CALGARY, ALBERTA--(Marketwired - Dec. 5, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Canadian Oilfield Solutions Corp. (the "Corporation") (TSX VENTURE:OTS) is pleased to provide an update on its Operations as follows:
Project management and financing (Mexico Construction)
The Corporation continues to execute on its construction finance business in Mexico with the successful completion of multiple construction projects. One of the projects was of considerable scope, requiring in excess of USD 2.2 million working capital, and was completed in early Q3 both under budget and ahead of schedule. Our third project of significant scope is under way with an estimated completion of mid Q1 2014. In addition to current operations, the Corporation is pursuing several new projects with start dates ranging throughout Q4 2013 and into Q1 2014, and are expected to run concurrently with varying timelines of 60 to 150 days to completion. The projects include the construction of new access roads and drilling sites, and require capital budgets ranging from USD $1 million to $10 million each. All new projects are contingent on the Corporation's ability to provide the required working capital.
Pipe sales and installation (Mexico)
The Corporation has established new sales of flexible steel pipe products in Southern Mexico with a key client who has chosen to work exclusively with steel-based flexible pipe products. The new client brings considerable credibility to the product's performance, and management expects the client will provide a consistent volume of pipe work in the future. Under the arrangement, the Corporation is currently providing funding for two flexible pipe installations, one 4" and another 6" in diameter, with combined lengths of 4.8 km. The Corporation will share in the profits from the products and services. The installations are estimated to be completed in mid-December 2013, and additional pipe projects are anticipated throughout 2014. Flexible pipe projects in the Northern region have experienced delays due to Pemex funding restraints, but these budget restraints are not expected to continue through 2014. Several projects in the Northern region are currently under review by Pemex and if approved are expected to have budgets released in Q1 2014.
The Bitzalcobo pipe project in the Southern region, which began in Q3 2011 as a test project to investigate the installation capabilities of flexible steel pipe over challenging terrain, is on its final phase and expected to be completed in Q4 2013. The terrain included swamps, riverbeds, and mountain tunnels and has exceeded the expectations of Pemex. The success of the project validates the wide range of terrain that can be crossed using FlexSteel™ products and is expected to generate future opportunities for the Corporation.
Pump sales and services
The Corporation's submersible pump business continues its growth and diversification, and has recently been awarded preferred vendor status from a major client operating in the Powder River Basin in Wyoming. Management anticipates the additional work will provide substantial growth to the operations in Wyoming. The Corporation has added Electric Submersible Progressing Cavity Pumps to its product offering. This pump design has increased the number of well types that can be serviced.
The Corporation also continues to grow its distribution network of electric submersible motors, and has received its first order from a large client in the Canadian copper mining industry. The Corporation's distribution network now includes energy, mining, agriculture and municipal/industrial water industries.
Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an array of specialized products and services that are used in the energy, mining, and industrial & agricultural water industries.
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.
This document contains information that constitutes forward-looking information under applicable securities legislation. All statements, other than those of historical fact, which address activities, events, outcomes, results or developments that the Corporation anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as "forecast", "future", "may", "expect", "anticipate", "believe", "potential", "enable", "plan", "continue", "contemplate", or other comparable terminology. In particular, this document contains statements regarding projected revenue and future operations of the Corporation. The purpose of the estimated revenue in this document is to assist the Corporation in estimating its capital requirements. Readers are cautioned that the estimated revenues may not be suitable for other purposes.
Forward-looking information is based on current expectations, estimates, projections and assumptions, which the Corporation believes are reasonable but which may prove to be incorrect and therefore such forward-looking information should not be unduly relied upon. The forward-looking information in this document is based upon on various assumptions, including the assumption that the Corporation's contracts will be completed in accordance with their terms and according to schedule; the projects will not be unduly delayed due to weather or underground conditions at the project sites; assumptions regarding industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Corporation's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Corporation operates; and the ability of the Corporation to successfully market its products and services.
Further, there is a multitude of risks that may cause the Corporation's actual results to differ materially from those contemplated (whether expressly or by implication) in the forward-looking information in this document. These risks include, without limitation, risks of counterparties breaching contracts; construction risks; economic risks; the risk that revenues may not be received in the timeframe that is projected in this document; uncertainty regarding underground conditions; financing risks; solvency risks; tax risks; and legislative and regulatory developments; customers' completion of expected work programs; fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials, and the Corporation's successful performance under contracts. Readers are cautioned that the above list of factors is not exhaustive. Other factors which could cause actual results, performance or achievements of the Corporation to differ materially from those contemplated (whether expressly or by implication) in the forward-looking statements or other forward-looking information are disclosed in the Corporation's publicly filed disclosure documents.
The Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws. Because of these risks, uncertainties and assumptions, prospective investors should not place undue reliance on these forward-looking statements. The foregoing statements expressly qualify any forward-looking information stated in this document.