CALGARY, ALBERTA--(Marketwire - Feb. 19, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Canadian Oilfield Solutions Corp. (TSX VENTURE:OTS) (the "Corporation") is pleased to provide an update on its Mexican subsidiary operations ("COTS Mexico"):
- Further to the announcement dated November 20, 2012 for the sale and delivery of 35 kilometers of 4 inch Ansi 900 flexible pipe and connectors to a third part contractor with operations in Mexico, COTS Mexico confirms that the company has fulfilled all of its obligations under the terms of the purchase order. Payment has been received in full;
- COTS Mexico has signed a new agreement with its Mexican construction partners ("CONTRACTOR") to provide project advanced funding and administrative management services for all awarded construction projects to the Mexican partner from a major oil and gas service company in Mexico in exchange for 50-50 revenue sharing upon CONTRACTOR fulfilling all of its financial obligations under the terms of the agreement. Our combined efforts will provide greater visibility to fulfilling the needs of our clients and pave the way to much larger projects which will require additional capital to sustain the growth.
- In the first two months of 2013, COTS Mexico has advanced funding for 12 new construction projects to its Mexican partners to service contracts issued by a major oil and gas service company. The projects have all been executed. The project names and the name of the service company cannot be disclosed under a confidentiality agreement between the parties;
- COTS Mexico is in the final stages of providing advanced funding to purchase initial construction equipment from a reseller of Caterpillar equipment estimated at approximately $US 1 million, to service an initial 3 year contract with estimated annual revenues of 120 million pesos (approximately $US 9.5 million annually). COTS Mexico will retain title to the equipment until paid for by the Mexican partner who has been awarded a contract to provide construction and maintenance services to the oil and gas service company. The project has the ability to grow annual revenues over a 25 year period depending on results achieved under the development program. This initiative is the first of its kind awarded by Pemex to a privatized company. The name and terms of the project cannot be disclosed due to confidentiality agreements between the parties;
- New flexible pipe contracts are under review in both the North and South regions. Updates will be provided as the company moves to finalize new business.
Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an array of specialized products and services that are used in the production of oil and gas reserves.
This document contains information that constitutes forward-looking information and financial outlook within the meaning of applicable securities legislation. This forward-looking information and financial outlook is identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intend", "plan", "planned", and other similar terms and phrases. This information and outlook speaks only as of the date of this document and we do not undertake to publicly update the forward-looking information and financial outlook contained in this document except in accordance with applicable securities laws.
Forward-looking information and financial outlook is based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company'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 Company operates; and the ability of the Company to successfully market its products and services.
Forward-looking information and financial outlook is subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: 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 COS's successful performance under contracts.
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.