CALGARY, ALBERTA--(Marketwire - Sept. 27, 2012) - Formation Fluid Management Inc. ("Formation Fluid" or "the Company") (TSX VENTURE:FFM) is pleased to announce that it has entered into a settlement agreement and mutual release with Maple Leaf Development Corporation ("Maple Leaf") with respect to the assertions made by Maple Leaf as announced by the Company in its press releases dated April 20 and July 18, 2012. In entering into the settlement agreement, the Company has not admitted any liability to Maple Leaf.
In consideration for relinquishing any and all claims relating to the dispute, the Company and Maple Leaf have as part of the settlement entered into an agreement that amends the terms of a license agreement between the Company and Maple Leaf. The amending agreement converts the license granted by Maple Leaf from an exclusive license to a non-exclusive license, removes the obligation of the Company to provide Maple Leaf with the opportunity to be the sole manufacturer of the Company's mobile-produced water processing plants, and provides for the return of the initial, small scale pilot plant constructed by Maple Leaf. Under the license agreement, Maple Leaf has licensed to the Company any technology developed by Maple Leaf in respect of mobile produced water processing plants.
As part of the settlement agreement, Ken Rose and Gilbert Tkachuk have agreed to purchase all 4.67 million common shares of the Company held by Maple Leaf, subject to the receipt of all required approvals.
About Formation Fluids
Formation Fluid Technology has developed a waste water treatment plant that uses a proprietary process to clean waste water. The system is mobile and can be scaled to process required volumes. This system treats water to meet or exceed CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in reusable water that can be used for Boilers, Frac Water, Water Floods, and Drilling Operations. Formation Fluids is seeking to service a significantly underdeveloped segment within the oil and gas industry; its waste water treatment system is intended to cost effectively deal with produced water while satisfying the need to reuse and recycle an increasing valuable resource. For more information, please visit: www.formationfluid.com or contact Investor Relations at (403) 887-8874.
On behalf of the Board of Directors.
Ken Rose, Chief Executive Officer
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward‐looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward‐looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from reliance on contractual rights, reliance on key personnel and insurance or lack thereof.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD‐LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
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 this release.