Fueling the Future…..

For all our new subscribers and of course our infinitely valued loyal long time readers:

You may have let US Energy Initiatives Corporation (OTCBB: USEI) drop off your radar screens lately, we’ll let you slide this time. But that’s it!! Even we have had a hard time focusing over the past week as the Fed breathed a breath of fresh air into the lungs of our economy while the DOW Jones flexed its ever-growing muscles. All of that aside, we suggest paying much closer attention here going forward, especially after today’s news.

To save you the time and to cut right to the chase we will give you the skinny on Tuesday’s announcement regarding USEI’s most recent financial results:

On a consolidated basis for the 3 month period ending September 30, 2006:

USEI logged $456,126 in revenues, up from $224,298 during the same period in 200;and

Gross Profit increased from $5,297 (same Q 2005) to $188,642, a nice little bump.

On a pro-forma basis assuming the company’s acquisition of AEC occurred as of January 1, 2006 (it actually occurred on June 14, 2006). Also for the 3 month period ending September 30, 2006:

Revenues decreased 37% from $722,296 to $456,126

Gross profit increased 168% from $109,579 to $294,184

The press release also took a look at USEI’s financial situation over the past 9 months and noted $1.8 million in revenues and $504k in gross profits to date. Although this is just peachy, the story lies in the company’s vision of developing the capabilities to potentially bring in $50 million in annual revenues.

Fairly enough, you may be asking yourself where the real opportunity, if any there is here? Besides a huge backlog that can be fulfilled only after the company’s operations are going full tilt, what else is there? A look at look at one of USEI’s other recent press releases revealed some interesting tidbits regarding the ROI its dual-fuel diesel (system uses a combo of natural gas and diesel) technology can provide. A few of my favorite include:

The price of diesel in Thailand is approximately $2.60 a gallon while the price of natural gas is approximately $0.80 a gallon equivalent; and

The price of diesel in Europe is approximately $10 a gallon while the price of natural gas is approximately $2.30 a gallon-equivalent;

US Energy has developed an innovative dual-fuel technology that has grabbed the attention of everyone in the auto-industry, even General Motors. Alternate fuels are the way of the future and these guys seem to be right at the forefront here. Enormous potential is already being exhibited as the company remains profitable and logs more than $50 million in orders while making key acquisitions. At today’s closing price of $.11, stocking up for a potential lucky strike could cost you less than a trip to the movies. Been there lately? Ouch!!!