TORONTO, ONTARIO--(Marketwire - Sept. 24, 2012) - Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE:CVR)(OTCQX:CRVYF) ("CORRE" or the "Company") today released its financial statements and corresponding management discussion and analysis for the second quarter ended June 30, 2012 (the "Financial Statements"). Total revenue generated by the Company's joint operating partnership with SAR AS ("SAR"), SAR-CORRE MENA LTD ("SCM"), for the quarter ending June 30, 2012 was $1,218,315, relating to SCM"s first contract with BP PLC for cleaning and treating gas drill cuttings in Jordan. SCM's cost of sales for the quarter was $1,033,028 resulting in $185,287 of gross profit and a 15.2% gross profit margin. In addition to office, management, administration and travel expenses, SCM incurred $305,827 of one-time, upfront costs primarily relating to logistics and equipment relocation for this contract resulting in a total net loss of $350,286 for the quarter. As the project moves past the occurrence of upfront costs during this third quarter, SCM believes the project will be able to deliver substantial margin improvements as SCM continues to optimize operations. This contract is for a term of two years with BP PLC having an option to extend the contract for a third year and is currently based on five wells being drilled in the Risha Fields of Northern Jordan. Greater drilling operations, as the region continues to be explored, would have the potential to increase the term and value of this contract.
CORRE accounts for its 45% working interest in SCM through the proportionate consolidation method. Complete financial statements and management discussion and analysis for CORRE's quarter ended June 30, 2012 are available on the Company's website at www.corre.com and for public review at www.sedar.com and at www.otcqx.com.
As noted previously, CORRE was unable to file the Financial Statements prior to the filing deadline due to the fact that it had received material revenues for the first time during the quarter ended June 30, 2012 pursuant to the Company's first contract with CORRE's operating partner, SAR (for details concerning this contract, see CORRE's press release dated February 1, 2012). SAR recently completed a major buy-out transaction, whereby it was purchased by Stirling Square Capital Partners out of London and new financial personnel have been employed by SAR, accordingly complete and accurate financial information was not available to CORRE in order for the Company to accurately complete the Financial Statements prior to the filing deadline. CORRE is now up-to-date with all required filings and will proceed to submit applications to applicable securities regulatory authorities for the revocation of the voluntary Management Cease Trade Orders applicable to John Lorenzo, President and Chief Executive Officer of the Company, and Alex Gress, Senior Vice-President and Chief Financial Officer of the Company.
CORRE is a Canadian-based company which trades on the TSX Venture Exchange under the symbol CVR and on the OTCQX®, the highest tier of the U.S. OTC market, under the symbol "CRVYF". CORRE provides full cycle oil waste management solutions to the petroleum industry. CORRE's customers are primarily in the upstream petroleum sector (oil production and drilling companies) and downstream petroleum sector (oil refinery, transportation and distribution companies). CORRE's operating lines include remediating oil-contaminated soil; treating sludge, oil based muds and drilling waste; oil recovery; automated oil storage tank cleaning; oil and gas engineering, and project management. CORRE provides its advanced environmental solutions through strategic operating partnerships with some of the most distinguished companies throughout the world.
Forward Looking Statements
Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are 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 projected in the forward-looking statements. Except as required by applicable securities requirements, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither 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 the release.