The Westwego facility consists of 857,000 barrels of storage capacity, while the Brunswick facility has a total of 161,000 barrels, with both sites capable of storing a wide variety of liquid products. Both sites offer modal access for product distribution via marine, rail, and truck. Blackwater Midstream is a member of the International Liquid Terminal Association.
