CALGARY, ALBERTA--(Marketwire - Aug. 22, 2012) -
Cdn Oilfield Technologies & Solutions Corp. (TSX VENTURE:OTS)
The corporation is pleased to provide an update for its business operations in the United States and in Mexico.
CBM Pumps & Service Inc.
The Corporation announced today that it has changed the name of its US based Electrical Submersible Pump business (ESP) to Extreme Pump Solutions Inc.("Extreme").
As part of an aggressive strategy to rebrand and rebuild its Pump and Services business in Wyoming, Extreme has developed and started to deliver on its expanded higher quality product and service offering to its clients. With the natural gas sector in a state of contraction as a result of poor natural gas prices, coupled with additional issues in the focus, supply, inventory, product quality and control areas of the business, the division has been able to operate over the past year and retain a profit, despite the aforesaid challenges.
Visual perception, product quality, service and technical support play an important role in achieving a successful business. Visually, the signage has been changed, new marketing materials generated and a revised business strategy is being implemented to expand product supply, reduce costs and increase territory to diversify the current client and revenue base. Our goal is to introduce new products, increase territory and sales channels, not just in one or two adjoining states, but on a national basis.
Moving forward management feels confident that expansion of our new business model is positioned for success and that Extreme will earn new clients on a regional and national level.
Cots Mexico ("COTS")
Flexible Pipe - On land
To date COTS has delivered and installed approximately 56 kms of flexible pipe inland in Mexico. The supply and installation has been very successful with absolutely NO FAILURES. Pemex, the Mexican state oil and gas producer has been very pleased with the results and quick response times. Our end to end solution has proven to build confidence and acceptance amongst our clients. COTS is currently negotiating further supply contracts and will provide further guidance once finalized.
Flexible Pipe - Marine
A new project in Southern Mexico for the supply and installation of 6 and 8 inch flexible pipe in a sub-sea marine application is currently under review. If awarded this project will be exclusive and awarded by way of direct assignment. Further information will be disclosed once finalized.
Construction Projects - Mexico
COTS has made significant progress implementing its business model in Mexico. The company has successfully completed its JV construction project Terra 114 and has initiated 4 additional projects (Cardenas 627, Paredon 501, Tecominoacan 846 and an extension of Terra 114).
As previously announced on Jan 23, 2012, COTS has entered into a joint venture agreement with a major contractor under contract to Schlumberger who is operating under a master contract to Pemex to build infrastructure and supply construction services for road access and well platforms. The size of the initial project (Terra 114) was for 70 million pesos and has since been increased to 110 million pesos (approximately $8.2 million USD). The project was completed as of June 30, 2012 and is being extended under a new work order to provide additional infrastructure.
A larger project is currently under review. COTS is working together with its JV partners in assessing all aspects of this potential new business.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, anticipated sales of the company and completion of installation projects . Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other industry and geographic specific risk factors. Investors are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations, except as otherwise required by applicable securities legislation. Investors are cautioned not to place undue reliance on forward-looking information.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States or any other jurisdiction outside of Canada in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of c1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.