Jupiter Energy sells Malaysian subsidiary

Perth-based Jupiter Energy Ltd. announced plans to sell its Malaysian subsidiary, Jupiter Biofuels Ltd., for A$1 million (US$783,821.91). The decision was announced after its proposal to raise A$75 million (US$58.78 million) on the Australian Stock Exchange to fund a biodiesel project in Malaysia received lukewarm interest. Jupiter was planning to build a 280-million-liter-per-year palm oil-based biodiesel plant in Kuantan, Malaysia. Malaysian company FEI Resources Sdn Bhd will purchase 100% of the wholly owned subsidiary, which holds all the various licences and contracts pertaining to the Malaysian project, Jupiter Biofuels Sdn Bhd. Unfortunately, the release of the fund-raising prospectus coincided with a number of factors that had a dramatic impact on sentiment toward the funding of biodiesel projects within Australian capital markets,” Jupiter said. These factors included disappointing financial results from established biodiesel facilities in Australia, a sharp drop in crude prices with a corresponding rise in the price of palm oil feedstock and lackluster performance of an initial public offering for a similar biodiesel project in Malaysia, it said. (January 25, 2007)