Canadian Oilfield Solutions Corp.
TSX VENTURE : OTS

Canadian Oilfield Solutions Corp.

November 01, 2013 18:21 ET

Canadian Oilfields Solutions Corp.: Filing of Material Contracts

CALGARY, ALBERTA--(Marketwired - Nov. 1, 2013) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Canadian Oilfield Solutions Corp. (the "Corporation") (TSX VENTURE:OTS) announces that it has filed material contracts on SEDAR. The documents relate to agreements that the Corporation has entered into during the course of developing business in Mexico. The documents can be found on the SEDAR website at www.sedar.com.

The Corporation has entered into various agreements with Mexican companies of which the direct translation from Spanish to English uses the term "Joint Venture". In fact these agreements are not "joint ventures" but rather purely contractual business arrangements between the Corporation and/or its subsidiaries, and the Mexican counter parties. The names and locations of the persons, companies, and projects have been redacted in compliance with confidentiality agreements in place with clients and the Corporation's business partners in Mexico.

  1. The Corporation provides project management and project financing for certain oilfield construction projects in Mexico. During the course of developing the business model, the Corporation entered into an agreement and a series of amendments with an unrelated Mexican construction company. The agreements define the terms and conditions of fees associated with both project management and project financing. The agreements also defined the minimum commitment of financing that the Corporation would provide, with initial minimums set at $5,000,000 USD and subsequently raised to $7,000,000 USD.
  1. The Corporation also provides flexible pipe sales and service in Mexico. During the course of developing the business and introducing the product to the market, the Corporation has entered into agreements that define the terms and conditions of the arrangements. The Corporation advises that during the course of business it has acted both as an agent and as a principal in the sales and service of flexible pipe. When operating as an agent, the Corporation records the commissions as revenues, while when operating as a principal it records the gross revenues and gross costs associated with the project. For the fiscal year end of 2011, the Corporation operated under a supply and services agreement between the Corporation and two unrelated Mexican business partners for multiple projects. Commencing the fiscal year of 2012, the Corporation operated under a marketing and agency agreement with an unrelated Mexican company, whereby the Corporation was entitled to receive a commission on the sale of the pipe products. However, this specific business relationship as well as the overall Mexican operations has evolved significantly, whereby the Corporation has since become the direct distributor of the pipe product and ancillary pipe products and the unrelated Mexican company has become an installer of the pipe products through a sub-contracting relationship with the Corporation.

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.

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.

Contact Information

  • Canadian Oilfield Solutions Corp.
    Ken Berg
    President and Chief Executive Officer
    (403) 543-0060
    (403) 543-0069 (FAX)
    kberg@cotsoilfield.com

    Canadian Oilfield Solutions Corp.
    Scott Hamilton
    Chief Financial Officer and Corporate Secretary
    (403) 543-0060
    (403) 543-0069 (FAX)
    shamilton@cotsoilfield.com