CALGARY, ALBERTA--(Marketwire - July 18, 2012) - Formation Fluid Management Inc. (TSX VENTURE:FFM) ("Formation Fluid" or "the Company") announced today that further to its news release on April 20, 2012, the Company has received a Statement of Claim from Maple Leaf Development Corporation ("Maple Leaf") commencing legal action in the Court of Queen's Bench Alberta against the Company. Maple Leaf alleges that the Company has breached an agreement between the Company and Maple Leaf granting Maple Leaf the right, subject to their ability to provide competitive manufacturing services to the Company, to be the single source manufacturer and supplier of a mobile-produced water processing plant.
Maple Leaf is claiming it has suffered damages in the amount of $2,400,000 for loss of profit due to the alleged breach of the agreement by the Company. In addition, Maple Leaf is seeking an interim or permanent injunction to prevent the Company from manufacturing or causing to be manufactured the mobile-produced water processing plant itself.
The Company is currently reviewing the Statement of Claim and intends to vigorously defend the allegations. The Company is of the view that the allegations of Maple Leaf are wholly without merit and that Maple Leaf was given the opportunity to provide the manufacturing services in question. The Company believes that, in proceeding to manufacture the plant itself, it has complied with the terms of the agreement.
In light of these recent developments, the Company has determined that at this time it will not proceed with its previously announced non-brokered private placement of up to 15,000,000 units.
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.
Wayne Smith, Chief Financial 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 such as licenses and leases in the conduct of its business, 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.