Cancen Oil Canada Inc
TSX VENTURE : COI

May 29, 2012 14:27 ET

Cancen Oil Canada Inc. Signs A Memorandum of Understanding With A Private Group to Develop Oilfeild Waste Management Opportunities in Alberta

EDMONTON, ALBERTA--(Marketwire - May 29, 2012) -

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Cancen Oil Canada Inc. ("Cancen" or the "Corporation") - (TSX VENTURE:COI) announced today that it has signed a memorandum of understanding dated May 15, 2012 (the "MOU") with a private group (the "Private Group") to develop oilfield waste management opportunities in Alberta, including fracturing oil recycling and storage, oilfield waste management, and clean oil marketing (the "Transaction"). The Private Group is an oilfield services company that conducts business throughout Western Canada.

As part of the MOU, Cancen intends to convert the New Sarepta Oilfield Waste Management Facility (the "New Sarepta Facility"), as an Alberta Energy Resources Conservation Board regulated custom treating, oilfield waste management and fluid disposal facility in New Sarepta, Alberta into a hydrocarbon recycling facility for the sole and exclusive benefit and use of the Private Group. The Corporation intends to lease or acquire the New Sarepta Facility from Cancen Oil Processors Inc. (a private company). Cancen also intends to construct two new facilities (the "New Facilities") in strategic geographical locations in Alberta for the benefit and use of the Private Group. All oilfield wastes will be fed through Cancen's oilfield waste processing system and recovered water will be sent for deepwell disposal at Cancen facilities. Recovered clean oil will be purchased and marketed by Astra Energy Canada Midstream Services Inc. ("Astra Midstream").

Management of Cancen believes that this arrangement will secure oilfield waste fluids to Cancen facilities and will increase Cancen's ability to secure clean oil for Astra Midstream. Furthermore, the proposed oilfield waste management opportunities will improve Cancen's overall operating efficiency and diversifies Cancen's existing services to the upstream oil industry.

The completion of the transactions contemplated by the MOU are subject to several conditions precedent, including the entering into of definitive agreements, board of directors approval, receipt of all necessary regulatory approval and other usual conditions.

ABOUT CANCEN OIL CANADA INC.

Cancen is an energy services company that focuses on providing specialized services to the upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The services provided by Cancen assist these companies with the treatment and sale of crude oil and the handling of by-products associated with oil and natural gas development and production. The services provided by Cancen include crude oil emulsion treatment, oilfield waste processing and disposal of produced water and waste water. As of the date thereof, the Corporation's services are provided at five facilities in Alberta and one facility in British Columbia.

ABOUT THE ASTRA GROUP OF COMPANIES

The Astra Group is a large international physical energy trading organization. The core of the Astra Midstream Group's business is trading physical crude oil, petroleum products and associated commodities with offices throughout the world. The Astra Group's experience in all aspects of the downstream markets allows it to operate as an effective partner with refiners, wholesale distributors, shipping company's terminal operators and producers. The Astra Group has a history of refiner ownership and currently owns a 40,000 barrel per day U.S. Oil Refinery in Tacoma Washington (USA). Astra has diverse refinery experience.

The Astra Group controls approximately 11,000,000 barrels of strategically located owned and leased storage worldwide, and operates a fleet of time chartered tankers. The Group's business includes operations in multiple sectors of the energy industry including ethanol, biodiesel, LPG, coal, natural gas, wind energy, and others.

Disclaimer for Forward-Looking Information

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Corporation's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include, but are not limited to, information relating to: the completion of the Transaction; the conversion of the New Sarepta Facility; the construction of the New Facilities; the ability of Cancen to secure clean oil from Astra Midstream; the improvement of Cancen's operating efficiencies; and the diversification of Cancen's existing services. Such statements and information reflect the current view of the Corporation with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

The Corporation cautions that the foregoing list of material factors is not exhaustive. When relying on Cancen's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Corporation has also assumed that material factors will not cause any forward-looking statements and 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.

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.

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