Canadian Oil Recovery & Remediation Enterprises Ltd.
TSX VENTURE : CVR

Canadian Oil Recovery & Remediation Enterprises Ltd.

December 14, 2009 08:00 ET

Canadian Oil Recovery & Remediation Enterprises Ltd. Announces Strategic Middle East Operating Partnership with Leading Waste Management Company

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2009) - Canadian Oil Recovery & Remediation Enterprises Ltd. (TSX VENTURE:CVR) ("CORRE" or the "Company"), has entered into a binding Memorandum of Understanding ("MOU") to create a strategic operating partnership with SAR AS ("SAR"). The strategic partnership intends to pursue commercial operations in oil recovery, soil remediation, sludge treatment, waste management, oil storage and oil tankers tank cleaning, water treatment, and treatment of drill cuttings in the Middle East and North Africa regions ("MENA").

SAR, founded in Norway in 1967, is a leading hazardous and oil waste management company providing total waste management solutions to the onshore and offshore oil and gas producers, as well as drilling companies, municipalities and corporate customers.

The operating partnership will be operated through a private company based in the Jebel Ali Free Zone in Dubai, United Arab Emirates, to be named SAR-Canadian Oil Recovery & Remediation Enterprises MENA Limited ("SCM"). The ownership structure of SCM will be allocated as to 45% to CORRE, 45% to SAR and 10% to a private company controlled by the exclusive agents of CORRE in the Gulf region.

The management of CORRE is proud of having achieved this milestone as part of its new business model designed to leverage synergistic operating partnerships while expanding the Company's line of oil services and business. This diversification, especially in waste management services, will enable SCM to access this fast-growing and essential service market. The MENA countries are now among the top ten largest waste producers per capita globally, with the Gulf countries alone producing approximately 120 million tons of waste annually.

Moreover, management is confident that these partnerships will further enable CORRE to achieve a higher level of technical efficiency and execution capability as well as provide the Company more cost-effective ongoing operations and economies of scale. This business model is now a cornerstone upon which CORRE is currently establishing its long-term business and financial plan.

Mr. John Lorenzo, CEO of CORRE, commented: "SAR's long and successful track record and operational experience in the North Sea, and most recently in India, with multi-national oil, gas and oil service companies such as StatOil, Exxon Mobil, BP and Halliburton will definitely add the appropriate depth to our execution capabilities in the MENA market where CORRE's management has well-established alliances with major oil service providers such as CANAR and IMCO."

CANAR and IMCO, sister companies, specialize in oil field services, engineering, refinery maintenance, drilling, electrical installations and construction. They are both headquartered in Kuwait and jointly employ 3,000 people.

CORRE's management believes that SCM will combine the respective strengths of CORRE and SAR across MENA and significantly increase the chances for SCM to secure extensive oil recovery, soil remediation and waste management contracts in a lucrative and expanding global environmental industry.

The main focus of CORRE and SCM continues to be preparing for the upcoming Kuwait Oil Company ("KOC") sizeable tenders for oil recovery and remediation of the Kuwait Oil Lakes (the "Kuwait Oil Lakes Tenders"). It is estimated that these tenders will be scheduled for release by mid-2010. The timing of the release of these tenders has become more pressing now that Kuwait has already received US $3.65 billion from the United Nations in compensation for damages specifically earmarked for the cleanup of the Kuwait Oil Lakes caused by the Gulf War.

CORRE estimates that KOC will be releasing the first grouping of up to five Kuwait Oil Lakes Tenders of US $50-$100 million each starting next year.

In preparation for the commissioning and future commercial deployment of the ARES I facility, presently in Kuwait, the first order of business for SCM is to commence the testing of the ARES I facility using all different levels and types of local hydrocarbon contaminants that are present in the Kuwait Oil Lakes. SAR has previous experience with the testing, commissioning and operation of closely similar oil recovery and soil remediation facilities in Norway and India.

About SAR

SAR (www.sargruppen.no) is a leading Norwegian based waste management company with over 20 years of industry experience. SAR's services include rig and tank cleaning services on vessels and onshore storage tanks, processing and disposal of drill cuttings, oil sludge and other drilling wastes. SAR also provides sorting, transport, disposal, recycling of hazardous and industrial waste, and supplies any relevant equipment needed to help customers manage their own waste.

SAR has a well established list of clients in the oil and gas sector including key players such as StatOil, Halliburton, Exxon Mobil, Total E&P and BP. Operating from six strategic service locations along the Norwegian coastline, SAR has three recycling and processing plants and a total of 25,000 m³ of tank storage. All locations are equipped to perform required operations with the main office located outside Stavanger, Norway. All of SAR's operations are certified in accordance with NS-EN ISO 14001.

In addition to the six locations along the coastline of Norway, the SAR Group consists of four additional business units. These units are: SAR Treatment, dealing specifically in water treatment; SJT Renovasjon, offering municipal cleaning solutions; SAR Metall, focusing on the removal of metal waste; and SAR Chandra, based in India to provide receipt, treatment, handling, processing and disposal of drill cuttings.

In 2008, SAR achieved a turnover in excess of CAD $62 million and is now directing its focus on expanding business in new markets especially the Middle East and North Africa.

About CORRE

CORRE is a Canadian company that utilizes its proprietary Advanced Recovery Equipment Systems ("ARES") program for oil recovery and remediation. As part of ARES, CORRE owns exclusive licenses to use innovative technologies and processes for oil recovery, sludge and drill cuttings treatment and remediation of oil-contaminated sites. CORRE plans to deploy ARES in the oil producing countries of the Middle East and other regions where there is substantial demand for its oil recovery and remediation services.

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.

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